WIOA Reauthorization Update

In early April, the U.S. House of Representatives passed their version of the WIOA reauthorization legislation, H.R. 6665, A Stronger Workforce for America Act (bills-118hr6655ih.pdf (house.gov)) by a vote of 378-26.

The MWA is working with our federal and state partners to advocate for the best possible version of WIOA in the U.S. Senate. One positive that has already come out of the Senate is a proposal that would mandate that states facilitate access to unemployment and wage data to local boards, a persistent issue that is top of mind of many of our members. To read the that proposal, please see here.

Below please find the positive and negative of the legislation that passed the House earlier this month.

Positive provisions in the proposal, reflecting feedback from local workforce stakeholders include:

• Removal of required one stop operator procurement provision-Allows local governments to serve as one stop operator through agreement with Governor
• Increase cap on incumbent worker training dollars
• Increase flexibility for local workforce boards to operate one stops via affiliate sites
• Provides more stable state funding mechanism for infrastructure funding agreements (IFA)-Negotiating IFAs at the local level has been a difficult process
• Maintains 100% transferability between Adult and Dislocated Worker accounts
• Provides flexibility on out of school youth definition and priority of service, Out of School youth becomes ‘Opportunity Youth’ and Reduces Opportunity Youth required percentage to 65% from 75% (many states had challenge meeting current 75% out of school youth requirement)
• Creates a mandatory funding source, H-1B Visa fees, to fund Individual Training Accounts (ITA)for Dislocated worker ~$250 million annually distributed directly to local workforce boards via formula

Provisions of significant concern:

• 50% training requirement – By focusing Adult and Dislocated Worker expenditures on training,this mandate will pull resources from the workforce system which help job seekers actually complete the training. Relying on a strict training percentage will also limit a local workforce board’s ability to ensure this training is connected to local demand and high growth sectors.
• Critical Industry Skills Fund – This provision allows Governors to increase their set-aside by up to 10% to create a ‘Critical Industry Skills Fund.’ Absent a more significant increase in authorized funding levels, this is shifting valuable resources from the local system to the State. A key advantage to local workforce boards receiving funding through the WIOA formula allocation is all of the system benefits that come with it – career services, counseling, sector/industry partnerships, etc. This Skills Fund would take those already scarce resources and create a duplicative effort, disconnected from the WIOA system.
• Demonstration Authority and Redesignation – These respective provisions will do little to increase training delivered through the WIOA system and serve as a distraction for the broader strategic work that local workforce boards are involved in. While the legislation does not dictate an outcome, it does incentivize particular outcomes (in the case of redesignation) and will result in potential loss of funding from the WIOA system. The power of the current WIOA model is that the federal investment can be leveraged across other programs and funding streams. Efforts to consolidate local boards through/with regional planning units would be devastating to that structure and losing funding for those local communities.

There are so many job postings and funding announcements, we moved our News from Around the Sector section to our website, where you can access the news, jobs, funding announcements and more anytime throughout the month. Go to: www.massworkforce.com/around-the-sector.

Here is a just sample of the events, funding opportunities, jobs, and more posted on our website:

• Job Opportunity: MassMEP is hiring a Workforce Development Program Manager. Click here to learn more and apply.
• Article: DOL's New Overtime Rule, Economic Policy Institute
• Funding Opportunity: Refugee Career Pathway Program, The Office of Refugee Resettlement. Click here to learn more.