Order Code RL33687
CRS Report for Congress
Received through the CRS Web
The Workforce Investment Act (WIA):
Program-by-Program Overview and
FY2007 Funding of Title I Training Programs
Updated October 31, 2006
Blake Alan Naughton and Ann Lordeman
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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The Workforce Investment Act (WIA):
Program-by-Program Overview and
FY2007 Funding of Title I Training Programs
Summary
This report tracks current appropriations and related legislation for Title I of the
Workforce Investment Act of 1998 (WIA) (P.L. 105-220). Following a brief
summary of each WIA program, the report presents the status of legislative proposals
contained in the Administration’s FY2007 budget request and compares WIA
funding in the FY2006 appropriation, the FY2007 budget request, and the FY2007
House and Senate Appropriations Committee reports.
WIA provides, in general, job training and related services to unemployed and
underemployed individuals. WIA programs are administered by the Department of
Labor (DOL), primarily through DOL’s Employment and Training Administration
(ETA). State and local WIA training and employment activities are provided through
a system of One-Stop Career Centers.
WIA authorizes several job training programs: state formula grants for Youth,
Adult, and Dislocated Worker Employment and Training Activities; Job Corps; and
other national programs, including the Native American Program, the Migrant and
Seasonal Farmworker Program, the Veterans’ Workforce Investment Program,
Responsible Reintegration for Young Offenders, the Prisoner Reentry Program, and
Community-Based Job Training Grants (also known as the Community College
Initiative). An additional national program, formerly in the Department of Housing
and Urban Development (HUD), was made a part of WIA on September 22, 2006,
by the YouthBuild Transfer Act (P.L. 109-281). For FY2007, the President proposes
to consolidate WIA Youth, Adult, and Dislocated Worker Activities with
Employment Service and other programs into a single funding stream called Career
Advancement Accounts (CAAs).
Appropriations for WIA are made annually through the Departments of Labor,
Health and Human Services, and Education and Related Agencies Appropriations
Act (Labor-HHS-ED). In FY2006 (P.L. 109-149), $5.14 billion was appropriated for
WIA Title I programs. The President’s FY2007 budget requested $4.47 billion in
WIA funding. On June 20, 2006, the House Committee on Appropriations reported
H.R. 5647 (H.Rept. 109-515), which would provide $4.98 billion for WIA. On July
20, 2006, the Senate Committee on Appropriations reported S. 3708 (S.Rept. 109-
287), with $5.06 billion for WIA. On September 29, 2006, the FY2007 Department
of Defense appropriations bill (H.R. 5631) was signed by the President (P.L. 109-
289). The bill included a continuing resolution to fund discretionary programs,
including WIA, at FY2006 spending levels until November 17, 2006.
This report will be updated as major legislative developments occur.

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Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Program-by-Program Overview of WIA Title I Programs . . . . . . . . . . . . . . . . . . . 2
Youth Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Adult Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Dislocated Worker Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Job Corps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Native Americans Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Migrant and Seasonal Farmworker Program . . . . . . . . . . . . . . . . . . . . . . . . . 3
Veterans’ Workforce Investment Program . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Responsible Reintegration for Young Offenders . . . . . . . . . . . . . . . . . . . . . . 3
Prisoner Reentry Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Community-Based Job Training (CBJT) Grants . . . . . . . . . . . . . . . . . . . . . . 3
WIA FY2006 and FY2007 Appropriations: Comparisons and Proposals . . . . . . . 3
Current Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Rescission of Unspent Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Job Corps Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Community-Based Job Training Grants Account . . . . . . . . . . . . . . . . . 6
Legislative Proposals in the FY2007 Budget Request . . . . . . . . . . . . . . . . . . 6
YouthBuild Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Career Advancement Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
List of Tables
Table 1. WIA Appropriations for FY2006 and
FY2007 Under Current Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2. FY2006 Appropriations and FY2007 Budget Request
for the Proposed Career Advancement Accounts . . . . . . . . . . . . . . . . . . . . . 8

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The Workforce Investment Act (WIA):
Program-by-Program Overview and
FY2007 Funding of Title I Training Programs

Most Recent Developments
On June 20, 2006, the House Committee on Appropriations reported H.R. 5647
(H.Rept. 109-515), its proposal for the Departments of Labor, Health and Human
Services, and Education and Related Agencies (Labor-HHS-ED) for Fiscal Year (FY)
2007. On July 20, 2006, the Senate Committee on Appropriations reported its
version of Labor-HHS-ED, S. 3708 (S.Rept. 109-287). Within these bills, the House
committee would fund programs authorized under Title I of the Workforce
Investment Act of 1998 (WIA) (P.L. 105-220) for $4,975 million, and the Senate
committee for $5,061 million. These amounts include funds for YouthBuild, which
was transferred to the Department of Labor (DOL) as a WIA program by the
YouthBuild Transfer Act (P.L. 109-281) on September 22, 2006. On September 29,
2006, the FY2007 Department of Defense appropriations bill (H.R. 5631) was signed
by the President (P.L. 109-289). Division B of the conference report (H.Rept. 109-
676) included a continuing resolution to fund federal discretionary programs until
November 17, 2006. Programs and activities funded through L-HHS-ED, including
WIA, will continue to be funded at the FY2006 spending levels.
Introduction
Title I of WIA provides, in general, job training and related services to
unemployed or underemployed individuals. This report briefly summarizes each
WIA program and compares WIA funding under Labor-HHS-ED in the following:
! the FY2006 appropriation act (P.L. 109-149);
! the President’s FY2007 Budget of the U.S. Government;
! the FY2007 House committee report (H.Rept. 109-515); and
! the FY2007 Senate committee report (S.Rept. 109-287).
Most WIA programs operate on a program year (PY) of July 1 to June 30. FY2007
appropriations would fund programs from July 1, 2007, until June 30, 2008.
Although WIA authorized funding through September 30, 2003, WIA programs
continue to be funded through annual appropriations.
In recent years, both the House and Senate have passed bills that would
reauthorize and revise WIA. On March 2, 2005, the House passed H.R. 27 (H.Rept.
109-9), the Job Training Improvement Act of 2005. On June 29, 2006, the Senate

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incorporated S. 1021 (S.Rept. 109-134), the Workforce Investment Act Amendments
of 2005, as amended, in H.R. 27, and passed its version of H.R. 27. For information
on WIA reauthorization, see CRS Report RL32778, The Workforce Investment Act
of 1998 (WIA): Reauthorization of Job Training Programs in the 109th Congress,
by Ann Lordeman.
Program-by-Program Overview
of WIA Title I Programs
Except for Job Corps and the Veterans’ Workforce Investment Program, all
WIA programs are administered by the Department of Labor’s (DOL) Employment
and Training Administration (ETA). The administration of Job Corps and Veterans’
Workforce Investment is discussed below.
Youth Activities (Subtitle B, Chapter 4). This program provides training
and related services to low-income youth ages 14-21 through formula grants
allocated to states, which, in turn, allocate funds to local entities.
Adult Activities (Subtitle B, Chapter 5). This program provides training
and related services to individuals ages 18 and older through formula grants allocated
to states, which, in turn, allocate funds to local entities. Any individual may receive
“core” services (e.g., job search assistance); to receive “intensive” services (e.g.,
individual career planning and job training), an individual must need these services
to become employed or to obtain or retain employment that allows for self-
sufficiency.
Dislocated Worker Activities (Subtitle B, Chapter 5). In general, of the
funds appropriated for this program, 80% are allocated by formula grants to states
(which in turn allocate funds to local entities) to provide training and related services
to individuals who have lost their jobs and are unlikely to return to those jobs or
similar jobs in the same industry. Generally, 20% of the appropriation is reserved by
DOL for a national reserve account, which in part provides for national emergency
grants to states or local entities.
Job Corps (Subtitle C). This residential job training program provides
services to low-income individuals ages 16-24 primarily through contracts
administered by DOL with corporations and nonprofit organizations. Currently, there
are 122 Job Corps centers in 48 states, the District of Columbia, and Puerto Rico.
Neither New Hampshire nor Wyoming has a Job Corps center at this time. A total
of approximately $18.0 million was appropriated in FY2005 and FY2006 for the
expansion of Job Corps, with priority to be given to states that do not have a center
(H.Rept. 109-337).
Native Americans Program (Subtitle D, Section 166). This program
provides training and related services to low-income Indians, Eskimos, Aleuts, and
Native Hawaiians through formula grants to Indian tribes and reservations and other
Native American groups.

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Migrant and Seasonal Farmworker Program (Subtitle D, Section
167). This program provides training and related services, including technical
assistance, to disadvantaged migrant and seasonal farmworkers and their dependents
through discretionary grants awarded to public, private, and nonprofit organizations.
This program is also referred to as the National Farmworker Jobs Program.
Veterans’ Workforce Investment Program (Subtitle D, Section 168).
This program provides training and related services to veterans through competitive
grants to states and nonprofit organizations. It has been administered by DOL’s
Veterans’ Employment and Training Service since FY2001.
Responsible Reintegration for Young Offenders (Subtitle D, Section
171). This competitive grant program funds projects that serve young offenders and
youth at risk of becoming involved in the juvenile justice system. This program, first
funded in FY2000, is specified only in annual appropriations language.
Prisoner Reentry Initiative (Subtitle D, Section 171). This competitive
grant program funds faith-based and community organizations that help recently
released prisoners find work when they return to their communities. First funded in
FY2005 under the general authority of WIA Section 171, this program is directly
specified only in annual appropriations language.
Community-Based Job Training (CBJT) Grants (Subtitle D, Section
171). This competitive grant program, also known as the Community College
Initiative, funds entities to strengthen the capacity of community colleges to train
workers in the skills required to succeed in high-growth, high-demand industries.
First funded in FY2005 under the general authority of WIA Section 171, this program
is directly specified only in annual appropriations language. For PY2005,
competition was limited to community colleges. In PY2006, One-Stop Career
Centers will also be eligible to apply, as directed by the FY2006 conference report
(H.Rept. 109-337).
WIA FY2006 and FY2007 Appropriations:
Comparisons and Proposals
The President presents the FY2007 budget request in two ways. It is presented
as if the appropriations are made under current law and also as if legislative proposals
contained in the budget request are enacted. The two legislative proposals, discussed
below, would create Career Advancement Accounts and would transfer the
YouthBuild program from the Department of Housing and Urban Development
(HUD) to DOL. Legislation transferring YouthBuild was enacted in September
2006; for comparability, this report includes YouthBuild in totals for the FY2006
appropriation and all FY2007 requests and recommendations.
Table 1 shows FY2006 appropriations, the FY2007 budget request, and the
amounts recommended by both the House and Senate Appropriations Committees.
Amounts include all WIA programs described above and technical assistance; pilots,
demonstrations and research; evaluation; and the YouthBuild program.

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Current Law. Under the President’s FY2007 request, aggregate funding for
WIA programs would be decreased by $668.1 million, or 13.0% compared to the
FY2006 funding level of $5.1 billion. In both the House and Senate committee
versions, funding would also be decreased, but not by as much. The House
committee would decrease aggregate funding $163.3 million, or 3.2%; the Senate
committee, by $77.4 million, or 1.5%. For information on FY2005 and FY2006
WIA appropriations, see CRS Report RS20244, The Workforce Investment Act
(WIA): Overview and FY2006 Funding of Title I Training Programs, by Ann
Lordeman.
Rescission of Unspent Funds. The House committee would rescind
$325.0 million from the unexpended balances of local entities, which represents
28.6% of the $1.142 billion DOL estimates to be unexpended at the end of PY2005
(as of September 1, 2006). These balances include the unspent funds of WIA’s three
state block-grant programs: Youth, Adult, and Dislocated Worker Activities. Nearly
half is from Dislocated Worker Programs. The amounts include obligated, but not
yet expended, funds. The House committee would require the department to make
reductions to entities (states) with the greatest balances first. Neither the Senate
committee nor the President’s request would include this rescission.
The House committee report states that this rescission stems from its concern
about the “lapsing” of funds not spent in the allowable time. The approximation of
lapsed funds can be determined from DOL reports1 of unexpended balances at the
end of a program year, less carry-out to the next program year. At the end of
PY2004, $8.4 million of unexpended funds were not carried over to PY2005. This
represents 0.7% of unexpended balances, and came from 13 states. From PY2005
to PY2006, $6.4 million lapsed from 10 states, or 0.5% of unexpended balances.
Job Corps Administration. The FY2006 appropriations (P.L. 109-149,
Section 102) directed DOL to transfer Job Corps from ETA to the Office of the
Secretary of Labor. This transfer was effective on March 27, 2006. For FY2007, the
President is requesting, and the House committee also would recommend, that Job
Corps be transferred back to ETA. The House committee therefore would include
Job Corps in the Training and Employment Service (TES) funds. The Senate
committee would keep Job Corps in the Office of the Secretary, and in its
appropriation bill would account for Job Corps under Department Management.
Due to this difference, appropriations relating to Job Corps’ federal
administration expenses are handled differently. The House committee would
include administrative expenses in the aggregate ETA Program Administration funds
for Youth Employment and Training ($39,975,000). The Senate committee would
reduce youth program administration funding by $28,578,000 and move that amount
to a separate line for Job Corps Administration under Department Management.
1 For WIA state spending reports, see [http://www.doleta.gov/budget/qtrlyspend.cfm].

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Table 1. WIA Appropriations
for FY2006 and FY2007 Under Current Law
($ in thousands)
FY2007
FY2007
FY2006
FY2007
House
Senate
Program
Appropriationa
Request
Committee
Committee
WIA grand totalb
$5,137,966
$4,469,850
$4,974,634
$5,060,592
Youth Activities
940,500
840,500
935,500
935,500
- Formula Grants (non-add)c
940,500
840,500
885,500
885,500
- YouthBuild (non-add)d
—
—
50,000d
50,000d
Adult Activities (Formula Grants)c
864,199
712,000
854,000
800,000
Dislocated Worker Activities
1,471,903
1,114,582
1,476,064
1,476,064
- Formula Grants (non-add)c
1,189,811
875,266
1,193,264
1,193,264
- National Reserve (non-add)
282,092
239,316
282,800
282,800
- - CBJT Grants (non-add)e
125,000
—
125,000 e
125,000 e
- - National Reserve (Grants and
157,092
239,316
157,800
157,800
Other Activities) (non-add)
Job Corpsf
1,564,180
1,501,602
1,523,000
1,601,210
Native Americans
53,696
51,458
50,000
50,000
Migrant and Seasonal Farmworkersg
79,751
0
80,053
80,657
Veterans’ Workforce Investment
7,425
7,445
7,425
7,425
Resp. Reinteg. for Young Offenders
49,104
0
0
60,000
Prisoner Reentry Program
19,642
19,642
0
0
CBJT Grantse
—
150,000 e
—
—
YouthBuildd
49,500
50,000d
—
—
Technical Assistance
509
0
0
0
Pilots, Demonstrations and Research
29,700
17,700
43,671
44,815
Evaluation
7,857
4,921
4,921
4,921
Source: Table compiled by the Congressional Research Service (CRS). FY2006 appropriations and
the FY2007 budget request for all programs, except for Veterans’ Workforce Investment, are compiled
from data at [http://www.doleta.gov/budget/07req$.pdf]. The amounts for Veterans’ Workforce
Investment are from the DOL FY2007 Budget Justifications. The FY2007 House and Senate
committee amounts are from H.Rept. 109-515 and S.Rept. 109-287, respectively.
a. FY2006 appropriations are adjusted for the 1.0% rescission contained in P.L. 109-148, but do not
include the $125 million emergency supplemental appropriation for dislocated workers affected
by the 2005 Gulf Coast hurricanes contained in the same law.
b. Although not a part of WIA in FY2006, YouthBuild funds from HUD are included in the FY2006
total for comparability. YouthBuild was formerly authorized under the Housing and Community
Development Act of 1992 (P.L. 102-550), which added YouthBuild as a subtitle in the
Cranston-Gonzalez National Affordable Housing Act of 1990 (P.L. 101-625).
c. For state formula grant allocations, see [http://www.doleta.gov/budget/statfund.cfm].
d. In this table, YouthBuild is shown on two lines: first as a specified amount (non-add) reserved
from a larger funding stream (as allowed for by the House and Senate committees), and second
as a separate fund (as requested by the President).
e. CBJT Grants, like YouthBuild, is shown on two lines to properly reflect funding stream options.
f. Amounts shown for Job Corps do not include $28,578,000 that the Senate committee would allow
for federal administrative expenses, but which the House committee includes in aggregate ETA
funds. These amounts are not shown in this table.
g. Migrant and Seasonal Farmworker funds for FY2006 and in the Senate committee’s version of
FY2007 include funds for technical assistance ($499,000 in FY2006, $604,000 in FY2007).

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Community-Based Job Training Grants Account. While the President
is requesting separate funds for this program in FY2007, both the House and Senate
committees would continue funding from the National Emergency Grants account
of the Dislocated Worker Activities. The House committee is “not in agreement”
with the separate request due to concern over the role of One-Stop Career Centers in
the initiative, and would direct DOL to open the grant competition to One-Stops. (As
noted earlier, the FY2006 appropriations conference report also contained this
directive.) The Senate would similarly encourage DOL to make One-Stops eligible
grantees and also would maintain the program as part of the Dislocated Worker
funding stream.
Legislative Proposals in the FY2007 Budget Request. The President
has proposed transferring the YouthBuild program from HUD to DOL in the FY2007
budget request, and creating a new program, Career Advancement Accounts.
YouthBuild Transfer. The President’s FY2007 request and both of the
Appropriation Committees’ reports included funding for YouthBuild, contingent on
passage of pending legislation for transferring the YouthBuild Program from HUD
to DOL as a program under WIA. This program provides disadvantaged young
adults with education and employment skills through rehabilitating and constructing
housing for low-income and homeless people. YouthBuild was originally authorized
under the Housing and Community Development Act of 1992 (P.L. 102-550), which
added YouthBuild as a subtitle in the Cranston-Gonzalez National Affordable
Housing Act of 1990 (P.L. 101-625). The transfer proposal was recommended in
2003 by the White House Task Force for Disadvantaged Youth and was included in
the budget request for FY2006, but no action was taken at that time. The YouthBuild
Transfer Act was signed by the President on September 22, 2006 (P.L. 109-281).
For FY2006, YouthBuild was funded at $49.5 million. The budget request for
FY2007 is $50.0 million, as a separate national program. Both the House and Senate
committees would fund YouthBuild at this level by directing that $50.0 million be
reserved from the $935.5 million that would be appropriated for WIA Youth
Activities.
Career Advancement Accounts (CAAs). The President is requesting $3.4
billion for new Career Advancement Accounts for FY2007. These accounts would
be “self-managed” and would provide a maximum of $3,000 to adults and out-of-
school youth to pay for expenses directly related to education and training. A single
funding stream would be allocated to states by an as yet unspecified formula. This
funding stream would consist of the combined funding for WIA Youth, Adult, and
Dislocated Worker Programs, plus funds for non-WIA programs including
Employment Service (ES) Grants to States, Labor Market Information (LMI) Grants,
and the federal funds for administering the Work Opportunity Tax Credit (WOTC)
and the Welfare-to-Work (WtW) Tax Credit. Table 2 shows the FY2006
appropriation for each program that would be consolidated to create CAAs, and the
amount requested for each program under current law. The amount requested for
CAAs is 15.6%, or $630.7 million less than the total FY2006 funding for programs
that would be consolidated to create the CAAs.

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Under the CAA proposal, the Secretary would reserve an unspecified portion
for a national reserve fund to be used to address unanticipated events, such as natural
disasters, and for innovative projects for adults and youth. Under current law, 20%
of the amount appropriated for dislocated workers is to be used in a national reserve
for these types of activities.2 Also under current law, states are required to use 25%
of their dislocated worker allocation on rapid response activities, such as career
counseling, delivered by states as soon as possible after the announcement of a plant
closing or mass layoff. Under the CAA proposal, states would apply to the Secretary
for funds from the national reserve for rapid response activities.
Of the amount allocated to each state, a minimum percentage of “approximately
75%” would have to be used for CAAs. Up to 3% could be used for administrative
costs, and the remaining 22% would be used to provide “basic employment services
to job seekers or employers.”3
DOL issued its solicitation for FY2006 Community-Based Job Training (CBJT)
Grants on July 3, 2006 (71 Fed. Reg. 37948-37960), and included a priority provision
assigning bonus points for applicants piloting Career Advancement Accounts, among
other options. On July 7, 2006, ETA invited specified states4 to participate in a
demonstration of CAAs. States were to respond to this grant offer by July 14. ETA
clarified the intent behind awarding CBJT Grant application bonus points for CAAs
on August 4, 2006 (71 Fed. Reg. 44321-44322), stating it included this program
because “ETA recognizes that some states may be piloting CAAs in advance of the
FY 2007 budget.”
On October 26, 2006, ETA announced that three states (Indiana, Pennsylvania,
and Wyoming) would participate in a statewide demonstration project, while another
five states (Georgia, Michigan, Minnesota, Missouri, and Ohio) would pilot CAAs
for use by workers affected by the recent General Motors layoffs. Grants to each
state are for $1.5 million — contingent upon the state securing an equal level of
matching funds — and are renewable for a second year, for up to $24 million,
allocated from the Secretary’s discretionary funds over two years. In addition, the
announcement states that a competition for a CAA study “will be held shortly.”
Neither the House nor the Senate committees would fund Career Advancement
Accounts for FY2007. Specifically, the Senate committee report (on July 20)
specifies that “the Committee expects that no funds be utilized for the proposed
career advancement account initiative unless specifically authorized by law.”
2 In recent years, appropriations language has specified the National Reserve amount.
3 For further information on CAAs, see [http://www.doleta.gov/budget/07bud.cfm].
4 Nine states were invited to participate in the CAA demonstration “due to current or
announced layoffs occurring in the automotive manufacturing industry.” They are Georgia,
Michigan, Minnesota, Missouri, Ohio, Oklahoma, Oregon, Tennessee, and Virginia.
Maximum demonstration grants per state are for $3 million over two years, dependent upon
leveraged funding. A tenth state, Pennsylvania, was invited in another correspondence “to
participate in another facet of this CAA demonstration.”

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Table 2. FY2006 Appropriations and FY2007 Budget Request
for the Proposed Career Advancement Accounts
($ in thousands)
FY2007 Request
FY2006
Program
for Career Advancement
Appropriation
Accounts
TOTAL
$4,043,342
$3,412,633
WIA Youth Activities
$940,500
$840,500
WIA Adult Activities
$864,197
$712,000
WIA Dislocated Worker Activities
$1,471,903
$1,114,582
ES Grants to States
$715,883
$688,769
WOTC/WtW Tax Credits (Admin)
$17,677
$17,677
LMI Grants
$33,180
$39,105
Source: Table compiled by CRS from information contained in the DOL FY2007 Budget
Justification, and for the LMI Grants from Attachment VI to Training and Employment Guidance
Letter (TEGL) 25-05, Apr. 11, 2006.
crsphpgw

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