Dislocated Worker Activities in the Workforce Innovation and Opportunity Act (WIOA)

Dislocated Worker Activities in the Workforce Innovation and Opportunity Act (WIOA)

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May 1, 2020
Dislocated Worker Activities in the Workforce Innovation and
Opportunity Act (WIOA)
Overview and Program Rationale
DW State Formula Grants
The Workforce Innovation and Opportunity Act (WIOA)
The DW state program is funded through formula grants to
Dislocated Worker Employment and Training Activities
states, which in turn allocate the majority of those funds to
(DW) program provides employment and training services
local areas. The WIOA-DW formula grants have been
to dislocated individuals ages 18 and older. Approximately
funded at about $1 billion per year (Table 1).
80% of the WIOA-DW funding is allotted to states by
formula and the remaining 20% is for a National Reserve to
Defining Dislocated Workers
address specific dislocation events. This report provides a
An individual is generally eligible for services under the
brief overview of the WIOA-DW program. For a detailed
provisions for dislocated workers in WIOA if he or she
discussion of WIOA, see CRS Report R44252, The
Workforce Innovation and Opportunity Act and the One-
 has been terminated or laid off, or has been notified of a
Stop Delivery System, by David H. Bradley.
termination or layoff;
The Workforce Innovation and
Opportunity Act
 is sufficiently attached to the workforce, demonstrated
either through eligibility for/exhaustion of
WIOA (P.L. 113-28) is the primary federal law that
unemployment compensation or through other means;
supports workforce development. It was enacted in 2014
and
and authorizes appropriations for its programs from
FY2015 through FY2020.
 is unlikely to return to the previous industry or
occupation.
Title I of WIOA authorizes programs and activities that
support job training and related services to unemployed and
There is some breadth in the definition of a dislocated
underemployed individuals. Title I programs are
worker under WIOA. For instance, eligibility is afforded in
administered by the U.S. Department of Labor (DOL),
cases of anticipated facility closings and for self-employed
primarily through its Employment and Training
workers. However, the core eligibility requirement is
Administration (ETA), and delivered through a national
dislocation due to termination or facility closing. There is
One-Stop system that is governed by state and local
no eligibility requirement under WIOA related to the cause
Workforce Development Boards (WDBs). In FY2020,
of the dislocation.
programs and activities authorized under Title I were
funded at $5.2 billion, including $2.8 billion for state
State and Local WIOA-DW Activities
formula grants for youth, adult, and dislocated worker
Of the state allotment for DW activities, the governor must
training and employment activities.
reserve not more than 25% for dislocated worker rapid
Table 1. WIOA Dislocated Worker Funding
response activities to assist these workers in obtaining
reemployment as quickly as possible. A dislocation event is
(Dollars in thousands)
typically defined as a permanent closure or mass layoff at a
Formula
National
facility or a disaster (natural or otherwise) resulting in mass
FY
Grants
Reserve
Total
job dislocation. Rapid response activities may include
establishing onsite contact with employers and employee
2015
$1,015,530
$220,859
$1,236,389
representatives immediately after the dislocation event,
providing information and access to employment and
2016
$1,020,860
$220,859
$1,241,719
training programs through the WIOA-DW program, and
2017
$1,020,860
$220,859
$1,241,719
providing assistance to the affected local community to
develop a coordinated response in seeking state economic
2018
$1,040,860
$220,859
$1,261,719
development aid.
2019
$1,040,860
$220,859
$1,261,719
The remaining WIOA-DW funds are allocated to local
2020
$1,052,053
$270,859
$1,322,912
areas. Through the One-Stop system, dislocated workers
Source: Prepared by CRS based on Labor-HHS-ED (LHHS)
receive career services and training. Career services include
appropriations acts.
the provision of labor market information and job postings,
skills assessment, and case management. Training services
Note: Figures do not include supplemental appropriations or
include occupational classroom training and a range of
rescissions.
work-based training (e.g., on-the-job training).
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Dislocated Worker Activities in the Workforce Innovation and Opportunity Act (WIOA)
DW National Reserve
 Eligible applicants: states, outlying areas, or tribal
From total funding appropriated for the DW program in a
governments; local WDBs; entities designated by a
fiscal year, WIOA specifies that 20% is to be used for a
governor; or entities demonstrating to the Secretary the
National Reserve account, which provides for National
capability to respond to a particular dislocation;
Dislocated Worker Grants (NDWG) and other services for
dislocated workers. The majority of National Reserve
 Eligible participants: dislocated workers, Department of
funding, at least 85%, is used for NDWG activities, after
Defense employees or contractors at risk of dislocation
required reservations for other activities (Figure 1). The
due to reduced defense expenditures, and qualifying
additional reservations include funds for demonstration and
members of the military employed at an installation that
pilot projects (maximum reservation of 10%), assistance to
is being closed within 24 months of eligibility
states not meeting DW performance measures (maximum
determination;
reservation of 5%), and DW funds for outlying areas
(maximum reservation of 0.25%).
 Allowable activities: career, training, and supportive
services.
Figure 1. WIOA-DW Flow of Funds, FY2020
Recent Developments and Uses of NDWG Funding
Since the enactment of WIOA, annual LHHS
appropriations acts have included reservations in the
National Reserve for specific subpopulations or institutions:
 The FY2016 and FY2017 acts included reservations of
$19 million and $20 million, respectively, for workers
dislocated from coal mines and coal-fired power plants
(P.L. 114-113; P.L. 115-31);
 The FY2018, FY2019, and FY2020 acts included
reservations of $30 million annually for workers in the
Appalachian and the Lower Mississippi regions (P.L.
115-141; P.L. 115-245; P.L. 116-94); and

 The FY2020 act included a $40 million reservation for
Source: Prepared by CRS based on Labor-HHS-ED (LHHS)
developing career training programs at community
appropriations acts.
colleges (P.L. 116-94).
NDWG Categories
In addition to reservations, the National Reserve has
NDWGs are discretionary, time-limited grants made by the
received supplemental appropriations three times since
Secretary of Labor to assist states and local areas in
WIOA was enacted:
responding to major economic dislocations or other events
that cause large-scale employment loss. There are two main
 In FY2018, $100 million related to Hurricanes Harvey,
NDWG categories: Disaster Recovery and Employment
Maria, and Irma and to wildfires (P.L. 115-123);
Recovery.
 In FY2019, $50 million related to Hurricanes Florence
Disaster Recovery NDWGs:
and Michael, Typhoon Mangkhut, Super Typhoon Yutu,

and wildfires, earthquakes, tornadoes, and floods (P.L.
Qualifying events: emergencies and major disasters
116-20); and
resulting in large employment loss;


In FY2020, $345 million related to COVID-19 (P.L.
Eligible applicants: states, outlying areas, or tribal
116-136).
governments;

Finally, existing National Reserve funds have been
Eligible participants: those unemployed due to disaster,
directed, by legislation or by ETA, for use in addressing
dislocated workers, long-term unemployed, or self-
particular dislocations. For example, P.L. 115-271
employed who became unemployed due to disaster;
permitted ETA to use up to $100 million to fund a pilot

program for opioid-related dislocations. ETA has made
Allowable activities: disaster relief employment (to
existing National Reserve funds available to address
individuals for a period of up to 12 months for work
dislocations related to various emergencies, including the
related to a disaster), job search and training, and
provision of up to $100 million in FY2020 for responses to
supportive services.
COVID-19.
Employment Recovery NDWGs:
David H. Bradley, Specialist in Labor Economics
 Qualifying events: mass layoffs, plant closures,
Abigail R. Overbay, Senior Research Librarian
industry-wide layoffs, and community impact events
IF11530
(e.g., multiple small dislocations in a local region);
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Dislocated Worker Activities in the Workforce Innovation and Opportunity Act (WIOA)

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