Order Code RS22396
March 2, 2006
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
Ann Lordeman
Specialist in Social Legislation
Domestic Social Policy Division
Summary
Title I of the Workforce Investment Act of 1998 (WIA) (P.L. 105-220) authorizes
several job training programs, including Youth, Adult, and Dislocated Worker
Activities, Job Corps, the Native American Program, the Migrant and Seasonal
Farmworker Program, and the Veterans’ Workforce Investment Program. This report,
which will be updated, briefly summarizes each WIA program, the FY2007 budget
request, and for comparison, the FY2006 appropriation (P.L. 109-149).
Introduction
Title I of the Workforce Investment Act of 1998 (WIA) (P.L. 105-220) provides job
training and related services to unemployed or underemployed individuals. This report
briefly summarizes each WIA program, the FY2007 budget request, and for comparison
the FY2006 appropriation (P.L. 109-149). WIA programs operate on a July 1 to June 30
program year (PY). 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.
Congress considered two bills to reauthorize and revise WIA in the first session of
the 109th Congress. On March 2, 2005, the House passed H.R. 27 (H.Rept. 109-9), the
Job Training Improvement Act of 2005. On September 7, 2005, the Senate Committee
on Health, Education, Labor, and Pensions reported S. 1021 (S.Rept. 109-134), the
Workforce Investment Act Amendments of 2005. No further action has taken place. 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.
Congressional Research Service ˜
The Library of Congress
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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% is 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 in
FY2005 and FY2006 funds has been appropriated for the expansion of Job Corps with
priority to be given to states that do not have a center (H.Rept. 109-337).
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 within 90 days of enactment
of the bill. This bill was enacted on December 30, 2005. For FY2007, the President is
requesting that Job Corps be transferred back to ETA. (For further discussion of the
FY2007 budget request, see below.)
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.
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
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discretionary grants awarded to public, private, and nonprofit organizations. This
program is also referred to as 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 only specified 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 Grants (Subtitle D, Section 171). This
competitive grant program funds entities to strengthen the capacity of community colleges
to train workers in the skills required to succeed in high growth, high demand industries.
In PY2005, competition was limited to community colleges. First funded in FY2005
under the general authority of WIA Section 171, this program is directly specified only
in annual appropriations language. In PY2006, one-stop career centers will also be
eligible to apply for grants as directed by the FY2006 conference report (H.Rept. 109-
337).
WIA FY2006 and FY2007 Appropriations
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.
Current Law. Under the President’s FY2007 request, aggregate funding for WIA
programs would be decreased by $668.8 million, or 13.1% compared to the FY2006
funding level of $5.1 billion. For information on FY2005 and FY2006 WIA
appropriations, see CRS Report RS20244,
The Workforce Investment Act (WIA):
Overview and FY2006 Funding of Title I Training Programs, by Ann Lordeman.
Table
1 shows FY2006 appropriations and the FY2007 budget request under current law for all
WIA programs described above and for technical assistance; pilots, demonstrations and
research; and evaluation. The FY2006 appropriations in this report include FY2006
appropriations and advance FY2007 appropriations, and are subject to supplementals and
rescissions.
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Table 1. WIA Appropriations for FY2006 and FY2007 Under Current
Law
($ in thousands)
Program
FY2006 appropriationa
FY2007 request
WIA grand total
$5,088,466
$4,419,850
Youth Activities (Formula Grants)b
940,500
840,500
Adult Activities (Formula Grants)b
864,199
712,000
Dislocated Worker Activities
1,471,903
1,114,582
— Formula Grants (non-add)b
1,189,811
875,266
— National Reserve (non-add)
282,092
239,316
—— Community-Based Job Training Grants (non
125,000
0
add)
—— National Emergency Grants (non-add)
157,092
239,316
Job Corps
1,564,180
1,501,602
Native Americans
53,696
51,458
Migrants & Seasonal Farmworkerc
79,751
0
Veterans’ Workforce Investment
7,425
7,445
Responsible Reintegration for Young Offenders
49,104
0
Prisoner Reentry Program
19,642
19,642
Community-Based Job Training Grants
0
150,000
Technical Assistance
509
0
Pilots, Demonstrations & Research
29,700
17,700
Evaluation
7,857
4,921
Source: FY2006 appropriations and the FY2007 budget request for all programs, except for Veterans
Workforce Investment, are compiled from data at [http://www.doleta.gov/budget/07req$.pdf]. The amounts
for Veterans Workforce Investment are from the DOL FY2007 Budget Justifications.
a. FY2006 appropriations are adjusted for the 1.0% rescission contained in P.L. 109-148.
b. For state formula grant allocations, see [http://www.doleta.gov/budget/statfund.cfm].
cc. Migrant and Seasonal Farmworker funds for FY2006 include funds for technical assistance.
Legislative Proposals in the FY2007 Budget Request. The President has
proposed creating a new program, Career Advancement Accounts, and transferring the
Youthbuild program from HUD to DOL in the FY2007 budget request.
Career Advancement Accounts (CAA). The President is requesting $3.4
billion for new Career Advancement Accounts. 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,
Employment Service (ES) Grants to States, Labor Market Information (LMI) Grants, and
the administrative costs of the Work Opportunities Tax Credit (WOTC).
Table 2 shows
the FY2006 appropriation for each program that would be consolidated to create the
CAAs. As shown in the table, the FY2006 amount available for LMI grants is not known;
it is part of the activity generally referred to as “One Stop Career Center - ALMIS.” The
table also shows the amount that is requested for each program under current law.
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Of the total $3.4 billion, requested for CAAs, 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.1 States would also obtain funds for rapid
response activities, such as career counseling, delivered by states as rapidly as possible
after the announcement of a plant closing or mass layoff. Under current law, states are
required to use 25% of their dislocated worker allocation on rapid response activities; they
do not have to apply for funds as they would under the CAA proposal.
Of the amount allocated to a 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.” 2
Youthbuild. The President is proposing to transfer the Youthbuild Program from
HUD to DOL. This program provides disadvantaged young adults with education and
employment skills through rehabilitating and constructing housing for low-income and
homeless people. This transfer proposal was also made in the budget request for FY2006,
but no action was taken. On November 10, 2005, Senator Kerry introduced the
Youthbuild Transfer Act of 2005 (S. 1999), which would amend WIA to transfer the
program from HUD to DOL. For FY2006, Youthbuild was funded at $61.5 million. The
budget request for FY2007 is $50.0 million.
Table 2. FY2006 Appropriations and FY2007 Budget Request for
Each Program That Would Be Consolidated to Create Career
Advancement Accounts
($ in thousands)
FY2007 request
for Career
FY2006
Advancement
Program Appropriation
Accounts
TOTAL
Not Available
$3,412,633
WIA Youth Activities
$940,500
840,500
WIA Adult Activities
864,197
712,000
WIA Dislocated Worker
1,471,903
1,114,582
Activities
ES Grants to States
715,883
688,769
WOTC
$19,514
17,677
LMI Grants
Not Available
39,105
Source: Compiled from the DOL FY2007 Budget Justification.
1 In recent years, appropriations language has specified the National Reserve amount.
2 For further information on CAAs, see [http://www.doleta.gov/budget/07bud.cfm]