What’s Happening to WIOA? [2024 Updates]

This post was last updated on August 28, 2024. To stay informed on future updates, please subscribe to the newsletter.

The Workforce Innovation and Opportunity Act expired in 2020, and workforce development agencies have been running on fumes ever since. Even the bigger picture is bleak: over the past 20 years, federal funding for workforce programs has declined by 45%. WIOA reauthorization is desperately needed to support our nation’s workforce as we recover from the pandemic and continue to move through global economic uncertainty.

In May 2022, the House passed WIOA of 2022 (H.R.7309), which would have reauthorized and fully funded WIOA programs with nearly $80 billion over the next six years. Unfortunately, it did not achieve the bipartisan support it needed to move forward in the Senate.

Over a year and a half later, House Education and the Workforce Committee leaders delivered another attempt at reauthorization: H.R. 6655, A Stronger Workforce for America Act. 

“An effective workforce development system is critical to ensuring a strong economy and a skilled workforce. This bipartisan bill provides crucial updates to the Workforce Innovation and Opportunity Act that will help employees compete in today’s workforce, close the skills gap, provide accountability, and most importantly, facilitate the success of American workers,” said Chairwoman Foxx. 

Ranking Member Scott added, “For far too long, we have left our workforce development system without the resources and tools it needs to connect workers with good-paying job opportunities and help employers access a pipeline of talented workers. The bill makes an array of key improvements to Workforce Innovation and Opportunity Act programs, such as expanding and improving the quality of skills development, strengthening services for disconnected youth, and codifying grants to help individuals released from incarceration transition back to employment and sustainable careers.”

On April 9, the House passed the Stronger Workforce for America Act in an overwhelming 378-26 vote. Over the summer, the Senate proposed a discussion draft of a WIOA reauthorization bill. Many advocacy groups feel that the Senate draft bill is an improvement on the House's ASWA bill but still misses the mark in some places. 

Here are some key takeaways from ASWA, the House's proposed bill:

Invests in Skills

• Allocates 50 percent of funds for adult and displaced workers towards "individual training accounts" (ITAs), on-the-job learning, and other relevant employer and industry initiatives for upskilling.
• Offers eligible displaced workers ITAs valued at $5,000 to participate in high-quality reskilling programs and rejoin the workforce, utilizing existing resources from the Department of Labor.
• Permits states to earmark extra funds from their state allocation to create a "critical industry skills fund," which would reimburse employers, sector partnerships, and other intermediaries for upskilling workers in priority industries, contingent on program completion and sustained employment.
• Increases the limit on "incumbent worker training," enabling local workforce boards, especially in areas with low unemployment or high labor force participation, to assist the currently employed workforce in acquiring new skills to prevent displacement and promote career advancement.
• Improves the Adult Education and Family Literacy Act (WIOA Title II) by incorporating digital literacy skills as a fundamental part of adult education and promoting "integrated education and training" to allow adult learners to acquire basic skills while preparing for a high-demand job or industry.

Increases Accountability

• Refines the "eligible training provider list" to align with employer needs, focusing on employment outcomes and quality.
• Updates performance indicators to better measure program success, including job retention and employer-connected learning rates.
• Strengthens accountability system to ensure positive labor market outcomes and continuous system improvement.
• Modernizes jobseeker services through regular state-level assessments, promoting cost-effective virtual services and community hubs.
• Increases Job Corps standards for performance and safety, tying contract awards to success and providing more local control.

High-Quality Pathways

• Replaces the term "out-of-school youth" with "opportunity youth," mandates 65% of youth funds for them, and allows local percentage allocation.
• Places a greater emphasis on work-based learning for youth and enhances the quality of summer and year-round employment opportunities while authorizing ITAs for in-school youth to participate in extra-curricular skills development programs.
• Enhances a program for helping released prisoners transition into employment and identifies strategies to improve outcomes and reduce recidivism.
• Strengthens in-demand job-aligned programs at community colleges, focusing on industry partnerships and recognition of prior learning.

Prioritizes Modernization

• Grants a demonstration authority enabling selected states and local workforce boards to receive consolidated five-year Title I funds, offering flexibility to reshape their workforce systems while maintaining basic protections and accountability.
• Ensures transparency in credentials awarded by eligible providers, including detailed information on the awarding entity, industry recognition, skills signified, and employment and earning outcomes of recipients.
• Encourages skills-based hiring by allowing state and local boards to offer technical assistance to employers for implementing such practices, including competency-based assessments during participant intake.
• Improves Workforce Data Quality Initiative grants to enhance state workforce data capabilities through cross-state collaboration, timely and relevant labor market data, adoption of credential navigation tools, and evidence-based decision-making.
• Increases the limit on pay-for-performance contracting and streamlines the process for local workforce boards to contract with outcome-focused programs, removing the restriction on states using their governor's reserve for incentives.

Concerns With ASWA

ASWA includes a new mandate requiring 50% of WIOA Title I Adult and Dislocated Worker funds to be allocated specifically for training. While this provision aims to enhance skill development, it raises several concerns about potential negative impacts on workforce support systems. One major concern is that it would necessitate local workforce boards to reallocate funds, which could adversely affect small businesses relying on these funds to find skilled talent. Additionally, the mandate could significantly reduce the availability of supportive services like childcare and transportation assistance, which are crucial for many job seekers to access employment or training opportunities. This shift in funding priorities could also limit the ability of local stakeholders to devise and implement workforce strategies tailored to their unique needs.

Furthermore, the bill proposes increasing the portion of WIOA funds that governors can reserve for Critical Industry Skills initiatives, aiming to foster innovation. However, this change could further centralize control over funds, potentially detracting from localized solutions and reducing the total funds available to communities to support job seekers, leaving them with only a quarter of the current WIOA formula funds. Considering the historical underfunding of WIOA, these changes could have widespread negative effects on both job seekers and employers across the country.

Changes Proposed by the Senate's Discussion Draft

The Senate's discussion draft of the WIOA reauthorization bill introduces several significant modifications compared to the House's version. Notably, it removes the 50% training mandate on Title I Adult and Dislocated Worker funds, which reduces mandatory spending requirements and allows for more flexibility in fund allocation. The draft also grants state governors increased authority to consolidate or restructure local workforce development areas (LWDAs), providing greater flexibility in re-designating these areas compared to the House proposal. Additionally, the draft sets forth a requirement for states to reserve 10% of WIOA Title I funding specifically for Industry/Sector Partnership initiatives and employer-based training activities, outlining a more prescriptive use of these funds. It also introduces a new funding stream derived from H-1B visa fees, aimed at supporting Individual Training Accounts, which could offer additional resources for workforce development.

What Does This Mean for Service Providers?

Any agreed-upon version of this bill must still clear a vote in the Senate before it becomes law. However, given the strong bipartisan support thus far, service providers should prepare for the impact these proposed changes may have on their programs, organizations, and communities if passed. A major takeaway from ASWA is the increased focus on data collection. Moving forward, it will be critical for service providers to accurately and efficiently track training hours and securely collaborate with external service providers. With additional compliance requirements and more stringent performance measures, WIOA-funded agencies will need the technological infrastructure to collect, track, and report on participant data. Clearly demonstrating their impact will allow agencies to stay compliant and fully funded. Luckily, the requirement that 5% of certain funding pools be earmarked for longitudinal data collection means that agencies can expect more available grants for technological and reporting improvements if this reauthorization is passed.

myOneFlow is the only WIOA management platform that enables providers to manage and report on clientele from application through job placement and beyond. Our developers constantly update myOneFlow to reflect the evolving needs of WIOA service providers, so regardless of changes in legislation, your office stays compliant and able to scale your impact. Contact our team of experts today to discuss how myOneFlow can help your organization prepare for upcoming changes to WIOA.

Frequently Asked Questions

• What changes are being proposed for WIOA in 2023?
  In 2023, proposed changes to WIOA focus on updating funding allocations, improving support for workforce training programs, and enhancing partnerships with educational institutions and employers. These changes aim to make workforce programs more responsive to current labor market needs and improve job seekers' outcomes.
• How will the 2023 updates to WIOA affect workforce development organizations?
  Workforce development organizations may need to adjust their programs to align with new funding priorities and reporting requirements. These updates could mean a greater emphasis on data tracking, partnerships with local businesses, and providing job training for in-demand industries to meet revised WIOA goals.
• What steps can my organization take to prepare for the new WIOA requirements?
  To prepare, organizations should stay informed about proposed changes, review current compliance with WIOA standards, and consider investing in data reporting and analysis tools. Building relationships with local employers and focusing on high-demand job skills training can help organizations align with WIOA's evolving objectives.