August 12, 2024
TO:
The Honorable Bernie Sanders
Chairman, U.S. Senate Committee on Health, Education, Labor and Pensions
Washington, D.C., 20510
The Honorable Bill Cassidy
Ranking Member, U.S. Senate Committee on Health, Education, Labor and Pensions
Washington, D.C., 20510
On behalf of the National Association of Counties (NACo), National Association of Workforce Boards (NAWB), National League of Cities (NLC), U.S. Conference of Mayors (USCM), and U.S. Workforce Associations (USWA), we are writing to provide recommendations for the reauthorization of the Workforce Innovation and Opportunity Act (WIOA). WIOA is a critical tool that empowers local governments, workforce boards, and other local stakeholders to connect individuals with in-demand skills training and education needed by employers.
A thoughtful reauthorization of WIOA—one that balances the needs of workers, learners, employers, and their communities—is crucial to our members, who play an integral role in the legislation’s implementation.
As the committee continues to discuss the best way to modernize our nation’s workforce system, we urge you to consider the following:
Currently, there are about 6.5 million Americans seeking employment, with an estimated 8.7 million job openings that businesses are struggling to fill. Through Local Workforce Development Boards (LWDBs) and more than 2,000 American Job Centers across the nation, our members are helping nearly 3 million jobseekers access quality training and services. Unfortunately, funding for core Title I WIOA programs has steadily eroded over time, and inflation has compounded these challenges. Increasing the investment in WIOA is essential to ensure that employers have the skilled talent they need while also supporting vulnerable populations’ participation in the economy. This is especially critical as the labor force participation rate has not yet recovered to pre-pandemic levels.
Adequate funding will also help achieve other goals of reauthorization, including increasing access to high-quality training and ensuring state and local systems can respond to both immediate and long-term challenges.
As discussed in the Senate’s hearing on WIOA reauthorization, we must substantially strengthen the investment in our public workforce system. Unfortunately, the House’s WIOA reauthorization proposal (H.R. 6655) proposes only a 3% increase in WIOA funding. We urge the Senate to authorize at least $15 billion annually for core WIOA Title I programs to meet current and future demand for skilled talent. These proposed funding levels are supported by several analyses and would help the U.S. keep pace with other developed nations investing more in workforce development.
We commend the committee for excluding a federal training mandate in its recent discussion draft. A federal mandate would be counterproductive, especially for underserved populations, and it contradicts the core principle of WIOA, which allows local entities to tailor services to the unique needs of their communities. Mandating training services without considering the importance of supportive services could harm vulnerable populations. We also caution that funds from H-1B visa fees are insufficient to meet the demands of such a mandate, especially given the uncertainty of this funding source.
We strongly oppose the current structure for LWDA redesignation and single-state designations, which bypass the voice of local stakeholders. If redesignation provisions must remain, a “fallback” option should be included that allows local stakeholders to negotiate alternative LWDAs. Any redesignation efforts should prioritize local community needs and require states to demonstrate that their actions will improve outcomes for participants and employers.
We are concerned about the proposal to increase the state-level set-aside allowance to 25%, which could leave fewer resources for local entities to implement WIOA programs. We recommend maintaining the existing 15% Governor’s Reserve Fund to ensure that local systems have adequate resources to serve jobseekers and employers.
We support expanding the definition of foundational skills to explicitly include digital literacy, ensuring that individuals can adapt to the evolving technological landscape.
We recommend clearer and more consistent criteria for Eligible Training Providers (ETPs) to ensure that training programs prepare participants for quality jobs. These criteria should be attainable, applicable to all ETPs, and reflective of the diverse populations served by WIOA.
Flexibility is essential for local governments and workforce boards to respond to changing economic conditions. We support greater flexibility in LWDBs’ budgetary authority and in the use of training funds for incumbent workers. We also encourage flexibility in implementing youth work experiences and public outreach to raise awareness of federally funded workforce initiatives.
We support the inclusion of provisions allowing LWDBs to serve as one-stop operators and greater flexibility to expand access through affiliated locations, such as libraries and community colleges. Additionally, dedicated funding for the physical infrastructure costs of one-stop centers is essential to free up more resources for training and support services.
We appreciate the Senate’s work to reauthorize WIOA and look forward to continuing to collaborate with you to update the nation’s workforce system. If you have any questions or would like to discuss these recommendations further, please feel free to reach out to our staff:
Mike Matthews (NACo) at mmatthews@naco.org
Gail Ravnitzky Silberglied (NAWB) at silbergliedg@nawb.org
Stephanie Martinez-Ruckman (NLC) at martinez-ruckman@nlc.org
Kathy Amoroso (USCM) at kamoroso@usmayors.org
Chris Andresen at Chris.Andresen@dutkogr.com
Sincerely,
Member Portal