Local WIOA Constituency Group Reauthorization Letter

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NAWB partnered with US Conference of Mayors, National League of Cities, National Association of Counties, and US Workforce Associations on this letter to Senate HELP Committee Chairman Bernie Sanders and Ranking Member Cassidy on current WIOA reauthorization proposals.

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

Dear Chairman Sanders and Ranking Member Cassidy,

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:

1. Sufficiently Resource the Public Workforce System

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.

2. Training Requirement for Adult and Dislocated Worker Formula Funds

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.

3. Local Workforce Development Area (LWDA) Redesignation and Single-State Designations

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.

4. State-Level Set-Asides

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.

5. Digital Literacy

We support expanding the definition of foundational skills to explicitly include digital literacy, ensuring that individuals can adapt to the evolving technological landscape.

6. Eligible Training Provider Lists (ETPL)

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.

7. Additional Flexibility for Local Governments and Workforce Boards

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.

8. One-Stop Delivery System

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,

 

House Appropriations Committee Approves Deep Cuts for Workforce Funding; NAWB Condemns Unacceptable Funding Levels

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The House Appropriations Committee approved the FY25 Labor-HHS-Education spending bill on July 10, 2024

The voting breakdown? 31-25 party-line vote. Disappointingly, the bill reduces funding for WIOA Adult and Dislocated Worker Employment and Training and wholly eliminates funding for WIOA Youth Job Training.

The National Association of Workforce Boards (NAWB) strongly opposes these drastic cuts to our nation’s workforce development system.

Brad Turner-Little’s Statement on the Cuts:

“It’s time for Congress to make a real investment in workers, learners, and employers, especially at a time when there are over 8 million job vacancies in our country,” said Brad Turner-Little, NAWB’s president and CEO. “Filling those jobs with skilled workers is essential to ensuring economic vitality in all our communities. We urge Congress to strengthen the investment in the American workforce, rather than reducing support for the publicly funded workforce system.”

Impact on Youth and Adults:

Appropriations Committee Ranking Member Rosa DeLauro (D-CT) pointed out that 134,000 youth—who already face complex challenges in finding employment—would lose access to job training and employment services. She added that 250,000 adults would lose training and employment services if this bill is enacted.

Funding Overview:

Funding for this bill is $185.8B, which represents a reduction of approximately $8.6B from the bill enacted for FY24. The full House of Representatives will consider the bill the week of July 29, 2024. Numerous amendments are expected to be filed.

NAWB Feedback to Senate on WIOA Reauthorization Discussion Draft

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NAWB Feedback to Senate on WIOA Reauthorization Discussion

NAWB is pleased to share our feedback on the Senate discussion draft to reauthorize the Workforce Innovation and Opportunity Act (WIOA). As noted on the NAWB Blog, the Senate Health, Education, Labor, and Pensions (HELP) Committee released a discussion draft and opened a process for collecting feedback prior to a formal bill introduction.

All feedback is due to the Senate HELP Committee in a specific format by 5 p.m. ET on Friday, July 5, 2024. NAWB members are encouraged to participate in this process, either reinforcing the messages below or providing their own feedback.

NAWB worked closely with members and partners, including organizations focused on the needs of local communities, convened NAWB members through a Public Policy PowerUp (formerly known as Policy, Coffee and Conversation), and collaborated with the Campaign to Invest in America’s Workforce coalition to gather feedback and develop strategies for engagement.

Concerns with Key Provisions

  • Redesignation of Workforce Development Areas Must Be Based on Local Needs, Result in Improved Outcomes, and Ensure Service Delivery (sec. 115; p. 23-30)
    • Local workforce systems exist to address unique community needs. Redesignation of local workforce areas should only occur if it leads to improved outcomes for WIOA participants. Strong quality assurances are necessary to prevent inequitable service delivery for underserved populations and ensure adequate support in rural areas and for small and medium-sized employers.
    • Feedback: NAWB recommends that redesignation only occur with consent from local workforce leaders and that the process ensure improved outcomes and service delivery.
  • State Single Area Designations Are an Extraordinary Step that Should Not Be Taken Lightly (sec. 115; p. 33-35)
    • The draft would allow 25 states to adopt a single statewide designation, potentially eliminating critical local workforce infrastructure.
    • Feedback: NAWB recommends state legislatures have a greater role in these determinations, lowering the population threshold for consideration, reducing the number of local areas required for eligibility, and shortening the timeline for reconstitution if efforts are ineffective.
  • Requiring Six New Standing Committees Will Divert Staff Time and Resources (sec. 116; p.36-37)
    • Proposed standing committees would divert resources from essential services to administrative tasks. This burden is compounded by provisions that allow states to reserve WIOA funds beyond local areas, further reducing capacity for local boards to manage the proposed requirements.
    • Feedback: NAWB recommends standing committees remain optional, allowing local boards to prioritize community needs.
  • Local Workforce Boards Must Retain Optimum Policymaking Authority (sec. 116; p. 42)
    • Current law requires local board members to have “optimum policymaking authority” within their organizations. The draft proposes eliminating this requirement.
    • Feedback: NAWB recommends retaining this provision to ensure effective implementation of decisions.
  • Establish One-Stop Delivery Systems Where Appropriate (sec. 121; p. 87)
    • Flexibility is essential for local boards to establish one-stop operators based on community needs.
    • Feedback: NAWB recommends empowering local boards to serve as one-stop operators when conditions are met.
  • A 25% Set-Aside Diverts Resources from Local Communities (sec. 132; p. 138)
    • The draft would allow governors to reserve an additional 10% of WIOA funding for statewide initiatives, which could reduce local resources.
    • Feedback: NAWB recommends alternative funding mechanisms to avoid shortchanging local communities.
  • Clarify the Use of Funds for Youth Workforce Experience Activities (sec. 133; p. 155)
    • Proposed changes to youth funding requirements are overly prescriptive and could disincentivize employer participation.
    • Feedback: NAWB recommends reducing these requirements to maximize flexibility and increase employer engagement.
  • Funding the Workforce System Maximizes Local Economic Vitality (sec. 149; p. 234-235)
    • Decades of funding erosion for core WIOA programs have diminished the public workforce system’s ability to meet emerging needs.
    • Feedback: NAWB recommends significantly increasing authorized funding over the next five years to signal the importance of greater investment.

Breaking News: Senate Releases WIOA Reauthorization Discussion Draft

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Senate Releases WIOA Reauthorization Discussion Draft

The Senate has released a discussion draft of a bill to reauthorize the Workforce Innovation and Opportunity Act (WIOA). This draft is intended to gather feedback before finalizing the bill, and NAWB plans to actively engage in the process.

NAWB participated in a Senate committee staff briefing and conducted an initial review of the legislative text. Below are key takeaways:

Topline Takeaways from the Discussion Draft

  • No Training Mandate
    • The draft does not include a mandatory training expenditure, a significant improvement over the House-passed proposal, which mandated 50% of Title I Adult and Dislocated Worker funds to be allocated for training. NAWB is highly supportive of this approach.
  • Re-designation of Local Workforce Development Areas (LWDAs)
    • The proposal increases flexibility for state governors to consolidate or restructure LWDAs, going further than the House version in enabling these changes. NAWB is increasingly concerned about the potential implications of this provision.
  • Statewide Funding Reservations
    • Similar to the House proposal, the Senate draft allows states to reserve an additional 10% of WIOA Title I funding for statewide initiatives. However, it is more prescriptive, requiring these funds to support Industry/Sector Partnership efforts or employer-based training. NAWB remains apprehensive, as this reduces funding available for local communities to address their priorities.
  • Funding Levels
    • The draft does not specify authorized funding levels, instead using broad “such sums as may be necessary” language. This grants appropriations leaders greater discretion in determining WIOA funding. Additionally, the draft introduces a new funding stream using H-1B visa fees to support Individual Training Accounts. NAWB continues to emphasize the need for robust funding to ensure the public workforce system can meet current and emerging needs.

NAWB will continue to elevate these concerns and collaborate with Congress to advocate for a strong, well-funded workforce development system.

NAWB Provides Testimony to Senate Appropriations Subcommittee

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NAWB Testifies for a 5% Funding Increase for WIOA Title I Programs. Read the full testimony below:

Introduction

My name is Brad Turner-Little, and I am privileged to serve as the President and CEO of the National Association of Workforce Boards (NAWB). We represent the nation’s nearly 600 Workforce Development Boards, which coordinate with education and economic development stakeholders to administer regional workforce programs to meet the needs of jobseekers, employers, and their communities.

I appreciate the opportunity to submit this testimony in support of an increased federal investment in the primary Title I formula programs authorized by the Workforce Innovation and Opportunity Act (WIOA), including Adult and Dislocated Worker Employment and Training, and Youth Employment Activities.

Proposed Investment

Specifically, we encourage the subcommittee to invest at least $3.08 billion collectively for these three WIOA programs as part of the FY2025 Labor-HHS-Education appropriations bill. This represents a 5% increase over current levels of investment.

The Workforce Development Challenge

  • There are approximately 6.5 million jobseekers in America.
  • Businesses are struggling to fill 8.5 million jobs.
  • Local Workforce Development Boards (WDBs) are the key to connecting these populations.

Role of Workforce Development Boards (WDBs)

  • Conveners and Collaborators: WDBs coordinate with federal, state, and local stakeholders to support economic expansion and workforce talent development.
  • Community Anchors: WDBs manage over 2,000 American Job Centers that deliver direct services to workers and employers.
  • Customized Solutions: WDBs design training programs tailored to local needs, providing skills to underemployed workers and creating partnerships with employers to address workforce challenges.
  • Proven Results: In the most recent program year, core WIOA programs served three million individuals, with over 70% finding employment after receiving services.

Addressing Emerging Trends

Workforce Development Boards must respond to major trends like:

  • Artificial Intelligence (AI) and automation.
  • Upskilling and retraining workers to adapt to technological advancements.

Recent Senate initiatives on AI underscore the importance of workforce retraining and preparation, aligning perfectly with WIOA’s mission.

The Case for Increased Funding

  • Core Title I WIOA program funding has steadily eroded over decades.
  • Real-world impact:
    • Kansas: A 46% funding decrease over the last 10–12 years.
    • Mobile, Alabama: A 40% funding cut in the last five years limits critical services like On-the-Job Training and youth programs.

The Need for Action

NAWB calls on Congress to invest at least $3.08 billion for WIOA programs in FY2025. This is an essential first step toward closing the growing funding gap, ensuring jobseekers can access training, and employers can find skilled workers to remain competitive.

Conclusion

Increasing WIOA funding is a win-win for workers and businesses alike, boosting economic growth and addressing the nation’s labor force challenges.

Final Appeal

NAWB urges the Subcommittee to support this critical investment in America’s workforce and labor market. Thank you for the opportunity to share this testimony.

NAWB Provides Testimony to House Subcommittee

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NAWB gave testimony in support of a 5% funding increase for core Title I WIOA programs to the Labor-HHS-Education Appropriations Subcommittee. Read the full text below

My name is Brad Turner-Little and I am privileged to serve as the CEO of the National Association of Workforce Boards (NAWB). We represent the nation’s nearly 600 Workforce Development Boards, which coordinate with education and economic development stakeholders to administer regional workforce programs to meet the needs of jobseekers, employers, and the wider communities that they serve. I appreciate the opportunity to submit this testimony in support of an increased federal investment in the primary Title I formula programs authorized by the Workforce Innovation and Opportunity Act (WIOA), including Adult and Dislocated Worker Employment and Training; and Youth Employment Activities.

Specifically, we encourage the subcommittee to invest at least $3.08 billion, collectively, for these three WIOA programs as part of the FY2025 Labor-HHS-Education appropriations bill, a roughly five percent increase over current levels of investment.

Right now, there are approximately 6.4 million jobseekers in America. And there are an estimated 8.7 million jobs that businesses are struggling to fill. How do these two populations find each other? In many cases, it is a local Workforce Development Board.

Workforce Development Boards (WDBs) preside over more than 2,000 American Job Center locations throughout the nation. In the most recent program year, core WIOA programs served nearly 3 million individuals across the nation, many with the most significant challenges to finding and obtaining family-sustaining employment. Over 70 percent of all individuals served during this time period were employed after receiving critical career and training services. These same individuals earned more than 100,000 credentials of value.

Increasing the investment in WIOA remains a critical way for Congress to ensure that employers have the skilled talent they need to be successful while also supporting some of our most vulnerable and underserved populations in participating within the labor market. This is especially important as the national labor force participation rate has yet to rebound to pre-pandemic levels and as tight labor conditions persist across the nation. There may not be a more vital investment Congress can make than WIOA in terms of boosting our economy by matching skilled workers with businesses that are hiring, especially for in-demand sectors of our shared economy. Unfortunately, funding for core Title I WIOA programs has eroded steadily over the past several decades. Without an increased investment for these programs, both jobseekers and businesses will face greater difficulty in training and hiring skilled workers. For example, as pointed out by one of our local WDB members in Kansas, funding from WIOA has fallen by 46% in the last 10-12 years, in real dollar terms not accounting for the impacts of inflation. NAWB therefore urges you to provide at least $3.08 billion for core Title I WIOA programs in FY25 which we believe would be an important first step and downpayment toward closing this funding gap that has grown considerably over time. Our nation’s investments in workforce development help to create a comprehensive system capable of producing a highly skilled workforce that can compete in the global economy. Robust funding for WIOA is essential to helping more individuals find and secure family-sustaining employment.

Simply put, WDBs perform an indispensable function, reskilling and upskilling workers, matching workers and employers within local economies, and ultimately providing pathways to meaningful careers. Yet, WDBs need more robust resources to achieve these objectives.

I once again thank you for allowing me to provide this testimony to the Subcommittee.

 

House-Passed WIOA Bill Misses the Mark

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The US House of Representatives passed HR 6655, A Stronger Workforce for America Act, late yesterday with overwhelming bipartisan support.

The bill reflects compromises by both House Republicans and Democrats to reauthorize the Workforce Innovation and Opportunity Act (WIOA), which has not been reauthorized since its authorization expired in 2019.

While bipartisan policymaking is commendable, it does not always result in sound policy.

The National Association of Workforce Boards (NAWB), which represents the more than 590 local and state workforce boards responsible for implementing WIOA, is deeply disappointed that this legislation includes provisions that undermine local communities’ ability to develop workforce solutions that drive economic growth.

One concerning provision mandates that 50% of WIOA Title I Adult and Dislocated Worker funds be spent on training. While this may seem beneficial, the mandate’s narrow definition of training creates numerous unintended and harmful consequences.

  • Impact on Small Businesses: Local workforce boards would be forced to redirect funds currently used to help tens of thousands of small businesses find and support the skilled talent they need.
  • Reduction in Supportive Services: Funds for essential services like childcare and transportation—resources relied upon by hundreds of thousands of job seekers—would be significantly reduced, restricting access to employment or training opportunities.
  • Erosion of Local Decision-Making: The mandate restricts local businesses, economic developers, elected officials, and community stakeholders from crafting workforce strategies tailored to their state and local needs.

Another troubling provision increases the amount of WIOA funds a Governor can retain at the state level for Critical Industry Skills initiatives, purportedly to encourage innovation. While NAWB supports fostering innovation, this provision raises statewide reservations of WIOA funding to 25% of all Title I formula resources.

When combined, these provisions would leave local communities with just a quarter of the WIOA formula funds they currently use to support job seekers and workforce development. Given WIOA’s long history of underfunding, this shift would have severe consequences for job seekers and employers nationwide.

NAWB has shared these concerns with House leaders and lawmakers, yet the vote advancing this legislation shows that more effort is needed to ensure policymakers understand the importance of a thoughtful WIOA reauthorization. Such reauthorization must balance the needs of all stakeholders served by these programs and systems.

As the focus now shifts to the Senate, NAWB will continue advocating for local communities to retain the flexibility to use WIOA funds in ways that best promote economic vitality for businesses of all sizes and their workforce.

Unfortunately, HR 6655 misses the mark.

Task Force on Transforming Training and the Eligible Training Provider List

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Recommendations From the Workforce Transformation Policy Council

In 2023, Jobs for the Future (JFF) and NAWB launched the Task Force on Transforming Training and the Eligible Training Provider List (ETPL), an initiative of the Workforce Transformation Policy Council (WTPC).

This task force, composed of executives from workforce development boards nationwide, engaged in a series of meetings and interviews to identify how federal policies can better support workforce systems in delivering people-first, equity-centered outcomes.

The principles and recommendations developed by the task force emphasize the strength of the national workforce development system while prioritizing local responsiveness and data-driven strategies.

Read the full report.