A Status Update on Federal WIOA Legislation

A Status Report on Federal Workforce Funding and Reauthorization

As Congress enters its District/State Work Period, where members typically meet with constituents and visit key sites in their communities, the National Association of Workforce Boards (NAWB) is pleased to provide a summary of the current status of various legislative proposals related to the Workforce Innovation and Opportunity Act (WIOA).

Read it now here:

E05: Entrepreneurial Approaches for Workforce Boards: Strategies from South Central PA Works

In this episode, CEO of South Central PA Works, Jesse McCree, joins us for an illuminating discussion on workforce development innovation. Leading an influential board that spans eight counties in central PA, Jesse offers insights from his nearly eight-year tenure.

The conversation delves into South Central PA Works’ pioneering strategies, including fair chance hiring initiatives and community access points. Jesse also recounts his path into the workforce development field and outlines how his organization is harnessing data, fostering agility, and embracing technology to address future labor market challenges.

Local WIOA Constituency Group Reauthorization Letter

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,

 

Meet Barry

Workforce Success Story Submitted By: South Central WorkForce Council

Workforce Challenge

Barry worked as a heavy machine operator and heavy equipment maintenance technician with a road construction company for nine years. When the struggling company was sold and the new owners decided to make cuts, Barry found himself unemployed. He searched for work for over a year while receiving unemployment insurance.

Workforce Solution

Barry visited the Fairmont Workforce Center where he was provided information about resources that could assist him with his job search. Barry was a permanent layoff and was eligible for services under the Dislocated Worker Program. After telling him about the program and his options it was decided that a good fit for him would be the On-The-Job (OJT) Training program.

Graham Tire, a local auto repair/tire sales company, had a vacancy for an Auto Service Technician. Barry did not have all the skills needed, but with the OJT program, he would learn the new skills while on the job. The Center and employer negotiated a contract, and Barry began work. The employer was reimbursed for half of the wages during his training period.

Outcomes & Benefits

At the end of the OJT the employer thanked the Fairmont Workforce Center for the opportunity to benefit from the OJT program. They were very pleased with Barry and shared that they wished they could have ten people just like him to work for them.

“I have had the pleasure to follow up with Barry and he is so happy with his job and likes the people he works with,” his counselor said. Congratulations, Barry!

Senate Appropriations Committee Approves FY25 Funding Bill, Rejects House Committee-Passed Draconian Cuts

Senate Appropriations Committee Approves FY25 Funding Bill, Rejects House Committee-Passed Draconian Cuts

On August 1, 2024, the Senate Appropriations Committee passed a bill that would, if enacted, provide funding for programs under the Department of Labor, including funds for the Workforce Innovation and Opportunity Act (WIOA) for the upcoming 2025 federal fiscal year (FY25).

Unlike a recently advanced House bill, which proposed deep cuts for (or elimination of) many programs, the Senate bill would maintain funding for most workforce development programs, including $2.9 billion for WIOA formula grants. The Senate Appropriations Committee approved this measure on a bipartisan vote of 25-3.

The National Association of Workforce Boards (NAWB) greatly appreciates that the Senate rejected the severe House-proposed funding levels for FY25. However, we also recognize that there has been a steady erosion of federal funding for WIOA in recent years, complicating efforts by workforce development boards to serve both jobseekers with complex needs and businesses seeking to fill nearly nine million job openings. The Senate and House must now reconcile spending plans before the new fiscal year begins on October 1 or pass a temporary spending measure to postpone these decisions until later in the year.

“Congress is at a real inflection point when it comes to workforce development,” said NAWB President and CEO, Brad Turner-Little. “With both the appropriations and authorization for WIOA currently being considered, Congress must make a stronger investment in the nation’s public workforce system, one that prioritizes workers, learners, and employers. The economic vitality of local communities is on the line.”

NAWB urges its network of workforce professionals to highlight how workforce development boards are serving both jobseekers and businesses in local communities. Our new guide, Hosting a Congressional Site Visit, is a timely resource to help arrange site visits by members of Congress.

The House and Senate are in a District/State Work Period until September 9, 2024, when Congress will return to Washington to finish up its legislative work on annual spending bills and numerous pieces of legislation, including, potentially, WIOA Reauthorization.

“Now is a perfect time to invite members of Congress to a site visit,” added Turner-Little.

E04: Workforce Solutions for the Future: Technology, Partnerships, and Community Impact

In this episode, NAWB President and CEO, Brad Turner-Little, is joined by President and CEO of CareerSource Central Florida, Pam Nabors. Pat shares insights on leading a large workforce board and preparing for the future of workforce development and discusses her organization’s role in serving a diverse five-county region surrounding Orlando, including efforts to inspire career journeys for youth and to support emerging industries like semiconductors.

Learn about CareerSource Central Florida’s innovative programs, including High School Career Express, partnerships with businesses and educational institutions, and the need to embrace technology and rethink service delivery models.

A Conversation with Jose Javier Rodriguez: A Recap

NAWB hosted U.S. Department of Labor (DOL) Assistant Secretary Jose Javier Rodriguez, who leads the Employment and Training Administration (ETA), for a conversation with President & CEO, Brad Turner-Little.

Here’s a quick recap:

Appreciation for NAWB’s Role:

Assistant Secretary Rodriguez made it clear that he appreciates the role that NAWB plays and is proud to serve in an administration that has prioritized good jobs. He noted that workforce development has not been—and is not—partisan, and that part of the privilege of joining ETA is the excellence in dedication of staff, including the regional DOL offices.

Rodriguez’s Background and Commitment to Economic Opportunity:

Rodriguez’s father emigrated from Cuba, and economic opportunity has been a guiding light in his journey. “The pathway to economic opportunity is better jobs in our communities, diversifying our economic mix, and [helping] communities confront the future.” He noted that ETA is addressing dislocations, unemployment, the guest worker program, and improving the ways workforce systems engage partners, including NAWB.

Impact of the Peace Corps and Training Philosophy:

His time in the Peace Corps in Senegal led to his calling toward public service. The word “training” in Spanish is “capacitación,” which is loosely defined as making someone capable. “You want to hand skills to somebody so they can do it on their own. It is about self-determination, using limited reserves, and maximizing their impact.”

Pride in ETA’s Grant Administration:

Rodriguez is proud of how ETA administers grant funds and is “doing a lot with very little,” considering the small amount provided for DOL’s administrative support. “I would say
we do the best job in town in terms of administering grants, formula funds… with the increasing workload year after year and a fantastic team.”

Service in the Florida Legislature and Workforce Development:

When asked about his service in the Florida legislature regarding workforce development, Rodriguez shared that his platform was about economic opportunity, economic development, and the jobs program. He got to know the area’s workforce professionals, navigated the jobs infrastructure, and the relationship with the local workforce in South Florida. During the pandemic, the wider focus was on helping workers and small employers trying to get benefits for their employees.

WIOA Reauthorization and Communication with Congress:

Per DOL policy, Assistant Secretary Rodriguez did not discuss current WIOA reauthorization proposals but did note in general that one challenge is explaining the public workforce system to members of Congress. “… the very important role [we all play] with respect to our workforce system is [hard] to communicate. They often understand their Job Corps program because it’s the same across the country, but perhaps do not have a wide understanding of the broader regionally diverse workforce system.” To amplify this point, Turner-Little encouraged attendees to acknowledge the importance of building relationships with federal and state elected representatives. “Workforce development professionals need to establish a close relationship with elected officials at all levels of government.”

Top Priorities at ETA:

Asked about his top priorities at ETA, Rodriguez noted the “number one focus is on job quality,” and the vital role of partnerships in supporting successful employees in quality jobs. He also noted ensuring equitable employment pathways for everyone, the accelerating pace of economic change, and dislocation related to automation and climate. Also on the Assistant Secretary’s mind are the future of work, clean energy infrastructure, advanced manufacturing plants, sector strategies, and tracking DOL investments. He also acknowledged the role of NAWB and workforce boards in facilitating sector strategies and praised high-quality programs that demonstrate workforce investments have a high return on investment.

Importance of Collaboration:

Rodriguez pointed to the importance of collaboration. “… One of the amazing things about serving at this particular time is we have an unprecedented level of interdepartmental and interagency collaboration and that’s by necessity.” “… We need to make sure the workforce system is at full capacity and that the hundreds of thousands of jobs [are filled] here in America.”

Revisiting DOL Communications and Access to Services:

Rodriguez mentioned that DOL is revisiting its communications to the workforce to make sure they are effective, including professional development opportunities, continued technical assistance, and disseminating new policy and guidelines to help clarify and maximize flexibility under Yes, WIOA Can. He acknowledged that additional guidance on what is allowable when it comes to outreach and marketing is forthcoming, as is equitable access to training and supportive services, and translating materials into multiple languages.

Lightning Round of Questions and Closing Thoughts:

As part of the “lightning round” of questions, Rodriguez pointed to economic changes in migration in the United States over the next decades. “It is going to be absolutely central to how we, as a nation and also communities, start to think about opportunities and dislocation.” Rodriguez also named his children as his inspiration and recognized the many public servants and private sector professionals who work so hard—often behind the scenes without getting credit—to help their fellow citizens. Finally, he had a clear message for all the hardworking workforce professionals in our network: “Thank you. It’s a privilege to be able to do this work and I know that it’s not easy… know that you have a partner at the Department of Labor.”

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

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.