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.
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.