NAWB Feedback to Senate on WIOA Reauthorization Discussion Draft

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.

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.