by Mitch Coppes, Government Relations Senior Specialist, Goodwill Industries International
The House Education and the Workforce Committee recently took a significant step toward reauthorization of the Workforce Innovation and Opportunity Act (WIOA) with the introduction of the A Stronger Workforce for America Act. The bill is the product of months-long bipartisan negotiations in the committee on an update to the primary federal workforce development law for the first time since 2014. “This bipartisan bill provides crucial updates to the Workforce Innovation and Opportunity Act that will help employees compete in today’s workforce, close the skills gap, provide accountability, and most importantly, facilitate the success of American workers,” said Chairwoman Virginia Foxx (R-NC).
The legislation proposes reforms to the nation’s workforce system and extends federal programs that assist job seekers and individuals facing barriers to employment. “The bill makes an array of key improvements to Workforce Innovation and Opportunity Act programs, such as expanding and improving the quality of skills development, strengthening services for disconnected youth, and codifying grants to help individuals released from incarceration transition back to employment and sustainable careers,” said Ranking Member Bobby Scott (D-VA).
Some of the key changes to WIOA that are proposed in the bill include:
- Requiring that at least 50 percent of the adult and dislocated worker funds allocated to a local area go toward providing training through “individual training accounts” (ITAs) or a contract with an employer or training provider.
- Repurposing existing resources at the Department of Labor to provide eligible displaced workers with ITAs with a value of $5,000.
- Updating the primary indicators of performance to convert the “employment fourth quarter after exit” indicator into a measure of retention in the labor force, calculate the “measurable skill gains” indicator in the six-month period after program entry, and revising the “effectiveness in serving employers” indicator to measure percentage of participants in employer-connected learning such as on-the-job training or apprenticeship – or for participants in the youth program, the percentage who completed paid or unpaid work experiences.
- Establishing a “standard eligibility” for eligible training providers and programs determined by participant outcomes on credential attainment, job placement, median earnings, and earnings increase compared to program cost, with minimum levels of performance set by States.
- Allowing States or local boards to establish performance incentives for training providers that achieve high levels of performance, serve a significant number of individuals with barriers to employment, or place participants into high-wage employment.
- Increasing the cap on incumbent worker training to 30 percent and providing for further increases if the local area has been experiencing low unemployment or high labor force participation.
- Raising the cap on the amount of funds a local board may use on pay-for-performance contracts to 40 percent for programs committed to delivering good outcomes.
- Allowing states to set-aside additional funds from their state allocation to establish a “critical industry skills fund” that provides reimbursements to employers, sector partnerships, and other intermediaries for upskilling workers in priority industries.
- Replacing “out-of-school youth” with “opportunity youth” and including homeless youth and those involved with the justice or foster care systems, regardless of their school status.
- Revising the requirement that 75 percent of youth funds be spent on out-of-school youth to a 65 percent requirement for spending on opportunity youth.
- Codifying the Reentry Employment Opportunities grant program to support reentry services for justice-involved individuals, with priority given to entities that will serve high-poverty areas, use evidence-based strategies, enroll individuals prior to release, establish partnerships with businesses or postsecondary education providers, or provide on-the-job learning.
- Establishing the Strengthening Community Colleges Workforce Development Grant Program to improve and expand high-quality workforce development programs at community colleges.
In addition, members of the committee introduced the Bipartisan Workforce Pell Act, which would allow low-income learners to use their Pell Grants for short-term training programs that are high quality, align with local workforce demands, and lead to market-valued credentials.
Both bills will be marked up by the full committee on Tuesday, December 12. In the Senate, the Health, Education, Labor, and Pensions Committee has not yet taken action on WIOA reauthorization in the 118th Congress. We will continue to provide Goodwill® advocates with the latest updates in workforce policy and WIOA reauthorization.
