Top Features You Need in WIOA Case Management Software
The Workforce Innovation and Opportunity Act (WIOA) has offered a world of possibilities for students and adults who aspire to have fulfilling...
This post was last updated on August 28, 2024. To stay informed on future updates, please subscribe to the newsletter.
The Workforce Innovation and Opportunity Act expired in 2020, and workforce development agencies have been running on fumes ever since. Even the bigger picture is bleak: over the past 20 years, federal funding for workforce programs has declined by 45%. WIOA reauthorization is desperately needed to support our nation’s workforce as we recover from the pandemic and continue to move through global economic uncertainty.
In May 2022, the House passed WIOA of 2022 (H.R.7309), which would have reauthorized and fully funded WIOA programs with nearly $80 billion over the next six years. Unfortunately, it did not achieve the bipartisan support it needed to move forward in the Senate.
Over a year and a half later, House Education and the Workforce Committee leaders delivered another attempt at reauthorization: H.R. 6655, A Stronger Workforce for America Act.
“An effective workforce development system is critical to ensuring a strong economy and a skilled workforce. 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 Foxx.
Ranking Member Scott added, “For far too long, we have left our workforce development system without the resources and tools it needs to connect workers with good-paying job opportunities and help employers access a pipeline of talented workers. 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.”
On April 9, the House passed the Stronger Workforce for America Act in an overwhelming 378-26 vote. Over the summer, the Senate proposed a discussion draft of a WIOA reauthorization bill. Many advocacy groups feel that the Senate draft bill is an improvement on the House's ASWA bill but still misses the mark in some places.
Here are some key takeaways from ASWA, the House's proposed bill:
ASWA includes a new mandate requiring 50% of WIOA Title I Adult and Dislocated Worker funds to be allocated specifically for training. While this provision aims to enhance skill development, it raises several concerns about potential negative impacts on workforce support systems. One major concern is that it would necessitate local workforce boards to reallocate funds, which could adversely affect small businesses relying on these funds to find skilled talent. Additionally, the mandate could significantly reduce the availability of supportive services like childcare and transportation assistance, which are crucial for many job seekers to access employment or training opportunities. This shift in funding priorities could also limit the ability of local stakeholders to devise and implement workforce strategies tailored to their unique needs.
Furthermore, the bill proposes increasing the portion of WIOA funds that governors can reserve for Critical Industry Skills initiatives, aiming to foster innovation. However, this change could further centralize control over funds, potentially detracting from localized solutions and reducing the total funds available to communities to support job seekers, leaving them with only a quarter of the current WIOA formula funds. Considering the historical underfunding of WIOA, these changes could have widespread negative effects on both job seekers and employers across the country.
The Senate's discussion draft of the WIOA reauthorization bill introduces several significant modifications compared to the House's version. Notably, it removes the 50% training mandate on Title I Adult and Dislocated Worker funds, which reduces mandatory spending requirements and allows for more flexibility in fund allocation. The draft also grants state governors increased authority to consolidate or restructure local workforce development areas (LWDAs), providing greater flexibility in re-designating these areas compared to the House proposal. Additionally, the draft sets forth a requirement for states to reserve 10% of WIOA Title I funding specifically for Industry/Sector Partnership initiatives and employer-based training activities, outlining a more prescriptive use of these funds. It also introduces a new funding stream derived from H-1B visa fees, aimed at supporting Individual Training Accounts, which could offer additional resources for workforce development.
Any agreed-upon version of this bill must still clear a vote in the Senate before it becomes law. However, given the strong bipartisan support thus far, service providers should prepare for the impact these proposed changes may have on their programs, organizations, and communities if passed. A major takeaway from ASWA is the increased focus on data collection. Moving forward, it will be critical for service providers to accurately and efficiently track training hours and securely collaborate with external service providers. With additional compliance requirements and more stringent performance measures, WIOA-funded agencies will need the technological infrastructure to collect, track, and report on participant data. Clearly demonstrating their impact will allow agencies to stay compliant and fully funded. Luckily, the requirement that 5% of certain funding pools be earmarked for longitudinal data collection means that agencies can expect more available grants for technological and reporting improvements if this reauthorization is passed.
myOneFlow is the only WIOA management platform that enables providers to manage and report on clientele from application through job placement and beyond. Our developers constantly update myOneFlow to reflect the evolving needs of WIOA service providers, so regardless of changes in legislation, your office stays compliant and able to scale your impact. Contact our team of experts today to discuss how myOneFlow can help your organization prepare for upcoming changes to WIOA.
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