Support Workforce and Local Business Development: the Workforce Innovation and Opportunity Act (WIOA)

ACTION NEEDED

Urge your Members of Congress to support increased funding for Title I programs under the U.S. Department of Labor (DOL) Workforce Innovation and Opportunity Act (WIOA). Funded through the Labor, Health and Human Services (L-HHS) appropriations bill, WIOA programs provide essential resources to support a demand-driven workforce development system.

BACKGROUND

Enacted with bipartisan support in 2014, WIOA authorizes federal employment, workforce and training programs and formula funding to states and local governments. WIOA provides the needed framework for a modernized, demand-driven workforce development system to meet business and jobseekers’ needs alike. The bipartisan Stronger Workforce for America Act, a bill that would have reauthorized WIOA and made several significant changes to the program, passed the U.S. House of Representatives in April 2024, but was not considered in the Senate prior to the end of the 118th Congress. Among other changes to the program, the bill would have required 50% of Title I Adult and Dislocated Worker funds to be spent on training, increased the amount of funds a governor can retain to 25 percent and created a redesignation process that could have eliminated local workforce boards in states with a population over 5.1 million. While NACo supports the program stability that comes with reauthorization, local workforce development boards should be given ample flexibility to design their programs based on the unique needs of their community workforce.

Administered at the federal level under DOL’s Employment and Training Administration (ETA), WIOA is the largest single source of federal funding for workforce development activities. WIOA is a vital funding source for workforce development that helps counties tackle and overcome challenges facing job seekers and employers. In 2014, Congress included several measures in WIOA to help better match businesses with the skilled workers they need to grow, including: maintaining local governance authority while providing enhanced flexibility to meet the needs of businesses and job seekers; maintaining a business-led majority on the Workforce Development Boards (WDBs) while reducing the number of required members; establishing a single set of common performance metrics across all core programs and adding a measure on the effectiveness of serving businesses; eliminating the sequence of services requirement and integrating best practices, such as industry partnerships and career pathways. 

WIOA recognizes the importance of local leaders’ role in the governance of workforce development activities and provides enhanced flexibility to address local workforce challenges. WIOA also established a one-stop shop delivery system, providing resources for job search assistance, workforce training and career services through various locations across the country. 

WIOA Title I focuses on workforce development activities at the state and local level and establishes funding for three key formula grants – Adult, Dislocated Workers and Youth Programs.

For FY 2026, WIOA funding remained largely level from FY 2025 figures, roughly $2.9 billion. Of the $2.9 billion allocated to Title I Programs, $885.7 million was included for Adults, $948.1 million was included for Youth and $1.09 billion was provided for Dislocated Workers.
 

KEY TALKING POINTS

• Enacted with bipartisan support in 2014, the Workforce Innovation and Opportunity Act (WIOA) provides federal support for employment, workforce and training programs through formula funding to states and local governments. WIOA provides the needed framework for a modernized, demand driven workforce development system to meet the needs of businesses and jobseekers.
• Local officials play a pivotal role in the administration of WIOA programs and funding. Counties are involved in 90 percent of the country’s 550 local Workforce Development Boards (WDBs), through which we partner with federal, state and local governments, as well as the private sector. Congress should provide increased funding for WIOA Title I programs to meet current program demands.
• Local Workforce Development Boards, administering funding through WIOA, should maintain flexibility to determine the most appropriate workforce development solutions to meet the needs of their community. Similarly, the structure and territory of local boards should be strategically aligned to best serve the demographic and commercial needs of the region—consolidation or restructuring of local boards, by state or federal mandate, should only occur with concurrence of the local leaders.