Incentive Grants - WIA Section 503

To carry out innovative programs consistent with the purposes of Title I of WIA (Workforce Investment Systems), Title II of WIA (Adult Education and Family Literacy Act (AEFLA), 20 U.S.C. 9201 et seq.), the Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998 (Public Law 105-332, 20 U.S.C. 2301 et seq.) or a combination of two or more of these acts. This is the last year of incentive grants. The new legislation, Workforce Innovation and Opportunity Act (WIOA), Public Law 113-128, did not authorize these grants.

A listing of States eligible to receive incentive grants for Program Year 2013 performance was published in the Federal Register on May 1, 2015. This is the last year that incentive grants will be awarded to states. WIOA does not authorize these grants. Under WIA, to qualify for a grant, a State must have exceed performance levels agreed to by the Secretary of Education, the Secretary of Labor, the Governor, and the State Education Officer, for outcomes in Titles I and II of the Workforce Investment Act (WIA) and the American Education and Family Literacy Act (AEFLA), which include placement after training, retention in employment, and improvement in literacy levels, among other measures.

Regulations at 20 CFR 666.210 authorize the state to use its incentive grant award to carry out an innovative program consistent with the requirements of any one or more of the programs within Title IB or Title II of WIA or the Perkins Act. See Training and Employment Guidance Letter (TEGL) 20-01, Change 13 for additional information (http://wdr.doleta.gov/directives/attach/TEGL/TEGL%2020-01,Change%2013_Acc.pdf).

Documentation of the exceeded performance measures must be available via the annual performance report. See Training and Employment Guidance Letter 8-99 (http://wdr.doleta.gov/directives/attach/TEGL8-99.pdf) for additional information on the incentives process.

States have great flexibility in using these funds and are not limited to conducting only one type of innovative program. However, the use of grant funds must be consistent with WIA Section 503, including the requirement that they be used for innovative programs which further the purposes of WIA Titles I and II, AEFLA and/or the Perkins Act. In addition, grantees must comply with the requirements of whichever program the innovation affects. For example, if the incentive funds will be used for innovations in the delivery of youth activities under WIA Title I, the program must be consistent with WIA Title I provisions applicable to youth activities and the WIA regulations at 20 CFR part 664. States must submit a plan describing the innovative activities to be funded with this grant. States are expected to use funds for services and activities: (1) beyond those provided with regular funds from the three programs, particularly those authorized by one of these programs and another program; (2) which serve the needs of populations intended to be served by one or more of these programs; and (3) targeted to improving the performance of State systems of employment, training, and education. In addition, States are encouraged to plan activities that promote cooperation and collaboration among the agencies administering WIA Title I, AEFLA, and Perkins Act programs.

Funds are awarded on a program year (July to June) basis and are available for expenditure for two years.

The application must include assurances that: the State legislature was consulted with respect to the development of the application; the application was approved by the Governor, the eligible agency for adult education, as defined in WIA Section 203(4) (20 U.S.C. 9202(4); and the State agency responsible for vocational and technical education programs, as defined in Perkins Act Section 3(9) (20 U.S.C. 2302(9)); and the State and the eligible agency, as appropriate, exceeded the State adjusted levels of performance for WIA Title I, the State adjusted levels of performance for AEFLA, and the performance levels established for Perkins Act programs. This program is excluded from coverage under E.O. 12372.

Grants for projects were awarded each year to those states and territories that exceed their WIA and AEFLA performance measures. A Federal Register Notice (FRN) was published announcing the award winning states as well as the amount of the award. A Training and Employment Guidance Letter (TEGL) was published to provide guidance for the submission of the application. The FRN and the TEGL were published on the Performance Web site at https://www.doleta.gov/performance/results/incentives_sanctions.cfm. States develop a proposal and budget that demonstrate how they will provide services in accordance with the WIA, AEFLA and or Perkins IV laws. ETA coordinates the review of applications with the Department of Education.

States must exceed performance for WIA Adult, Dislocated Worker and Youth programs as well as meet performance in AEFLA. Representatives from DOL and Education review states' performance and compile a list of those states meeting both sets of performance requirements. States are allocated a share of the incentive funds based on their proportionate share of WIA and AEFLA title funds. States must submit an application indicating they will meet all requirements of WIA and AEFLA as well as Perkins IV before funds can be granted. See USDOL ETA guidance TEGL 20-01, Change 13 at: http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3981 for the PY 2013 (last round) guidance.

Specified in the applicable TEGL, but generally 45 days from announcement in the Federal Register.

Appeal procedures are at 20 CFR Part 667, Subpart H.