WIOA Dislocated Worker Formula Grants

Title I of the Workforce Innovation and Opportunity Act (WIOA) authorized three of the six WIOA core programs. The WIOA Dislocated Worker program is one of the three core programs. The purpose of the WIOA Dislocated Worker (DW) program is to help d

WIOA Dislocated Worker Formula Grants are federal funds authorized under Title I of WIOA, that use a statutorily-mandated formula to calculate the distribution of Congressionally-allocated funds to eligible recipients which include any of the 50 states and District of Columbia, Puerto Rico, and Outlying Areas. The formula considers factors such as insured unemployment data, unemployment concentrations, plant closing and mass layoff data, and long-term unemployment data. Allotted funds must be expended within three years. WIOA Dislocated Worker formula grants help individuals who have lost their jobs to re-enter the workforce as quickly as possible. Specifically these funds support career services, training services, and support services. The beneficiaries are individuals who have been laid off (or received notice), are unlikely to return to their previous industry, were formerly self-employed, or are "displaced homemakers" (no longer supported by another family member's income).

Under WIOA, the entities eligible to receive formula-based funding from the Department are the 50 states, Puerto Rico, the District of Columbia and the outlying areas. Funds are allotted based on a statutory formula and states, in turn, allocate funds to local workforce development boards (approximately 600), which are responsible for operating comprehensive American Job Centers (approximately 2,300 nationwide).

Individuals eligible for assistance through the Act are workers who have lost their jobs, including those dislocated as a result of plant closings or mass layoffs, and are unlikely to return to their previous industry or occupation; formerly self-employed individuals; and displaced homemakers who depend on income of another family member, but are no longer supported by that income. Priority of Service is given to veterans and other covered persons.

WIOA specifies that most services for adult and dislocated workers will be provided through the American Job Center (AJC) Network, also known as the one-stop career center system. It authorizes that funds be used to provide career services, which are classified into two categories: basic and individualized services. While some job seekers may only need self-service or other basic career services such as labor exchange services, others may need more comprehensive services, such as individualized services, which include career planning, and developing an individual employment plan outlining needs and goals of the job seeker. Participants will also receive training services linked to job opportunities in their communities. To promote customer choice and involvement in career decisions, participants use an "Individual Training Account" (ITA) to select an appropriate training program from an eligible training provider list (ETPL). WIOA also authorizes the provision of supportive services (e.g. transportation and child care assistance) to enable an individual to participate in the program.

Funds must be used in accordance with statute and regulations.

Formula funds are annually allotted to states and local workforce development areas under statutory formulas based on the distribution of unemployed individuals. States and local areas have three years to obligate the funds. Funds are distributed in two portions during a program year.

Contact Regional Office for more information.

Those portions of the State Plan over which the Assistant Secretary for Employment and Training exercises authority are reviewed and approved by the Employment and Training Administration. Formula funds are awarded to the states based on a statutory formula provided in the authorizing legislation.

Application deadlines are published annually in guidance issued by the US Department of Labor.

State plans will be reviewed in accordance with 20 CFR 661.220(e), which provides that the Secretary must approve all state plans within 90 days of their submission, unless the Secretary determines in writing that: (1) the state plan is inconsistent with the provisions of Title I of WIOA or the WIOA regulations, including 29 CFR Part 37; or (2) the portion of the state plan impacting the Wagner-Peyser Act plan does not satisfy the criteria for approval in section 8(d) of the Wagner-Peyser Act or the Wagner-Peyser Act regulations at 20 CFR Part 652.