Labor Dept. Releases 2026 Job Training Fund Allotments
Published Date: 4/28/2026
Notice
Summary
The Department of Labor is sharing how much money states will get in 2026 to help young people, adults, and workers who lost jobs find new opportunities. This includes funds for job services and workforce info grants. If you want to suggest changes, you have until May 28, 2026, to speak up!
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Analyzed Economic Effects
7 provisions identified: 6 benefits, 1 costs, 0 mixed.
PY2026 WIOA Youth Funding and Reservations
The PY 2026 appropriation for WIOA Youth Activities is $948,130,000; after set‑asides the amount available is $946,979,800. ETA reserved $925,200 (4% of the excess) for Migrant and Seasonal Farmworker (MSFW) Youth, set aside 1.5% for the Native American Youth program (calculated after the MSFW reservation), and reserved 0.25% for Outlying Areas (after those reservations). Youth funds become available for obligation on April 1, 2026, and $930,443,165 is available for state allotments (so WIOA additional minimums were not applied and instead the 90% prior year minimum and 0.25% state floor and 130% stop gain rules apply). The Act waives competition for Outlying Areas for PY 2026 and ETA used the WIA-era formula methodology for their allotments.
PY2026 WIOA Adult Funds and Timing
PY 2026 Adult Activities appropriations total $875,649,000; after a $169,000 set‑aside $875,480,000 remains, with $873,291,300 allotted to states and $2,188,700 reserved for Outlying Areas. The Adult program funding is in two parts: "base" funds become available for obligation on July 1, 2026, and the "advance" portion becomes available on October 1, 2026. Because the state total was below the $960 million WIOA threshold, the 90% prior year minimum and 0.25% state minimum floor (and 130% stop gain) apply instead of additional minimum provisions.
PY2026 Dislocated Worker Allotments and National Reserve
The PY 2026 appropriation for Dislocated Worker activities is $1,396,412,000; after a $251,000 set‑aside $1,396,161,000 remains. Outlying Areas receive $3,490,403, the National Dislocated Worker Reserve is $297,321,597, and $1,095,349,000 is available for state allotments. The Dislocated Worker state formula uses three data factors for the 12‑month period October 2024–September 2025 and includes stop‑loss/stop‑gain limits of 90% and 130% of the prior year's allotment percentage.
Wagner‑Peyser Employment Service Funding Rules
PY 2026 Wagner‑Peyser Employment Service grants total $675,052,000; after a $155,000 set‑aside $674,897,000 is available, including $673,251,836 for states and $1,645,164 for Outlying Areas. The statute allows a set‑aside up to 3% to ensure states have sufficient resources; ETA distributed set‑aside funds in two steps (Step 1 preserved prior‑year share for states with a civilian labor force under 1,000,000 and below the median CLF density; Step 2 distributed remaining set‑aside pro‑rata). Under section 7(a) states may use 90% of allotments for labor exchange and career services and section 7(b) reserves 10% for Governor use (incentives, special needs, exemplary models).
Federal Set‑Asides and Transfer Limits
The Consolidated Appropriations Act, 2026 authorizes the Secretary to set aside up to 0.5% of each discretionary appropriation for program integrity, up to 0.75% for evaluations, and up to 1% of discretionary funds to be transferred between programs. For PY 2026 ETA has reserved $645,000 from Training and Employment Services (TES) and $155,000 from State Unemployment Insurance & Employment Services Operations (SUIESO) for these activities; any unused reserved funds will be provided to states.
Workforce Information Grants Distribution
PY 2026 Workforce Information Grants total $32,031,000. ETA reserved $176,874 for Guam and the U.S. Virgin Islands, then distributes the remainder to states with 40% allocated equally to all states and 60% allocated based on each state's share of the civilian labor force for the 12 months ending September 2025.
Comments Due on Outlying Areas Methodology
The Department will accept public comments on the methodology used to allot funds to the Outlying Areas; comments must be received by May 28, 2026.
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