§3163 — Title 29 Labor | U.S. Code

§3163 Within State allocations

Title 29 › Chapter CHAPTER 32— - WORKFORCE INNOVATION AND OPPORTUNITY › Subchapter SUBCHAPTER I— - WORKFORCE DEVELOPMENT ACTIVITIES › Part Part B— - Workforce Investment Activities and Providers › Subpart subpart 2— - youth workforce investment activities › § 3163

Last updated Apr 6, 2026|Official source

Summary

The Governor must hold back up to 15 percent of certain state allotments each year to pay for statewide workforce activities. The Governor can use that money for statewide youth programs or for statewide adult and dislocated worker employment and training. After talking with local leaders and following the State plan, the Governor must divide the rest of the youth and statewide funds among local areas either by splitting the money into three equal 33⅓ percent parts using three formulas from another law (with the rule that a local area’s share cannot fall below 90 percent of its average share from the prior two years, and shortfalls are made up by reducing others proportionally), or by using at least 70 percent that same way and the remainder by a state board–created formula that looks at extra youth poverty and extra unemployment in urban, rural, and suburban areas and that the Secretary approves. Local boards may use no more than 10 percent of their local allocation for administrative costs, and those admin dollars can pay for any local workforce activities regardless of the funding source. The Governor may reassign unused local youth funds to other local areas after consulting the State board. Money is available to reassign when a local area’s unobligated balance at the end of the prior program year is more than 20 percent of that area’s allocation; the amount available equals the amount over 20 percent. The Governor must send those reallocated funds to eligible local areas in proportion to their allocations. A local area is eligible only if it does not itself have excess funds over the 20 percent limit.

Title 29, §3163

Labor — Source: USLM XML via OLRC

(a)(1)The Governor shall reserve not more than 15 percent of each of the amounts allotted to the State under section 3162(b)(1)(C) of this title and paragraphs (1)(B) and (2)(B) of section 3172(b) of this title for a fiscal year for statewide workforce investment activities.

(2)Regardless of whether the reserved amounts were allotted under section 3162(b)(1)(C) of this title, or under paragraph (1)(B) or (2)(B) of section 3172(b) of this title, the Governor may use the reserved amounts to carry out statewide activities under section 3164(b) of this title or statewide employment and training activities, for adults or dislocated workers, under section 3174(a) of this title.

(b)(1)The Governor, acting in accordance with the State plan, and after consulting with chief elected officials and local boards in the local areas, shall allocate the funds that are allotted to the State for youth activities and statewide workforce investment activities under section 3162(b)(1)(C) of this title and are not reserved under subsection (a), in accordance with paragraph (2) or (3).

(2)(A)(i)In allocating the funds described in paragraph (1) to local areas, a State may allocate—

(I)33⅓ percent of the funds on the basis described in section 3162(b)(1)(C)(ii)(I) of this title;

(II)33⅓ percent of the funds on the basis described in section 3162(b)(1)(C)(ii)(II) of this title; and

(III)33⅓ percent of the funds on the basis described in clauses (ii)(III) and (iii) of section 3162(b)(1)(C) of this title.

(ii)The local area shall not receive an allocation percentage for a fiscal year that is less than 90 percent of the average allocation percentage of the local area for the 2 preceding fiscal years. Amounts necessary for increasing such allocations to local areas to comply with the preceding sentence shall be obtained by ratably reducing the allocations to be made to other local areas under this subparagraph.

(iii)In this subparagraph, the term “allocation percentage”, used with respect to fiscal year 2015 or a subsequent fiscal year, means a percentage of the funds referred to in clause (i), received through an allocation made under this subparagraph, for the fiscal year. The term, used with respect to fiscal year 2013 or 2014, means a percentage of the funds referred to in section 128(b)(1) of the Workforce Investment Act of 1998 [29 U.S.C. 2853(b)(1)] (as in effect on the day before July 22, 2014), received through an allocation made under paragraph (2) or (3) of section 128(b) of the Workforce Investment Act of 1998 (as so in effect), for the fiscal year 2013 or 2014, respectively.

(B)For purposes of carrying out subparagraph (A)—

(i)references in section 3162(b) of this title to a State shall be deemed to be references to a local area;

(ii)references in section 3162(b) of this title to all States shall be deemed to be references to all local areas in the State involved; and

(iii)except as described in clause (i), references in section 3162(b)(1) of this title to the term “excess number” shall be considered to be references to the term as defined in section 3162(b)(2) of this title.

(3)In lieu of making the allocation described in paragraph (2), in allocating the funds described in paragraph (1) to local areas, a State may distribute—

(A)a portion equal to not less than 70 percent of the funds in accordance with paragraph (2)(A); and

(B)the remaining portion of the funds on the basis of a formula that—

(i)incorporates additional factors (other than the factors described in paragraph (2)(A)) relating to—

(I)excess youth poverty in urban, rural, and suburban local areas; and

(II)excess unemployment above the State average in urban, rural, and suburban local areas; and

(ii)was developed by the State board and approved by the Secretary as part of the State plan.

(4)(A)Of the amount allocated to a local area under this subsection and section 3173(b) of this title for a fiscal year, not more than 10 percent of the amount may be used by the local board involved for the administrative costs of carrying out local workforce investment activities under this subpart or subpart 3.

(B)Funds made available for administrative costs under subparagraph (A) may be used for the administrative costs of any of the local workforce investment activities described in this subpart or subpart 3, regardless of whether the funds were allocated under this subsection or section 3173(b) of this title.

(c)(1)The Governor may, in accordance with this subsection and after consultation with the State board, reallocate to eligible local areas within the State amounts that are made available to local areas from allocations made under this section or a corresponding provision of the Workforce Investment Act of 1998 for youth workforce investment activities (referred to individually in this subsection as a “local allocation”) and that are available for reallocation.

(2)The amount available for reallocation for a program year is equal to the amount by which the unobligated balance of the local allocation, at the end of the program year prior to the program year for which the determination under this paragraph is made, exceeds 20 percent of such allocation for the prior program year.

(3)In making reallocations to eligible local areas of amounts available pursuant to paragraph (2) for a program year, the Governor shall allocate to each eligible local area within the State an amount based on the relative amount of the local allocation for the program year for which the determination is made, as compared to the total amount of the local allocations for all eligible local areas in the State for such program year.

(4)For purposes of this subsection, an eligible local area means a local area that does not have an amount available for reallocation under paragraph (2) for the program year for which the determination under paragraph (2) is made.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Workforce Investment Act of 1998, referred to in subsec. (c)(1), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and was repealed by Pub. L. 113–128, title V, §§ 506, 511(a),

July 22, 2014, 128 Stat. 1703, 1705, effective

July 1, 2015. Pursuant to section 3361(a) of this title, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, Pub. L. 113–128,

July 22, 2014, 128 Stat. 1425. For complete classification of the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see

Short Title

note set out under section 3101 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the first day of the first full program year after

July 22, 2014 (

July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. Workforce Response Activities Pub. L. 116–136, div. A, title III, § 3515, Mar. 27, 2020, 134 Stat. 407, provided that: “(a) Administrative Costs.—Notwithstanding section 128(b)(4) of the Workforce Innovation [and] Opportunity Act (29 U.S.C. 3163(b)(4)), of the total amount allocated to a local area (including the total amount allotted to a single State local area) under subtitle B of title I of such Act (29 U.S.C. 3151 et seq.) for program year 2019, not more than 20 percent of the total amount may be used for the administrative costs of carrying out local workforce investment activities under chapter 2 [29 U.S.C. 3161 et seq.] or chapter 3 [29 U.S.C. 3171 et seq.] of subtitle B of title I of such Act, if the portion of the total amount that exceeds 10 percent of the total amount is used to respond to a qualifying emergency. “(b) Rapid Response Activities.—“(1) Statewide rapid response.—Of the funds reserved by a Governor for program year 2019 for statewide activities under section 128(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3163(a)) that remain unobligated, such funds may be used for statewide rapid response activities as described in section 134(a)(2)(A) of such Act (29 U.S.C. 3174(a)(2)(A)) for responding to a qualifying emergency. “(2) Local boards.—Of the funds reserved by a Governor for program year 2019 under section 133(a)(2) of such Act (29 U.S.C. 3173(a)(2)) that remain unobligated, such funds may be released within 30 days after the date of enactment of this Act [Mar. 27, 2020] to the local boards most impacted by the coronavirus at the determination of the Governor for rapid response activities related to responding to a qualifying emergency. “(c) Definitions.—Except as otherwise provided, the terms in this section have the meanings given the terms in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).” [For definitions of “qualifying emergency” and “coronavirus” as used in section 3515 of Pub. L. 116–136, set out above, see section 3502 of Pub. L. 116–136, set out in a note under section 1001 of Title 20, Education.]