Title 29 — LaborRelease 119-73
§3164 Use of funds for youth workforce investment activities
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 › § 3164
Summary
People can only get youth workforce services if they are either an out-of-school youth or an in-school youth when their eligibility is decided. Out-of-school youth are ages 16 to 24 who are not in school and meet at least one special condition (like dropping out, being in foster care, being homeless, parenting, having a disability, needing extra help, or being a low-income English learner). In-school youth are ages 14 to 21 who are in school, low income, and meet at least one need (like poor basic skills, being an offender, homeless, parenting, disabled, or needing extra help). “Low-income” also includes youth who live in high-poverty areas. No more than 5 percent of people served can be certain youth who aren’t low-income, and no more than 5 percent of in-school youth can be included only because they need extra help. At least 75 percent of certain state and local youth funds must go to out-of-school youth, though a State that gets a minimum allotment may lower that to no less than 50 percent for a local area if the State shows there are too few out-of-school youth and the federal Secretary approves. Governors must use reserved funds for statewide tasks like evaluations, listing eligible providers, coordinating with local areas, running financial and management systems, monitoring programs, and helping high-need areas. States may also use reserved funds for research, alternative programs, career services, financial literacy, and technical help. Local funds must assess each youth, make a service plan with career and education goals, and offer things like tutoring, alternative school services, paid or unpaid work experiences, job training that leads to credentials, career links to employers, mentoring, follow-up for at least 12 months, counseling, financial education, and help moving to college or jobs. Local boards can set up pay-for-performance uses for up to 10 percent of funds and must spend at least 20 percent on work experiences. Federal money cannot control school curricula or replace regular school classes for youth who are not dropouts. Local boards must work with schools and let successful participants volunteer as mentors or tutors.
Full Legal Text
Title 29, §3164
Labor — Source: USLM XML via OLRC
(a)(1)(A)To be eligible to participate in activities carried out under this subpart during any program year an individual shall, at the time the eligibility determination is made, be an out-of-school youth or an in-school youth.
(B)In this subchapter, the term “out-of-school youth” means an individual who is—
(i)not attending any school (as defined under State law);
(ii)not younger than age 16 or older than age 24; and
(iii)one or more of the following:
(I)A school dropout.
(II)A youth who is within the age of compulsory school attendance, but has not attended school for at least the most recent complete school year calendar quarter.
(III)A recipient of a secondary school diploma or its recognized equivalent who is a low-income individual and is—
(aa)basic skills deficient; or
(bb)an English language learner.
(IV)An individual who is subject to the juvenile or adult justice system.
(V)A homeless individual (as defined in section 12473(6) of title 34), a homeless child or youth (as defined in section 11434a(2) of title 42), a runaway, in foster care or has 11 So in original. Probably should be preceded by “who”. aged out of the foster care system, a child eligible for assistance under section 677 of title 42, or in an out-of-home placement.
(VI)An individual who is pregnant or parenting.
(VII)A youth who is an individual with a disability.
(VIII)A low-income individual who requires additional assistance to enter or complete an educational program or to secure or hold employment.
(C)In this section, the term “in-school youth” means an individual who is—
(i)attending school (as defined by State law);
(ii)not younger than age 14 or (unless an individual with a disability who is attending school under State law) older than age 21;
(iii)a low-income individual; and
(iv)one or more of the following:
(I)Basic skills deficient.
(II)An English language learner.
(III)An offender.
(IV)A homeless individual (as defined in section 12473(6) of title 34), a homeless child or youth (as defined in section 11434a(2) of title 42), a runaway, in foster care or has 1 aged out of the foster care system, a child eligible for assistance under section 677 of title 42, or in an out-of-home placement.
(V)Pregnant or parenting.
(VI)A youth who is an individual with a disability.
(VII)An individual who requires additional assistance to complete an educational program or to secure or hold employment.
(2)For the purpose of this subsection, the term “low-income”, used with respect to an individual, also includes a youth living in a high-poverty area.
(3)(A)(i)In this subparagraph, the term “covered individual” means an in-school youth, or an out-of-school youth who is described in subclause (III) or (VIII) of paragraph (1)(B)(iii).
(ii)In each local area, not more than 5 percent of the individuals assisted under this section may be persons who would be covered individuals, except that the persons are not low-income individuals.
(B)In each local area, not more than 5 percent of the in-school youth assisted under this section may be eligible under paragraph (1) because the youth are in-school youth described in paragraph (1)(C)(iv)(VII).
(4)(A)For any program year, not less than 75 percent of the funds allotted under section 3162(b)(1)(C) of this title, reserved under section 3163(a) of this title, and available for statewide activities under subsection (b), and not less than 75 percent of funds available to local areas under subsection (c), shall be used to provide youth workforce investment activities for out-of-school youth.
(B)A State that receives a minimum allotment under section 3162(b)(1) of this title in accordance with section 3162(b)(1)(C)(iv) of this title or under section 3172(b)(1) of this title in accordance with section 3172(b)(1)(B)(iv) of this title may decrease the percentage described in subparagraph (A) to not less than 50 percent for a local area in the State, if—
(i)after an analysis of the in-school youth and out-of-school youth populations in the local area, the State determines that the local area will be unable to use at least 75 percent of the funds available for activities under subsection (c) to serve out-of-school youth due to a low number of out-of-school youth; and
(ii)(I)the State submits to the Secretary, for the local area, a request including a proposed percentage decreased to not less than 50 percent for purposes of subparagraph (A), and a summary of the analysis described in clause (i); and
(II)the request is approved by the Secretary.
(5)In providing assistance under this section to an individual who is required to attend school under applicable State compulsory school attendance laws, the priority in providing such assistance shall be for the individual to attend school regularly.
(b)(1)Funds reserved by a Governor as described in section 3163(a) and 3173(a)(1) of this title shall be used, regardless of whether the funds were allotted to the State under section 3162(b)(1)(C) of this title or under paragraph (1)(B) or (2)(B) of section 3172(b) of this title for statewide activities, which shall include—
(A)conducting evaluations under section 3141(e) of this title of activities authorized under this subpart and subpart 3 in coordination with evaluations carried out by the Secretary under section 3224(a) of this title;
(B)disseminating a list of eligible providers of youth workforce investment activities, as determined under section 3153 of this title;
(C)providing assistance to local areas as described in subsections (b)(7) and (c)(2) of section 3121 of this title, for local coordination of activities carried out under this subchapter;
(D)operating a fiscal and management accountability information system under section 3141(i) of this title;
(E)carrying out monitoring and oversight of activities carried out under this subpart and subpart 3, which may include a review comparing the services provided to male and female youth; and
(F)providing additional assistance to local areas that have high concentrations of eligible youth.
(2)Funds reserved by a Governor as described in section 3163(a) and 3173(a)(1) of this title may be used, regardless of whether the funds were allotted to the State under section 3162(b)(1)(C) of this title or under paragraph (1)(B) or (2)(B) of section 3172(b) of this title, for statewide activities, which may include—
(A)conducting—
(i)research related to meeting the education and employment needs of eligible youth; and
(ii)demonstration projects related to meeting the education and employment needs of eligible youth;
(B)supporting the development of alternative, evidence-based programs and other activities that enhance the choices available to eligible youth and encourage such youth to reenter and complete secondary education, enroll in postsecondary education and advanced training, progress through a career pathway, and enter into unsubsidized employment that leads to economic self-sufficiency;
(C)supporting the provision of career services described in section 3174(c)(2) of this title in the one-stop delivery system in the State;
(D)supporting financial literacy, including—
(i)supporting the ability of participants to create household budgets, initiate savings plans, and make informed financial decisions about education, retirement, home ownership, wealth building, or other savings goals;
(ii)supporting the ability to manage spending, credit, and debt, including credit card debt, effectively;
(iii)increasing awareness of the availability and significance of credit reports and credit scores in obtaining credit, including determining their accuracy (and how to correct inaccuracies in the reports and scores), and their effect on credit terms;
(iv)supporting the ability to understand, evaluate, and compare financial products, services, and opportunities; and
(v)supporting activities that address the particular financial literacy needs of non-English speakers, including providing the support through the development and distribution of multilingual financial literacy and education materials; and
(E)providing technical assistance to, as appropriate, local boards, chief elected officials, one-stop operators, one-stop partners, and eligible providers, in local areas, which provision of technical assistance shall include the development and training of staff, the development of exemplary program activities, the provision of technical assistance to local areas that fail to meet local performance accountability measures described in section 3141(c) of this title, and the provision of technology to facilitate remote access to services provided through the one-stop delivery system in the State.
(3)Not more than 5 percent of the funds allotted to a State under section 3162(b)(1)(C) of this title shall be used by the State for administrative activities carried out under this subsection or section 3174(a) of this title.
(c)(1)Funds allocated to a local area for eligible youth under section 3163(b) of this title shall be used to carry out, for eligible youth, programs that—
(A)provide an objective assessment of the academic levels, skill levels, and service needs of each participant, which assessment shall include a review of basic skills, occupational skills, prior work experience, employability, interests, aptitudes (including interests and aptitudes for nontraditional jobs), supportive service needs, and developmental needs of such participant, for the purpose of identifying appropriate services and career pathways for participants, except that a new assessment of a participant is not required if the provider carrying out such a program determines it is appropriate to use a recent assessment of the participant conducted pursuant to another education or training program;
(B)develop service strategies for each participant that are directly linked to 1 or more of the indicators of performance described in section 3141(b)(2)(A)(ii) of this title, and that shall identify career pathways that include education and employment goals (including, in appropriate circumstances, nontraditional employment), appropriate achievement objectives, and appropriate services for the participant taking into account the assessment conducted pursuant to subparagraph (A), except that a new service strategy for a participant is not required if the provider carrying out such a program determines it is appropriate to use a recent service strategy developed for the participant under another education or training program;
(C)provide—
(i)activities leading to the attainment of a secondary school diploma or its recognized equivalent, or a recognized postsecondary credential;
(ii)preparation for postsecondary educational and training opportunities;
(iii)strong linkages between academic instruction (based on challenging State academic standards established under section 6311(b)(1) of title 20 22 So in original. Probably should be followed by a closing parenthesis. and occupational education that lead to the attainment of recognized postsecondary credentials;
(iv)preparation for unsubsidized employment opportunities, in appropriate cases; and
(v)effective connections to employers, including small employers, in in-demand industry sectors and occupations of the local and regional labor markets; and
(D)at the discretion of the local board, implement a pay-for-performance contract strategy for elements described in paragraph (2), for which the local board may reserve and use not more than 10 percent of the total funds allocated to the local area under section 3163(b) of this title.
(2)In order to support the attainment of a secondary school diploma or its recognized equivalent, entry into postsecondary education, and career readiness for participants, the programs described in paragraph (1) shall provide elements consisting of—
(A)tutoring, study skills training, instruction, and evidence-based dropout prevention and recovery strategies that lead to completion of the requirements for a secondary school diploma or its recognized equivalent (including a recognized certificate of attendance or similar document for individuals with disabilities) or for a recognized postsecondary credential;
(B)alternative secondary school services, or dropout recovery services, as appropriate;
(C)paid and unpaid work experiences that have as a component academic and occupational education, which may include—
(i)summer employment opportunities and other employment opportunities available throughout the school year;
(ii)pre-apprenticeship programs;
(iii)internships and job shadowing; and
(iv)on-the-job training opportunities;
(D)occupational skill training, which shall include priority consideration for training programs that lead to recognized postsecondary credentials that are aligned with in-demand industry sectors or occupations in the local area involved, if the local board determines that the programs meet the quality criteria described in section 3153 of this title;
(E)education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster;
(F)leadership development opportunities, which may include community service and peer-centered activities encouraging responsibility and other positive social and civic behaviors, as appropriate;
(G)supportive services;
(H)adult mentoring for the period of participation and a subsequent period, for a total of not less than 12 months;
(I)followup services for not less than 12 months after the completion of participation, as appropriate;
(J)comprehensive guidance and counseling, which may include drug and alcohol abuse counseling and referral, as appropriate;
(K)financial literacy education;
(L)entrepreneurial skills training;
(M)services that provide labor market and employment information about in-demand industry sectors or occupations available in the local area, such as career awareness, career counseling, and career exploration services; and
(N)activities that help youth prepare for and transition to postsecondary education and training.
(3)(A)Each local board shall ensure that each participant shall be provided—
(i)information on the full array of applicable or appropriate services that are available through the local board or other eligible providers or one-stop partners, including those providers or partners receiving funds under this part; and
(ii)referral to appropriate training and educational programs that have the capacity to serve the participant either on a sequential or concurrent basis.
(B)Each eligible provider of a program of youth workforce investment activities shall ensure that an eligible applicant who does not meet the enrollment requirements of the particular program or who cannot be served shall be referred for further assessment, as necessary, and referred to appropriate programs in accordance with subparagraph (A) to meet the basic skills and training needs of the applicant.
(C)The local board shall ensure that parents, participants, and other members of the community with experience relating to programs for youth are involved in the design and implementation of the programs described in paragraph (1).
(4)Not less than 20 percent of the funds allocated to the local area as described in paragraph (1) shall be used to provide in-school youth and out-of-school youth with activities under paragraph (2)(C).
(5)Nothing in this subpart shall be construed to require that each of the elements described in subparagraphs of paragraph (2) be offered by each provider of youth services.
(6)(A)No provision of this Act shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any educational institution, school, or school system, or over the selection of library resources, textbooks, or other printed or published instructional materials by any educational institution, school, or school system.
(B)No funds described in paragraph (1) shall be used to provide an activity for eligible youth who are not school dropouts if participation in the activity would interfere with or replace the regular academic requirements of the youth.
(7)In coordinating the programs authorized under this section, local boards shall establish linkages with local educational agencies responsible for services to participants as appropriate.
(8)The local board shall make opportunities available for individuals who have successfully participated in programs carried out under this section to volunteer assistance to participants in the form of mentoring, tutoring, and other activities.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
This Act, referred to in subsec. (c)(6)(A), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425, known as the Workforce Innovation and Opportunity Act, which enacted this chapter, repealed chapter 30 (§ 2801 et seq.) of this title and chapter 73 (§ 9201 et seq.) of Title 20, Education, and made
Amendments
to numerous other sections and notes in the Code. For complete classification of this Act to the Code, see
Short Title
note set out under section 3101 of this title and Tables.
Amendments
2015—Subsec. (b)(1)(C). Pub. L. 114–18 substituted “subsections (b)(7) and (c)(2) of section 3121 of this title” for “subsections (b)(6) and (c)(2) of section 3121 of this title”. Subsec. (c)(1)(C)(iii). Pub. L. 114–95 substituted “(based on challenging State academic standards established under section 6311(b)(1) of title 20” for “(based on State academic content and student academic achievement standards established under section 6311 of title 20)”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2015 AmendmentAmendment by Pub. L. 114–95 effective Dec. 10, 2015, except with respect to certain noncompetitive programs and competitive programs, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of Title 20, Education. Amendment by Pub. L. 114–18 effective as if included in the Workforce Innovation and Opportunity Act [Pub. L. 113–128], see § 2(f) of Pub. L. 114–18, set out as a note under section 3112 of this title.
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.
Reference
Citations & Metadata
Citation
29 U.S.C. § 3164
Title 29 — Labor
Last Updated
Apr 6, 2026
Release point: 119-73