§3173 — Title 29 Labor | U.S. Code

§3173 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 3— - adult and dislocated worker employment and training activities › § 3173

Last updated Apr 6, 2026|Official source

Summary

The Governor must make the required reservation and may set aside up to 25% of the State’s dislocated worker allotment each fiscal year for statewide rapid response. After talking with local leaders and following the State plan, the Governor must divide the rest of the adult and dislocated worker funds to local areas. For adult funds the State can split the money into three equal 33⅓% parts based on different distribution rules, and a local area’s share for a year cannot be less than 90% of its average share for the two prior years (applies from fiscal year 2015 onward). For dislocated worker funds the Governor must use a state formula (can be changed once per program year) that uses data like insured unemployment, mass layoffs, declining industries, farmer‑rancher hardship, and long‑term unemployment; a 90% floor on local shares applies from fiscal year 2016 onward. The State may instead give at least 70% of adult funds by the main method and use a second formula for the rest that adds factors about excess poverty and excess unemployment in urban, rural, and suburban areas; that second formula must be created by the State board and approved as part of the State plan. Local boards may transfer up to 100% of their adult or dislocated worker funds between those categories if the Governor agrees. All funds must support a single system of employment and training services, pay for one‑stop center costs, and fund local job and training activities. The Governor can reallocate local money that is unused if a local area has more than 20% of its allocation left over; those reallocated amounts are given to eligible local areas in proportion to their shares.

Title 29, §3173

Labor — Source: USLM XML via OLRC

(a)(1)The Governor shall make the reservation required under section 3163(a) of this title.

(2)The Governor shall reserve not more than 25 percent of the total amount allotted to the State under section 3172(b)(2)(B) of this title for a fiscal year for statewide rapid response activities described in section 3174(a)(2)(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—

(A)the funds that are allotted to the State for adult employment and training activities and statewide workforce investment activities under section 3172(b)(1)(B) of this title and are not reserved under subsection (a)(1), in accordance with paragraph (2) or (3); and

(B)the funds that are allotted to the State for dislocated worker employment and training activities and statewide workforce investment activities under section 3172(b)(2)(B) of this title and are not reserved under paragraph (1) or (2) of subsection (a), in accordance with paragraph (2).

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

(I)33⅓ percent of the funds on the basis described in section 3172(b)(1)(B)(ii)(I) of this title;

(II)33⅓ percent of the funds on the basis described in section 3172(b)(1)(B)(ii)(II) of this title; and

(III)33⅓ percent of the funds on the basis described in clauses (ii)(III) and (iii) of section 3172(b)(1)(B) 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 amount allocated to local areas under paragraphs (2)(A) and (3) of section 133(b) of the Workforce Investment Act of 1998 [29 U.S.C. 2863(b)] (as in effect on the day before July 22, 2014), received through an allocation made under paragraph (2)(A) or (3) of that section for fiscal year 2013 or 2014, respectively.

(B)(i)In allocating the funds described in paragraph (1)(B) to local areas, a State shall allocate the funds based on an allocation formula prescribed by the Governor of the State. Such formula may be amended by the Governor not more than once for each program year. Such formula shall utilize the most appropriate information available to the Governor to distribute amounts to address the State’s worker readjustment assistance needs.

(ii)The information described in clause (i) shall include insured unemployment data, unemployment concentrations, plant closing and mass layoff data, declining industries data, farmer-rancher economic hardship data, and long-term unemployment data.

(iii)The local area shall not receive an allocation percentage for fiscal year 2016 or a subsequent 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.

(iv)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 2014, means a percentage of the amount allocated to local areas under section 133(b)(2)(B) of the Workforce Investment Act of 1998 [29 U.S.C. 2863(b)(2)(B)] (as in effect on the day before July 22, 2014), received through an allocation made under that section for fiscal year 2014.

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

(i)references in section 3172(b) of this title to a State shall be deemed to be references to a local area;

(ii)references in section 3172(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 3172(b)(1) of this title to the term “excess number” shall be considered to be references to the term as defined in section 3172(b)(1) of this title.

(3)In lieu of making the allocation described in paragraph (2)(A), in allocating the funds described in paragraph (1)(A) 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 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 local board may transfer, if such a transfer is approved by the Governor, up to and including 100 percent of the funds allocated to the local area under paragraph (2)(A) or (3), and up to and including 100 percent of the funds allocated to the local area under paragraph (2)(B), for a fiscal year between—

(A)adult employment and training activities; and

(B)dislocated worker employment and training activities.

(5)(A)The Governor shall allocate the funds described in paragraph (1) to local areas under paragraphs (2) and (3) for the purpose of providing a single system of employment and training activities for adults and dislocated workers in accordance with subsections (c) and (d) of section 3174 of this title.

(B)(i)Funds allocated under paragraph (2)(A) or (3) shall be used by a local area to contribute to the costs of the one-stop delivery system described in section 3151(e) of this title as determined under section 3151(h) of this title and to pay for employment and training activities provided to adults in the local area, consistent with section 3174 of this title.

(ii)Funds allocated under paragraph (2)(B) shall be used by a local area to contribute to the costs of the one-stop delivery system described in section 3151(e) of this title as determined under section 3151(h) of this title and to pay for employment and training activities provided to dislocated workers in the local area, consistent with section 3174 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 paragraph (2)(A) or (3) of subsection (b) or a corresponding provision of the Workforce Investment Act of 1998 for adult employment and training activities, or under subsection (b)(2)(B) or a corresponding provision of the Workforce Investment Act of 1998 for dislocated worker employment and training 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—

(A)for adult employment and training activities is equal to the amount by which the unobligated balance of the local allocation under paragraph (2)(A) or (3) of subsection (b) for such activities, at the end of the program year prior to the program year for which the determination under this subparagraph is made, exceeds 20 percent of such allocation for the prior program year; and

(B)for dislocated worker employment and training activities is equal to the amount by which the unobligated balance of the local allocation under subsection (b)(2)(B) for such activities, at the end of the program year prior to the program year for which the determination under this subparagraph 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—

(A)with respect to such available amounts that were allocated under paragraph (2)(A) or (3) of subsection (b), an amount based on the relative amount of the local allocation under paragraph (2)(A) or (3) of subsection (b), as appropriate, for the program year for which the determination is made, as compared to the total amount of the local allocations under paragraph (2)(A) or (3) of subsection (b), as appropriate, for all eligible local areas in the State for such program year; and

(B)with respect to such available amounts that were allocated under subsection (b)(2)(B), an amount based on the relative amount of the local allocation under subsection (b)(2)(B) for the program year for which the determination is made, as compared to the total amount of the local allocations under subsection (b)(2)(B) for all eligible local areas in the State for such program year.

(4)For purposes of this subsection, an eligible local area means—

(A)with respect to funds allocated through a local allocation for adult employment and training activities, a local area that does not have an amount of such funds available for reallocation under paragraph (2) for the program year for which the determination under paragraph (2) is made; and

(B)with respect to funds allocated through a local allocation for dislocated worker employment and training activities, a local area that does not have an amount of such funds 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.