§3172 State Allotments

Summary

The Secretary must divide up money Congress gives for job and training programs. For money for dislocated workers, 20 percent is set aside for national needs and 80 percent is given to the States. For adult programs, the Secretary may keep up to 1/4 of 1 percent to help outlying areas, and the rest is split among States using a formula made of three equal parts: one-third for unemployed people in high-unemployment areas, one-third for the “excess” unemployed, and one-third for disadvantaged adults. The law limits how much a State’s share can change from year to year: no State gets less than an amount based on 90 percent of its previous share, and no State’s share can be more than 130 percent of its previous share. Small-State minimums use exact percentages tied to $960,000,000 and a special older method if the money is at or below $960,000,000. For dislocated-worker funds, the Secretary may also reserve up to 1/4 of 1 percent for outlying areas, and the rest is given to States in three equal parts based on total unemployed, excess unemployed, and those unemployed 15 weeks or more. If a State finishes a year with more than 20 percent of its allotment unspent, the extra money is reallocated to other eligible States based on their shares. The Governor must set rules for how local areas must use funds to try to avoid reallocation and to share funds fairly if reallocation is needed. Defined terms (one line each): “Adult” means ages 22–72; “area of substantial unemployment” means areas with at least 6.5% unemployment; “excess number” means unemployed above 4.5% of the labor force; “disadvantaged adult” is measured against the poverty line or 70% of a living standard level; “low-income level” starts at $7,000 in 1969 and is adjusted by the Consumer Price Index.