Title 29 › CHAPTER 32 — WORKFORCE INNOVATION AND OPPORTUNITY › SUBCHAPTER I — WORKFORCE DEVELOPMENT ACTIVITIES › Part B — Workforce Investment Activities and Providers › subpart 3 — adult and dislocated worker employment and training activities › § 3174
Governors must use certain reserved funds to pay for statewide rapid response and other statewide employment and training work. Rapid response means the State helps local areas when there are disasters, mass layoffs, or plant closings, working with local boards and elected officials. Other statewide funds must support the State plan and local areas, help build industry partnerships, improve data and accountability systems, train staff, monitor programs, share lists of eligible training providers and performance information, and run evaluations. If rapid response money stays unused after the first program year, the Governor may move it to other statewide activities. The State may spend no more than 5% of certain allotments for administering statewide youth and training efforts. Local area funds must create and run one-stop centers and provide required career and training services. Career services include eligibility checks, outreach and intake, skills and needs assessments, job search and placement help, labor market information, referrals to other services, counseling and job planning, short-term job-readiness help, work experiences, and follow-up for at least 12 months. Training funds go to people who need training to get or keep good jobs, who can do the training, and who choose programs linked to in-demand jobs. Priority goes to people on public assistance, other low-income people, and those with low basic skills. Training should usually be paid through individual training accounts so people can pick approved providers, though contracts are allowed in special cases. Local funds may also pay for supportive services, needs-related payments for unemployed people not getting unemployment insurance (for dislocated workers they must enroll by the 13th week after layoff or by the 8th week after being told a layoff will last over 6 months), and the payment cannot exceed the higher of the unemployment benefit amount or an equivalent-period poverty level amount. Local boards may reserve up to 20% for incumbent worker training (employers must pay a non-Federal share of at least 10% if they have 50 or fewer employees, 25% if 51–100, and 50% if more than 100). Governors or local boards may raise on-the-job training reimbursements up to 75% of a participant’s wage, considering factors like participant needs and employer size. Local boards may also set aside up to 10% for transitional jobs and up to 10% for pay-for-performance training contracts.
Full Legal Text
Labor, Source: USLM XML via OLRC
Legislative History
Reference
Citation
29 U.S.C. § 3174
Title 29, Labor
Last Updated
Sep 23, 2026
Release point: 119-110