April 22, 2024
By: Lily Israel and Blair Hancock
On April 9, 2024, the U.S. House of Representatives passed HR 6655, A Stronger Workforce for America Act, by a vote of 378-26. This bill reforms and reauthorizes many of the Workforce Innovation and Opportunity Act (WIOA) programs from FY 2025 through FY 2030. The legislation strengthens connections between employers and the workforce system, puts more Americans on the pathway to a successful career, and expands opportunities for workers looking to access good-paying jobs and for employers seeking to fill those jobs. The bill now heads to the Senate for consideration.
BACKGROUND
WIOA was enacted in 2014 and currently serves as the primary workforce development law in the U.S. This bill has made critical improvements to federal workforce development through job training, education, support services, and providing better access to employment. However, the bill has not been updated in the last 10 years. New reforms are needed to meet the demands of upskilling workers in new and emerging fields. As such, the Education and Workforce Committee Chair Virginia Foxx (R-N.C.) and Ranking Member Bobby Scott (D-Va.) introduced H.R. 6655, A Stronger Workforce for America Act, in December 2023 to make critical improvements to WIOA. The bipartisan bill moved swiftly through the committee and reached the House floor approximately four months after introduction.
OVERVIEW OF HR 6655
WIOA has six core programs—overseen by the U.S. Departments of Labor and Education—that provide formula grants to state agencies to improve the labor market prospects of youth, adults, and disabled workers through job training, career services, and other activities. Five of the six programs were reauthorized in HR 6688 (vocational rehabilitation state grants were not covered).
HR 6655 reauthorizes $39.1 billion from FY 2025 through FY 2031. Below are some of the key programs reauthorized and their annual funding amounts through FY 2030:
- $1.8 billion for the Job Corps program
- $1.5 billion for dislocated worker employment and training activities
- $976.6 million for youth workforce investment activities
- $912.2 million for adult employment and training activities
- $751 million for adult education and literacy activities
- $108.2 million for the YouthBuild program
- $64.5 million for the workforce and labor market information system created under the Wagner-Peyser Act
In addition to reauthorization, several reforms have been made to increase performance accountability, strengthen connections between employers and the workforce system, and offer additional training and career opportunities. Specifically, there are new statewide requirements to coordinate with employers and industry and education stakeholders to evaluate the skills of these workers. The bill establishes a new fund to give performance-based awards to entities that provide skills development in high-priority industries with ample opportunities for success. The bill places an increased emphasis on the youth workforce. States will determine the minimum amount of funding for youth workforce investment activities based on the needs of each local area. The bill requires adding digital literacy skills to adult education and literacy programs. The Wagner-Peyser program services are updated by modifying the national workforce and labor market information system to include alternative employment data and real-time updates on new and emerging jobs and skill areas.
This legislation reforms how state and local workforce boards meet the needs of workers. This reform now makes it mandatory for state workforce development boards to submit a unified plan to outline strategies for core WIOA programs. These unified state plans must describe how the state would use real-time labor market information to analyze workforce trends and conduct activities to reduce entry barriers into the labor market. Local boards also must develop a local plan with local representatives to assist in developing the plan. These local plans will be submitted to the state’s governor. Local boards will also help employed workers gain new skills to avoid displacement and advance their careers. State and local workforce boards will be held more accountable for achieving positive labor market outcomes. This bill will fully implement a performance accountability system to do so. The bill also authorizes state and local boards, either on their own or with industry partners, to provide technical assistance to employers in implementing skills-based hiring practices.
One-stop career centers are also reformed in this bill. This bill modifies the requirements for the one-stop delivery system to allow area career and technical education (CTE) schools and public libraries to serve as the one-stop operator. This also gives local boards greater flexibility to expand access to services through one-stop career centers using virtual services and a network of affiliated locations, like libraries or community colleges.
NEXT STEPS
HR 6655 now heads to the U.S. Senate for consideration. The bill has been referred to the Senate Committee on Health, Education, Labor, and Pensions. Committee Chair Sanders (I-Vt.) and Ranking Member Cassidy (R-La.) have indicated their interest in reauthorizing WIOA this year but have offered no timeline for the panel to mark up HR 6655.
Questions?
Contact GrayRobinson Government Affairs Advisor Blair Hancock at blair.hancock@gray-robinson.com, Legislative Analyst Lily Israel at lily.israel@gray-robinson.com or another member of the Federal Lobbying Team.