April 10, 2024 --The US House of Representatives passed HR 6655, A Stronger Workforce for America Act late yesterday with overwhelming bipartisan support. The bill reflects compromises made by both House Republicans and Democrats in their effort to reauthorize the Workforce Innovation and Opportunity Act (WIOA), which previous Congresses have been unable to do since its authorization expired in 2019. 

On one level, bipartisan policy making is something to be celebrated. Unfortunately, it does not always translate into sound policy making. 

The National Association of Workforce Boards (NAWB), which serves, supports, and represents the more than 590 local and state workforce boards that are charged with implementing WIOA, is extremely disappointed that this legislation continues to include several provisions that undermine local communities’ ability to develop solutions that promote economic vitality. 

The bill includes a mandate directing 50% of WIOA Title I Adult and Dislocated Worker funds to be spent on training – a seemingly good idea – but in reality, this sweeping mandate with a very narrow definition of training would have numerous unintended and negative consequences. 

The mandate would force local workforce boards to redirect funds currently used to support tens of thousands of small businesses in finding and supporting the skilled talent they need to be successful.

It would significantly limit the funds available for supportive services currently leveraged by hundreds of thousands of job seekers whose ability to land a job or participate in training hinge on these resources to pay for childcare or transportation, significantly restricting their ability to prepare for and/or join the workforce. 

And the mandate takes away the ability of local businesses, economic developers, elected officials, and other community stakeholders to discuss, plan, build, and implement workforce development strategies that make sense for their state and local contexts.   

The bill also contains a provision that would increase the amount of WIOA funds a Governor can retain at the state level for the creation of Critical Industry Skills initiatives under the auspices of incentivizing innovation. While NAWB and its members certainly support finding ways to incentivize innovation within the public workforce system, this provision once again undermines local solutioning and effectively increases statewide reservations of WIOA funding to 25% of all formula resources available under Title I of the law.   

Further, when combined with the previously discussed provision, a local community would be left with only a quarter of WIOA formula funds it is able to use today to support job seekers in finding work and building a career. 

Given how historically underfunded WIOA has been over the last several decades, these aspects of the House-passed bill will have negative and far-reaching consequences for jobseekers and employers throughout the nation. 

NAWB has shared these concerns previously with leaders and lawmakers in the House. The vote in favor of advancing this legislation reflects that we must collectively do more to help policymakers understand that a thoughtful reauthorization of WIOA, one that meaningfully balances the needs of all stakeholders served by these programs and systems, is needed. 

Unfortunately, HR 6655 misses the mark. 

As the work of WIOA reauthorization now shifts to the Senate, NAWB will continue to advocate for local communities retaining the ability to define for themselves how to best leverage WIOA funds to catalyze economic vitality for businesses (be they small or large) and all of our neighbors.