JFF Calls on Congress to Pass Promising WIOA Bill

JFF Statement on the ‘A Stronger Workforce for America Act’

Last week, Congress released a bicameral and bipartisan reauthorization of the Workforce Innovation and Opportunity Act (WIOA). This bill, “A Stronger Workforce for America Act,” would make critical updates in the nation’s workforce development system, emphasizing the skill development of workers, introducing much-needed flexibilities and efficiencies in service provision, and strengthening connections between employers and workforce system providers, among other changes designed to modernize America’s workforce development efforts.

This federal action comes at a critical time. Today, the country faces a shifting and nuanced labor market. While unemployment remains low, employers can’t fill jobs fast enough. This challenge is fueled by multiple factors: an aging population, a lagging labor force participation rate, and a gap between training offerings and employers’ skill needs that leaves workers unprepared for in-demand jobs. Compounding this issue, rapid technological advancements and the rise of generative AI continue to transform industries, further widening the gap between the skills workers and jobseekers have and the skills employers need.

While workforce development isn’t a cure-all for these challenges, it is a powerful tool for equipping current and future workers with the skills they need to thrive in today’s economy. But the U.S. workforce system is underfunded and in need of updating to fully meet the skill needs of America’s workforce, especially in today’s turbulent economy.

Jobs for the Future (JFF) is encouraged by the progress in Congress—addressing crucial priorities that create no dead ends for learners and workers while rebuilding confidence in the nation’s workforce development system. We applaud Chair Virginia Foxx and Ranking Member Bobby Scott of the House Committee on Education and the Workforce and Chair Bernie Sanders and Ranking Member Bill Cassidy of the Senate Health, Education, Labor, and Pensions Committee for their commitment to advancing this bipartisan legislation.

Specifically, we strongly support provisions of the bill that:

• Increase the system’s emphasis on skills development, including its mandatory job training grants for dislocated workers and its establishment of the Critical Industry Fund and the Industry Sector Partnership and Career Pathways Development Fund, allowing states to set aside resources to support employer-led training efforts in high-demand sectors
• Expand flexibility in the delivery of services through the nation’s one-stop delivery system, encouraging the use of virtual services and affiliated sites
• Promote a more regionally focused workforce system that is better connected to employers and the economic development needs of regions
• Improve the Eligible Training Provider List and the overall quality of training
• Create and fund a new Youth Apprenticeship Readiness Grant program and codify the Reentry Employment Opportunities program, the Workforce Data Quality Initiative, and the Strengthening Community Colleges Workforce Development Grants program
• Continue to emphasize services for out-of-school youth while adding new flexibilities for allowing states to work with local workforce boards to determine appropriate in-school/out-of-school percentages for each local area
• Strengthen the workforce data ecosystem by promoting the use of real-time labor market information, facilitating access to wage records data, and promoting data transparency via the use of linked, open, and interoperable data formats
• Increase the emphasis on skills-based hiring through measures to embed competency-based assessments and encourage employers and states to develop skills-based initiatives

While JFF is excited about these updates, we remain concerned about a few elements of the bill, specifically:

• Lack of adequate funding. The authorization levels provided in the “A Stronger Workforce for America Act” do not provide adequate funding for the nation’s workforce development system to carry out its mandate, especially given the new and expanded activities encouraged in the bill. For example, the bill does not provide new authorizations for the Critical Industry Fund or the Industry Sector Partnership and Career Pathways Development Fund and instead allows states to reserve an additional 10% of funding from local areas to fund these initiatives. We fear this will take already limited resources from local workforce areas, reducing their ability to provide services to eligible populations.
• A possible reduction of services for people facing barriers to employment. For example, the bill proposes an expansion of incumbent worker training. This focus on currently employed individuals could reduce services for individuals with barriers to employment—especially adults with limited work histories, who are not covered by the new mandatory job training grants. While the bill maintains priority of service for individuals facing barriers to employment, we would have liked to have seen more incentives and strategies delineated for best-serving such individuals and for placing them in good jobs.

The “A Stronger Workforce for America Act” is not without its challenges. Its new training mandate and local area redesignation requirements will no doubt result in disruption across America’s workforce system.

We are committed to working with policymakers, employers, and workforce stakeholders to ensure the successful implementation of these reforms, with a focus on expanding high-quality skill development opportunities and aligning workforce services with employer needs. With the passage of this legislation, we are optimistic that America’s workforce development system can attract funding, and once again become a source of opportunity and strength for workers, businesses, and communities alike.