This federally funded program successfully connects job seekers with employers. Give it the money it needs.
The U.S. Congress is gearing up for a reauthorization of the Workforce Innovation and Opportunity Act (WIOA), the primary federal legislation that funds and authorizes the nation’s public workforce development system.
As negotiations continue, the modernization of this important legislation has been backed by overwhelmingly bipartisan support. Last week, the Senate held a committee hearing to that end, on the heels of the House marking up and passing WIOA legislation called the Stronger Workforce for America Act in April 2024.
As movement continues on this front, it’s important that policymakers ground their conversations in the right principles so that WIOA benefits even more American workers.
Signed into law in 2014, WIOA’s main goal is to help connect job seekers with employment, training, education and support to help them succeed in the labor market — especially for those who face barriers. In the 10 years since WIOA’s passage, the demographics of the labor market have shifted, particularly in light of the COVID-19 pandemic and the Biden administration’s ambitious jobs agenda.
Unless something changes, experts project participation will remain lower, considering the demographics of our aging workforce. As policymakers’ discussions about the role of WIOA intensify, it’s become clear that after a decade the law could be modernized to better meet our current workforce needs and goals.
First and foremost, the U.S. workforce system cannot fully realize WIOA’s goal of connecting students and workers with opportunities if WIOA isn’t adequately funded. And since 2015, WIOA funds simply haven’t kept pace with economic growth, population growth or inflation. For example, when accounting for these economic measures, the current funding level for employment and training services in WIOA falls anywhere from $400 million to $1 billion short.
While more funds would go a long way, there are other key ways to modernize WIOA that would help us meet the moment. A reauthorization of WIOA should prioritize better collaboration between higher education and the workforce system, including dedicated funding for community colleges. Community and technical colleges provide significant training to the public workforce system and are well-positioned to help provide training at the scale currently needed. They also enroll a disproportionate number of the workers most likely to be left out of the workforce, including in rural communities.
One key program currently missing from WIOA is dedicated funds for sector training partnership grants. These partnerships bring employers, workers, unions, colleges, workforce boards and community organizations together to address workforce needs and better connect workers with high-demand opportunities.
