Funding for Employment Programs (WIA)

Take action and urge Congress to fund WIA’s adult, dislocated worker, and youth funding streams at current funding levels at a minimum before dedicating funding to the Administration’s proposed WIA Innovation Fund.

Background
On February 1, 2010, President Obama transmitted his FY 2011 budget request to Congress, which Congress will react to as it develops spending bills that fund federal agencies and programs for FY 2011. Under Obama’s budget, spending for the Workforce Investment Act’s three funding stream (adults, dislocated workers, and youth) would be increased; however the new funds would be used to create a new Workforce Innovation Fund. The Workforce Innovation Fund would create competitive grants to support and test "learn and earn" strategies like apprenticeships and on-the-job training; promote regional and sectoral collaborations; and support other evidence-based innovations..

The Concern
Funding for WIA steadily declined between 2002 and 2010; leaving current funding for WIA 7 percent below FY 2002 funding (real dollars) levels. Now with the unemployment rate at its highest in a generation, the workforce system’s resources are stretched too thin. Certainly collaboration between federal agencies and programs should be improved; however, funds for the Workforce Innovation Fund should come in addition to, rather than at the expense of existing funds for WIA. Although the President proposes to increase WIA funds to pay for the Workforce Innovation fund, Congress could fail to provide the proposed increase, yet allow existing WIA funds to be used to pay for it.