As illustrated on page 16, WIA Title I authorizes three funding streams: Adult, Dislocated Worker, and Youth.

The Adult stream replaces the old JTPA Title II funding that targeted workers with barriers to employment. In contrast, the Adult funding stream provides for universal access (essentially all adults are eligible), though there are some attempts to prioritize services if funding is limited.

The Youth stream replaces the old Summer Youth and Youth with a single stream and requires all-year programming, making it hard to serve as many youth.

The Secretary of Labor only retains funding from the Dislocated Worker stream. 20% of the total of this funding is used by the Secretary for National Emergency grants, demonstration grants, and technical assistance.

The rest of the funds (most of the Dislocated Worker and all of both Adult and Youth) are then allocated to the states by formula.

Governors retain 15% of state allocations of all three funding streams, of which 1/3 (5% of the allocation of each) can be used for administration. The governor can use these funds for any allowed statewide activity, regardless of original funding stream source.

Governors can use these funds for incumbent worker training for any workers, regardless of wage level.

In addition, 25% of the state allocation is retained by the state for Rapid Response activities. This is the money that funds many labor programs.

The remainder of the funds are allocated to local areas by formula. The formula can take into account various poverty measures such as unemployment, number of people below poverty, and so on.