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3. How does the Workforce Investment Act funding distribution system work?
In the Workforce Investment Act (WIA) system the vast majority of job training dollars are allocated to Local Workforce Investment Boards (LWIBs) who then issue vouchers called Individual Training Accounts (ITAs) to individuals whom the LWIBs certify as eligible for training. WIA clients can then use these vouchers as payments to a training provider that has been approved by the WIA system, usually on the Statewide List of Eligible Training Providers.
If a program is on the Statewide List of Eligible Training Providers it does NOT mean that the program must accept WIA clients into the program. Under WIA, all eligible training providers can set their own entrance and completion/graduation standards
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The ARRA, however, allows Local Workforce Investment Boards (LWIBs) to directly contract with training providers with the ARRA dollars. This provision is in addition to the usual ITA method for paying for training. Individuals accepted into the program may still use Individual Training Accounts as a payment method to their eligible training provider. Payment for training programs can be made in advance using both direct contracts and Individual Training Accounts.
State Set-Aside Discretionary Fund
Once WIA funds are received, states are allowed to spend up to 15% from each of the funding streams for dislocated workers, adults and youth on the following statewide activities at the Governor’s discretion:
- Building a statewide One-Stop system
- Certifying training providers
- Providing technical assistance to under-performing areas
- Providing incentive grants to high-performing areas
- Training incumbent workers
- Building capacity for stakeholders (including labor and community-based organizations)
- Establishing research and demonstration projects
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