TEGL 11-24 (Accessible PDF).pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION WIOA Wagner-Peyser CO RRESPONDENCE SYMBOL OWI DATE May 20 2025 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 11-24 TO FROM SUBJECT STATE WORKFORCE AGENCIES ALL STATE WORKFORCE LIAISONS LORI FRAZIER BEARDEN s Acting Assistant Secretary Workforce Innovation and Opportunity Act Adult Dislocated Worker and Youth Activities Program Allotments for Program Year PY 2025 PY 2025 Allotments for the Wagner-Peyser Act Employment Service Program and PY 2025 Allotments of Workforce Information Grants to States and Outlying Areas 1.Purpose. To provide information to states and outlying areas on Workforce Innovation and Opportunity Act WIOA Title I Adult Dislocated Worker and Youth Activities program allotments for Program Year PY 2025 PY 2025 allotments for the Wagner-Peyser Act Employment Service ES Program as required by section 6 b 5 of the Wagner-Peyser Act as amended and the allotments of Workforce Information Grants to states for PY 2025. 2.Action Requested. States and outlying areas must follow the requirements in this guidance to obtain the federal funds needed to manage their programs. 3.Summary and Background. a.Summary - This document provides grantees with guidance and information including How to obtain the federal funds covered by this Training and Employment Guidance Letter TEGL and financial reporting requirements The potential for reallotment of PY 2025 funds based on unobligated balances of PY 2024 funds in excess of 20 percent of their allotment at the end of PY 2024 6 30 25 Requirements when calculating sub-state allocations to local areas Funds set aside for evaluations program integrity and other department transfers Salary caps at the Executive Level II Waivers of the competition requirement for outlying areas and Authority for outlying areas to submit an application for a single consolidated grant for Adult Dislocated Worker and Youth funds. 2 b. Background - On March 15 2025 the Full-Year Continuing Appropriations and Extensions Act 2025 P.L. 119-4 was enacted from this point forward referred to as the Act . Section 1101 of the Act makes appropriations to the Department of Labor under the authority and conditions provided in the Departments of Labor Health and Human Services and Education and Related Agencies Appropriations Act 2024 Division D of Public Law 118-47 . Therefore just like the FY 2024 appropriations act the 2025 Act makes PY 2025 Youth Activities funds available for obligation on April 1 2025 and funds the WIOA Adult and Dislocated Worker programs in two separate appropriations. The first appropriations for the Adult and Dislocated Worker programs become available for obligation on July 1 2025 this portion is commonly referred to as base funds. The second appropriations for the Adult and Dislocated Worker programs become available for obligation on October 1 2025 this portion is commonly referred to as advance funds because they are provided in the appropriations act passed during the fiscal year immediately before the fiscal year when the funds are available. For example funds for PY 2025 that will be made available on October 1 2025 were appropriated during FY 2025 but not made available until FY 2026 and are called the FY 2026 advance funds. See Attachment A for details. The 2025 Act applies the provisions of the FY 2024 appropriations act at Public Law 118- 47 Division D Title I secs. 106 b and 107 which allow the Secretary of Labor Secretary to set aside up to 0.5 percent of each discretionary appropriation for activities related to program integrity and up to 0.75 percent of most operating funds for evaluations. Additionally section 102 allows for up to 1 percent of discretionary funds in the Act to be transferred between programs projects or activities. For 2025 as authorized by the Act the Department has set aside 15 562 000 of the Training and Employment Services TES and 7 291 000 of the State Unemployment Insurance and Employment Services Operations SUIESO appropriations impacted in this TEGL for these activities. Employment and Training Administration ETA reserved these funds from the WIOA Adult Youth Dislocated Worker Wagner-Peyser Act ES and Workforce Information Grant program budgets. Any funds not utilized for these reserve activities will be provided to the states. The Act also includes the specification that the Secretary may reserve no more than 10 percent of the Dislocated Worker National Reserve funds to provide technical assistance and carry out additional activities related to the transition to WIOA. Additionally the salary caps imposed under the FY 2024 appropriations act at Public Law 118-47 Division D Title I sec. 105 apply to the FY 25 appropriated funds. The funds provided to grantees in the allotments discussed in this TEGL must not be used by a recipient or sub- recipient to pay the salary and bonuses of an individual either as direct costs or indirect costs at a rate in excess of Executive Level II. The rates of basic pay for the Executive Schedule are found at https www.opm.gov policy-data-oversight pay-leave salaries- wages . States also may establish lower salary caps. See https www.dol.gov agencies eta advisories tegl-10-24 Salary and Bonus Limitation Imposed by Appropriations Language. 3 WIOA allotments for states are based on formula provisions contained in WIOA see Attachment B for WIOA and Wagner-Peyser Act formula descriptions . The Act waives the competition requirement regarding funding to outlying areas i.e. American Samoa Guam Commonwealth of the Northern Mariana Islands the Republic of Palau and the United States Virgin Islands . For PY 2025 outlying area grant amounts are based on the administrative formula determined by the Secretary that was used under the Workforce Investment Act. Additionally the Act allows outlying areas to submit a single application according to the requirements established by the Secretary for a consolidated grant for Adult Youth and Dislocated Worker funds. Subject to approval of the grant application and other reporting requirements of the Secretary the Act allows outlying areas receiving a consolidated grant to use those funds interchangeably between Adult Youth and Dislocated Worker programs or activities. Outlying areas must follow steps identified in Appendix VII if they want to consolidate those funds into a single grant. However if outlying areas are not consolidating the Adult Dislocated Worker and Youth funds they must follow steps identified in Appendix VI. The National Defense Authorization Act for Fiscal Year 2018 Pub. L. 115-91 December 12 2017 Division A Title XII Subtitle F sec. 1259C c authorized WIOA Title I funding to the Republic of Palau through FY 2024. See 48 U.S.C. 1921d f 1 B ix . WIOA specifically includes Palau as an outlying area except during any period for which the Secretary of Labor and the Secretary of Education determine that a Compact of Free Association is in effect and contains provisions for training and education assistance prohibiting the assistance provided under WIOA. No such determinations prohibiting assistance have been made WIOA sec. 3 45 B and therefore the Republic of Palau may obtain allotments. In addition to this TEGL ETA will publish the allotments and descriptions of the allotment formulas in the Federal Register. In this Federal Register notice ETA will invite comments on the allotment formula for outlying areas. 4.WIOA PY 2025 Allotments. Please see Appendices I through VII for guidance and Attachments A through K for formula descriptions and allotment tables. 5.Inquiries. Questions regarding these allotments may be directed to the appropriate Regional Office. Information on allotments and planning requirements may also be found on the ETA website at https www.dol.gov agencies eta. 6.References. Full-Year Continuing Appropriations and Extensions Act 2025 P.L. 119-4 The National Defense Authorization Act for Fiscal Year 2018 Pub. L. 115-91 December 12 2017 Division A Title XII Subtitle F sec. 1259C c Balanced Budget and Emergency Deficit Control Act of 1985 as amended Title II of Pub. L. 99-177 4 Bipartisan Budget Act of 2018 Pub. L. 115-123 Budget Control Act of 2011 Pub. L. 112-25 Data for Persons Defined as Disadvantaged Youth and Adults 2016-2020 https www.dol.gov agencies eta budget formula disadvantagedyouthadults Workforce Innovation and Opportunity Act Pub. L. 113-128 Wagner-Peyser Act as amended 29 U.S.C. 49 et seq. Compact of Free Association Amendments of 2003 Pub. L. 108-188 Compact of Free Association Amendments Act of 2024 Pub. L. 118-42 div. G tit. II TEGL 10-24 Salary and Bonus Limitation Imposed by Appropriations Language published January 17 2025 https www.dol.gov agencies eta advisories tegl-10-24 TEGL No.16-22 Revised ETA-9130 Financial Report Instructions and Additional Guidance published May 12 2023 https www.dol.gov agencies eta advisories tegl-16- 22 TEGL No. 01-23 Updated Disadvantaged Youth and Adult Data for use in Program Year PY 2023 and future Workforce Innovation and Opportunity Act WIOA Youth and Adult Within-State Allocation Formulas published July 31 2023 https www.dol.gov agencies eta advisories tegl-01-23 and Local Area Unemployment Statistics LAUS Technical Memorandum No. S-24-16 Program Year 2025 Areas of Substantial Unemployment under the Workforce Innovation and Opportunity Act dated August 1 2024. 7.Attachments. Appendix I WIOA Youth Allotment Activities Appendix II WIOA Adult Allotment Activities Appendix III WIOA Dislocated Worker Allotment Activities Appendix IV Wagner-Peyser Act ES Allotment Activities Appendix V Workforce Information Grants Allotment Activities Appendix VI Submission Requirements and Reporting Appendix VII Submission Requirements and Financial Reporting for Outlying Areas WIOA Title I Grant Consolidation Attachment A - Program Year 2025 Funding Attachment B - WIOA and Wagner-Peyser Statutory Formula Descriptions for State Allotments Attachment C - WIOA Statutory and Discretionary Formulas for Sub State Allocations Attachment D - WIOA Youth Activities State Allotments PY 2025 vs PY 2024 Attachment E - WIOA Adult Activities State Allotments PY 2025 vs PY 2024 Attachment F - WIOA Adult Activities PY 2025 State Allotments July 1 and October 1 Funding Attachment G - WIOA Dislocated Worker Activities State Allotments PY 2025 vs PY 2024 Attachment H - WIOA Dislocated Worker Activities PY 2025 State Allotments July 1 and October 1 Funding Attachment I - Employment Service Wagner-Peyser Allotments PY 2025 vs PY 2024 Attachment J - Workforce Information Grants to States Allotments PY 2025 vs PY 2024 Attachment K WIOA Youth Adult and Dislocated Worker Outlying Areas Funding PY 2025