This guidance letter updates the procedures states should follow to apply for WIA Section 503 Incentive Grants.

To provide guidance to states with Strategic Five-Year State Plans for Title I of the Workforce Investment Act of 1998 and the Wagner-Peyser Act that expire in calendar year 2004.

To transmit to States instructions for the Workforce Investment Act (WIA) of 1998 Transition Summer Report (WTSR).

This guidance letter outlines the steps to be taken in the event that a State is not prepared to fully implement the required provisions for the Workforce Investment Act by July 1, 2000 - the date which JTPA will be repealed. These steps must be balanced so that States are held accountable to statutory and regulatory requirements and the principles of WIA while ensuring that customers of the workforce investment system continue to have access to the WIA services.

To provide new policy guidance governing the use of Workforce Investment Act (WIA) National Emergency Grant (NEG) funds at Section 173(f) and (g) to make "gap-filler" payments of qualified health insurance premiums for individuals eligible for the HCTC.

To transmit Workforce Investment Act (WIA) financial reporting requirements, including the OMB approved reporting formats and corresponding instructions.

To provide guidelines for negotiating state performance goals for the labor exchange component of the One-Stop service delivery system for Program Year 2004.

To announce the opportunity for state and local workforce investment systems to collaborate with a new four-year demonstration grant that provides funding of $2 million for the Steve Young Memorial Scholarship Program for spouses of fallen sworn law enforcement officers. The Steve Young Memorial Scholarship Program is administered by the National Fraternal Order of Police Foundation (hereafter referred to as the FOP), and provides up to $15,000 for job training and other services to spouses of fallen sworn law enforcement officers killed in the line of duty from January 2001 through December 2006. The funds made available under the Department of Labor (DOL) grant will complement scholarship funds that are currently available to eligible spouses through the U.S. Department of Justice, Bureau of Justice Assistance, Public Safety Officers' Educational Assistance (PSOEA) Program and the U.S. Department of Education, as well as state and local scholarship and grant programs specifically available to spouses of fallen sworn law enforcement officers.

To provide planning estimates and guidance for Program Year (PY) 2000 State One-Stop/Labor Market Information (OS/LMI) core products and services grant funds.

To transmit the proposed change to the Interim Final Rule on the Workforce Investment Act (WIA) of 1998 relative to the classification of Administrative Costs. This language has been reviewed by the Office of Management and Budget and it mirrors what will be published in the Final Rule late in July. Due to the full implementation date of July 1, 2000, OMB has cleared this language prior to the publication of the Final Rule, to assist the system with further implementation. This definition of Administrative Cost classification goes into effect on July 1, 2000.