Summary of the Workforce Investment Act

The Workforce Investment Act of 1998 rewrote federal statutes governing programs of job training, adult education and literacy, and vocational rehabilitation, replacing them with streamlined and more flexible components of workforce development systems.

The Act consolidates more than sixty federal training programs through three block grants to the states. Adult Employment and Training, Disadvantaged youth Employment and Training, and Dislocated Worker Employment and Training. Funding and decision making authority is transferred from the federal level to states and local areas. Local Area II Local Workforce Investment Board developed Workforce Centers that grant access to services to the public.

The Act promotes individual responsibility and personal decision-making through the use of vouchers (individual training accounts) for the purchase of training services. Customer choice requires the job training and employment system to be more responsive to the skill needs of individuals. The strong and active role of local businesses and the requirement that training be designed for occupations that are in local labor market demand will result in a market-driven system. The Act encourages innovation, cuts bureaucracy and strengthens accountability. Performance measures in training programs will include rates of job placement, retention and earnings. Reforms in programs for eligible youth include longer-term academic and occupational training with all employment experiences under the programs to be tied to basic academic and occupational learning opportunities. Adult education and literacy programs are consolidated into one flexible block grant to the states with increased accountability through performance measures. Opportunities for persons with disabilities are expanded through improved linkages with employers and the Workforce Centers.

For the State to be eligible to receive WIA funds, or receive financial assistance under the Wagner-Peyser Act, the Governor of the State shall submit to the Secretary of Labor, a single State plan that outlines a 5-year strategy for the statewide workforce investment system.