Bill targets flexibility in youth workforce development funds

Ohio Congressman Dave Taylor has introduced a federal bill that, if passed, would amend the Workforce Innovation and Opportunity Act (WIOA), the main law governing workforce development efforts — and potentially impact young people training to become plumbers and HVAC technicians. 

What’s happening: WIOA is allocated about $5 billion per year, of which around $3 billion is directed to state and local workforce boards. Of those funds, nearly $1 billion is marked for youth programs, including apprenticeships and on-the-job training for high-demand occupations like plumbing.  

• About 44,000 job openings for plumbers are projected each year, on average, through 2034, according to the Bureau of Labor Statistics. 
• Taylor’s bill — the Workforce Flexibility Act — would remove a WIOA requirement that state and local boards spend at least 75 percent of funding on “out-of-school youth” (OSY), or individuals aged 16-24 who are not in school and meet other criteria, such as being disabled or in foster care.

Why it matters: The amendment would provide more spending flexibility to local Workforce Development Boards, and proponents say the bill will empower local communities to connect more young people with high-quality career training. 

Yes, but: It could potentially be seen as steering funds away from OSY, who already face several challenges. 

• The Century Foundation has said that funding is typically capped at $5,000 per participant, and that “a good portion of WIOA funding effectively serves as a publicly subsidized recruitment and training mechanism for firms that rely on a high-churn, low-wage labor model with no clear pathway to professional advancement or upward mobility.”

Go deeper: A statement from Taylor’s office says current rules leave just 25 percent of funding for in-school youth (ISY), defined as those aged 14 to 21 who are in school but meet the other OSY criteria. 

• Analysts have noted, “While a majority of the out-of-school youth seek out opportunities to connect to training and work, youth programs often report difficulties in sustaining participation after the initial connection is made.”
• Taylor’s office adds that 29 states or territories, from California to Ohio, have waivers allowing them flexibility in spending their funds. 

What they’re saying: “In rural areas like southern Ohio, where the population is spread out, it often makes more sense to focus workforce development at a central location, like schools,” the statement notes. “This would allow federal dollars to go further and reach more students.”

• “I’m laser-focused on bringing well-paying jobs to southern Ohio, and part of that is ensuring young people have access to workforce development programs that will equip them to excel in these roles,” Taylor said. 
• “When considering our federal workforce development programs, Congress must regularly ask how we can most effectively reach the greatest number of students,” he added. 
• “In this case, we can improve the current system by giving more flexibility to Local Workforce Development Boards, who best know what their communities need.”