WIOA state plan modifications for 2022–2023

CLASSIFICATION
    EMPLOYMENT AND TRAINING ADMINISTRATION                           WIOA State Plans
                ADVISORY SYSTEM                                      CORRESPONDENCE SYMBOL
           U.S. DEPARTMENT OF LABOR                                  OWI
              Washington, D.C. 20210                                 DATE
                                                                     December 14, 2021

ADVISORY:           TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 4-21

TO:                 STATE WORKFORCE AGENCIES
                    STATE WORKFORCE ADMINISTRATORS
                    STATE WORKFORCE LIAISONS
                    STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
                    AMERICAN JOB CENTER DIRECTORS
                    STATE LABOR MARKET INFORMATION DIRECTORS
                    STATE APPRENTICESHIP AGENCIES
                    STATE DIRECTORS OF THE OFFICE OF APPRENTICESHIP
                    STATE AND LOCAL STAKEHOLDERS IN THE WORKFORCE
                    INNOVATION AND OPPORTUNITY ACT

FROM:               ANGELA HANKS
                    Acting Assistant Secretary

SUBJECT:            Modification Requirements for Workforce Innovation and Opportunity Act
                    (WIOA) State Plans for Program Years (PYs) 2022 and 2023

1. Purpose. This Training and Employment Guidance Letter (TEGL) conveys to states1 the
   Administration’s priorities, modification requirements, submission process, and deadline for
   the required modification of the WIOA Unified and Combined State Plans (State Plans) for
   PY 2022 and PY 2023, consistent with Sections 102 and 103 of WIOA.

2. Action Requested. In accordance with WIOA, its implementing regulations, and the
   information collection request (ICR) Workforce Innovation and Opportunity Act (WIOA)
   Unified and Combined State Plan Requirements, approved under Office of Management and
   Budget (OMB) control number 1205-0522, states must submit a two-year modification of
   their WIOA Unified or Combined State Plans to the U.S. Departments of Labor and
   Education (the Departments). States should submit plan modifications by March 15, 2022,
   using the online portal described in Section 4.d. of this guidance. Once submitted, the
   Departments will review and provide a decision within 90 days for the core programs, as
   required by section 102(c)(2)(B) and (3)(B) of WIOA.

1
 For purposes of the Unified or Combined State Plans, the term “State” refers to the 50 States, the District of
Columbia, Puerto Rico, American Samoa, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and, as
appropriate for certain programs, the Republic of Palau (20 CFR § 676.105(e), 34 CFR §§ 361.105(e) and
463.105(e)).

    RESCISSIONS                                                       EXPIRATION DATE
    None                                                              Continuing

3. Summary and Background.

  a. Summary – This joint guidance outlines the WIOA planning requirements for the
     required two-year modification of the four-year State Plan and provides submission
     deadlines and procedures.

  b. Background – WIOA requires the Governor of each state to submit a Unified or
     Combined State Plan that includes a four-year strategy and operational plan for the
     continuing implementation of the state’s workforce development system, with an update
     after two years. States must have federally approved State Plans to receive funding under
     the six core programs (Adult, Dislocated Worker, Youth, Adult Education and Family
     Literacy Act (AEFLA), Wagner-Peyser, and the Vocational Rehabilitation (VR)
     programs). All states currently have approved WIOA State Plans for PYs 2020-2023.
     However, WIOA requires that states review their plan every two years and update State
     Plan strategies, based on changes in the labor market and economic conditions or other
     factors affecting the implementation of the State Plan. Such factors may include
     reorganization of state administering agencies of WIOA programs, redesignation of local
     areas or establishment of new planning regions, changes to sub-state funding allocations,
     and other significant strategic or operational changes within states.

     Under WIOA, the Unified and Combined State Plans communicate the state’s vision for
     the state workforce system. WIOA planning requirements aim to foster better alignment
     of federal investments across job training and education programs in order to align
     service delivery across programs among shared customers, to improve efficiency in
     service delivery, and to ensure that the workforce system matches skilled individuals with
     high-quality job opportunities and employers. Cross-program planning promotes a
     shared understanding of the workforce needs within each state. Such planning cultivates
     the development of more comprehensive and aligned approaches, such as career
     pathways and sector strategies, for addressing the needs of workers, especially those with
     barriers to employment, including individuals with disabilities, and of businesses.
     Additionally, it enables the workforce system to provide a wider range of coordinated and
     streamlined services to shared customers.

     The Departments recognize that states have been engaged in responding to the
     convergence of economic and health crises that have exposed and exacerbated inequities
     within our communities during the past two years since approval of their PYs 2020-2023
     Unified or Combined State Plans. Past economic recoveries inequitably impacted people
     of different demographics, geographic locations, occupations, and industries; this
     recovery can be different with intentional planning and action. With this in mind, and in
     light of the reassessment by states of education and workforce needs and strategic
     approaches to addressing the shifting economic and workforce landscape, strategic
     planning and cross-partner conversations are more important than ever. Such planning
     can drive implementation that more fully realizes the opportunities, innovations, and
     equitable prosperity that WIOA envisions for America’s workers and learners.

4. Content.
      a. WIOA Planning Priorities.
       i. Data-driven decisions. When states last submitted WIOA State Plans in March 2020,
          the COVID-19 pandemic and its significant disruptions to the global and to local
          economies had only just begun. As a result, it is particularly critical, for purposes of
          developing and submitting the State Plan modification for PYs 2022 and 2023, that
          states reassess economic and labor market information (LMI) and adjust strategies for
          what may now be a different set of growing and declining industries, occupations,
          and skills, thereby ensuring the State Plan modification reflects changes in the labor
          market and economic conditions and other factors affecting implementation of the
          State Plan as required by section 102(c)(3)(A) of WIOA. LMI informs both
          immediate response and ongoing recovery efforts during this rapidly changing
          economic environment, and state planners must work closely with the LMI Directors2
          within their states to understand the current and growing needs of their economy. In
          their examination of LMI, states must analyze data to assess disparities in labor
          market outcomes among various populations3 and should focus planning efforts on
          not just how to tackle workforce challenges generally, but also how best to adapt and
          adjust their workforce goals and strategic focus for those communities with
          disproportionately higher unemployment rates and lower earnings—particularly
          among underserved population groups, or individuals facing barriers to employment
          (e.g., low-income individuals, English language learners, individuals without housing,
          individuals with disabilities). The State Plan modification must reflect any such
          strategic re-focusing. The Departments encourage states to widely share state LMI,
          including the state LMI used in state plans across state agencies, regardless of
          inclusion in the WIOA State Plan, to support data-informed decisions. For example,
          such data analysis could support Perkins V subrecipients in carrying out
          comprehensive local needs assessments4.

        ii. Reemployment. WIOA emphasizes integrating services to better serve workforce
            customers. All workforce system partners have a shared responsibility to facilitate
            the reemployment of unemployed individuals and the improved employment of
            underemployed individuals. To accomplish this shared responsibility, each one-stop
            partner program contributes services to individuals who meet program eligibility
            requirements and offers opportunities for individuals to co-enroll in more than one
            program. The Departments encourage states to examine how well their systems and
            operations across the WIOA one-stop partner programs, including Unemployment
            Insurance (UI), can work more seamlessly together to positively affect the shared
            goal of reemployment, particularly for individuals with barriers to employment,
            including individuals with disabilities.

2
  A list of all LMI Directors is available at https://www.bls.gov/bls/ofolist.htm.
3
  WIOA Section 102(b)(1)(B) and Workforce Innovation and Opportunity Act (WIOA) Unified and Combined State
Plan Requirements (OMB control # 1205-0522), section II(a)(1)(B).
4
  Perkins V is the Carl D. Perkins Career and Technical Education Act of 2006, as amended by the Strengthening
Career and Technical Education for the 21st Century Act. Section 135(c) requires comprehensive local needs
assessments.

      iii. Equity in service delivery and educational programming. States should examine
           which population groups, particularly those identified in the LMI analysis as having
           higher unemployment and lower earnings than the overall population, experience
           inequities in access to and participation in public workforce programs that lead to
           quality jobs. States and local areas can examine, where data are available, which
           communities and neighborhoods were particularly economically impacted during the
           pandemic in order to focus resources and referral networks for maximum impact.
           The Departments encourage states to develop education, training, and career service
           strategies that better address and promote equity in recruitment, service design,
           implementation, and support services that aim to provide equitable access and
           outcomes to all communities seeking access to state services. Smooth transitions and
           alignment among programs, including programs that support low-income jobseekers
           such as recipients of Temporary Assistance for Needy Families (TANF),
           Supplemental Nutrition Assistance Program (SNAP), and those supporting
           individuals with disabilities such as state Mental Health or Medicaid services,
           promote economic stability. States are also encouraged to consider ways they can
           continue to leverage pandemic related investment, from both the public and private
           sector, to build and improve capacity of educational programming. This includes
           supporting educators to leverage technology for innovative and personalized
           instruction and increasing access to internet and devices for students and families.
           Nimble, modularized, innovative, and personalized services—including better
           leveraging technology for synchronous and asynchronous program delivery—can
           provide flexibility and adaptability to workers and learners, increasing equitable
           engagement in services and meeting their needs while they are balancing competing
           commitments and schedule challenges.

      iv. Enhance supportive service offerings. Services that assist individuals to begin to
          return to work not only include education, training, and employment services, but
          also include services that support individuals’ personal and family needs to address
          barriers to work. States should consider providing assistance with access to
          transportation, referrals to physical and mental health assistance, housing assistance,
          child and dependent care, and income supports such as UI and TANF. Supportive
          services are essential to ensure that youth and adults can stay engaged in program
          offerings and reach their educational and employment goals and are particularly
          critical for those with justice and child welfare system involvement, individuals with
          disabilities, individuals without housing, or those with limited English proficiency.
          Partnerships with community-based organizations with deep roots in underserved
          communities are key to improve outreach and supports for an equitable recovery.

b.   Planning Requirements. States must use the ICR Workforce Innovation and Opportunity
     Act (WIOA) Unified and Combined State Plan Requirements (OMB control # 1205-0522)
     to develop and submit both the WIOA Unified or Combined State Plan and the two-year
     modification. A copy of the ICR, which complies with statutory requirements set forth in,
     as appropriate, sections 102 and 103 of WIOA, is available at
     https://www.dol.gov/sites/dolgov/files/ETA/wioa/pdfs/State-Plan-ICR.pdf. A copy of

        these requirements is also available through the State Plan portal, developed specifically for
        the required electronic submission.

    c. Stakeholder Collaboration and Comment. Stakeholder collaboration, review, and
       comment are key requirements of the four-year planning process, as well as the two-year
       modification. State Workforce Development Boards (State Boards) are responsible for
       assisting the Governor in the development, implementation, and modification of the plan
       and for convening all relevant programs, required partners, and stakeholders to contribute to
       the State Plan. The Departments encourage inclusion of the state LMI and evaluation
       offices (or their equivalent) during plan development and modification to obtain assistance
       with labor market data, evidence, and analysis. The State Plan must be developed with the
       assistance of the State Board, as required by Section 101(d) of WIOA, and in coordination
       with administrators that have optimal policymaking authority for the core programs and
       required one-stop partner programs. For Combined State Plans, the portions of the plan that
       cover partner programs other than the core programs are subject to any public comment
       requirements applicable to those partner programs.5 States must provide the opportunity for
       public comment and input which allows interested stakeholders to participate actively,
       effectively, and transparently in the development of the plan and the modification, including
       via accessible means for individuals with disabilities. The Governor must ensure that the
       State Plan modification is developed with an opportunity for public comment from
       representatives of:

              Local Workforce Development Boards and chief elected officials;
              businesses;
              labor organizations;
              community-based organizations;
              adult education providers;
              institutions of higher education;
              other stakeholders with an interest in the services provided by the six core programs;
               and
              the general public, including individuals with disabilities.

          The State Board also must make information regarding the modification of the State Plan
          and planning process available to the public through electronic and accessible means and
          by holding regularly occurring open meetings in accordance with state law prior to the
          submission of the State Plan.6

d.        Instructions for State Plan Modification Submission. States must submit their
          modification of their State Plan via the State Plan Portal (https://wioaplans.ed.gov),
          which has been developed for the purpose of cross-program collaboration in states and to
          facilitate the simultaneous receipt and review of plans across multiple federal agencies.
          While multiple individuals in states may enter content into the portal, only one individual
          from each state may submit to the Departments the entire plan on behalf of the Governor

5
    See 20 CFR § 676.143(c)(3) and 34 CFR §§ 361.143(c)(3) and 463.143(c)(3).
6
    See WIOA Section 101(g) and 20 CFR § 676.130(d) and 34 CFR §§ 361.130(d) and 463.130(d).

         for all included programs. The Office of the Governor for each state must notify the
         Departments of the individual designated to submit the State Plan modification on behalf
         of the Governor for all programs included in the State Plan, even if that designee has not
         changed since the PY 2020 submission. By March 15, 2022, the Governor’s office must
         submit a letter or email with the name of the designee to [email protected] with a
         copy to the appropriate ETA Regional Office.

         To request a State Plan portal user account or to update existing account login
         information, visit https://wioaplans.ed.gov. Previously approved WIOA State Plans are
         available within the portal for editing; content from the PYs 2020-2023 plans will be
         available in the data entry fields, so state editors can either delete entire sections or
         update specific portions of the plan.

e.       Performance Negotiations for Core Programs. To outline the requirements for
         reaching agreement on the negotiated levels of performance for the states outlined in
         WIOA Section 116, the Departments issued joint guidance titled, Negotiations and
         Sanctions Guidance for the Workforce Innovation and Opportunity Act (WIOA) Core
         Programs (ETA TEGL 11-19, OCTAE Program Memorandum 20-2, and RSA TAC-20-
         02) and updated that guidance with the issuance of the Workforce Innovation and
         Opportunity Act (WIOA) Core Program Performance Accountability Assessment for
         Program Years (PYs) 2020 and PY 2021 (ETA Training and Employment Notice 14-21,
         OCTAE Program Memorandum 22-1, and RSA Frequently Asked Questions (FAQ) 22-
         01), dated October 27, 2021. The Departments will continue to use a “phased-in”
         approach to establish negotiated and adjusted levels of performance for certain indicators
         for specific programs. The appendix in the Unified and Combined State Plan ICR
         discussed in this section, and in Attachment I of this guidance, reflect which
         indicators/programs the Departments will negotiate for PYs 2022 and 2023. See
         Attachment I of this guidance for more instructions on establishing performance levels.

f.       Waivers. As discussed in TEGL 08-18, Workforce Innovation and Opportunity Act
         (WIOA) Title I and Wagner-Peyser Act Waiver Requirements and Request Process, the
         Secretary of Labor may grant states additional flexibility through the waiver authority for
         portions of WIOA Title I and Wagner-Peyser Act requirements when permitted. Waivers
         are a tool for reducing barriers to WIOA implementation and spurring innovative
         programming options. States may submit WIOA Title I and III waiver requests as part of
         their State Plan or as a separate waiver plan.

         All currently approved waivers expire on June 30, 2022.7 Therefore, states should submit
         new waiver requests as part of the State Plan modification submission for re-
         consideration if they wish to continue implementing particular waivers that had been
         approved previously. As articulated in waiver approval letters, states agreed to meet
         certain performance or other program measures resulting from the waiver. States

7
 For waivers related to the 75% out-of-school youth expenditure requirement, waivers are in effect for the full
amount of time that states have to spend program year funds.

                requesting a waiver renewal beyond June 30, 2022 must provide the most recent data
                available about the outcomes of the waiver in the renewal request.8 The Department of
                Labor will consider this information as part of its thorough consideration on whether to
                approve the requested waiver. Find waiver-related resources at
                https://www.dol.gov/agencies/eta/wioa/waivers.

5.         Inquiries. Please direct inquiries to the appropriate Regional Office.

6.         References.
               Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) (July 22, 2014)
               Joint Rule for Unified and Combined State Plans, Performance Accountability, and the
                One-Stop System Joint Provisions; Final Rule (WIOA Joint Final Rule) published at 81
                FR 55792 (Aug. 19, 2016)
               Employment and Training Administration, Workforce Innovation and Opportunity Act;
                Final Rule (WIOA DOL Final Rule) published at 81 FR 56071 (Aug. 19, 2016)
               State Vocational Rehabilitation Services Program; State Supported Employment Services
                Program; Limitations on Use of Subminimum Wage—Final Rule (Office of Special
                Education and Rehabilitative Services (OSERS) Final Rule) published at 81 FR 55630
                (August 19, 2016)
               Workforce Innovation Opportunity Act: Miscellaneous Program Changes—Final Rule
                (WIOA OSERS Final Rule) published at 81 FR 55562 (August 19, 2016)
               Programs and Activities Authorized by the Adult Education and Family Literacy Act
                (Title II of WIOA)—Final Rule (WIOA OCTAE Final Rule) published at 81 FR 55526
                (August 19, 2016)
               ICR Required Elements for Submission of the Unified or Combined State Plan and Plan
                Modifications Under the Workforce Innovation and Opportunity Act, approved under
                Office of Management and Budget (OMB) control number 1205-0522
               Training and Employment Guidance Letter (TEGL) No. 08-18, Workforce Innovation
                and Opportunity Act (WIOA) Title I and Wagner-Peyser Act Waiver Requirements and
                Request Process, dated December 19, 2018
               Training and Employment Notice (TEN) No. 20-16, “Announcing the publication and
                effective date of the Section 188 WIOA Nondiscrimination and Equal Opportunity
                Regulations (29 CFR Part 38) Final Rule in the Federal Register,” dated December 2,
                2016
               TEN No. 10-15, Workforce Innovation and Opportunity Technical Amendments Act,
                dated September 17, 2015
               TEN No. 14-21, Workforce Innovation and Opportunity Act (WIOA) Core Program
                Performance Accountability Assessment for Program Years (PY) 2020 and 2021, dated
                October 27, 2021

     8
         See 20 CFR § 679.620(d)(7).

      Unemployment Insurance Program Letter (UIPL) No. 17-14, Revised Employment and
       Training (ET) Handbook No. 336, 18th Edition: “Unemployment Insurance (UI) State
       Quality Service Plan (SQSP) Planning and Reporting Guidelines
      UIPL No. 20-15, Unemployment Insurance and the Workforce Innovation and
       Opportunity Act of 2014
      Jobs for Veterans Act (Public Law 107-288, 38 U.S.C. § 4215), Priority of service for
       veterans in Department of Labor job training programs (For current instructions to
       submit an annual Jobs for Veterans State Grants Application for Funding, access the
       policy on VETS website,
       https://www.dol.gov/agencies/vets/resources/VPLS/VPLDirectory)
      Program Memorandum OCTAE 22-1, Workforce Innovation and Opportunity Act
       (WIOA) Core Program Performance Accountability Assessment for Program Years (PYs)
       2020 and 2021, dated October 27, 2021
      Rehabilitation Services Administration (RSA)-FAQ 22-01, Workforce Innovation and
       Opportunity Act (WIOA) Core Program Performance Accountability Assessment for
       Program Years (PYs) 2020 and PY 2021, dated October 27, 2021

7. Attachment.
    Attachment I: Performance Goals and Instructions for the Core Programs

Attachment I: Performance Goals and Instructions for the Core Programs

State Plan modifications must identify expected levels of performance for each primary indicator
of performance for the two years covered by the plan modification. The state must reach
agreement with the Secretary of Labor, in conjunction with the Secretary of Education, on the
negotiated levels of performance for the indicators for each of the two years of the plan
modification.

The Adult, Dislocated Worker, Youth, Adult Education and Family Literacy Act (AEFLA) and
Vocational Rehabilitation (VR) programs will have two full years of data available to make
reasonable determinations of expected levels of performance for the following indicators for
Program Year (PY) 2022 and PY 2023:

                   Employment9 (Second Quarter after Exit);
                   Employment10 (Fourth Quarter after Exit);
                   Median Earnings (Second Quarter after Exit);
                   Credential Attainment Rate; and
                   Measurable Skill Gains.

The Wagner-Peyser Act Employment Service (Wagner-Peyser) program will have two full years
of data available to make a reasonable determination of expected levels of performance for the
following indicators for PY 2022 and PY 2023:
                   Employment (Second Quarter after Exit);
                   Employment (Fourth Quarter after Exit); and
                   Median Earnings (Second Quarter after Exit).

The Credential Attainment Rate and Measurable Skill Gains indicators do not apply to the
Wagner-Peyser program; therefore, this program will not submit expected levels of performance
for these indicators.

The U.S. Departments of Labor and Education (Departments) determined that the Effectiveness
in Serving Employers (ESE) indicator will be measured as a shared outcome across all six core
programs within each state to ensure a holistic approach to serving employers. In the spring
2021 Unified Agenda, the Departments announced plans to engage in rulemaking to incorporate
a standard definition of the ESE indicator into the regulations implementing the Workforce
Innovation and Opportunity Act (WIOA). Until that definition of the ESE indicator is in effect,
the Departments will continue to require states to report performance results for ESE of the pilot
approaches for PY 2022 and PY 2023. Because of a lack of historical data, states are not
required to submit expected levels of performance for the ESE indicator for PY 2022 and PY
2023.

9
    For Title I Youth programs, employment, education or training.
10
     For Title I Youth programs, employment, education or training.

Each core program must submit an expected level of performance for all of the other indicators,
as applicable. Each state must update its plan to include the agreed-upon negotiated levels of
performance before the Departments approve a State Plan.

States may identify additional indicators in the plan, including additional approaches to
measuring ESE, and may establish levels of performance for each of the state indicators. Please
identify any such state indicators under Additional Indicators of Performance.

Include the state’s expected levels of performance relating to the performance accountability
indicators based on primary indicators of performance described in section 116(b)(2)(A) of
WIOA.

                                               Title I – Adult Program
                                     Program Year:                Program Year:
                                 Expected      Negotiated     Expected     Negotiated
                                  Level          Level         Level         Level
   Employment (Second
    Quarter after Exit)
   Employment (Fourth
    Quarter after Exit)
  Median Earnings (Second
    Quarter after Exit)
 Credential Attainment Rate
   Measurable Skill Gains

                                        Title I – Dislocated Worker Program
                                     Program Year:                Program Year:
                                 Expected      Negotiated     Expected     Negotiated
                                  Level          Level         Level         Level
   Employment (Second
    Quarter after Exit)
   Employment (Fourth
    Quarter after Exit)
  Median Earnings (Second
    Quarter after Exit)
 Credential Attainment Rate
   Measurable Skill Gains

                                          Title I – Youth Program
                                Program Year:                Program Year:
                             Expected     Negotiated     Expected     Negotiated
                              Level         Level         Level         Level
 Education, Training, or
  Employment (Second
   Quarter after Exit)
 Education, Training, or
  Employment (Fourth
   Quarter after Exit)
Median Earnings (Second
   Quarter after Exit)
Credential Attainment Rate
 Measurable Skill Gains

                             Title II – Adult Education and Family Literacy Act
                                                  Program
                                Program Year:                Program Year:
                             Expected     Negotiated     Expected     Negotiated
                              Level         Level         Level         Level
 Employment (Second
  Quarter after Exit)
 Employment (Fourth
  Quarter after Exit)
Median Earnings (Second
  Quarter after Exit)
Credential Attainment Rate
 Measurable Skill Gains

                        Wagner-Peyser Act Employment Service Program
                              Program Year:               Program Year:
                      Expected        Negotiated      Expected       Negotiated
                       Level            Level          Level           Level
  Employment
(Second Quarter
   after Exit)
  Employment
(Fourth Quarter
   after Exit)
Median Earnings
(Second Quarter
   after Exit)
   Credential          Not              Not            Not             Not
Attainment Rate      Applicable       Applicable     Applicable      Applicable
Measurable Skill       Not              Not            Not             Not
     Gains           Applicable       Applicable     Applicable      Applicable

                                 Vocational Rehabilitation Program
                        Program Year:                      Program Year:
                   Expected         Negotiated       Expected         Negotiated
                    Level             Level           Level             Level
Employment
  (Second
Quarter after
    Exit)
Employment
  (Fourth
Quarter after
    Exit)
  Median
  Earnings
  (Second
Quarter after
    Exit
 Credential
 Attainment
    Rate

Measurable
Skill Gains

                                       All WIOA Core Programs
                          Program Year:                   Program Year:
                     Expected      Negotiated        Expected      Negotiated
                      Level          Level            Level          Level
Effectiveness in
                                                        Not
Serving            Not applicable   Not applicable                Not applicable
                                                     applicable
Employers

Additional Indicators of Performance
1.
2.
3.
4.
5.
6.