Using WIOA Governor’s Reserve funds for workforce priorities

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                  WIOA
               ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                         OWI
             Washington, D.C. 20210                        DATE
                                                           August 25, 2026

ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 04-26

TO:              GOVERNORS
                 STATE WORKFORCE AGENCIES
                 STATE WORKFORCE ADMINISTRATORS
                 STATE WORKFORCE LIAISONS
                 STATE WORKFORCE BOARD CHAIRS AND DIRECTORS
                 STATE LABOR COMMISSIONERS

FROM:            MAREK LACO
                 Acting Assistant Secretary

SUBJECT:         Using Workforce Innovation and Opportunity Act Governor’s Reserve
                 Funding to Advance Workforce Development Priorities

1. Purpose. To clarify how states may use Workforce Innovation and Opportunity Act
   (WIOA) statewide funding (commonly referred to as “Governor’s Reserve” funding) and
   encourage states to expend available funding to advance critical workforce development
   priorities.

2. Action Requested. Governors and State Workforce Agencies are strongly encouraged to
   review the information provided in this Training and Employment Guidance Letter (TEGL)
   and to: 1) identify the total amount of Governor’s Reserve funding currently available to the
   state that has yet to be obligated and expended; 2) review the state’s current and planned uses
   of Governor’s Reserve funding; and 3) develop and execute plans to deploy available
   funding to advance workforce development priorities, including by carrying out recent
   Trump Administration initiatives that expand our labor force, help workers advance, support
   employers in meeting their needs, and position the country to lead in today’s economy.

3. Summary and Background.

   a. Summary – This TEGL provides an overview of the availability and allowable uses of
      WIOA Governor’s Reserve funding, as well as information on the amount of Governor’s
      Reserve funding currently available for obligation, and encourages Governors and State
      Workforce Agencies to dedicate available Governor’s Reserve funding to advance critical
      workforce development priorities.

   b. Background – States may reserve up to 15 percent of their annual Adult, Dislocated
      Worker, and Youth program allotments to carry out the required and allowable statewide
   RESCISSIONS                                              EXPIRATION DATE
   None                                                     Continuing

      activities described in WIOA Section 134(a) and Section 129(b). Funding across all three
      allotments may be combined and used on any of the broad range of allowable activities
      described under either of the applicable sections of the statute, regardless of funding
      source (20 CFR 683.120(b)), additionally see paragraph 4.c. Reporting Clarifications,
      Fiscal Reporting below). Governor’s Reserve funding remains available to the state for
      expenditure for three years, meaning states generally will have Governor’s Reserve
      funding reserved from allotments for three program years available for expenditure
      during the current program year. Additionally, states may use any unspent Rapid
      Response funds at the end of the first year of availability for the same uses allowed for
      Governor’s Reserve funds (20 CFR 682.370), or prior to the end of the first year of
      availability if the state has submitted a waiver request and been approved.

4. Availability, Reporting, and Allowable Uses.

   a. Funding Availability: Under WIOA, Governors may reserve up to 15 percent of each
      state’s Adult, Dislocated Worker, and Youth formula allotments to carry out statewide
      activities. This authority gives states the ability to pool resources across funding streams
      and strategically target funds toward systemwide improvements or emerging workforce
      needs. The decision about how much to reserve each program year lies with the state, but
      federal rules limit the portion of those statewide funds that can be used for administration
      to no more than five percent of each of the Adult, Dislocated Worker, and Youth
      allotments to the state. This administrative cap ensures the majority of statewide
      resources remain focused on direct programmatic strategies, investments, and services
      that strengthen state and local workforce systems.

      WIOA also establishes clear rules for how long states may obligate and expend
      Governor’s Reserve funds. These funds remain available for expenditure for the program
      year in which they are awarded plus two additional program years. This three‑year
      period overlaps the three-year periods of availability from the last two program years. It
      then also overlaps the period of availability that begins for the next program year, and
      then the next year’s. This means that during any one program year, a state will have
      Governor’s Reserve funding reserved from three program year allotments available for
      expenditure. This multi‑year window provides states with flexibility to plan and launch
      multi‑year initiatives, procure technical assistance or statewide systems, or respond to
      emerging priorities without risking loss of funds due to short timelines. At the same
      time, WIOA’s reallotment provisions require states to obligate at least 80 percent of each
      program year’s Adult, Dislocated Worker, and Youth funds by the end of the first
      program year; states that fail to meet that obligation threshold will have funds recaptured
      by the U.S. Department of Labor (DOL) and redistributed to other states. This
      underscores the importance of timely obligation planning and close monitoring of
      commitment levels throughout the year.

      Additionally, Rapid Response funding, drawn from up to 25 percent of a state’s
      Dislocated Worker allotment, operates under a related, but distinct, set of rules. Rapid
      Response funds must first support required layoff aversion and rapid reemployment
      activities. However, beginning in the second program year after Rapid Response funds

        are reserved, states may repurpose any Rapid Response funds that remain unobligated
        toward allowable statewide activities funded through the Governor’s Reserve. Further,
        states can use unobligated Rapid Response funds for allowable statewide activities prior
        to the end of the first year of availability, if the state requests and is approved for a
        waiver according to 20 CFR 679.620. These waivers are also discussed in TEGL 05-25,
        Maximizing Innovation in Workforce Innovation and Opportunity Act Programs. The use
        of unobligated Rapid Response funds for allowable statewide activities is in addition to
        the funds already set aside for the Governor’s reserve (WIOA 134(a)(2)(A)(ii)). This
        creates an important source of flexible funds that states can use to reinforce statewide
        strategies, invest in early‑warning systems, expand business engagement models, or
        support other high‑priority initiatives.

        In addition to the repurposing of Rapid Response funds for statewide activities, WIOA
        also allows any unexpended funds by a local area to also be repurposed for statewide
        activities. In the third year of the program period, when state allotments are still
        available for state expenditure but the locals’ 2-year expenditure period has ended, any
        local unexpended funds may be available for statewide projects or redistributed to
        qualified local areas that have fully expended their allocation of funds for the same
        program year (20 CFR 683.110(c)(2)). Once again, this creates an important source of
        flexible funds that states can use to reinforce statewide strategies. Taken together, the
        rules governing the Governor’s Reserve, administrative caps, multi‑year availability,
        reallotment, and Rapid Response give states substantial flexibility, while also establishing
        clear expectations to ensure funds are used effectively.

        States are strongly encouraged to utilize unexpended funding timely and to not delay
        spending funds that are meant to be used to advance states’ critical needs. In April, the
        Employment and Training Administration (ETA) published TEGL 10-25 which included
        Attachment L that lists the maximum amount of Governor’s Reserve Funding newly
        available from Program Year (PY) 2026 allotments.1 In total, $436,064,040 in new
        Governor’s Reserve funding is available to states. States should plan now how to use
        these funds to advance immediate workforce needs, strengthen the nation’s public
        workforce system, and advance critical workforce development priorities. ETA tracks
        utilization of the Governor’s Reserve and notes that many states carry over a large
        portion of their Governor’s Reserve, delaying utilization until the second and third year
        of its three-year period of availability. ETA found that states in total are carrying over
        $270 million or more in unobligated prior year funding, and in fact, fund utilization data
        provided by states through federal financial reporting for the 6/30/25 reporting period
        indicates 35 percent of states carried over 50 percent or more of their available
        unobligated Governor’s Reserve funding from PY 2024 into PY 2025. Only 13 states, or
        25 percent of states, carried over 30 percent or less. Taking into account carryover and
        new funding, states routinely have over $700 million available annually that should be
        strategically deployed to meet the immediate and critical workforce priorities of the states
        and our nation.

1
 TEGL 10-25 Attachment L can be found at:
https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2025/TEGL%2010-25/Attachment%20L%20%28Accessible%20PDF%29.pdf.

        ETA recognizes states have different models for how to utilize their Governor’s Reserve
        and that not all states feel they have the bandwidth to support more than required
        activities. ETA also recognizes the time it takes to plan and implement meaningful
        statewide initiatives and coordinate and align WIOA funding with other program
        funding. ETA additionally recognizes states generally use all their funds by the end of
        the three-year period of availability. ETA’s experience across state models indicates
        earlier obligation and longer periods of performance regarding strategic initiatives is
        possible with proper planning and state direction, and ETA is confident earlier utilization
        will result in improved results for America’s workers.

    b. Allowable Uses: While there are several required activities for statewide funds listed at
       WIOA Sections 129(b)(1) and 134(a)(2)(B), such as managing the eligible training
       provider list, providing technical assistance to local areas, and monitoring and oversight
       activities, Governor’s Reserve funds can be spent on a very wide range of statewide
       employment and training activities and statewide youth activities. While any use of
       WIOA funds needs to be reasonable, allocable, and within the purposes of the Act, and
       statewide activities cannot be those prohibited in 20 CFR 683.250, states have substantial
       flexibility to determine which activities they can fund with the Governor’s Reserve,
       whether or not those activities are explicitly listed in the statute and regulation.

        For a list of allowable statewide employment and training activities listed in WIOA
        Section 134(a)(3) and allowable statewide youth activities in Section 129(b)(2), see
        Attachment I. It is important to note, however, that these lists of allowable statewide
        activities are not exhaustive.

    c. Eligibility Clarifications for Individuals Served with Governor’s Reserve Funds:
       WIOA Adult priority of service requirements do not apply to individuals served by
       Governor’s Reserve funds, and, in most cases, there are no eligibility requirements
       beyond age determination.2 Unlike the examples in the statute for statewide activities
       using Adult and Dislocated Worker Governor’s Reserve funds (in Section 134(a)(2)(B)),
       WIOA lists examples of statewide activities for “eligible youth” when using Youth
       Governor’s Reserve Funds (listed in Section 129(b)(2)). However, this is a non-exclusive
       list of allowable statewide activities. States and local areas are not required to make an
       eligibility determination for individuals served by Youth Governor’s Reserve Funds, or
       any Governor’s Reserve Funds. Section 134(a)(1)(B) authorizes states to use any
       Governor’s Reserve Funds for the allowable statewide employment and training activities
       described in Section 134(a)(2)(B). Also, Section 128(a)(2) authorizes states to use any
       Governor’s Reserve Funds for either of the two statutory lists of allowable statewide
       activities, “regardless of whether the reserved amounts were allotted” under Youth or
       Adult or Dislocated Worker allotments. Therefore, states do not need to conduct a
       WIOA eligibility determination when services are provided to anyone of any age.

2
 Note that Veterans Preference applies to all DOL funding. See TEGL 10-09, Implementing Priority of Service for
Veterans and Eligible Spouses in all Qualified Job Training Programs Funded in whole or in part by the U.S.
Department of Labor (DOL)

   In previous guidance, DOL stated “if the services provided with statewide funds are
   ‘direct services’, the eligibility requirements for youth are the same as those that apply to
   Title I Youth services provided by local areas.” To clarify, the only time states must
   conduct an eligibility determination for activities funded with Governor’s Reserve
   funding is when local Youth or Dislocated Worker funds are also being used to deliver
   the service.

   If states choose to require eligibility determination for statewide youth activities funded
   by the Governor’s Reserve, the requirement that states expend at least 75% of those funds
   on out-of-school youth (OSY) applies and the individual must be reported in the
   Participant Individual Record Layout (PIRL). However, in an effort to offer even greater
   flexibility, states that do not already have a waiver of the Governor’s Reserve OSY
   expenditure requirement are encouraged to request the waiver for increased flexibility.
   ETA has granted waivers to both lower and eliminate the OSY expenditure requirement
   for Governor’s Reserve funds.

d. Reporting Clarifications: WIOA requires states to report how statewide funding is used
   as well as the outcomes from activities that states implement, however reporting
   requirements should not be an impediment to states looking to innovate. This TEGL
   aims to clarify the fairly simple state responsibilities in both performance and fiscal
   reporting of statewide activities.

          Performance Reporting: TEGL No. 14-18 discusses reporting of individuals
          served with statewide funds and clarifies that performance outcome data of
          individual participants who receive direct services with funding from Governor’s
          Reserve funds must be reported by the state under the title I Adult, Dislocated
          Worker (including WIOA participants who receive Rapid Response), and Youth
          program(s) and must be reported following the same guidelines that apply to
          participants served with local formula funding.

          One common misconception regarding the allowable uses of statewide reserve
          funds is that if the activity cannot be reported to ETA through the PIRL, then it is
          not allowable. This is not the case. To ensure maximum flexibility for testing
          innovative approaches, it is important for states to keep in mind that not all
          allowable services and activities provided using Governor’s Reserve funds will
          result in something being reported to ETA through the PIRL. It is only necessary
          to report individuals served with Governor’s Reserve funds in the PIRL if the
          state has required an eligibility determination for those individuals.

          For any statewide services or activities that do not get reported in the PIRL, states
          are required to include descriptions in the state’s WIOA Annual Statewide
          Performance Report Narrative describing how they used these statewide funds
          and what outcomes were achieved. TEGL 05-18, Change 1 provides guidance to
          states grantees regarding the content of the Annual Statewide Performance Report
          Narrative noting that: 1) States must describe activities undertaken in whole or in
          part with the Governor's Reserve and how those activities have directly or

           indirectly impacted performance, and; 2) States may include descriptions of state
           funded activities or investments in this section.

           Fiscal Reporting: Due to the financial reporting flexibilities afforded by WIOA,
           the burden of reporting statewide costs is not as high as some may think. Funding
           across all three allotments may be combined and used on any allowable activities,
           regardless of funding source (WIOA sec. 134 (a)(1)(B)) and 20 CFR 683.120(b)).
           The tracking and reporting of statewide expense does not have to be
           disaggregated by the three funding streams; however, funds must be expended
           with the shortest period of availability first (20 CFR 683.110(a)). To avoid the
           risk of deobligation, states are to “FIFO” (first-in, first-out) statewide expenses by
           recording those expenses against the oldest available statewide funds.

           For example, for statewide expenses, while up to 15 percent of the total Adult,
           Dislocated Worker, or Youth funds may be reserved at the state level for
           statewide activities, those funds, identified on the Federal Share expenditures line
           item (line item 10e on the ETA-9130(A), (C), or (E) forms), do not need to be
           allocable to a particular statewide program, but may be allocable to any of the
           three programs (Adult, Dislocated Worker, or Youth). Statewide funds from all
           three title I funding streams may be pooled together and expended regardless of
           the source of funding. This flexibility relieves the state from internally tracking
           and reporting statewide expenditures by the three title I funding streams.

           The ETA-9130 report does require that unobligated Rapid Response funds that
           are expended on allowable statewide programs, regardless of whether the funds
           were expended at the state or local level, be reported on line-item 11c (Rapid
           Response Funds Expended on Other Statewide Programs) and as part of 10e
           (Federal Share of Expenditures) on the Statewide Rapid Response report.

           For unexpended local area funds that are recaptured after two years and expended
           on statewide projects, these expenses are reported on line-item 11c (Recaptured
           Funds Expended) and as part of 10e of Federal Share of Expenditures on the
           Statewide Adult, Dislocated Worker, and Youth ETA-9130 forms.

e. Opportunities to Align with Administration Initiatives: DOL, in partnership with the
   Department of Education, has launched several key initiatives implementing America’s
   Talent Strategy: Building the Workforce for the Golden Age and advancing the
   workforce development priorities of the Trump Administration. Governors and state
   workforce and education agencies have expressed strong interest in these initiatives, and
   many states have applied or are considering applying for the applicable funding
   opportunities. As states pursue additional federal funding to advance these workforce
   development priorities, this TEGL is intended to make clear that all activities that can be
   conducted through the initiatives and grant opportunities listed below can also be carried
   out by states with Governor’s Reserve funding. ETA strongly encourages states to
   dedicate existing and upcoming Governor’s Reserve funding towards these initiatives.

Registered Apprenticeship Expansion – The Trump Administration is committed to
scaling the proven model of Registered Apprenticeships to reach and surpass 1 million
active apprentices. To achieve this, DOL is focused on removing barriers that limit
flexibility and stifle Registered Apprenticeship expansion while enhancing the value
proposition for employers though the use of performance-based funding models. In June
2025, ETA awarded nearly $84 million to states through the third round of State
Apprenticeship Expansion Formula (SAEF) grants to carry out a broad range of activities
to build state capacity and support state-led innovation in expanding Registered
Apprenticeships and pre-apprenticeships. The fourth round of SAEF, announced through
TEGL 08-25, will provide an additional $85 million to states for Registered
Apprenticeship expansion and includes a leveraged resources requirement, which can be
met through the use of Governor’s Reserve funding. In January 2026, ETA announced
the official launch of the American Manufacturing Apprenticeship Incentive Fund to
incentivize employers nationwide to develop or expand advanced manufacturing
Registered Apprenticeship programs through pay-for-performance model providing a
$3,500 incentive payment for each new apprentice hired. DOL intends to build upon this
initiative through the Pay-for-Performance Incentive Payments Program that will award
up to five cooperative agreements to establish pay-for-performance incentive models to
support Registered Apprenticeship sponsors across priority sectors.

States are permitted and encouraged to use Governor’s Reserve funding to carry out a
broad range of activities related to the expansion of Registered Apprenticeship, including
any activities that can be supported by or align with DOL’s recent funding opportunities
supporting Registered Apprenticeship expansion.

Workforce Pell Implementation – President Trump’s Working Families Tax Cuts Act
established the new Workforce Pell Grant program, empowering students to use Federal
grant funds to enroll in high-quality, short-term programs that offer training aligned with
high-skill, high-wage, or in-demand industry sectors or occupations. The Department of
Education’s Final Rule, published on May 19, 2026, Accountability in Higher Education
and Access Through Demand-Driven Workforce Pell: Pell Grant Exclusion Relating to
Other Grant Aid; and Workforce Pell Grants, ensures Governors and State Workforce
Development Boards play a central role in evaluating programs for Workforce Pell Grant
eligibility and verifying student outcomes on completion and job placement rate metrics.
In February 2026, DOL issued a Funding Opportunity for the sixth round of
Strengthening Community College Training Grants focused on building program and
system capacity for the newly authorized Workforce Pell Grants. The initiative is
designed to support state-level data system integration with workforce partners to
enhance data collection and data sharing necessary for Workforce Pell Grants eligibility
determinations and address barriers to the consistent inclusion of community college
programs of study on state eligible training provider lists.

States are permitted and encouraged to use Governor’s Reserve funding on activities to
support Workforce Pell implementation, such as developing and publicizing state policies
to determine if programs meet the eligibility criteria, reviewing and updating state lists of
high-skill, high-wage, or in-demand occupations and industry sectors, and enhancing

state data collection and reporting systems, including enhancing wage records, to
effectively measure the outcomes of program participants.

Connecting Talent to Opportunity/Talent Market Places – Pillar II of America’s
Talent Strategy (worker mobility) articulates the need to leverage technology and digital
platforms to enhance career navigation and support rapid skill matching aligned with
current labor market demands. In December 2025, the Department of Education
launched the Connecting Talent to Opportunity (CTO) Challenge, inviting Governors to
build or scale Talent Marketplaces that include a credential registry, learning and
employment records (LERs), and skills-based jobs description generators. Talent
Marketplaces allow skills to be translated, transcribed, and transacted as machine-
readable, industry-recognized competencies. By making learning count wherever it
occurs, whether through degrees, certificates, apprenticeships, military service, or on-the-
job experience, the CTO Challenge will support skills-based hiring, expand access to
high-quality career pathways, and strengthen labor force participation.

States are permitted and encouraged to use Governor’s Reserve funding to develop talent
marketplaces composed of credential registries (e.g., publishing education and training
programs in structured, open, linked, and interoperable data formats), skills-based job
description generators, comprehensive learner employment records (CLR) or LERs that
connect students, employers, and education providers through a common currency of
skills.

Industry-Driven Skills Training – Pillar I of America’s Talent Strategy (industry driven
strategies) outlines the need to target federal investments towards employer-led upskilling
initiatives designed to fill talent shortages in priority industries. In September 2025,
DOL awarded $86 million to 14 states through an initial round of the Industry-Driven
Skills Training Fund grants. Through this initiative, State Workforce Agencies will
provide outcomes-based reimbursement funding to employers for training that is
responsive to rapidly evolving skill demands and local workforce conditions, with the
goal of encouraging businesses to invest in workforce training that can effectively
respond to those changes and build a stronger talent pipeline for the targeted industries.
Each of the grantees developed a model to award funds to employers for training and
retaining new or incumbent workers in high-growth and emerging industries critical to
American competitiveness and drive economic resurgence, including in-demand skilled
trades including shipbuilding occupations, occupations essential to the buildout of
artificial intelligence (AI) infrastructure, advanced manufacturing, nuclear energy,
domestic mineral production, and information technology including AI.

States are permitted and encouraged to use Governor’s Reserve funding to establish
similar mechanisms to provide outcomes-based funding to employers for training and
upskilling workers in priority industry sectors.

AI Literacy – The Trump Administration is committed to prioritizing AI literacy and
skill development across the workforce system to ensure American workers are prepared
for an AI-driven economy. In August 2025, DOL issued TEGL 03-25 encouraging state

       and local workforce development boards to use WIOA funding to support AI literacy
       among participants in the Adult, Dislocated, Worker programs. In February 2026, ETA
       published the DOL’s AI Literacy Framework, providing a foundation to guide nationwide
       AI literacy efforts across workforce and education systems. The framework, which
       outlines five foundational content areas and seven delivery principles for AI literacy, is
       intended to be a resource to guide program design and deployment of AI literacy efforts,
       while allowing for flexibility and adaptation across industries, roles, educational sectors,
       and other workforce-related contexts.

       States are permitted and encouraged to use Governor’s Reserve funding to integrate AI
       literacy into WIOA services and programs, and across the state’s education and
       workforce systems, and leverage the DOL’s AI Literacy Framework to prepare students
       and job seekers for opportunities in the AI-powered economy and address employer
       demand for AI-ready workers.

       Improving WIOA Performance and Accountability – Pillar IV of America’s Talent
       Strategy (accountability) emphasizes the need to reward positive outcomes for the
       American people and incentivize a return on investment. In August 2025, DOL released
       a performance dashboard to provide transparency and accountability to workforce
       development programs. The dashboard revealed the relatively low number of individuals
       receiving WIOA services and achieving positive outcomes. Moreover, these data showed
       that half of local workforce boards have not placed a single participant in a Registered
       Apprenticeship. Fewer than one in six Local Workforce Boards have enrolled at least 2
       percent of their WIOA participants into a Registered Apprenticeship.

       States are permitted and encouraged to use Governor’s Reserve funding to provide local
       incentive grants for improved local workforce board performance metrics. Specifically,
       states are encouraged to develop a model for providing incentive grants to Local
       Workforce Boards to reach more participants, place more participants in Registered
       Apprenticeships, and/or increase credential attainment and employment outcomes.

5. Inquiries. For further information, please contact the appropriate ETA Regional Office.

6. References.
      • Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) (July 22,
         2014);
      • Workforce Innovation and Opportunity Act; Final Rule (WIOA DOL Final Rule)
         published at 81 FR 56072 (Aug. 19, 2016);
      • TEGL 10-25, Workforce Innovation and Opportunity Act Adult, Dislocated Worker,
         and Youth Activities Program Allotments for Program Year 2026; Program Year
         Allotments for the Wagner-Peyser Act Employment Service Program; and Program
         Year 2026 Allotments of Workforce Information Grants to States and Outlying Areas
         (April 28, 2026)
      • TEGL 05-25, Maximizing Innovation in Workforce Innovation and Opportunity Act
         Programs (November 25, 2025)

      •   TEGL 02-25, Industry-Driven Skills Training Fund Grant Program Application
          Instructions and Program Description (August 6, 2025)
      •   TEGL 03-25, Encouraging the Use of Workforce Innovation and Opportunity Act
          Funding to Help Youth and Adults Develop Artificial Intelligence Skills (August 26,
          2025)
      •   Training and Employment Notice 7-25, The U.S. Department of Labor’s Artificial
          Intelligence Literacy Framework (February 13, 2026)

7. Attachment.
   Attachment I: Allowable Uses of Governor’s Reserve Funding

                                                                                 Attachment I

                     Allowable Uses of Governor’s Reserve Funding

Allowable statewide employment and training activities listed in WIOA section 134(a)(3)
include, but are not limited to:

   (i) implementing innovative programs and strategies designed to meet the needs of all
   employers (including small employers) in the state, which programs and strategies may
   include incumbent worker training programs, customized training, sectoral and industry
   cluster strategies and implementation of industry or sector partnerships, career pathway
   programs, microenterprise and entrepreneurial training and support programs, utilization
   of effective business intermediaries, layoff aversion strategies, activities to improve
   linkages between the one-stop delivery system in the state and all employers (including
   small employers) in the state, and other business services and strategies that better engage
   employers in workforce investment activities and make the workforce development
   system more relevant to the needs of state and local businesses, consistent with the
   objectives of title I of WIOA;

   (ii) developing strategies for effectively serving individuals with barriers to employment
   and for coordinating programs and services among one-stop partners;

   (iii) the development or identification of education and training programs that respond to
   real-time labor market analysis, that utilize direct assessment and prior learning
   assessment to measure and provide credit for prior knowledge, skills, competencies, and
   experiences, that evaluate such skills and competencies for adaptability, that ensure
   credits are portable and stackable for more skilled employment, and that accelerate
   course or credential completion;

   (iv) implementing programs to increase the number of individuals training for and placed
   in non-traditional employment;

   (v) carrying out activities to facilitate remote access to services, including training
   services described in WIOA section 134(c)(3), provided through a one-stop delivery
   system, including facilitating access through the use of technology;

   (vi) supporting the provision of career services described in WIOA section 134(c)(2) in
   the one-stop delivery systems in the state;

   (vii) coordinating activities with the child welfare system to facilitate provision of
   services for children and youth who are eligible for assistance under section 477 of the
   Social Security Act (42 U.S.C. 677);

   (viii) activities—(I) to improve coordination of workforce investment activities with
   economic development activities; (II) to improve coordination of employment and
   training activities with—(aa) child support services, and assistance provided by state and

   local agencies carrying out part D of title IV of the Social Security Act (42 U.S.C. 651 et
   seq.); (bb) cooperative extension programs carried out by the Department of Agriculture;
   (cc) programs carried out in local areas for individuals with disabilities, including
   programs carried out by state agencies relating to intellectual disabilities and
   developmental disabilities, activities carried out by Statewide Independent Living
   Councils established under section 705 of the Rehabilitation Act of 1973 (29 U.S.C.
   796d), programs funded under part B of chapter 1 of title VII of such Act (29 U.S.C.
   796e et seq.), and activities carried out by centers for independent living, as defined in
   section 702 of such Act (29 U.S.C. 796a); (dd) adult education and literacy activities,
   including those provided by public libraries; (ee) activities in the corrections system that
   assist ex-offenders in reentering the workforce; and (ff) financial literacy activities
   including those described in WIOA section 129(b)(2)(D); and (III) consisting of
   development and dissemination of workforce and labor market information;

   (ix) conducting research and demonstration projects related to meeting the employment
   and education needs of adult and dislocated workers;

   (x) implementing promising services for workers and businesses, which may include
   providing support for education, training, skill upgrading, and statewide networking for
   employees to become workplace learning advisors and maintain proficiency in carrying
   out the activities associated with such advising;

   (xi) providing incentive grants to local areas for performance by the local areas on local
   performance accountability measures described in WIOA section 116(c);

   (xii) adopting, calculating, or commissioning for approval an economic self-sufficiency
   standard for the state that specifies the income needs of families, by family size, the
   number and ages of children in the family, and substate geographical considerations;

   (xiii) developing and disseminating common intake procedures and related items,
   including registration processes, materials, or software; and

   (xiv) providing technical assistance to local areas that are implementing pay-for-
   performance contract strategies, which technical assistance may include providing
   assistance with data collection, meeting data entry requirements, identifying levels of
   performance, and conducting evaluations of such strategies.

WIOA section 129(b)(2) provides an additional list of allowable activities which include,
but are not limited to the following activities that mainly describe services to eligible youth.
Note that Youth Governor’s Reserve Funds can be used for anything in this list, and for
anything in the above list from Section 134, and that neither list is exclusive.

   (A) conducting—(i) research related to meeting the education and employment needs of
   eligible youth; and (ii) demonstration projects related to meeting the education and
   employment needs of eligible youth;

(B) supporting the development of alternative, evidence-based programs and other
activities that enhance the choices available to eligible youth and encourage such youth to
reenter and complete secondary education, enroll in postsecondary education and
advanced training, progress through a career pathway, and enter into unsubsidized
employment that leads to economic self-sufficiency;

(C) supporting the provision of career services described in section 134(c)(2) in the one-
stop delivery system in the state;

(D) supporting financial literacy, including—(i) supporting the ability of participants to
create household budgets, initiate savings plans, and make informed financial decisions
about education, retirement, home ownership, wealth building, or other savings goals; (ii)
supporting the ability to manage spending, credit, and debt, including credit card debt,
effectively; (iii) increasing awareness of the availability and significance of credit reports
and credit scores in obtaining credit, including determining their accuracy (and how to
correct inaccuracies in the reports and scores), and their effect on credit terms; (iv)
supporting the ability to understand, evaluate, and compare financial products, services,
and opportunities; and (v) supporting activities that address the particular financial
literacy needs of non-English speakers, including providing the support through the
development and distribution of multilingual financial literacy and education materials;
and

(E) providing technical assistance to, as appropriate, local boards, chief elected officials,
one-stop operators, one-stop partners, and eligible providers, in local areas, which
provision of technical assistance shall include the development and training of staff, the
development of exemplary program activities, the provision of technical assistance to
local areas that fail to meet local performance accountability measures described in
section 116(c), and the provision of technology to facilitate remote access to services
provided through the one-stop delivery system in the state.