WIOA state plan modifications for program years 2026–2027

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                   WIOA State Plans
               ADVISORY SYSTEM                              CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                          OWI
             Washington, D.C. 20210                         DATE
                                                            January 26, 2026

ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 07-25

TO:              STATE WORKFORCE AGENCIES
                 STATE WORKFORCE ADMINISTRATORS
                 STATE WORKFORCE LIAISONS
                 STATE LABOR COMMISSIONERS
                 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 EDUCATIONAL AGENCIES
                 STATE CTE DIRECTORS
                 STATE EDUCATION COMMISSIONERS
                 STATE AND LOCAL STAKEHOLDERS IN THE WORKFORCE
                 INNOVATION AND OPPORTUNITY ACT

FROM:            HENRY MACK
                 Assistant Secretary

SUBJECT:        Modification Requirements for Workforce Innovation and Opportunity Act
                (WIOA) State Plans for Program Years (PYs) 2026 and 2027

1. Purpose. This Training and Employment Guidance Letter (TEGL) outlines the priorities,
   modification requirements, submission process, and deadline for the required modification of
   the WIOA Unified and Combined State Plans (State Plans) for PY 2026 and PY 2027, in
   accordance 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 (a four-year plan) to the U.S. Departments of
   Labor and Education (the Departments). While states should generally submit plan
   modifications by March 3, 2026, using the online portal described in Section 4.d. of this
   guidance, the Departments are offering additional flexibility to empower states to align the
   planning submission timeline with Perkins V and submit plan modifications until April 30,
   2026. If States want to avail themselves of this additional flexibility, States must notify their
   relevant Employment and Training Administration (ETA) Regional Administrator in writing

   RESCISSIONS                                               EXPIRATION DATE
   TEGL No. 04-23                                            Continuing

    by March 3, 2026, and provide an explanation of the state’s need for additional time as well
    as an estimated date of submission (which cannot be later than April 30, 2026). 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.

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 have approved four-year WIOA State Plans for PYs 2024-2027.

        WIOA requires that states review their plan every two years and update State Plan
        strategies to account for 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 agencies administering WIOA programs, redesignation of local
        areas or establishment of new planning regions, the addition of new partner programs
        such as Perkins V1 into a Combined State Plan, changes to methodology used to
        determine local allocation of funds, and other significant strategic or operational changes
        within states. States may also elect to change from a Unified to a Combined State Plan to
        include additional partners, such as Perkins V, during the modification process to
        maximize alignment between programs.

        Under WIOA, the Unified and Combined State Plans communicate the State’s vision for
        its public workforce system and broader talent development system. WIOA planning
        requirements seek to align federal investments in job training and education programs,
        improve service delivery efficiency, and match individuals’ skills with high-paying job
        opportunities and employers. Cross-program planning promotes a shared understanding
        of the workforce needs and enables the public workforce system to provide a wider range
        of services that require coordination to meet the needs of employers, youth and adult
        learners, and workers, including individuals with disabilities and individuals facing
        barriers to entering and persisting in paid employment.

1
 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.

4. Content.

  a. WIOA Planning Strategic Priorities.

      On April 23, 2025, President Trump issued Executive Order 14278 titled “Preparing
      Americans for High-Paying Skilled Trade Jobs of the Future” that directed the U.S.
      Departments of Labor, Education, and Commerce to articulate a comprehensive worker
      investment and development strategy. Subsequently, the Departments published
      “America's Talent Strategy; Building the Workforce for the Golden Age” that articulates a
      shared vision for America’s workforce development efforts, including the public
      workforce system, with five strategic pillars. States are encouraged to review their
      currently approved State Plans and align their strategies and investments to these pillars,
      which are summarized below.

      PILLAR I: Industry-Driven Strategies: The skill demands and hiring needs of industry
      must drive how workforce development programs train and prepare the participants they
      serve. Local employers should play a central role in defining in-demand skills, validating
      training models, and steering investments toward the roles and credentials that propel
      workers into secure, well-paying, and high-need American jobs. The public workforce
      system can support this pillar by prioritizing Registered Apprenticeships, Integrated
      Education and Training programs, and other high-quality work-based learning models;
      organizing employers into industry sector partnerships to identify high-wage, high-skill,
      or in-demand industry sectors and occupations and design workforce strategies to address
      their needs; aligning eligible training programs to career pathways within the State or
      regional economy; and targeting investments towards employer-led upskilling initiatives
      designed to fill talent shortages in priority industries.

      PILLAR II: Worker Mobility: Individuals returning to the workforce or seeking better
      career opportunities should be able to take tangible steps that lead to upward mobility and
      long-term economic independence. Next-generation workforce and labor market
      intelligence tools should help participants identify their skills, understand skills-aligned
      career options, and take intentional steps toward better-paying jobs. The public workforce
      system can support this pillar through several targeted strategies such as: clearly
      identifying credentials that are valued in the labor market to support informed decision
      making and support jobseekers to earn such credentials; developing informed customer
      choice policies designed to mitigate benefits cliffs; advancing innovative use of
      technology and labor market data, including employing competency-based assessments
      and benefits cliff navigation tools during intake into the public workforce system; and
      integrating Artificial Intelligence (AI)-powered tools including comprehensive talent
      marketplaces composed of comprehensive learner records or learning and employment
      records solutions, credential registries, and skills-based job description generators, that
      allow workers to advance based on demonstrated competencies. The public workforce
      system can also help connect disconnected workers to training opportunities that lead to
      self-sufficiency.

PILLAR III: Integrated Systems: The public workforce system must be unified,
navigable, and built around the needs of its users. Job seekers should be able to access
training and employment opportunities without getting lost in a maze of government
agencies, and employers should be able to engage with the system just as easily to find
talent and grow their workforce. The public workforce system can support this pillar by
integrating disparate funding streams and improving service delivery through adopting
shared eligibility standards across programs; implementing and scaling virtual service
delivery practices to reduce overhead expenses; and advancing education and workforce
alignment, streamlining intake processes, and implementing digital tools that help
frontline staff guide individuals to the right services.

PILLAR IV: Accountability: Taxpayer funded workforce development programs must
deliver measurable and transparent results for job seekers and employers. Ineffective
training providers should be removed from public funding lists. Grantees’ funding
models should tie resources to outcomes, including through the expanded use of pay-for-
performance contracts to ensure public investments generate measurable returns in
employment, earnings, and credential attainment. The public workforce system can
support this pillar by identifying and eliminating ineffective activities, adopting state-
driven measures of program performance, establishing state and local area postsecondary
attainment and labor force participation goals, redirecting funding to programs and
providers that demonstrate success in connecting Americans with high-wage jobs, and
enhancing data linkages, including by exploring enhanced wage records, and publishing
education and training programs in structured, open, linked, and interoperable data
formats, to produce valid and transparent data that assesses the return on investment and
the impact on closing talent gaps.

PILLAR V: Flexibility and Innovation: The public workforce system must be adaptable
and designed for continuous iteration, with exponentially faster feedback loops between
employers, educators, and training providers to ensure that programs can evolve in step
with economic shifts, particularly those driven by AI. States and local communities need
more control to tailor solutions to their regional economies without being constrained by
outdated program rules or processes. The public workforce system can support this pillar
by leveraging existing statutory authorities to promote flexibility and innovation within
the system, braiding federal and state funding streams from multiple sources to support
integrated career pathways, creating new models of workforce innovation built to match
the speed and scale of AI-driven economic transformation, prioritizing AI literacy and
skills development across the public workforce system, and developing pilot projects to
drive rapid reskilling and fuel other AI-era innovations.

Additional Planning Priorities: It is particularly critical, for purposes of developing and
submitting the State Plan modification for PYs 2026 and 2027, 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. Additionally, state plans must not only include the in-

           demand sectors and occupations, but also the employment needs of employers and the
           associated competencies required in those industries and occupations, and align training
           provided through the workforce system with the hiring needs. LMI informs the public
           workforce system by offering data insights to keep up with a rapidly changing economic
           environment driven by AI, advanced industries, and new national priorities. State
           planners must work closely with the LMI directors within their states to understand the
           current and growing needs of their economy. 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 assessments in tandem with public workforce system stakeholder engagement at
           the state and local area levels.2

           Moreover, states are encouraged to reassess how their public education and workforce
           systems capture, verify, and communicate the competencies (knowledge, skills, and
           abilities) individuals acquire. Talent marketplaces solutions enable student and worker
           employment and mobility more effectively—mapping skills to occupational and
           employer needs in real time. Talent marketplaces also allow for individuals to own and
           make portable their skills and learning assertions—controlling what, where, when, and
           with whom verified skills and credentials are shared.

           States are particularly encouraged to prepare for implementation of Workforce Pell
           Grants connecting jobseekers and students with high-quality short-term training
           authorized under Section 83002 of the One Big Beautiful Bill Act (Public Law 119-21).
           Workforce Pell Grants will provide access to federal financial aid for students enrolled in
           high-quality, short-term workforce programs that are defined as at least 150 clock hours
           of instruction and less than 600 clock hours (or the equivalent in credit hours) and at least
           8 weeks, but less than 15 weeks, in duration, among other criteria. Steps to prepare for
           Workforce Pell might include using the latest labor market information to refresh the
           state’s identification of in-demand industry sectors and occupations, deepening system
           integration across education and workforce systems, and enhancing data collection, i.e.,
           by enhancing unemployment insurance wage records that allow states to establish
           program-to-occupational linkages and to crosswalk education and training programs to
           competency-based, industry-recognized qualifications frameworks, and data sharing.

           As states develop their plan modifications for PYs 2026 and 2027, grantees must not use
           federal funds in any manner that violates the United States Constitution, Title VI or Title
           VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq. or 42 U.S.C. § 2000e et
           seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681 et seq.), section
           504 of the Rehabilitation Act (29 U.S.C. § 794), the Age Discrimination Act of 1975 (42
           U.S.C. 6101 et seq.), Title II of the Americans with Disabilities Act of 1990 (42 U.S.C. §
           12131 et seq.), the Boy Scouts of America Equal Access Act of 2001 (20 U.S.C. § 7905),

2
    Section 135(c) of Perkins V requires comprehensive local needs assessments.

     section 117 of the Higher Education Act of 1965, as amended (20 U.S.C. § 1011f), or
     other applicable federal law.
     It is important to note the provisions of Executive Orders 14151, 14168, 14173, and
     14190 as well as the U.S. Department of Justice’s July 29, 2025, non-regulatory
     “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.”
     States and subgrantees that have implemented diversity, equity, and inclusion (DEI)
     activities, and any other initiatives that discriminate on the basis of race, color, religion,
     sex, or national origin may risk violating federal civil rights laws referenced above and
     jeopardizing federal funding. This includes any discriminatory equity ideology in
     violation of a Federal anti-discrimination law. The definition of “discriminatory equity
     ideology” is in Section 2(b) of Executive Order 14190. To the extent that a U.S.
     Department of Education (the Department) grantee uses grant funds for unallowable
     activities, the Department reserves the right to take appropriate enforcement action
     including under section 451 of the General Education Provisions Act (GEPA), which
     may include the recovery of funds under section 452 of GEPA.

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/agencies/eta/wioa/resources. A copy of these requirements is also
     available through the State Plan portal (https://wioaplans.dol.gov), developed specifically
     for the required electronic submission.

     Note that the ICR includes a requirement for states to describe how they will use State
     merit staff for the provision of Wagner-Peyser Employment Services. The Department of
     Labor will notify states of any changes to this planning requirement because of ongoing
     rulemaking related to proposed flexibility in Employment Service staffing, as described
     in the notice of proposed rulemaking entitled “Wagner-Peyser Act Employment Service
     Staffing,” published on July 1, 2025 (90 FR 28239).

c.   Stakeholder Collaboration and Comment. The State Workforce Development Board
     (State Board) assists the Governor in the development, implementation, and modification
     of the State Plan and convenes all relevant programs, required partners, and stakeholders.
     The Departments encourage inclusion of the state LMI, chief information officers, state
     higher education executive officers, education and articulation offices, Career and
     Technical Education agencies, and workforce and education evaluation offices (or their
     equivalent) during plan development and modification to obtain labor market data and
     related evidence and analysis.

     States are also encouraged to engage the Perkins V eligible agency and stakeholders in
     the modification processes, even if the Perkins V program is not already included in the
     State Plan. The Departments have received feedback from states and recognize that some
     states may need additional time to conduct planning activities as they align WIOA and
     Perkins V programs prior to the submission of their plan modifications. As such, as noted

          above, the Departments will accept plan modifications through April 30, 2026, to
          accommodate cross-program planning for this cycle (see Section 2 of this guidance).
          States are encouraged to hold concurrent public engagement sessions with Perkins V
          stakeholders from other core and partner programs to the public workforce system. These
          stakeholders may include state and local educational agencies, community and technical
          colleges, state workforce agencies, business and industry partners, and others. A
          combination of virtual and in-person stakeholder engagement sessions are encouraged at
          both the state and local area levels. 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.3 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;
          •    state educational agencies;
          •    adult education providers;
          •    faith-based organizations;
          •    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.4

     d.   Instructions for State Plan Modification Submission. States must submit their
          modification of their State Plan via the State Plan Portal 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 for all included
          programs. The Office of the Governor for each state must notify the Departments of the

3
    See 20 CFR § 676.143(c)(3) and 34 CFR §§ 361.143(c)(3) and 463.143(c)(3).
4
    See WIOA Section 101(g) and 20 CFR § 676.130(d) and 34 CFR §§ 361.130(d) and 463.130(d).

         individual designated to submit the 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
         2024 submission. By February 02, 2026, 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.dol.gov. Previously approved WIOA State Plans are
         available within the portal; content from currently approved four-year plans will be
         available in the data entry fields for editing or updating, 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 (Change 2), OCTAE Program Memorandum 20-2 (revised
         January 2025), and RSA TAC-20-02 (revised January 2025). The Departments will
         continue to negotiate program specific levels of performance. The Unified and Combined
         State Plan ICR Appendix 1, also discussed in Attachment I of this guidance, reflect which
         indicators the Departments will negotiate for which programs for PYs 2026 and 2027.
         See Attachment I of this guidance for more instructions on submitting expected levels of
         performance and establishing negotiated levels of performance.

    f.   Waivers. As articulated in ETA TEGL 05-25: Maximizing Innovation in Workforce
         Innovation and Opportunity Act Programs, states are encouraged to request waivers of
         existing WIOA statutory or regulatory requirements that can help overcome specific
         barriers to innovation and align with the Five Strategic Pillars for workforce investment.
         Waivers are a tool for reducing barriers to WIOA implementation and spurring
         innovative programming options. The Secretary of Labor’s waiver authority is outlined in
         WIOA sec. 189(i)(3)(A); the Secretary may waive certain provisions of WIOA Title I
         subtitles A, B, and E and provisions found in Sections 8 – 10 of the Wagner-Peyser Act.
         States may submit WIOA Title I and III waiver requests as part of their State Plan or as a
         separate waiver plan. For more information on the process for states to request waivers,
         see ETA TEGL 08-18: Workforce Innovation and Opportunity Act (WIOA) Title I and
         Wagner-Peyser Act Waiver Requirements and Request Process. States are encouraged to
         involve the Perkins eligible agency and stakeholders in the development of innovation
         and flexibility waivers.

         States are encouraged to review all currently approved waivers, along with their
         respective expiration dates, to consider renewing or resubmitting new
         waivers.5 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 but are expiring. As articulated in

5
 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.

           waiver approval letters, states agreed to meet certain performance or other program
           measures resulting from the waiver. States requesting a waiver must provide the most
           recent data available about the outcomes of the waiver in the renewal request.6 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 56072 (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 and 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);
      •    Information Collection Request, 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; and
      •    ETA TEGL 08-18: Workforce Innovation and Opportunity Act (WIOA) Title I and
           Wagner-Peyser Act Waiver Requirements and Request Process, dated December 19,
           2018.

7. Attachment.

      •   Attachment I: Performance Goals and Instructions for the Core Programs

6
    See 20 CFR § 679.620(d)(7).

                                                                                  Attachment I

         WIOA Performance Accountability 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 and Vocational
Rehabilitation programs will have sufficient data available to make reasonable determinations of
expected levels of performance for the following indicators for PYs 2026 and 2027:

    •   Employment7 (Second Quarter after Exit);
    •   Employment8 (Fourth Quarter after Exit);
    •   Median Earnings (Second Quarter after Exit);
    •   Credential Attainment Rate; and
    •   Measurable Skill Gains.

The Wagner-Peyser Act Employment Service program will have sufficient data available to
make a reasonable determination of expected levels of performance for the following indicators
for PYs 2026 and 2027:

    •   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 Act Employment Service program; therefore, this program will not submit
expected levels of performance for these indicators.

The 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. The approach to measuring ESE was defined in the Workforce
Innovation and Opportunity Act Effectiveness in Serving Employers Performance Indicator final
rule (89 FR 13814 (Feb. 23, 2024)) (Final Rule). This final rule took effect March 25, 2024, and
defined the ESE primary indicator of performance, as required by WIOA section 116(b)(2), as
Retention with the Same Employer.

For the PYs 2026-2027 plan modifications, the Departments used the transition authority under
section 503(a) of WIOA to designate the ESE primary indicator of performance as a “baseline”
indicator. A “baseline” indicator is one for which states do not propose an expected level of

7 For Title I Youth programs, employment, education or training.
8 For Title I Youth programs, employment, education or training.

performance and do not come to agreement with the Departments on negotiated levels of
performance because sufficient data are not available to establish such performance levels. As a
result, “baseline” indicators are not used in the end of the year adjustment of performance levels
and are not used to determine failure to meet adjusted levels of performance for purposes of
sanctions. The Departments designated indicators as “baseline” based on the likelihood of a State
having insufficient data with which to make a reasonable determination of an expected level of
performance.

Include the State's expected levels of performance for the primary indicators of performance
described in section 116(b)(2)(A) of WIOA. Each state must then update its plan modification to
include the agreed-upon negotiated levels of performance before the Departments approve the
plan modification.

                                    Title I – Adult Program

                                 PY 2026        PY 2026       PY 2027        PY 2027
                                 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

                             PY 2026      PY 2026        PY 2027     PY 2027
                             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

                             PY 2026      PY 2026        PY 2027     PY 2027
                             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 II – Adult Education and Family Literacy Act Program

                             PY 2026      PY 2026      PY 2027      PY 2027
                             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 III – Wagner-Peyser Act Employment Service Program

                             PY 2026      PY 2026      PY 2027      PY 2027
                             Expected    Negotiated    Expected    Negotiated
                              Level        Level        Level        Level

  Employment (Second
   Quarter after Exit)

   Employment (Fourth
    Quarter after Exit)

Median Earnings (Second
  Quarter after Exit)

                        Title IV – Vocational Rehabilitation Program

                               PY 2026        PY 2026         PY 2027      PY 2027
                               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

                         PY 2026         PY 2026      PY 2027             PY 2027
                         Expected       Negotiated    Expected           Negotiated
                          Level           Level        Level               Level

Effectiveness in         Baseline        Baseline         Baseline        Baseline
Serving
Employers

Additional Indicators of Performance

1.

2.

3.

4.

5.

6.