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Transition from WIA participants, funds, and contracts to WIOA
Summary ETA explained how state workforce agencies and grantees should carry WIA funds and participants into WIOA beginning July 1, 2015. It also covered reporting, grant modifications, and service provider contracts, with a transition chart. ETA now labels the letter Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 38-14
Date issued
June 8, 2015
Status
Withdrawn
ETA lists this letter Canceled as of 2026-10-24; the signed PDF prints Expiration Date: Continuing and Rescissions: None. No cancellation instrument is identified.
Status last verified October 24, 2026
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CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION WIOA
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OGM
Washington, D.C. 20210 DATE
June 8, 2015
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER WIOA NO. 38-14
OPERATING GUIDANCE for the WORKFORCE INNOVATION AND
OPPORTUNITY ACT (referred to as WIOA or the Opportunity Act)
TO: STATE WORKFORCE AGENCIES
NATIONAL FARMWORKER JOBS PROGRAM (NFJP) GRANTEES
WORKFORCE INNOVATION AND OPPORTUNITY ACT (WIOA) SECTION
166 INDIAN AND NATIVE AMERICAN PROGRAM GRANTEES
FROM: PORTIA WU
Assistant Secretary
SUBJECT: Operational Guidance to Support the Orderly Transition of Workforce Investment
Act Participants, Funds, and Subrecipient Contracts to the Workforce Innovation
and Opportunity Act
1. Purpose. To provide guidance and instructions on the transition of participants, funds,
performance reports, grants, and subrecipient contracts under title I of the Workforce Investment
Act of 1998 (WIA) and under the Wagner-Peyser Act to the Workforce Innovation and
Opportunity Act (WIOA or the Act).
In anticipation of July 1, 2015, the Department is providing this guidance to clarify: (1) the
process for carry-in of funds awarded under WIA to WIOA; (2) the requirements for
transitioning participants enrolled under WIA to WIOA; (3) performance reporting transition;
(4) the grant modification process; and (5) the requirements for subrecipient contracts for
service providers under WIOA. Attached is a chart that illustrates many of the issues covered in
this Training and Employment Guidance Letter (TEGL) as well as issues that were previously
addressed in TEGLs surrounding the transition of WIA to WIOA, including the use of 2%
funding and rapid response flexibility.
WIOA was signed into law on July 22, 2014. WIOA is designed to help job seekers access
employment, education, training, and support services to succeed in the labor market and to
match employers with the skilled workers they need to compete in the global economy. WIOA
supersedes titles I and II of the Workforce Investment Act of 1998, and amends the Wagner-
Peyser Act and the Rehabilitation Act of 1973. In general, the Act takes effect on July 1, 2015,
the first full program year after enactment, unless otherwise noted.
The Departments of Labor and Education are working to publish a set of regulations
implementing WIOA. On April 9th, the Federal Register posted five Notices of Proposed
RESCISSIONS EXPIRATION DATE
None Continuing
Rulemaking (NPRMs) implementing the Opportunity Act on its Web site for public inspection,
https://www.federalregister.gov/public-inspection. The NPRMs were formally published in the
Federal Register on April 16th. Comments should be submitted in accordance with the process
outlined in the NPRMs, including by visiting http://www.regulations.gov. The comment period
is scheduled to be open for 60 days, closing on June 15, 2015.
In order to continue implementation prior to the final rule, a series of WIOA Operating
Guidance documents that provide the needed implementation information will be issued in the
form of Training and Employment Guidance Letters (TEGLs). These Operating Guidance
documents on WIOA will inform the workforce system how to begin the important planning and
reorganization necessary to comply with new WIOA statutory requirements for the upcoming
Program Year 2015 (beginning July 1, 2015). The Operating Guidance TEGLs will provide a
framework for program activities until the regulations are finalized. This TEGL is one in the
ongoing series of Guidance.
2. References. See Attachment I.
3. Transition of WIA and Wagner Peyser Carry-In Funds to WIOA.
Expiration of PY Funds: PY 2012 funds expire on June 30, 2015, and are not subject to WIOA
provisions. The expiration dates of the PY 2013 and PY 2014 funds will not change. PY 2013
and PY 2014 funds will expire on June 30, 2016, and June 30, 2017, respectively.
Obligated PY Funds: For PY 2013 and 2014 funds that are already obligated as of June 30,
2015, grantees may liquidate those obligations in compliance with WIA and Wagner-Peyser
requirements as they are before WIOA is enacted. The reporting of obligations must be
consistent with TEGL 13-12, ETA-9130 Quarterly U.S. Department of Labor (DOL)
Employment and Training Administration Financial Reports Instructions. Grantees must
maintain documentation for those funds regarding compliance with WIA for audit, monitoring,
and oversight purposes.
PY 2015 Funds: All PY 2015 funds will be awarded under the authority of and subject to the
requirements of WIOA. While PY 2015 WIOA youth activities funds are available beginning in
April 2015, the early release of these funds are for states and INA grantees to use these
resources to begin preparation for WIOA youth implementation on July 1, 2015. WIOA youth
money available in April can be for direct services to WIA participants as well as transition
planning to implement the WIOA youth program starting on July 1, 2015. WIOA youth
provisions are effective beginning July 1, 2015, and include the transition parameters discussed
in TEGL 23-14, Workforce Innovation and Opportunity Act (WIOA) Youth Program Transition,
and any subsequently issued applicable guidance.
Unobligated PY Funds: PY 2013 and PY 2014 state and local formula funds that have not
been obligated by grantees in PY 2013 and PY 2014 (i.e. “carry-in” funds) will become subject
to WIOA, effective July 1, 2015. This means that the funds will assume the requirements of
those portions of WIOA that are effective July 1, 2015. Likewise, NFJP and INA grantees may
carry unobligated PY 2013 and 2014 funds into PY 2015, and these funds will become WIOA
funds, effective July 1, 2015.
As of July 1, 2015, the unobligated PY 2013 and PY 2014 WIA and Wagner-Peyser funds
carried into PY 2015 must only support allowable WIOA activities and conform to WIOA
requirements effective July 1, 2015, with the exception of funds used to pay for WIA services
for WIA participants who are transitioning to WIOA, as outlined in section 5, and any other
requirements issued by DOL via Training and Employment Guidance Letter that are necessary
to facilitate transition from WIA to WIOA. The period of performance for these funds remains
intact (i.e. the expiration of PY 2013 funds remains June 30, 2016, for state and local formula
funds and NFJP, and September 30, 2015, for the INA program).
4. Transition of WIA Participants to WIOA. On July 1, 2015, all WIA title I participants
(including Adult, Dislocated Worker, Youth, NFJP, and INA participants) who were enrolled in
a WIA title I program prior to July 1, 2015, must be transitioned (or “grandfathered”) into
WIOA, even if the participant would not otherwise be eligible for WIOA. Grantees must not
complete an eligibility re-determination for participants already determined eligible and enrolled
under WIA. Furthermore, these participants must be allowed to complete the WIA services
(“grandfathered services”) specified in their individual service strategy and/or individual
employment plan, regardless of whether the services are allowable under WIOA or not, as long
as the WIA services were specified in participants’ individual service strategies and/or
individual employment plans as of June 30, 2015. Grantees must continue to serve participants
enrolled under WIA (with pre-determined WIA or new WIOA services) by either: providing the
services for which WIA funds were already obligated (and, thus, liquidating those funds); with
unobligated carry-in WIA funds that become WIOA funds (as established in Section 4 of this
TEGL); or with new WIOA funds. We encourage grantees to continue to enroll participants
through June 30, 2015. This is consistent with the Department’s transition authority in section
503 of WIOA, which allows the Secretary to take such actions as he determines to be
appropriate to provide for the orderly transition from the Workforce Investment Act of 1998 to
Title I of WIOA.
Effective July 1, 2015, grantees must make all new eligibility determinations under the WIOA
framework for participants enrolling on or after that date and must follow all WIOA
requirements. Participants enrolled on or after July 1, 2015, may only access services allowable
under WIOA.
5. Transition of Employment Service (ES) Participants under WIOA. WIOA Title III
amended the Wagner-Peyser Act of 1933 (which governs the ES). Since WIOA did not change
the ES from being a universal access program for all job seekers, ES eligibility criteria did not
change, and programs should continue to provide participants with the full array of labor
exchange services after WIOA takes effect on July 1, 2015. WIOA introduced a requirement to
co-locate ES offices with one-stop centers, currently branded as American Job Centers, and
several changes in services. These and other topics, including the alignment of WIOA career
services with ES services, will be addressed in subsequent guidance.
6. Reporting.
Performance Reports: For performance reports, state formula grantees will continue reporting
WIA and WIOA enrolled participants in the current Workforce Investment Act Standardized
Record Data (WIASRD) until a new performance report is approved and the system is updated;
WIOA specifies that performance reporting provisions go into effect on July 1, 2016. NFJP
grantees will continue to use the Workforce Investment Act Standardized Participant Record
(WIASPR) and the ETA-9095; housing grantees will continue to use the ETA-9164 form. INA
grantees will continue to report using the ETA-9084, ETA-9085 and the Standardized Program
Information Report (SPIR). Wagner-Peyser Employment Services grantees will continue to use
the Labor Exchange Reporting system (LERS) for reporting purposes. New performance reports
will go through the Paperwork Reduction Act notice and comment process. Further guidance on
transition as it impacts performance reporting will be provided separately.
Financial Reports: Grantees must continue to use the currently approved ETA-9130 financial
reporting form until a new OMB approved form is issued. The Department will publish
separately a Paperwork Reduction Act Information Collection Request package for WIOA
financial reporting. States and local areas must track funds spent on WIOA authorized activities
beginning July 1, 2015. Keeping track of all funds spent on WIOA activities will enable states
and local areas to report cumulative expenditures on the new WIOA financial report, once
approved by OMB and available for reporting.
For information regarding transition activities expenditures reporting, please refer to Training
and Employment Guidance Letter (TEGL) 12-14, Allowable Uses and Funding Limits of
Workforce Investment Act (WIA) Program Year 2014 funds for WIOA Transitional Activities,
and the corresponding Frequently Asked Questions (FAQs).
7. Grant Modifications. On or around July 1, 2015, formula, INA program, and NFJP grants will
be modified to reflect the WIOA statute and Operations Guidance Training and Employment
Guidance Letters issued regarding WIOA implementation. Additional grants may be modified,
as appropriate. In these instances, Grant Officers will contact grantees accordingly. Once the
final rules are published, these grants will be modified to include new regulatory citations and
any other necessary changes.
8. Changes to WIA Local Service Provider Contracts. Local areas commonly enter into two-
year agreements with their service providers which allow them to serve participants for the
duration of the two-year cycle. Although we consider the contract to be obligated at the time of
execution, expenditure of those funds is dependent on the enrollment of participants. As such,
the contracts must be modified or amended, to the extent the contract terms allow, to ensure that
enrollment into WIA program services ceases on June 30, 2015, and enrollment using WIOA
requirements begins July 1, 2015.
Current contracts do not need to be automatically terminated. Local areas may terminate current
contracts in order to compete a new contract under WIOA, assuming the current contract
permits taking this action. Local areas may also consider modifications to current contracts if
they contain clauses to allow for changes to be made to conform to new legislation or
regulations. If current contracts include multiple or option years, WIOA requirements must be
incorporated by amending or modifying the option years of the contract. If, after July 1, 2015, a
service provider refuses to comply with the new WIOA requirements, the awarding entity must
take immediate corrective action, up to and including termination.
In competing new contracts, ETA encourages local areas to employ one-year contracts with
additional option years, rather than multi-year contracts. Given how resource-intensive the
Request for Proposals (RFP) process can be, option year contracts are a strategy to ensure
maximum flexibility while final regulations are published and program guidance is issued.
9. Inquiries. Questions may be directed to the appropriate ETA Regional Office. INA and NFJP
grantees should contact their assigned Federal Project Officer.
10. Attachments.
• Attachment I: References
• Attachment II: WIA to WIOA – Transition of Funding, Participants, and Subrecipient
Contracts Chart
ATTACHMENT I
WIOA Operating Guidance TEGL References
• WIOA (Pub. L. 113-128) Title I;
• Training and Employment Guidance Letter (TEGL) No. 34-14, Workforce Innovation and
Opportunity Act Transition Authority Allotment of Program Year (PY) 2014 Dislocated
Worker National Reserve Funds for WIOA Implementation Activities;
• TEGL No. 30-14, Negotiating or Extending Performance Goals for the Workforce
Investment Act (WIA) Title IB Programs and Wagner-Peyser Act Funded Activities for
Program Year (PY) 2015;
• TEGL No. 29-14, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated
Worker and Youth Activities Program Allotments for Program Year (PY) 2015; Final PY
2015 Allotments for the Wagner-Peyser Act Employment Service (ES) Program Allotments;
and Workforce Information Grants to States Allotments for PY 2015;
• TEGL No. 27-14, Workforce Innovation and Opportunity Act Transition Authority for
Immediate Implementation of Governance Provisions;
• TEGL No. 26-14, Workforce Innovation and Opportunity Act Transition Authority for
Flexible Use of State Rapid Response Funds;
• TEGL No. 23-14, Workforce Innovation and Opportunity Act (WIOA) Youth Program
Transition;
• TEGL No. 19-14, Vision for the Workforce System and Initial Implementation of the
Workforce Innovation and Opportunity Act;
• TEGL No. 12-14, Allowable Uses and Funding Limits of Workforce Investment Act (WIA)
Program Year (PY) 2014 funds for Workforce Innovation and Opportunity Act (WIOA)
Transitional Activities;
• TEGL No. 13-12, ETA-9130 Quarterly U.S. Department of Labor (DOL) Employment and
Training Administration Financial Reports Instructions;
• TEGL No. 13-09, Contracting Strategies That Facilitate Serving The Youth Most In Need;
and
• WIA (Pub. L. 105-220), Title I.
Attachment II
WIA to WIOA - TRANSITION OF FUNDING, PARTICIPANTS, AND SUBRECIPIENT CONTRACTS
Before July 1, 2015 After July 1, 2015
PY 2013 PY 2014 PY 2015 PROGRAM YEAR PY 2013 PY 2014 PY 2015
June 30, 2016 June 30, 2017 June 30, 2018 EXPIRATION June 30, 2016 June 30, 2017 June 30, 2018
FUNDS
Can 2% of the WIA formula allotments be used for
No Yes No No Yes No
transitional activities? (TEGL 12-14)
Can other programs authorized under title I of WIA, the
Indian and Native American program, the Migrant and
No Yes No Seasonal Farmworker program, or other activities use No Yes No
the PY 14 monies for transitional activities? (TEGL 12-
14)
Can unexpended rapid response monies be used for
Yes Yes Up to 50% Yes Yes Up to 50%
transitional activities? (TEGL 26-14)
Yes Yes Yes Will unobligated funds be carried over into WIOA? N/A N/A N/A
Can funds obligated through June 30, 2015, be used
Yes Yes Yes N/A N/A N/A
to provide WIA services?
Can WIA funds not obligated before July 1, 2015, be
N/A N/A N/A used to provide WIA services only if it is for Yes Yes Yes
grandfathered WIA participants?
Can PY 15 WIOA funds obligated on or after July 1,
N/A N/A N/A 2015, be used to serve grandfathered WIA N/A N/A Yes
participants?
PARTICIPANTS
WIA WIA WIA What programs are participants enrolled in? WIOA WIOA WIOA
Yes Yes Yes Are WIA participants grandfathered into WIOA? N/A N/A N/A
Must an eligibility re-determination be completed for
N/A N/A N/A grandfathered WIA participants receiving services on No No No
or after July 1, 2015?
Are Wagner Peyser services available to
N/A N/A N/A Yes Yes Yes
grandfathered WIA participants?
Can grandfathered WIA participants continue to
N/A N/A N/A receive services under their existing WIA individual Yes Yes Yes
services strategy and/or individual employment plan?
SUBRECIPIENT CONTRACTS
Must existing subrecipient contracts with performance
Yes Yes Yes periods that extend beyond June 30, 2015 be modified Yes Yes Yes
or amended to reflect WIOA requirements and enrollments?
Can service providers with existing subrecipient
N/A N/A N/A contracts continue to enroll participants in WIA No No No
program services on or after July 1, 2015?
On or after July 1, 2015, can service providers with
N/A N/A N/A existing subrecipient contracts serve participants Yes Yes Yes
enrolled into WIA before or on June 30, 2015?
Should a subrecipient contract be terminated if a
N/A N/A N/A service provider is unwilling or unable to adhere to the Yes Yes Yes
WIOA requirements on or after July 1, 2015?
REPORTING
Where are transitional expenditures reported on the
Line 12 Remarks Line 12 Remarks
ETA-9130?
What performance reports are required for formula
WIA and W-P reports WIA and W-P reports
programs?
WIASPR and ETA-9095* What performance reports are required for NFJP? WIASPR and ETA-9095*
SPIR, ETA-9084, and ETA-9085* What performance reports are required for INA? SPIR, ETA-9084, and ETA-9085*
* Until new performance and financial reports are approved and the systems are updated, grant recipients will use the existing WIA reports.
PY 2012 funds expire on June 30, 2015 and thus are not subject to WIOA Provisions.
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