Incentive Grants WIA Section 503

To carry out innovative programs consistent with the purposes of Title I of WIA (Workforce Investment Systems), Title II of WIA (Adult Education and Family Literacy Act (AEFLA), 20 U.S.C.

9201 et seq.), the Carl D.

Perkins Vocational and Applied Technology Education Amendments of 1998 (Public
Law 105-332, 20 U.S.C.

2301 et seq.) or a combination of two or more of these acts.

Agency - Department of Labor

The Department of Labor fosters and promotes the welfare of job seekers, wage earners and retirees by improving their working conditions, advancing their opportunities, protecting their retirement and health benefits and generally protecting worker rights and monitoring national economic measures.

Program Accomplishments


Uses and Use Restrictions

States have great flexibility in using these funds and are not limited to conducting only one type of innovative program.

However, the use of grant funds must be consistent with WIA Section 503, including the requirement that they be used for innovative programs which further the purposes of WIA Titles I and II and/or the Perkins Act.

In addition, grantees must comply with the requirements of whichever program the innovation affects.

For example, if the incentive funds will be used for innovations in the delivery of youth activities under WIA Title I, the program must be consistent with WIA Title I provisions applicable to youth activities and the WIA regulations at 20 CFR part 664.

States must submit a plan describing the innovative activities to be funded with this grant.

States are expected to use funds for services and activities: (1) beyond those provided with regular funds from the three programs, particularly those authorized by one of these programs and another program; (2) which serve the needs of populations intended to be served by one or more of these programs; and (3) targeted to improving the performance of State systems of employment, training, and education.

In addition, States are encouraged to plan activities that promote cooperation and collaboration among the agencies administering WIA Title I, AEFLA, and Perkins Act programs.

Eligibility Requirements

Applicant Eligibility

States, including Washington, DC, the Virgin Islands, Puerto Rico, and Guam.

A listing of States eligible to receive incentive grants for program year 2005 performance will be published in the Federal Register in May 2007.

To qualify for a grant, a State must exceed performance levels agreed to by the Secretary of Education, the Secretary of Labor, the Governor, and the State Education Officer, for outcomes in Titles I and II of the Workforce Investment Act (WIA) and the Perkins Act (Public Law 105-332, 20 U.S.C.

2301 et seq.), which include placement after training, retention in employment, and improvement in literacy levels, among other measures.

Beneficiary Eligibility

States, including Washington, DC, the Virgin Islands, Puerto Rico, and Guam.


Costs will be determined in accordance with OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

The application must include assurances that: The State legislature was consulted with respect to the development of the application; the application was approved by the Governor, the eligible agency for adult education, as defined in WIA Section 203(4) (20 U.S.C.

9202(4); and the State agency responsible for vocational and technical education programs, as defined in Perkins Act Section 3(9) (20 U.S.C.

2302(9)); and The State and the eligible agency, as appropriate, exceeded the State adjusted levels of performance for WIA Title I, the State adjusted levels of performance for AEFLA, and the performance levels established for Perkins Act programs.

This program is excluded from coverage under E.O.


Application Procedures

Grants for projects are awarded on a competitive basis, announced in Solicitation for Grant Applications (SGAs) in the Federal Register and also on ETA's Internet website at To compete for a grant, organizations develop a proposal and budget that demonstrate how the organization will provide services to a targeted population. The SGA provides all of the necessary information for applying for federal assistance. ETA will coordinate review of applications with the Department of Education.

Award Procedures

Procedures for each project are specified in the applicable request for proposals. Generally, the procedure is as follows: A technical review panel composed of staff from ETA program offices as well as peer reviewers evaluates eligible submitted applications. The panel prepares a report for the ETA Grant Officer identifying the strengths and weaknesses of the application and the cumulative rating. Once selections are made by the Grant Officer, an Award Notification is sent through the appropriate congressional channels for notification. After awardees are notified, the list of awardees is posted on the ETA website at If an application is rejected, a letter is sent to the applicant as notification that they were not selected as a recipient of the grant.


Specified in the applicable request for proposals, but generally 45 to 60 days from announcement.


Workforce Investment Act of 1998, Public Law 105-220, Section 503, 20 U.S.C. 9273; Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998 (Perkins Act), Public Law 105-332, 20 U.S.C. 2301 et seq.

Range of Approval/Disapproval Time

From 30 to 60 days.


Appeal procedures are at 20 CFR Part 667, Subpart H.



Assistance Considerations

Formula and Matching Requirements

There are no matching requirements for this program. The formula used for determining the amount of funds available to each eligible State is based on each State's relative share of the combined WIA Title I, AEFLA, and Perkins Act formula grants awarded to that State. The amount each State is eligible to receive is determined by the Departments of Education and the Labor and is based on WIA section 503(c) (20 U.S.C.9273(c)) which provides minimum and maximum award amounts and procedures for proportionate reductions where insufficient appropriations are available.

Length and Time Phasing of Assistance

Funds are awarded on a program year (July to June) basis and are available for expenditure for two years (the year of award and the succeeding year).

Post Assistance Requirements


Reporting requirements are specified in the grant document.


Audits shall be conducted in accordance with 20 CFR 667.200(b).


States are required to maintain adequate records in accordance with DOL uniform administrative requirements in 29 CFR Sections 97.20 and 97.42.

Financial Information

Account Identification



(Grants) FY 07 $16,000,000; FY 08 est $10,000,000; FY 09 est $10,000,000.

Range and Average of Financial Assistance

$750,000 to $3,000,000. However, the Secretary has the authority to award grants less than $750,000 based on the amount of award money available and the number of states eligible.

Regulations, Guidelines, and Literature

20 CFR 666.200 - 666.230; Training and Employment Guidance Letter No. 20-01, change5 to be released in May 2007.

Information Contacts

Regional or Local Office


Headquarters Office

Employment and Training Administration, Department of Labor, 200 Constitution Avenue, N.W., Washington, DC 20210. Contact: Karen Staha, Chief, Division of System Accomplishments and Accountability, Office of Performance and Technology, Room S5206. (202) 693-3031.

Criteria for Selecting Proposals


The Great Social Enterprise Pitch, a project of Assets Lancaster and the Lancaster County Community Foundation, has now opened its voting portal for people who will donate money to the projects they like best.

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