Welfare-to-Work Grants to States and Localities

 

The Welfare-to-Work Grants program was designed to assist States and localities to help move hard-to-employ welfare recipients, certain noncustodial parents, certain former foster care recipients, and low-income custodial parents into lasting unsubsidized jobs and achieve self sufficiency.

Deleted 04/19/2005 (Formula program was terminated by section 105 of the Department of Labor 2004 Appropriation (P.L 108-199).) 17.253 EMPLOYMENT AND TRAINING ADMINISTRATION (ETA), DEPARTMENT OF LABOR Formula Grants; Project Grants. The WtW program served 208,168 new participants in fiscal year 2001. In fiscal year 2001, 49 percent of WtW participants placed in unsubsidized employment remained in the workforce for two quarters after the placement quarter, with a 59 percent average earnings increase. While the WtW program continues to enroll new participants and provide services, we finished making new grant awards to State and competitive applicants in fiscal year 1999. Social Security Act, Section 403(a)(5), 42 U.S.C. 601 et seq., as amended; Personal Responsibility and Work Opportunity Reconciliation Act of 1996; Balanced Budget Act of 1997; Welfare-to-Work and Child Support Amendments of 1999; Consolidated Appropriations Act of 2001, Public Law 106-554. States are the only eligible Federal grantees for formula funds, although State subgrantees include eligible applicable Local Workforce Investment Area agencies under the supervision of the Local Workforce Investment Board in the area. Not more than 30 percent of the funds allotted or awarded to an operating entity may be expended upon individuals enrolled under the "Other Eligibles" category, which includes: (1) welfare recipients with characteristics of long-term welfare dependence or significant barriers to self-sufficiency; (2) former foster care recipients aged 19-24 at the time of application to WtW; and (3) custodial parents with incomes below the poverty line. The remaining funds allotted or awarded to an operating entity must be expended upon individuals enrolled under the "Primary Eligibility" category, which includes long-term welfare recipients and noncustodial parents. Long-term welfare recipients are eligible for WtW if they (1) have received welfare for at least 30 months, or (2) are within 12 months of losing eligibility for welfare due to time limits, or (3) have already exhausted eligibility for welfare due to reaching time limits. Noncustodial parents are eligible for WtW if (1) they are unemployed, underemployed, or having difficulty paying child support, and (2) the custodial parent or minor child is a long-term welfare recipient; or the minor child received welfare during the preceding year; or the minor child is eligible for or receiving assistance under a welfare, Food Stamps, Supplemental Security Income, Medicaid, or Children's Health Insurance program; and (3) they are in compliance with a personal responsibility contract under which they commit to cooperating in the establishment of paternity and a child support order, paying child support, and participating in employment or related activities to enable them to make regular child support payments." Formula and competitive grant programs are subject to the Act and regulation requirements. Formula Grants: All States must submit a WtW State Plan and must complete the required certification/assurances and grant documents prior to receipt of each year allotment of funds. Competitive Grants: Applicants must comply with the documentation submission requirements published in the Solicitation for Grant Application. Formula Grants: State WtW Plans must comply with the plan coordination and submission requirements of the Act and regulations as indicated in the Department planning guidance and instructions to the States. Competitive Grants: All competitive fund applications must comply with the coordination requirements in the Act and the regulations as specified in a given Solicitation for Grant Application issuance. This program is excluded from coverage under E.O. 12372. To receive its formula allotment, each State must submit a WtW State Plan to the Secretary of Labor for each fiscal year of funds provided in accordance with the procedures and schedule provided by the Secretary to the States. The application procedure for competitive grant awards will be contained in each Solicitation for Grant Application document issued. Formula funds are allotted to the States for FY 1998 and FY 1999 fiscal year. Competitive grant funds are awarded to eligible non-State entities on the basis of a competitive Solicitation for Grant Application (SGA) process. These SGAs are announced periodically in the Federal Register. Each State must submit its State WtW plan for each fiscal year of formula funds in accordance with instructions provided to the States by the Secretary of Labor. Deadlines for submission of competitive grant solicitations are announced in each of the published Solicitation for Grant Applications which will be issued periodically during a given fiscal year. State WtW plans for formula grants will be reviewed for each year of funding provided in accordance with the announced schedule provided to the States. Competitive grant fund applications submitted in response to a given Solicitation for Grant Application will be reviewed usually within 45 to 60 days of receipt. Formula Grants: Not applicable. Competitive Grants: None. Not applicable. Formula grants to States are allotted on the basis of a statutory formula. Competitive grant awards are subject to the criteria indicated in the applicable Solicitation for Grant Application. Formula and project (competitive) grant funds are used to provide: Job readiness activities, limited pre-employment vocational educational training or job training, community service or work experience programs, job creation through public or private sector employment wage subsidies, on-the-job training, job placement services, post-employment services, and job retention and support services. Local formula grant operators (Local Workforce Investment Boards) must provide job readiness, job placement, and post-employment services through vouchers or contracts with public or private providers. The program is comprised of: (1) Formula grants to States who, in turn, distribute no less than 85 percent of their allotments to Local Workforce Investment Areas in the state as administered by Local Workforce Investment Boards; and (2) competitive grants to eligible, non-state organizations, awarded on the basis of periodic Solicitation for Grant Application announcements and awards process. Reporting requirements pertain to quarterly expenditure and participant reporting as specified in the OMB approved forms (one unified form for each type of program, Formula and Competitive). Audits will be performed in accordance with the applicable OMB "common rule" requirements for each type of grantee organization as codified by the Department of Labor regulations at 29 CFR 96 and 97. States and other grantees are required to maintain adequate records in accordance with the applicable OMB common rule requirements as codified by the Department at 29 CFR 95 and 97 as applicable to the type of applicant organization. Formula funds are allotted to the States in accordance with the statutory formula at Section 403(a)(5)(A) of the Social Security Act as amended. Matching of formula funds is required on the basis of $1 match for each $2 of Federal formula funds allotted. The regulations (20 CFR 645.300) allow up to 75 percent of in-kind match to meet this requirement. Competitive grant fund applications are funded on the basis of the specific guidelines, criteria and process established under each Solicitation. However, there are no statutory formula or matching fund requirements for these funds. Formula funds to States are available during fiscal years 1998 and 1999. Each fiscal year allotment is authorized for the maximum 5-year expenditure period from the date of grant award. Competitive grant funds are subject to the performance period approved under the terms and conditions of each grant (up to a 5-year maximum period). Contact the appropriate Employment and Training Administration Regional Office listed in Appendix IV of the Catalog. Division of Welfare-to-Work, Office of Adult Services, Employment and Training Administration, U.S. Department of Labor, Room N-4665, Constitution Avenue, NW., Washington, DC 20210. Telephone: (202) 693-3910. Fax: (202) 693-2982. http://wtw.doleta.gov 16-0177-2-1-504. (Formula Grants) FY 02 $1,026,057,658; FY 03 est $1,025,789,656; and FY 04 est Not available. No established range. Formula grants to States are based on statutory formula. Competitive grant awards are based on project applications approved under a given Solicitation for Grant Application. 20 CFR Part 645. Funded competitive grant programs can be found at http://wtw.doleta.gov/competitive/default.asp. Funded formula grant programs can be found at http://wtw.doleta.gov/formula/default.asp.