Sponsor
Mark B. Messmer
Representative · R-IN
Representative · R-IN
The bill reallocates a modest share of WIOA funds toward state-directed, performance‑linked, employer-aligned training to improve targeting and accountability, but it risks diverting resources from local and high‑need communities, increases administrative and matching burdens, and may create uneven access depending on state choices.
Unemployed workers, dislocated workers, students, and career changers gain expanded access to employer-aligned training and targeted upskilling because governors can reserve up to 10% of WIOA allotments and grants are available to industry/sector partnerships and career pathways.
Local workforce areas that meet performance thresholds can receive additional incentive payments, increasing funding for effective career and training services and rewarding strong outcomes.
Employers and small businesses can receive subsidized, employer-linked training support through performance-based critical industry skills funds, encouraging employer investment in worker skills and hiring-ready training.
Low-income, high-need, and hard-to-serve jobseekers risk reduced services because tying reallocations and new state reservations to performance can shift funds away from areas that struggle to meet thresholds.
Local workforce areas and the populations they serve may see less formula funding for local services because up to 10% of WIOA allotments can be redirected to statewide reserved funds.
Smaller or underperforming local areas risk losing allocations due to the stricter retention criteria (e.g., averaging 100% on youth indicators and no corrective actions), which could reduce youth employment and training services.
Based on analysis of 5 sections of legislative text.
Allows Governors to reserve up to 10% of certain WIOA allotments for statewide critical industry skills and sector partnership funds, tightens reallocation performance rules, and requires a DOL study within four years.
Official title: To amend the Workforce Innovation and Opportunity Act to require States to establish critical industry funds or certain industry or sector partnerships, and for other purposes.
Introduced April 2, 2026 by Mark B. Messmer · Last progress April 2, 2026
Allows Governors to set aside up to 10% of certain WIOA adult, youth, and dislocated worker allotments to create statewide “critical industry skills” and “industry/sector partnership and career pathways” funds, subject to required State or federal matching sources. Changes how reallocated WIOA funds may be used (including labeling some as performance‑based incentive payments) and tightens criteria for local areas to retain or receive reallocated funds. Expands allowable statewide rapid response assistance for dislocated workers with excess demand for Individual Training Accounts and requires the Department of Labor to study State-established critical industry skills funds within four years.