The President’s proposed budget for fiscal year (FY) 2017 includes funding for employment and training programs that have the potential to help homeless individuals and families support themselves and obtain housing. The U.S. Department of Labor’s training and employment services programs provide training and employment services to millions of individuals every year.
Training and Employment Services
The FY2017 budget for the U.S. Department of Labor (DOL) proposes $3.525 billion for the Workforce Innovation and Opportunity Act training and employment services, an increase of $190 million compared to the FY2016 enacted level. The WIOA funding supports more than 20 million Americans served by more than 2,500 American Job Centers across the country. In the second quarter of FY2014, 6.5 million individuals participated in the WIOA Adult program, 192,000 individuals participated in the WIOA Youth program, and 623,000 individuals participated in the WIOA Dislocated Workers program. In addition, 36,000 youth participated in YouthBuild and 109,000 youth participated in the Job Corps program and 430,000 individuals participated in the Registered Apprenticeship program and 3,700
individuals participated in the Reintegration of Ex-Offenders program.
WIOA Adult, Dislocated Worker, and Youth Programs
The $3.525 billion total includes the WIOA-authorized funding levels for the Adult, Dislocated Worker, and Youth formula programs. This amounts to $842 million for adult employment and training activities, an increase of $26 million compared to FY2016. The WIOA Adult program provides employment and training services for disadvantaged, low-skilled, unemployed, and underemployed adults. The WIOA Adult program prioritizes service to veterans, recipients of public assistance, other low-income individuals, and individuals who are basic-skills deficient. From April 2014 to 2015, 48% of participants exiting the program who received intensive services or training had low-incomes and 27% received public assistance. In the program year 2014, the entered employment rate of individuals who received only core services was 60% while the entered employment rate of individuals who received training was 77%. The proposed additional resources will increase local areas’ training and employment services. The WIOA Adult program is expected to serve 7.19 million adult job seekers in program year 2017, which is 229,000 more individuals than in program year 2016.
The total also includes $1.334 billion for the dislocated worker employment and training activities, an increase of $90 million compared to FY2016. The WIOA Dislocated Worker program helps workers who have lost their jobs gain new skills and obtain meaningful jobs in sectors that are projected to grow and provides an array of employment, supportive, and training services to eligible job seekers who have been displaced from their jobs and who are unlikely to return to employment in their previous industries, including recent separated veterans, military spouses, formerly self-employed individuals, and displaced homemakers who have been dependent on the income of another family member, but are no longer supported by that income. In program year 2014, the entered employment rate for individuals who received only core services was 58%, the entered employment rate for participants who received core and intensive services was 64%, and the entered employment rate for participants who received training was 81%. In program year 2017, the WIOAA Dislocated Worker program is estimated to provide employment and training services to 681,000 participants, which is 47,000 more individuals than in program year 2016.
The total also includes $987 million for youth activities, including $902 million for the WIOA Youth Activities program and $84 million for YouthBuild activities, an overall increase of $30 million compared to FY2016. WIOA Youth Activities funds are provided by formula to states, which allocate funds to local areas to provide a comprehensive set of youth workforce investment activities to low-income youth ages 14 through 21 who are in school and ages 16 to 24 who are out-of-school and have barriers to employment, including youth who are deficient in basic skills, foster, homeless, runaway, pregnant or parenting, ex-offender, school dropout, English language learner, youth with disabilities, and other youth who may require additional assistance to complete an educational program or to secure and hold employment. In program year 2014, 65% of participants had attained a degree or certificate and 67% were placed in employment or education. The additional resources will increase local areas’ training and employment services. The WIOA Youth program funding is estimated to assist 241,000 individuals in program year 2017, which is 8,000 more individuals than in program year 2016.
The YouthBuild program targets at-risk, high school dropouts ages 16 to 24 and provides education and occupational skills training leading to entry into a chosen career field. Youth participants learn construction skills while constructing or rehabilitating affordable housing for low-income or homeless families in their neighborhoods and spend time in the classroom earning their GED or high school diploma and preparing for college and
other postsecondary training opportunities. In program year 2014, 68% of participants attained a degree or credential and 52% received placement in employment or education. The YouthBuild program is estimated to support approximately 82 grants to programs that will assist more than 5,200 youth in both program year 2016 and program year 2017.
Registered Apprenticeship Program
As well as the WIOA programs, the $3.525 billion total also includes $90 million to expand opportunities relating to apprenticeship programs registered under the National Apprenticeship Act, the same level as FY2016. Registered Apprenticeships provide a salary upon registration and apprentices receive structured on-the-job training and increased wages as their skills, and thus productivity, increases, and nationally recognized certificates of completion upon successful completion. The Apprenticeship Grants are expected to assist 36,000 new apprentices in program year 2016, the first year of the program, and 36,000 new apprentices in program year 2017.
Reintegration of Ex-Offender Program
The $3.525 billion in training and employment services funding also includes $95 million, an increase of $7 million compared to FY2016, for the reintegration of ex-offenders to help individuals make a successful transition to community life and long-term employment through mentoring, job training, and other services. In program year 2014, the entered employment rate was 52% for adults and 47% of out-of-school youth age 18 and older were placed in jobs, post-secondary education, or occupational training. In program year 2017, the reintegration of ex-offenders program is expected to assist 11,885 participants, which is 875 more participants than in program year 2016.
Job Corps Program
In addition to the WIOA Youth program and YouthBuild, the DOL budget provides funding to increase youth training and employment through the Job Corps program. The proposed DOL FY2017 budget proposes $1.754 billion for the Job Corps program, $65 million more than the total FY2016 level and includes $1.609 billion for Job Corps operations, $26 million more than FY2016. The Job Corps program assists and trains approximately 50,000 individuals each year in all 50 states, the District of Columbia, and Puerto Rico. It is distinguished from other training programs by providing students with residential services in combination with hands-on training and experience in par with industry standards. The Job Corps program assists economically disadvantaged youth ages 16 to 24 who are basic skills deficient, a school dropout, a parent, homeless, a runaway, or a foster child, or in need of additional education, vocational training, or intensive counseling and related assistance in securing housing, transportation, child care, and access to mentoring support in order to participate successfully in regular schoolwork or to secure and maintain employment. In program year 2014, 60% of Job Corps enrollees were high school dropouts, 41% were unemployed at the time of enrollment, 40% were from families receiving public assistance, and 19% had a disability. In program years 2014 and 2015, 79% and 77% percent of enrollees received placement in employment or education and 63% attained a degree or certificate. The Department of Labor estimates the number of enrollments and slots will remain the same in program year 2017 as in program year 2016 at approximately 50,000 enrollees and 38,000 participants.
Veterans Employment and Training Programs
The proposed DOL FY2017 budget provides $235 million from the unemployment trust fund and $50 million from the general fund of the Treasury for veterans employment and training programs. This total includes $175 million for the Jobs for Veterans State grants, the same level as FY2016, $14.6 million for the Transition Assistance Program, which is $500,000 more than FY2016, and $50 million for the Homeless Veterans’ Reintegration Program, the fully-authorized level and an increase of $12 million from the FY2015 actual level and FY2016 enacted level. The Jobs for Veterans State grants support disabled veterans’ outreach program specialists and local veterans’ employment representatives to provide services to transitioning members of the Armed Forces and to the spouses or other family caregivers of wounded, ill, or injured members. The Transition Assistance Program provides employment information and other services to more than 200,000 separating service members and their spouses. The Homeless Veterans’ Reintegration Program (HVRP) provides employment programs to assist homeless veterans and veterans at risk of homelessness who are transitioning from certain institutions. In FY2015, 68% of the HVRP participants obtained employment placement. The additional funding for the HVRP can increase program enrollment from 17,000 participants to 22,000 participants.
High-Tech and High-Growth Training and Employment Program
In addition, the proposed DOL FY2017 budget includes an estimated $150 million in mandatory appropriations available from fees paid by employers to hire foreign workers under the H-1B nonimmigrant visa program. The funding is proposed to be used to train workers and provide skills and industry-recognized credentials for jobs currently available or anticipated during the course of the training in high-growth industries employing H-1B foreign workers. Half of $100 million in training funds for FY2016 will assist youth or young adults ages 17 to 29 with barriers to training and employment opportunities, the remaining grant funds will be awarded to projects serving individuals with disabilities, individuals with limited English proficiency, and individuals with criminal records, and an additional $25 million will address education and training barriers for low- to middle-skilled parents and increase access to child care resources. In program year 2014, 86,000 individuals enrolled in training and 50,000 participants completed education or training activities that received a degree or other credential.
Public Employment Service and Work Opportunity Tax Credit
The proposed DOL FY2017 budget provides $20 million from the Unemployment Trust Fund for national activities of the Employment Service, which is the same level as FY2016. The Public Employment Service is a nationwide system providing no-fee employment services to job-seekers and employers financed by formula grants to states and states also receive funding for administration of the Work Opportunity Tax Credit. The Employment Service program assisted 14.5 million individuals during program year 2014 and the entered employment rate that year was 60%. The Work Opportunity Tax Credit, jointly administered by the U.S. Departments of Treasury and Labor, provides a federal tax incentive to businesses for hiring new individuals from target groups including Temporary Assistance to Needy Families recipients, Supplemental Nutrition Assistance Program recipients, summer youth employees, vocational rehabilitation referrals, ex-felons, Supplemental Security Income recipients, and veterans.
Unemployment Insurance Program
The proposed DOL FY2017 budget includes a cost-neutral set of reforms to update the unemployment insurance program and make it more responsive to economic downturns. The updates would provide benefits to more workers, including part-time workers, newer labor market entrants, certain low-income and intermittent earners, and workers who leave work for compelling family reasons such as to escape domestic violence. To give workers a meaningful opportunity to get back on their feet, the standard maximum unemployment insurance program benefit would be restored to 26 weeks, states with increased and high unemployment would be eligible for an extended benefits program of up to 52 weeks of benefits, short-time compensation for workers whose hours are reduced would be expanded, states would receive assistance to restore their trust fund, create reserves, and cover current benefits, and wage insurance would be established for workers with at least three years of job tenure who lose their jobs and who take a new job that initially pays less than their prior job and less than $50,000 per year.
Registered Apprenticeship, American Talent Compact, Career Navigator, and Opening Doors for Youth
The proposed DOL FY2017 budget contains four new mandatory funding proposals to help unemployed Americans obtain training and jobs.
- The proposed DOL FY2017 budget proposes $400 million in FY2017 and $2 billion over 5 years to double the number of apprentices across the country and to provide groups historically under-represented in apprenticeship pathways to success in the Registered Apprenticeship programs.
- It also proposes $600 million in FY2017 and $3 billion over 5 years for an American Talent Compact to fund nearly half a million additional Americans to get access to training aligned to in-demand jobs in key regional sectors.
- It proposes $400 million in FY2017 and $2 billion over 5 years to fund Career Navigators in American Job Centers to assist an additional 1 million long-term unemployed people, people who have dropped out of the labor force, and people who are only able to find part-time work and provide them with job-search and training assistance and access to additional supportive services and reemployment services to unemployment insurance beneficiaries most at risk of exhausting their benefits.
- Finally, the budget proposes $2.035 billion in FY2017 and $5.5 billion over 4 years for the Opening Doors for Youth to a First Job and a Degree Program to connect disadvantaged youth to educational and workforce pathways, with $1.5 billion provided by formula grants to support summer job opportunities, $2 billion to support first jobs providing up to a year of paid work for almost 150,000 out-of-school unemployed youth, and $2 billion to initiative a competitive grant program to municipalities to reengage disconnected youth by creating educational and workforce pathways for them.
The DOL training and employment services programs help millions of Americans enter or re-enter the labor force every year and with training and employment assistance for homeless veterans, homeless youth, and other adults experiencing or at-risk of homelessness, these training and employment services programs can provide an important mechanism to prevent and end homelessness in America. When funding and administering these programs, consideration should be given to providing outreach to homeless service providers and to increase awareness, access, and enrollment of homeless adults and youth in these programs.