"Strengthening WIOA: Improving Outcomes for America's Workforce"

House Subcommittee on Higher Education and Workforce Development

2025-03-05

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Source: Congress.gov

Summary

This meeting of the Subcommittee on Higher Education and Workforce Development focused on the urgent need to modernize the Workforce Innovation and Opportunity Act (WIOA) through the proposed "Stronger Workforce for America Act"[ 00:27:41 ] . Speakers discussed ongoing challenges in federal workforce development, emphasizing bipartisan efforts to bridge skills gaps, enhance data-driven accountability, and create more effective pathways to economic opportunity for all Americans[ 00:27:59 ] [ 00:34:13 ]

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Themes

Modernizing Workforce Development and Addressing Skills Gaps

The current WIOA, enacted in 2014, has been effective but faces significant challenges in meeting today's labor market needs, including nearly 8 million open jobs and millions of unemployed individuals lacking necessary skills[ 00:28:08 ] [ 00:28:32 ] . The "Stronger Workforce for America Act" aims to dedicate at least 50% of adult and dislocated worker funding to skills development through individual training accounts, on-the-job learning, and industry-relevant programs[ 00:28:46-00:28:55 ] . This reauthorization also seeks to strengthen workforce education programs at community colleges by aligning them with in-demand jobs and emphasizing industry partnerships[ 00:29:30 ]

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Enhancing Data, Accountability, and Transparency

A critical barrier to improved outcomes is the lack of comprehensive, actionable data on what happens to WIOA participants after program completion beyond job attainment and quarterly earnings. The proposed act aims to codify and expand Workforce Data Quality Initiative (WDQI) grants, allowing states to collect more robust data on occupations, hourly pay, and job locations. This enhanced data will improve accountability mechanisms, ensuring that funds are used effectively and programs align with actual labor market demands[ 00:29:15 ] . Alabama, for example, is already implementing state-led accountability measures that exceed federal requirements to improve program performance.

Supporting Opportunity Youth and Vulnerable Populations

Approximately 4.3 to 4.6 million young adults aged 16-24 are not in school or employed, representing a significant challenge for communities and the economy. Reconnecting these "opportunity youth" to education and work could contribute an estimated $51 billion annually to the economy. The "Stronger Workforce for America Act" emphasizes work-based learning, pre-apprenticeships, and apprenticeships for youth, including those in the justice system, and ensures they receive services at local job centers[ 00:29:23 ]

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. WIOA programs also play a crucial role in disaster response, providing immediate work opportunities for dislocated workers[ 01:00:42 ]

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Strengthening Community Colleges and Employer Engagement

Community colleges are recognized as foundational to workforce training, providing accessible and employer-aligned programs[ 00:57:53 ]

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. The bill encourages deeper employer engagement through initiatives like a critical industry skills fund, which would reimburse employers for upskilling workers in priority industries[ 00:29:06 ] . This approach fosters "co-production of talent" with employers, ensuring training is strategic and outcome-focused[ 00:55:05 ]

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. Ivy Tech Community College's "Achieve Your Degree" program exemplifies successful employer partnerships, leading to higher completion rates and clear career pathways for students.

Tone of the Meeting

The tone of the meeting was largely collaborative and bipartisan, with multiple speakers emphasizing shared goals and cross-aisle efforts to address workforce challenges[ 00:27:38 ] [ 00:33:50 ]

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. There was a strong sense of hope and optimism regarding the potential for the "Stronger Workforce for America Act" to improve economic opportunities and individuals' lives[ 00:34:01 ]

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. Despite this, an underlying urgency and concern was evident, particularly regarding systemic gaps, chronic underfunding of programs, and the economic impact of not addressing these issues promptly[ 00:34:21 ]

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. Speakers also expressed regret that the bill did not pass in the previous Congress due to various factors, including misinformation[ 00:27:41 ] [ 01:52:47 ]

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. Overall, the discussion was solutions-oriented, focusing on specific provisions within the proposed legislation to drive positive change[ 00:28:39 ] .

Participants

Transcript

Good morning.  Subcommittee on Higher Education and Workforce Development will come to order.  I note that a quorum is present.  Without objections, the chair is authorized to call a recess at any time.  Good morning and welcome to the first Higher Education and Workforce Development Subcommittee hearing of the 119th Congress.  I'm excited to be discussing a bill today that we worked on with our partners on the other side of the aisle to pass in the last Congress.   Although it failed to cross the line, we're looking forward to restarting the conversation on a Workforce for America Act.  It's the belief that it is good for both the workers and the employees of America.  A strong workforce development system is vital to growing our economy and providing economic opportunities to every American.  Employers are seeking high   quality workers to fill the nearly 8 million open jobs in the United States, while we also have 6.8 million people unemployed, many without the skills needed for these available jobs, according to the Bureau of Labor Statistics.  A stronger Workforce of America Act seeks to help bridge the gap by bringing employers and workers together.  When the Workforce Innovation and Opportunity Act, or WIOA, was enacted in 2014, it streamlined federal workforce development programs and improved accountability.   However, more than a decade later, significant challenges still exist that hamper the workforce system's ability to provide high-quality services to youth, workers, and employers to help fill the job openings in the growing and in-demand industries.  The Stronger Workforce for America Act made critical reforms to encourage better outcomes for the workers and employers under Iweala.   The bill ensures ensured at least 50 percent of adults and dislocated workers funding will be dedicated to providing workers the skills they need.  And through the individual training accounts and on the job learning and other employee led the industry relevant programs with the appropriate flexibility built into the line funds to also be used to support workers receiving skills development.
The bill will also increase connections between employers and workers.  For example, it will allow states to establish a critical industry skills fund to reimburse employers, sector partnerships, and other intermediaries for upskilling workers in the priority industries selected by the state.  The bill strengthens the law's accountability mechanisms to ensure that well funds are being used effectively.  A Stronger Workforce for America Act also supported in-school and out-of-school youth   by placing a greater emphasis on the work-based learning, pre-apprenticeship programs, and apprenticeships for youth while employing the quality of summer and year-round employment opportunities.  It has strengthened workforce education programs at community colleges that aligns with the in-demand jobs by emphasizing programs with industry partnerships and those that use competency-based assessments to give academic credit for prior learning.   Not only this, but the bill sought to improve well by allowing states and regions to try out innovative ideas to make the workforce system more responsive and aligned with evidence-based practices.  Smaller states can choose to consolidate their local regions to eliminate inefficiencies and to pool resources.  This provision was based on my One Door to Work Act, which would provide states the same opportunities to innovate that my home state of Utah has enjoyed for decades.   A stronger Workforce for America Act makes critical updates for Iowa that will improve the skills development of workers provided under the law, strengthen connections between employers and the workforce system, and put more Americans on the pathway to a successful career.  I look forward to hearing from our panel of witnesses, and with that, yield to the ranking member for her opening statement.
Thank you, Mr. Chairman, and I want to also thank our witnesses for being here today.  Workforce development is not just an abstract policy.  It directly impacts the lives of North Carolinians and millions of Americans.  As I've discussed with the chairman, this is an issue where we can come together and find common ground.   And so I'm encouraged by the chance that we have today to make meaningful progress on this front.  The workforce development system is vital to providing our workers with the skills that they need to succeed, helping employers find the required talent, and positioning our nation for future economic growth.  But as we all know, significant gaps persist.   The Workforce Innovation and Opportunity Act or WIOA was a landmark step forward when enacted in 2014.  It was a bipartisan success that sought to streamline the complex web of workforce programs and improve the accountability   About workforce systems.  We always success uplifts my constituents as well as Americans throughout our country.  In Charlotte alone, the local Workforce Development Board generates an annual economic impact of nearly 20 $225 million.   and provides services to over 42,000 job seekers just last year alone.  And none of this would be possible without a coordinated federal investment in workforce development.  But more than a decade later, we still face systemic challenges that limit its effectiveness.   We always intended to address these challenges, but it has become clear that we need reform.  Our workforce system must ensure that every worker, especially those without a bachelor's degree, can access good-paying jobs   and gain the skills required to thrive in today's economy.
Without a fully functioning system, we risk leaving behind a large portion of our workforce.  We know job seekers, especially those without advanced degrees, face significant barriers to finding stable,   meaningful employment.  Similarly, businesses are continuing to look to fill openings with qualified candidates.

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