SUPPLEMENTARY INFORMATION:

The Department is announcing WIOA allotments for PY 2026 for Youth Activities, Adult and Dislocated Worker Activities, Wagner-Peyser Act PY 2026 allotments, and PY 2026 Workforce Information Grant allotments. This notice provides information on the amount of funds available during PY 2026 to states with an approved WIOA Combined or Unified State Plan, and information regarding allotments to the Outlying Areas.

On February 3, 2026, the Consolidated Appropriations Act, 2026 was enacted and from this point forward, referred to as “the Act”. The Act allows the Secretary to set aside up to 0.5 percent of each discretionary appropriation for activities related to program integrity and up to 0.75 percent of most operating funds for evaluations. Additionally, section 102 allows for up to 1 percent of discretionary funds in the Act to be transferred between programs, projects, or activities. For 2026, as authorized by the Act, the Department has set aside $645,000 of the Training and Employment Services (TES) and $155,000 of the State Unemployment Insurance and Employment Services Operations (SUIESO) appropriations impacted in this FRN for these activities. ETA reserved these funds from the WIOA Adult, Youth, Dislocated Worker, and Wagner-Peyser Act ES program budgets. Any funds not utilized for these reserve activities will be provided to the states.

The Act makes PY 2026 Youth Activities funds available for obligation on April 1, 2026, and funds the WIOA Adult and Dislocated Worker programs in two separate appropriations. The first appropriations for the Adult and Dislocated Worker programs become available for obligation on July 1, 2026; this portion is commonly referred to as “base” funds. The second appropriations for the Adult and Dislocated Worker programs become available for obligation on October 1, 2026; this portion is commonly referred to as “advance” funds because they are provided in the appropriations act passed during the fiscal year immediately before the fiscal year when the funds are available. For example, funds for PY 2026 that will be made available on October 1, 2026, were appropriated during FY 2026, but not made available until FY 2027, and are called the FY 2027 “advance” funds. We also have attached tables listing the PY 2026 allotments for programs under WIOA Title I Youth Activities (Table A), Adult and Dislocated Workers Employment and Training Activities (Tables B and C, respectively), and the PY 2026 Wagner-Peyser Act allotments (Table D). We also have attached the PY 2026 Workforce Information Grant table (Table E), the total WIOA Youth, Adult and Dislocated Worker funding for Outlying Areas (Table F) and the PY 2026 WIOA Youth, Adult, and Dislocated Worker Estimated Governor's Reserve Maximums (Table G).

Youth Activities Allotments. The appropriated level for PY 2026 for WIOA Youth Activities totals $948,130,000. After reducing the appropriation by $225,000 for set asides authorized by the Act and reserving $925,200 for Migrant and Seasonal Farmworker (MSFW) Youth, $946,979,800 is available for Youth Activities. Table A includes a breakdown of the Youth Activities program allotments for PY 2026 and provides a comparison of these allotments to PY 2025 Youth Activities allotments for all States and Outlying Areas. The WIOA Youth formula has a section in WIOA for a reservation for Migrant and Seasonal Farmworker (MSFW) Youth if the appropriation exceeds $925,000,000. Per WIOA 127(a)(1), ETA reserved 4 percent ($925,200) of the excess amount for MSFW Youth. For the Native American Youth program, the total amount available is 1.5 percent of the total amount for Youth Activities (after set asides authorized by the Act) after the MSFW Youth reservation (in accordance with WIOA section 127). The total funding available for the Outlying Areas was reserved at 0.25 percent of the amount appropriated for Youth Activities (after set asides authorized by the Act) after the amount reserved for MSFW Youth and Native American Youth (in accordance with WIOA section 127(b)(1)(B)(i)). On December 17, 2003, Public Law 108-188, the Compact of Free Association Amendments Act of 2003 (“the Compact”), was signed into law. The Compact specified that the Republic of Palau remained eligible for WIA Title I funding. See 48 U.S.C 1921d(f)(1)(B)(ix). WIOA sec. 512(g)(1) updated the Compact to refer to WIOA funding. The National Defense Authorization Act for Fiscal Year 2018 (Division A, Title XII, Subtitle F, Section 1259C(c) of Pub. L. 115-91) authorized WIOA Title I funding to the Republic of Palau through FY 2026.

Under WIA, the Secretary had discretion for determining the methodology for distributing funds to all Outlying Areas. Under WIOA the Secretary must award the funds through a competitive process. However, for PY 2026, the Consolidated Appropriations Act, 2026 waives the competition requirement regarding funding to Outlying Areas ( e.g., American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, and the United States Virgin Islands). For PY 2026, outlying area grant amounts are based on the administrative formula determined by the Secretary that was used under the WIA. The Department used the same methodology used since PY 2000 ( i.e., we distribute funds among the Outlying Areas by formula based on relative share of the number of unemployed, a minimum of 90 percent of the prior year allotment percentage, a $75,000 minimum, and a 130 percent stop gain of the prior year share). For the relative share calculation in PY 2026, the Department continued to use the data obtained from the 2020 Census for American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands. For the Republic of Palau, the Department used data from Palau's 2020 Census. The Department will accept comments on this methodology. The Act additionally allows Outlying Areas to submit a single application according to the requirements established by the Secretary for a consolidated grant for Adult, Youth, and Dislocated Worker funds. Subject to approval of the grant application and other reporting requirements of the Secretary, the Act allows Outlying Areas receiving a consolidated grant to use those funds interchangeably between Adult, Youth, and Dislocated Worker programs or activities. Table F includes the total Youth, Adult and Dislocated Worker funding for Outlying Areas.

After the Department calculated the amount for the MSFW Youth, Outlying Areas and the Native American program, the amount available for PY 2026 allotments to the states is $930,443,165. This total amount is below the required $1 billion threshold specified in WIOA sec. 127(b)(1)(C)(iv)(IV); therefore, the Department did not apply the WIOA additional minimum provisions. ( printed page 22856) Instead, as required by WIOA, the minimums of 90 percent of the prior year allotment percentage and 0.25 percent state minimum floor apply. WIOA also provides that no state may receive an allotment that is more than 130 percent of the allotment percentage for the state for the previous year. The three data factors required by WIOA sec. 127(b)(1)(C)(ii) for the PY 2026 Youth Activities state formula allotments are, summarized slightly, as follows:

(1) The average number of unemployed individuals in Areas of Substantial Unemployment (ASUs) for the 12-month period, July 2024-June 2025 in each state compared to the total number of unemployed individuals in ASUs in all states;

(2) Number of excess unemployed individuals or excess unemployed individuals in ASUs (depending on which is higher) averages for the same 12-month period used for ASU unemployed data compared to the total excess unemployed individuals or ASU excess number in all states; and

(3) Number of disadvantaged youth (age 16 to 21, excluding college students not in the workforce and military) from special tabulations of data from the American Community Survey (ACS), which the Department obtained from the Census Bureau in each state compared to the total number of disadvantaged youth in all states. The Census Bureau collected the data used in the special tabulations for disadvantaged youth between January 1, 2016-December 31, 2020.

For purposes of identifying ASUs for the Youth Activities allotment formula, the Department continued to use the data made available by the Bureau of Labor Statistics (BLS) (as described in the Local Area Unemployment Statistics (LAUS) Technical Memorandum No. S-25-17). For purposes of determining the number of disadvantaged youth, the Department used the special tabulations of ACS data available at: https://www.dol.gov/​agencies/​eta/​budget/​formula/​disadvantagedyouthadults. See TEGL No. 01-23 for further information.

Adult Employment and Training Activities Allotments. The total appropriated funds for Adult Activities in PY 2026 is $875,649,000. After reducing the appropriated amount by $169,000 for set asides authorized by the Act, $875,480,000 remains for Adult Activities, of which $873,291,300 is for states and $2,188,700 is for Outlying Areas. Table B shows the PY 2026 Adult Employment and Training Activities allotments and a state-by-state comparison of the PY 2026 allotments to PY 2025 allotments.

In accordance with WIOA, the Department reserved the total available for the Outlying Areas at 0.25 percent of the full amount appropriated for Adult Activities (after set asides authorized by the Act). As discussed in the Youth Activities section above, in PY 2026 the Department will distribute the Adult Activities funding for the Outlying Areas, using the same principles, formula, and data as used for outlying areas for Youth Activities. The Department will accept comments on this methodology. After determining the amount for the Outlying Areas, the Department used the statutory formula to distribute the remaining amount available for allotments to the states. The Department did not apply the WIOA minimum provisions for the PY 2026 allotments because the total amount available for the states was below the $960 million threshold required for Adult Activities in WIOA sec. 132(b)(1)(B)(iv)(IV). Instead, as required by WIOA, the minimums of 90 percent of the prior year allotment percentage and 0.25 percent state minimum floor apply. WIOA also provides that no state may receive an allotment that is more than 130 percent of the allotment percentage for the state for the previous year. The three formula data factors for the Adult Activities program are the same as those used for the Youth Activities formula, except the Department used data for the number of disadvantaged adults (age 22 to 72, excluding college students not in the workforce and military).

Dislocated Worker Employment and Training Activities Allotments. The amount appropriated for Dislocated Worker activities in PY 2026 totals $1,396,412,000. The total appropriation includes formula funds for the states, while the Dislocated Worker National Reserve is used for National Dislocated Worker Grants, technical assistance and training, demonstration projects, grant programs specified in the Act, and the Outlying Areas' Dislocated Worker allotments. After reducing the appropriated amount by $251,000 for set asides authorized by the Act, a total of $1,396,161,000 remains available for Dislocated Worker activities. The amount available for Outlying Areas is $3,490,403, leaving $297,321,597 for the Dislocated Worker National Reserve and a total of $1,095,349,000 available for states. Table C shows the PY 2026 Dislocated Worker activities allotments and a state-by-state comparison of the PY 2026 allotments to PY 2025 allotments.

Similar to the Adult Activities program, the Department reserved the total available for the Outlying Areas at 0.25 percent of the full amount appropriated for Dislocated Worker Activities (after set asides authorized by the Act). Similar to Youth and Adult funds, instead of competition, in PY 2026 the Department will use the same pro rata share as the areas received for the PY 2026 WIOA Adult Activities program to distribute the Outlying Areas' Dislocated Worker funds, the same methodology used in PY 2025. The Department will accept comments on this methodology.

The three data factors required in WIOA sec. 132(b)(2)(B)(ii) for the PY 2026 Dislocated Worker state formula allotments are, summarized slightly, as follows:

(1) Relative number of unemployed individuals in each state, compared to the total number of unemployed individuals in all states, for the 12-month period, October 2024-September 2025;

(2) Relative number of excess unemployed individuals in each state, compared to the total excess number of unemployed individuals in all states, for the 12-month period, October 2024-September 2025; and

(3) Relative number of long-term unemployed individuals in each state, compared to the total number of long-term unemployed individuals in all states, for the 12-month period, October 2024-September 2025.

In PY 2026, under WIOA the Dislocated Worker formula uses minimum and maximum provisions. No state may receive an allotment that is less than 90 percent of the state's prior year allotment percentage (stop loss) or more than 130 percent of the state's prior year allotment percentage (stop gain).

Wagner-Peyser Act ES Allotments. The appropriated level for PY 2026 for ES grants totals $675,052,000. After reducing the appropriated amount by $155,000 for set asides authorized by the Act, $674,897,000 is available for ES grants. After determining the funding for Guam and the United States Virgin Islands, the Department calculated allotments to states using the formula set forth at section 6 of the Wagner-Peyser Act (29 U.S.C. 49e). The Department based PY 2026 formula allotments on each state's share of calendar year 2025 monthly averages of the civilian labor force (CLF) and unemployment. Section 6(b)(4) of the Wagner-Peyser Act requires the Secretary to set aside up to three percent of the total funds available for ES to ensure that each state will have sufficient resources to maintain statewide ES activities. In accordance with this provision, the Department ( printed page 22857) included the three percent set-aside funds in this total allotment. The Department distributed the set-aside funds in two steps to states that have experienced a reduction in their relative share of the total resources available this year from their relative share of the total resources available the previous year. In Step 1, states that have a CLF below one million and are also below the median CLF density were maintained at 100 percent of their relative share of prior year resources. ETA calculated the median CLF density based on CLF data provided by the BLS for calendar year 2025. The Department distributed all remaining set-aside funds on a pro-rata basis in Step 2 to all other states experiencing reductions in relative share from the prior year but not meeting the size and density criteria for Step 1. The distribution of ES funds (Table D) includes $673,251,836 for states, as well as $1,645,164 for Outlying Areas.

Section 7(a) of the Wagner-Peyser Act (49 U.S.C. 49f(a)) authorizes states to use 90 percent of funds allotted to a state for labor exchange services and other career services such as job search and placement services to job seekers; appropriate recruitment services for employers; program evaluations; developing and providing labor market and occupational information; developing management information systems; and administering the work test for unemployment insurance claimants. Section 7(b) of the Wagner-Peyser Act states that 10 percent of the total sums allotted to each state must be reserved for use by the Governor to provide performance incentives for public ES offices and programs, provide services for groups with special needs, and to provide for the extra costs of exemplary models for delivering services of the type described in section 7(a) and models for enhancing professional development and career advancement opportunities of state agency staff.

Workforce Information Grants Allotments. Total PY 2026 funding for Workforce Information Grants allotments is $32,031,000. Table E contains the allotment figures for each state and Outlying Area. The Department distributes the funds by administrative formula, with a reserve of $176,874 for Guam and the United States Virgin Islands. Guam and the United States Virgin Islands allotment amounts are partially based on CLF data. The Department distributes the remaining funds to the states with 40 percent distributed equally to all states and 60 percent distributed based on each state's share of CLF for the 12 months ending September 2025.

91 FR 22854