U.S. Reps. Lloyd Smucker (R-PA) and Brad Wenstrup (R-OH) on Feb. 23 unveiled legislation that aims to give states the flexibility to invest in workforce development programs.
“The best pathway out of poverty is a great job,” Rep. Smucker said. “Providing states additional flexibility to use federal funds to invest in workforce development programs will create additional opportunities for individuals to connect with a job and live their own American dream.”
Rep. Smucker sponsored the Reduce Duplication and Improve Access to Work Act, H.R. 7446, along with lead original cosponsor Rep. Wenstrup to allow states to transfer a limited amount of funds provided under the program of block grants to states for Temporary Assistance for Needy Families (TANF) to be used under Title I of the Workforce Innovation and Opportunity Act (WIOA).
Current law permits states to transfer up to 30 percent of their TANF funds to other funds supporting childcare or other social services programs. If enacted, H.R. 7446 would make WIOA programs eligible to receive TANF funds under the continued 30 percent cap, according to a bill summary provided by the lawmakers.
“A reliable, good-paying job that can support one’s family is a key first step on the journey to economic independence,” said Rep. Wenstrup. “I’m proud to help lead this bill that would knock down silos within our government assistance programs and allow states more flexibility to use TANF funding to support workforce development programs.”
Specifically, H.R. 7446 would allow states to retain 15 percent of TANF funds transferred to WIOA for statewide workforce investment activities and the rest would be allocated to local workforce boards for service delivery through American Job Centers, the summary says.
The transferred funds would only be permitted to be used for individuals with incomes below 200 percent of the federal poverty line, and as a condition for transferring the funds, states would be required to inform the secretary of the U.S. Department of Health and Human Services of their intention to transfer TANF funds to WIOA and describe how they will coordinate with the one-stop delivery system under WIOA in their state TANF program, states the summary.
The bill has been referred to the U.S. House Ways and Means Committee for consideration.