An Act to amend and reenact § 2.2-2472.2 of the Code of Virginia, relating to federal Workforce Innovation and Opportunity Act Adult and Dislocated Worker funds; minimum allocation requirement waived.
HB772 amends Virginia law governing the use of federal Workforce Innovation and Opportunity Act (WIOA) Adult and Dislocated Worker funds. The bill keeps the general requirement that local workforce development boards spend at least 40 percent of these funds on training services leading to recognized postsecondary credentials aligned with in-demand jobs, but it authorizes the Department of Workforce Development and Advancement to waive that minimum in specified circumstances. A waiver may be granted when a local board shows there are not enough training providers, insufficient participant demand, or other extraordinary circumstances. If a waiver is approved, any unspent funds must be redirected to client services such as reemployment services.
The bill also directs the department to publish a waiver application and approval process and preserves reporting on expenditure rates. In addition, it strengthens consequences for boards that fail to meet the training expenditure requirement without a waiver, including corrective action plans, loss of eligibility for certain state awards or sub-awards, recapture and reallocation of funds, and, for repeated noncompliance, possible reorganization of the local board. Finally, the bill requires a formula for using 30 percent of the Governor’s reserved WIOA funds as incentives for postsecondary workforce training institutions, with those incentives tied to credential attainment in in-demand occupations and including apprenticeship-related instruction when offered through a postsecondary institution.
HB772 modifies § 2.2-2472.2 of the Code of Virginia by creating a formal waiver process for the 40 percent training allocation requirement for local workforce development boards and by clarifying how waived funds must be used. It also expands the enforcement framework for noncompliance and directs the use of a portion of Governor-reserved WIOA funds for incentive payments to postsecondary workforce training institutions. The bill affects local workforce development boards, the Department of Workforce Development and Advancement, the Secretary of Labor reporting process, and postsecondary training providers that participate in workforce credential programs.
The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate or partisan division in the materials provided. Based on the enacted text, the bill appears to reflect a generally pragmatic approach: it preserves the state’s emphasis on training and credential attainment while adding flexibility for local areas that cannot meet the threshold because of provider shortages, low demand, or unusual circumstances. The structure suggests support for both accountability and administrative discretion.
The main point of potential contention is the balance between maintaining a strong minimum investment in training and allowing waivers when local conditions make compliance difficult. Local workforce boards may favor the waiver authority and flexibility, while advocates for workforce training accountability may prefer strict enforcement of the 40 percent requirement. Another possible area of debate is the sanction regime, which can escalate to fund recapture or board reorganization for repeated noncompliance, and the use of Governor-reserved funds as incentives for postsecondary institutions rather than direct service delivery.