U.S. Code > Title 29 Labor > CHAPTER 30—WORKFORCE INVESTMENT SYSTEMS (§§ 2801—2945) > SUBCHAPTER II—STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS (§§ 2811—2872) > Part E—Adult and Dislocated Worker Employment and Training Activities (§§ 2861—2864) > § 2862. State allotments

§ 2862. State allotments

(a) In general
The Secretary shall—
(1) make allotments and grants from the total amount appropriated under section 2872 (b) of this title for a fiscal year in accordance with subsection (b)(1) of this section; and
(2)
(A) reserve 20 percent of the amount appropriated under section 2872 (c) of this title for a fiscal year for use under subsection (b)(2)(A) of this section, and under sections 2915 (b) (relating to dislocated worker technical assistance), 2916(d) (relating to dislocated worker projects), and 2918 (relating to national emergency grants, other than under subsection [1] (a)(4), (f), and (g)) of this title; and
(B) make allotments from 80 percent of the amount appropriated under section 2872 (c) of this title for a fiscal year in accordance with subsection (b)(2)(B) of this section.
(b) Allotment among States
(1) Adult employment and training activities
(A) Reservation for outlying areas
(i) In general From the amount made available under subsection (a)(1) of this section for a fiscal year, the Secretary shall reserve not more than 1/4 of 1 percent to provide assistance to the outlying areas.
(ii) Applicability of additional requirements From the amount reserved under clause (i), the Secretary shall provide assistance to the outlying areas for adult employment and training activities and statewide workforce investment activities in accordance with the requirements of section 2852 (b)(1)(B) of this title, except that the reference in section 2852 (b)(1)(B)(i)(II) of this title to sections 252(d) and 262(a)(1) of the Job Training Partnership Act shall be deemed to be a reference to section 202(a)(1) of the Job Training Partnership Act (as in effect on the day before August 7, 1998).
(B) States
(i) In general After determining the amount to be reserved under subparagraph (A), the Secretary shall allot the remainder of the amount referred to in subsection (a)(1) of this section for a fiscal year to the States pursuant to clause (ii) for adult employment and training activities and statewide workforce investment activities.
(ii) Formula Subject to clauses (iii) and (iv), of the remainder—
(I) 331/3 percent shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each State, compared to the total number of unemployed individuals in areas of substantial unemployment in all States;
(II) 331/3 percent shall be allotted on the basis of the relative excess number of unemployed individuals in each State, compared to the total excess number of unemployed individuals in all States; and
(III) 331/3 percent shall be allotted on the basis of the relative number of disadvantaged adults in each State, compared to the total number of disadvantaged adults in all States, except as described in clause (iii).
(iii) Calculation In determining an allotment under clause (ii)(III) for any State in which there is a local area designated under section 2831 (a)(2)(B) of this title, the allotment shall be based on the higher of—
(I) the number of adults in families with an income below the low-income level in such area; or
(II) the number of disadvantaged adults in such area.
(iv) Minimum and maximum percentages and minimum allotments In making allotments under this subparagraph, the Secretary shall ensure the following:
(I) Minimum percentage and allotment Subject to subclause (IV), the Secretary shall ensure that no State shall receive an allotment for a fiscal year that is less than the greater of—
(aa) an amount based on 90 percent of the allotment percentage of the State for the preceding fiscal year; or
(bb) 100 percent of the allotment of the State under section 202 of the Job Training Partnership Act (as in effect on the day before August 7, 1998) for fiscal year 1998.
(II) Small State minimum allotment Subject to subclauses (I), (III), and (IV), the Secretary shall ensure that no State shall receive an allotment under this subparagraph that is less than the total of—
(aa) 3/10 of 1 percent of $960,000,000 of the remainder described in clause (i) for the fiscal year; and
(bb) if the remainder described in clause (i) for the fiscal year exceeds $960,000,000, 2/5 of 1 percent of the excess.
(III) Maximum percentage Subject to subclause (I), the Secretary shall ensure that no State shall receive an allotment percentage for a fiscal year that is more than 130 percent of the allotment percentage of the State for the preceding fiscal year.
(IV) Minimum funding In any fiscal year in which the remainder described in clause (i) does not exceed $960,000,000, the minimum allotments under subclauses (I) and (II) shall be calculated by the methodology for calculating the corresponding allotments under part A of title II of the Job Training Partnership Act, as in effect on July 1, 1998.
(v) Definitions For the purpose of the formula specified in this subparagraph:
(I) Adult The term “adult” means an individual who is not less than age 22 and not more than age 72.
(II) Allotment percentage The term “allotment percentage”, used with respect to fiscal year 2000 or a subsequent fiscal year, means a percentage of the remainder described in clause (i) that is received through an allotment made under this subparagraph for the fiscal year. The term, used with respect to fiscal year 1998 or 1999, means the percentage of the amounts allotted to States under section 202(a) of the Job Training Partnership Act (as in effect on the day before August 7, 1998) that is received under such section by the State involved for fiscal year 1998 or 1999.
(III) Area of substantial unemployment The term “area of substantial unemployment” means any area that is of sufficient size and scope to sustain a program of workforce investment activities carried out under this subchapter and that has an average rate of unemployment of at least 6.5 percent for the most recent 12 months, as determined by the Secretary. For purposes of this subclause, determinations of areas of substantial unemployment shall be made once each fiscal year.
(IV) Disadvantaged adult Subject to subclause (V), the term “disadvantaged adult” means an adult who received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed the higher of—
(aa) the poverty line; or
(bb) 70 percent of the lower living standard income level.
(V) Disadvantaged adult special rule The Secretary shall, as appropriate and to the extent practicable, exclude college students and members of the Armed Forces from the determination of the number of disadvantaged adults.
(VI) Excess number The term “excess number” means, used with respect to the excess number of unemployed individuals within a State, the higher of—
(aa) the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the State; or
(bb) the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in such State.
(2) Dislocated worker employment and training
(A) Reservation for outlying areas
(i) In general From the amount made available under subsection (a)(2)(A) of this section for a fiscal year, the Secretary shall reserve not more than 1/4 of 1 percent of the amount appropriated under section 2872 (c) of this title for the fiscal year to provide assistance to the outlying areas.
(ii) Applicability of additional requirements From the amount reserved under clause (i), the Secretary shall provide assistance to the outlying areas for dislocated worker employment and training activities and statewide workforce investment activities in accordance with the requirements of section 2852 (b)(1)(B) of this title, except that the reference in section 2852 (b)(1)(B)(i)(II) of this title to sections 252(a) and 262(a)(1) of the Job Training Partnership Act shall be deemed to be a reference to section 302(e) of the Job Training Partnership Act (as in effect on the day before August 7, 1998).
(B) States
(i) In general The Secretary shall allot the amount referred to in subsection (a)(2)(B) of this section for a fiscal year to the States pursuant to clause (ii) for dislocated worker employment and training activities and statewide workforce investment activities.
(ii) Formula Of the amount—
(I) 331/3 percent shall be allotted on the basis of the relative number of unemployed individuals in each State, compared to the total number of unemployed individuals in all States;
(II) 331/3 percent shall be allotted on the basis of the relative excess number of unemployed individuals in each State, compared to the total excess number of unemployed individuals in all States; and
(III) 331/3 percent shall be allotted on the basis of the relative number of individuals in each State who have been unemployed for 15 weeks or more, compared to the total number of individuals in all States who have been unemployed for 15 weeks or more.
(iii) Definition In this subparagraph, the term “excess number” means, used with respect to the excess number of unemployed individuals within a State, the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the State.
(3) Definitions
For the purpose of the formulas specified in this subsection:
(A) Freely Associated States
The term “Freely Associated States” means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
(B) Low-income level
The term “low-income level” means $7,000 with respect to income in 1969, and for any later year means that amount that bears the same relationship to $7,000 as the Consumer Price Index for that year bears to the Consumer Price Index for 1969, rounded to the nearest $1,000.
(c) Reallotment
(1) In general
The Secretary shall, in accordance with this subsection, reallot to eligible States amounts that are allotted under this section for employment and training activities and statewide workforce investment activities and that are available for reallotment.
(2) Amount
The amount available for reallotment for a program year is equal to the amount by which the unobligated balance of the State allotments under this section for such activities, at the end of the program year prior to the program year for which the determination under this paragraph is made, exceeds 20 percent of such allotments for the prior program year.
(3) Reallotment
In making reallotments to eligible States of amounts available pursuant to paragraph (2) for a program year, the Secretary shall allot to each eligible State an amount based on the relative amount allotted to such State under this section for such activities for the prior program year, as compared to the total amount allotted to all eligible States under this section for such activities for such prior program year.
(4) Eligibility
For purposes of this subsection, an eligible State means a State that has obligated at least 80 percent of the State allotment under this section for such activities for the program year prior to the program year for which the determination under paragraph (2) is made.
(5) Procedures
The Governor of each State shall prescribe uniform procedures for the obligation of funds by local areas within the State in order to avoid the requirement that funds be made available for reallotment under this subsection. The Governor shall further prescribe equitable procedures for making funds available from the State and local areas in the event that a State is required to make funds available for reallotment under this subsection.

[1] So in original. Probably should be “subsections”.