On July 22, President Obama signed the Workforce Innovation and Opportunity Act (WIOA) into law. The law authorizes and reauthorizes a total $9.5 billion per year in federal funding for workforce programs.
The new law eliminates 15 existing federal workforce programs, including the Workforce Innovation Fund. However, it also authorizes approximately $300 million for pay-for-success programs by local workforce boards and authorizes states to provide technical assistance for pay for success strategies.
The Workforce Innovation Fund had already begun a shift toward pay-for-success. Last October it made two pay-for-success grants worth about $12 miillion each to the New York Department of Labor and Massachusetts Executive Office of Labor and Workforce Development.
- Workforce Innovation Fund Announces New Grant Competition (May 14, 2014)
- Pay for Success in Workforce Development: What We’ve Learned and What’s Next (Nonprofit Finance Fund and Joyce Foundation, March 2014)
- The White House: Ready to Work: Job-Driven Training and American Opportunity (July 2014)