New Workforce Law Provides $300 Million for Pay-for-Success Programs

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.

Most of the new law’s provisions take effect on July 1, 2015. A full analysis of the law’s pay-for-success provisions is here.


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