The President's Demand-Driven Workforce Development Initiatives

Publication Date: January 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Labor

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Abstract:

Since the current Bush Administration came into office, the U.S. Department of Labor (DOL) has developed and implemented three initiatives referred to as market- or demand-driven. The goal of the initiatives -- the High Growth Job Training Initiative (HGJTI), Community-Based Job Training Grants (CBJTG), and Workforce Innovation and Regional Economic Development (WIRED) -- is to address the workforce challenges thought to impede the nation's competitive advantage in the global economy. The initiatives have in common an approach that involves partnering the publicly funded workforce system, the business community, education and training providers, and economic development agencies.

Between May 2002 and December 2006, nearly $732 million was awarded in grants for these initiatives. Of this amount, nearly $287 million was awarded for HGJTI grants, 90% of which was awarded non-competitively. Awards for the other two initiatives, $250 million for CBJTG and $195 million for WIRED, were awarded competitively. For the HGJTI and CBJTG initiatives, awards were made in 14 "highgrowth"sectors identified primarily by DOL (e.g., advanced manufacturing, construction, health care). For WIRED, awards were made to 13 regions of the country to transform and rebuild their economies so they can better compete globally.

Two statutes provide the authority under which the initiatives have been funded. The first is the Workforce Investment Act (WIA, P. L. 105-220, Title I), the nation's primary employment and job training legislation. Specifically, awards for the HGJTI and CBJTG initiatives have been made under the general demonstration authority of Section 171. The WIA funds come from annual appropriations. The second statute is the American Competitiveness and Workforce Improvement Act (ACWIA) of 1998 (P. L. 105-277, Title IV). Specifically, Section 414(c) of ACWIA as amended by the FY2005 appropriations act (P. L. 108-447) authorizes DOL to make awards to partnerships of public and private entities for job training for employment in highgrowth sectors. The HGJTI and WIRED initiatives have been funded under the authority of ACWIA. Funds for awards come from fees paid by employers who file petitions for H-1B visas to bring into the country nonimmigrants to work in professional speciality occupations. The fees potentially represent a large source of funds upon which the DOL initiatives can draw.

This report begins with an overview of each of the initiatives, which is followed by an analysis of the quantity and quality of jobs the targeted sectors might afford workers, and an examination of the relationship between the initiatives and WIA. The report closes with a series of policy questions for potential congressional oversight.