DEPARTMENT OF LABOR

Federal Funds

For necessary expenses of the Workforce Innovation and Opportunity Act (referred to in this Act as "WIOA"), the Second Chance Act of 2007, and the National Apprenticeship Act, [and the Women in Apprenticeship and Nontraditional Occupations Act of 1992 ("WANTO Act"), $3,335,425,000] $3,525,460,000, plus reimbursements, shall be available. Of the amounts provided:

(1) for grants to States for adult employment and training activities, youth activities, and dislocated worker employment and training activities, [$2,709,832,000]$2,847,861,000 as follows:

(A) [$815,556,000]$842,376,000 for adult employment and training activities, of which [$103,556,000]$130,376,000 shall be available for the period July 1, [2016]2017 through June 30, [2017]2018, and of which $712,000,000 shall be available for the period October 1, [2016]2017 through June 30, [2017]2018;

(B) [$873,416,000]$902,139,000 for youth activities, which shall be available for the period April 1, [2016]2017 through June 30, [2017]2018; and

(C) [$1,020,860,000]$1,103,346,000 for dislocated worker employment and training activities, of which [$160,860,000]$243,346,000 shall be available for the period July 1, [2016]2017 through June 30, [2017]2018, and of which $860,000,000 shall be available for the period October 1, [2016]2017 through June 30, [2017]2018: Provided, That pursuant to section 128(a)(1) of the WIOA, the amount available to the Governor for statewide workforce investment activities shall not exceed 15 percent of the amount allotted to the State from each of the appropriations under the preceding subparagraphs: Provided further, That the funds available for allotment to outlying areas to carry out subtitle B of title I of the WIOA shall not be subject to the requirements of section 127(b)(1)(B)(ii) of such Act; and

(2) for national programs, [$625,593,000]$677,599,000 as follows:

(A) [$220,859,000]$230,859,000 for the dislocated workers assistance national reserve, of which [$20,859,000]$30,859,000 shall be available for the period July 1, [2016]2017 through September 30, [2017]2018, and of which $200,000,000 shall be available for the period October 1, [2016]2017 through September 30, [2017]2018: Provided further, That funds provided to carry out section 132(a)(2)(A) of the WIOA may be used to provide assistance to a State for statewide or local use in order to address cases where there have been worker dislocations across multiple sectors or across multiple local areas and such workers remain dislocated; coordinate the State workforce development plan with emerging economic development needs; and train such eligible dislocated workers: Provided further, That funds provided to carry out sections 168(b) and 169(c) of the WIOA may be used for technical assistance and demonstration projects, respectively, that provide assistance to new entrants in the workforce, adults without employment who are not dislocated workers, and incumbent workers: Provided further, That notwithstanding section 168(b) of the WIOA, of the funds provided under this subparagraph, the Secretary of Labor (referred to in this title as "Secretary") may reserve not more than 10 percent of such funds to provide technical assistance and carry out additional activities related to the transition to the WIOA: Provided further, That, of the funds provided under this subparagraph, [$19,000,000] $20,000,000 shall be made available for applications submitted in accordance with section 170 of the WIOA for training and employment assistance for workers dislocated from coal mines and coal-fired power plants;

(B) [$50,000,000]$52,000,000 for Native American programs under section 166 of the WIOA, which shall be available for the period [July] April 1, [2016]2017 through June 30, [2017]2018;

(C) $81,896,000 for migrant and seasonal farmworker programs under section 167 of the WIOA, including $75,885,000 for formula grants (of which not less than 70 percent shall be for employment and training services), $5,517,000 for migrant and seasonal housing (of which not less than 70 percent shall be for permanent housing), and $494,000 for other discretionary purposes, which shall be available for the period [July] April 1, [2016]2017 through June 30, [2017]2018: Provided further, That notwithstanding any other provision of law or related regulation, the Department of Labor shall take no action limiting the number or proportion of eligible participants receiving related assistance services or discouraging grantees from providing such services;

[(D) $994,000 for carrying out the WANTO Act, which shall be available for the period July 1, 2016 through June 30, 2017;]

([E]D) $84,534,000 for YouthBuild activities as described in section 171 of the WIOA, which shall be available for the period April 1, [2016]2017 through June 30, [2017]2018;

([F]E) $3,232,000 for technical assistance activities under section 168 of the WIOA, which shall be available for the period July 1, [2016]2017 through June 30, [2017]2018;

([G]F) [$88,078,000]$95,078,000 for ex-offender activities, under the authority of section 169 of the WIOA and section 212 of the Second Chance Act of 2007, which shall be available for the period April 1, [2016]2017 through June 30, [2017]2018: Provided further, That of this amount, $20,000,000 shall be for competitive grants to national and regional intermediaries for activities that prepare young ex-offenders and school dropouts for employment, with a priority for projects serving high-crime, high-poverty areas;

([H]G) [$6,000,000]$40,000,000 for the Workforce Data Quality Initiative, under the authority of section 169 of the WIOA, which shall be available for the period July 1, [2016]2017 through June 30, [2017]2018; and

([I]H) $90,000,000 to expand opportunities relating to apprenticeship programs registered under the National Apprenticeship Act, to be available to the Secretary to carry out activities through grants, cooperative agreements, contracts and other arrangements, with States and other appropriate entities, which shall be available for the period April 1, [2016]2017 through June 30, [2017]2018. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Enacted in 2014, the Workforce Innovation and Opportunity Act (WIOA) is the primary authorization for this appropriation account. The Act is intended to provide job seekers and workers with the labor market information, job search assistance, and training they need to get and keep good jobs, and to provide employers with skilled workers. Funds appropriated for this account generally are available on a July to June program year basis, and include substantial advance appropriation amounts. This account includes:

Adult employment and training activities.—Grants to provide financial assistance to States and territories to design and operate training and employment assistance programs for adults, including low-income individuals and public assistance recipients. The FY 2017 request for the Adult, Youth, and Dislocated Worker formula grant programs provides funding at the 2017 WIOA-authorized appropriation levels.

Youth activities.—Grants to support a wide range of activities and services to prepare low-income youth for academic and employment success, including summer and year-round jobs. The program links academic and occupational learning with youth development activities.

Dislocated worker employment and training activities.—Grants to provide reemployment services and retraining assistance to individuals dislocated from their employment. The Budget increases funding for the National Dislocated Worker Grants to support workers affected by the national transition from carbon-intensive to lower carbon energy sources. Along with funding already provided through the National Dislocated Worker Grants, this additional money will allow States and local areas to provide reemployment, training, and supportive services to transitioning coal workers to help them get back to work in good jobs and careers.

Native Americans.—Grants to Indian tribes and other Native American groups to provide training, work experience, and other employment-related services to Native Americans.

Migrant and Seasonal Farmworkers.—Grants to public agencies and nonprofit groups to provide training and other employability development services to economically disadvantaged youth and families whose principal livelihood is gained in migratory and other forms of seasonal farmwork.

Reintegration of Ex-Offenders.—Supports activities authorized under the Second Chance Act to help individuals exiting prison make a successful transition to community life and long-term employment through mentoring, job training, and other services. Using the authority of section 169 of the WIOA, the Department also provides competitive grants for a range of young ex-offenders and school dropouts, particularly those in high-poverty, high-crime areas with similar services. The Administration intends to devote funds to test and replicate evidence-based strategies for young ex-offenders. The Budget includes resources for a program for at-risk youth to explore careers in law enforcement. The Department of Labor will continue to coordinate closely with the Department of Justice and other relevant Agencies in carrying out the Ex-Offender program.

Apprenticeship Grants.—Activities that support Registered Apprenticeship programs at the state and local levels through a range of activities, such as state-specific outreach strategies, partnerships, economic development strategies, and expanded access to apprenticeship opportunities for under-represented populations through pre-apprenticeships and career pathways.

Workforce Data Quality Initiative.—Competitive grants to support the development of integrated and longitudinal data systems that integrate education and workforce data to provide timely and accessible information, including integrated performance information, to consumers, policymakers, and others.

YouthBuild.—Grants that impart education and occupational skills to program participants by providing them with academic training and occupational skills training, providing a clear path into a chosen career field.

Technical Assistance.—Technical assistance activities to support WIOA implementation.

Object Classification (in millions of dollars)

To carry out subtitle C of title I of the WIOA, including Federal administrative expenses, the purchase and hire of passenger motor vehicles, the construction, alteration, and repairs of buildings and other facilities, and the purchase of real property for training centers as authorized by the WIOA, [$1,689,155,000] $1,754,590,000, plus reimbursements, as follows:

(1) [$1,581,825,000]$1,608,535,000 for Job Corps Operations, which shall be available for the period July 1, [2016]2017 through June 30, [2017]2018;

(2) [$75,000,000]$105,000,000 for construction, rehabilitation and acquisition of Job Corps Centers, which shall be available for the period July 1, [2016]2017 through June 30, [2019]2020, and which may include the acquisition, maintenance, and repair of major items of equipment: Provided, That the Secretary may transfer up to 15 percent of such funds to meet the operational needs of such centers or to achieve administrative efficiencies: Provided further, That any funds transferred pursuant to the preceding proviso shall not be available for obligation after June 30, [2017]2018: Provided further, That the Committees on Appropriations of the House of Representatives and the Senate are notified at least 15 days in advance of any transfer; and

(3) [$32,330,000] $41,055,000 for necessary expenses of Job Corps, which shall be available for obligation for the period October 1, [2015]2016 through September 30, [2016]2017: Provided further, That no funds from any other appropriation shall be used to provide meal services at or for Job Corps centers. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Established in 1964 as part of the Economic Opportunity Act and authorized by the Workforce Innovation and Opportunity Act of 2014 (P.L. 113–128, Title 1, Subtitle C, section 141), Job Corps is the nation's largest federally-funded, primarily residential, training program for at-risk youth. Job Corps operates centers in all 50 states, Puerto Rico, and the District of Columbia. Job Corps provides economically disadvantaged youth with academic, career technical and marketable skills to enter the workforce, enroll in post-secondary education, or enlist in the military.

Job Corps serves and trains approximately 50,000 participants each year while emphasizing the attainment of academic credentials which include: a High School Diploma (HSD) or General Educational Development (GED) and career technical credentials, industry-recognized certifications, state licensures, and pre-apprenticeship credentials. These portable credentials provide for long-term attachment to the workforce and economic mobility as Job Corps graduates advance through their careers. Furthermore, these credentials ensure that program graduates have gained the skills and knowledge necessary to effectively compete in today's workforce.

Large and small businesses, nonprofit organizations, Native American organizations and Alaskan Native corporations manage and operate the majority of the Job Corps centers through contractual agreements with the Department of Labor, while the remaining centers are operated through an interagency agreement with the U.S. Department of Agriculture. In 2015, Job Corps opened two new centers in New Hampshire and Wyoming, the last two States without Job Corps centers. Job Corps participants must be economically disadvantaged youth, ages 16–24, and meet one or more of the following criteria: basic skills deficient; a school dropout; homeless, a runaway, or a foster child; a parent; or in need of additional education, vocational training, or intensive counseling and related assistance in order to participate successfully in regular schoolwork or to secure and hold employment.

The 2017 Budget continues the Administration's commitment to strengthening and reforming the Job Corps program to improve students' outcomes. Beginning in 2016, the Department will undertake an external evaluation to holistically study the Job Corps program, with the goal of generating reform ideas. Additionally, the Budget proposes to continue exploring different models of serving at-risk youth through a suite of pilots, to ensure that the most effective strategies are being utilized. In addition, the Budget builds on the resources previously provided to continue strengthening oversight of the Job Corps program. These changes will allow the program to continue to provide high-quality services to disadvantaged youth while maintaining strong internal controls and ensuring that contracts are procured at the lowest risk and the best value to the Federal Government. The Budget also proposes new construction and programming investments to ensure student safety while on center.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

Paid Leave Partnership Initiative.—The Budget will include a mandatory proposal to support as many as five States that wish to launch paid leave programs, following the example of California, New Jersey, and Rhode Island. States would be able to apply for competitive grants to cover start-up and ongoing administrative costs as well as 50 percent of benefit costs for three years. The grants could be used to cover family, parental, and medical leave programs that provide up to 12 weeks of benefits.

To carry out title V of the Older Americans Act of 1965 (referred to in this Act as "OAA"), $434,371,000, which shall be available for the period [July]April 1, [2016]2017 through June 30, [2017]2018, and may be recaptured and reobligated in accordance with section 517(c) of the OAA: Provided, That for new participants during such period in lieu of the requirements contained in section 518 (a)(3)(A) of the OAA, an eligible individual shall be an individual age 55 or older whose income is not more than 133 percent of the poverty line (excluding earned income described in section 1612(b)(3)(B) of the Social Security Act) or who is receiving supplemental security income benefits under title XVI of the Social Security Act, supplemental nutrition assistance program benefits under the Food and Nutrition Act of 2008, or benefits under the Veterans pension benefit programs administered by the Department of Veterans Affairs: Provided further, That section 506(a)(1) of the OAA shall be applied by substituting "10 percent" for "1.5 percent": Provided further, That subclause (I) of section 502(c)(6)(C)(i) of the OAA shall be applied by substituting "50 percent" for "65 percent" and subclause (III) of such section shall be applied by substituting "25 percent" for "10 percent": Provided further, That notwithstanding section 513(d)(3)(B)(iii) of the OAA, the funds distributed under section 506(e) of the OAA shall be awarded on a competitive basis by a State among State agencies and other public and nonprofit private agency organizations if the Secretary of Labor determines the State is a low-performing State, and the Secretary of Labor shall provide technical assistance to the State related to the competition and to subsequent service delivery. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Community Service Employment for Older Americans (CSEOA), authorized by Title V of the Older Americans Act as amended in 2006 (P.L. 109–365), is a federally-sponsored community service employment and training program for unemployed low-income individuals, ages 55 and older. The program, known as the Senior Community Service Employment Program (SCSEP), offers participants work-based community service training at non-profit or governmental agencies, so that they can gain on-the-job experience and prepare to enter or re-enter the workforce. The 2017 CSEOA budget reforms SCSEP by awarding more competitive grants, adjusting income eligibility requirements to serve those most in need, and promoting on-the-job training (OJT) models, including OJT at for-profit entities, through demonstration grants and flexibility for existing grantees in spending training funds on OJT activities.

Program and Financing (in millions of dollars)

The Trade Adjustment Assistance (TAA) Community College and Career Training program, which received appropriations in the Health Care and Education Reconciliation Act of 2010 (Section 1501 of P.L. 111–152, 124 Stat.1070), provided $500 million annually in fiscal years 2011–2014 for competitive grants to eligible institutions of higher education. The program aims to improve education and employment outcomes for community college and other students, helping more Americans prepare to succeed in growing occupations. Funding allows for expansion and improvement of education and training programs that can be completed in 2 years or less, result in skills and credentials necessary for high-wage, in-demand jobs, and are suited for workers who are eligible for training under the TAA for Workers program. Grants support institutions that use evidence to design program strategies, are committed to using data for continuous improvement, and facilitate evaluation that can build evidence about effective practices. The Department is implementing this program in cooperation with the Department of Education.

For payments during fiscal year [2016]2017 of trade adjustment benefit payments and allowances under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974, and section 246 of that Act; and for training, employment and case management services, allowances for job search and relocation, and related State administrative expenses under part II of subchapter B of chapter 2 of title II of the Trade Act of 1974, and including benefit payments, allowances, training, employment and case management services, and related State administration provided pursuant to section 231(a) of the Trade Adjustment Assistance Extension Act of 2011 and section 405(a) of the Trade Preferences Extension Act of 2015, [$861,000,000]$849,000,000 together with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15, [2016]2017: Provided, That notwithstanding section 502 of this division, any part of the appropriation provided under this heading may remain available for obligation beyond the current fiscal year pursuant to the authorities of section 245(c) of the Trade Act of 1974 (19 U.S.C. 2317(c)). (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Federal Unemployment Benefits and Allowances (FUBA) account funds the Trade Adjustment Assistance (TAA) for Workers program, which provides income support through Trade Readjustment Allowances (TRA); Training and Other Activities, which includes funding for the Trade Adjustment Assistance in three categories: 1) Training and Other Activities; 2) Trade Readjustment Allowances (TRA); and, Readjustment Trade Adjustment Assistances (RTAA) (jointly called the TAA program). $849,000,000 is sufficient to continue the TAA program under the Trade Adjustment Assistance Reauthorization Act of 2015.

Object Classification (in millions of dollars)

For authorized administrative expenses, [$89,066,000]$96,566,000, together with not to exceed [$3,480,812,000]$3,499,519,000 which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund ("the Trust Fund"), of which:

(1) [$2,725,550,000] $2,742,919,000 from the Trust Fund is for grants to States for the administration of State unemployment insurance laws as authorized under title III of the Social Security Act (including not less than [$95,000,000]$150,900,000 to conduct in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews, and to provide reemployment services and referrals to training as appropriate, for claimants of unemployment insurance for ex-service members under 5 U.S.C. 8521 et. seq. and for the claimants of regular unemployment compensation who are profiled as most likely to exhaust their benefits in each State, as specified for purposes of section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985, $10,000,000 for activities to address the misclassification of workers, and [$3,000,000]$7,000,000 for continued support of the Unemployment Insurance Integrity Center of Excellence), the administration of unemployment insurance for Federal employees and for ex-service members as authorized under 5 U.S.C. 8501–8523, and the administration of trade readjustment allowances, reemployment trade adjustment assistance, and alternative trade adjustment assistance under the Trade Act of 1974 and under section 231(a) of the Trade Adjustment Assistance Extension Act of 2011 and section 405(a) of the Trade Preferences Extension Act of 2015, and shall be available for obligation by the States through December 31, [2016]2017, except that funds used for automation [acquisitions] shall be available for Federal obligation through December 31, [2016]2017, and for State obligation through September 30, [2018]2019, or, if the automation [acquisition] is being carried out through consortia of States, for State obligation through September 30, [2021]2022, and for expenditure through September 30, [2022]2023, and funds for competitive grants awarded to States for improved operations and to conduct in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews and provide reemployment services and referrals to training, as appropriate, and to address misclassification of workers shall be available for Federal obligation through December 31, [2016]2017, and for obligation by the States through September 30, [2018]2019, and funds for the Unemployment Insurance Integrity Center of Excellence shall be available for obligation by the State through September 30, [2017] 2020, and funds used for unemployment insurance workloads experienced by the States through September 30, [2016]2017 shall be available for Federal obligation through December 31, [2016]2017;

(2) [$14,547,000]$15,247,000 from the Trust Fund is for national activities necessary to support the administration of the Federal-State unemployment insurance system;

(3) $658,587,000 from the Trust Fund, together with $21,413,000 from the General Fund of the Treasury, is for grants to States in accordance with section 6 of the Wagner-Peyser Act, and shall be available for Federal obligation for the period July 1, [2016]2017 through June 30, [2017]2018;

(4) $19,818,000 from the Trust Fund is for national activities of the Employment Service, including administration of the work opportunity tax credit under section 51 of the Internal Revenue Code of 1986, and the provision of technical assistance and staff training under the Wagner-Peyser Act;

(5) [$62,310,000]$62,948,000 from the Trust Fund is for the administration of foreign labor certifications and related activities under the Immigration and Nationality Act and related laws, of which [$48,028,000]$48,666,000 shall be available for the Federal administration of such activities, and $14,282,000 shall be available for grants to States for the administration of such activities; and

(6) [$67,653,000]$75,153,000 from the General Fund is to provide workforce information, national electronic tools, and one-stop system building under the Wagner-Peyser Act, and shall be available for Federal obligation for the period July 1, [2016]2017 through June 30, [2017]2018: Provided, That to the extent that the Average Weekly Insured Unemployment ("AWIU") for fiscal year [2016]2017 is projected by the Department of Labor to exceed [2,680,000]2,249,000, an additional $28,600,000 from the Trust Fund shall be available for obligation for every 100,000 increase in the AWIU level (including a pro rata amount for any increment less than 100,000) to carry out title III of the Social Security Act: Provided further, That funds appropriated in this Act that are allotted to a State to carry out activities under title III of the Social Security Act may be used by such State to assist other States in carrying out activities under such title III if the other States include areas that have suffered a major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act: Provided further, That the Secretary may use funds appropriated for grants to States under title III of the Social Security Act to make payments on behalf of States for the use of the National Directory of New Hires under section 453(j)(8) of such Act: Provided further, That the Secretary may use funds appropriated for grants to States under title III of the Social Security Act to make payments on behalf of States to the entity operating the State Information Data Exchange System: Provided further, That funds appropriated in this Act which are used to establish a national one-stop career center system, or which are used to support the national activities of the Federal-State unemployment insurance, employment service, or immigration programs, may be obligated in contracts, grants, or agreements with States and non-State entities: Provided further, That States awarded competitive grants for improved operations under title III of the Social Security Act, or awarded grants to support the national activities of the Federal-State unemployment insurance system, may award subgrants to other States and non-State entities under such grants, subject to the conditions applicable to the grants: Provided further, That funds appropriated under this Act for activities authorized under title III of the Social Security Act and the Wagner-Peyser Act may be used by States to fund integrated Unemployment Insurance and Employment Service automation efforts, notwithstanding cost allocation principles prescribed under the Office of Management and Budget [Circular A-87]publication entitled Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards: Provided further, That the Secretary, at the request of a State participating in a consortium with other States, may reallot funds allotted to such State under title III of the Social Security Act to other States participating in the consortium in order to carry out activities that benefit the administration of the unemployment compensation law of the State making the request: Provided further, That the Secretary may collect fees for the costs associated with additional data collection, analyses, and reporting services relating to the National Agricultural Workers Survey requested by State and local governments, public and private institutions of higher education, and nonprofit organizations and may utilize such sums, in accordance with the provisions of 29 U.S.C. 9a, for the National Agricultural Workers Survey infrastructure, methodology, and data to meet the information collection and reporting needs of such entities, which shall be credited to this appropriation and shall remain available until September 30, [2017]2018, for such purposes.

In addition, [$20,000,000]$35,000,000 from the Employment Security Administration Account of the Unemployment Trust Fund shall be available for in-person reemployment and eligibility assessments and unemployment insurance improper payment reviews and to provide reemployment services and referrals to training as appropriate, for claimants of unemployment insurance for ex-service members under 5 U.S.C. 8521 et.seq. and for the claimants of regular unemployment compensation who are profiled as most likely to exhaust their benefits in each State, as specified for purposes of section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985, which shall be available for Federal obligations through December 31, [2016] 2017, and for State obligation through September 30, [2018]2019. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

Unemployment compensation.—State administration amounts provide administrative grants to State agencies that pay unemployment compensation to eligible workers and collect State unemployment taxes from employers. These agencies also pay unemployment benefits to former Federal personnel and ex-servicemembers as well as trade readjustment allowances to eligible individuals. State administration amounts also provide administrative grants to State agencies to improve the integrity and financial stability of the unemployment compensation program through a comprehensive performance management system, UI Performs. The purpose is to effect continuous improvement in State performance and implement activities designed to reduce errors and prevent fraud, waste, and abuse in the payment of unemployment compensation benefits and the collection of unemployment taxes. National activities relating to the Federal-State unemployment insurance programs are conducted through contracts or agreements with the State agencies or non-State entities. A workload contingency reserve is included in State administration to meet increases in the costs of administering the program resulting from increases in the number of unemployment claims filed and paid. The appropriation automatically provides additional funds whenever unemployment claims workloads increase above levels specified in the appropriations language.

UNEMPLOYMENT COMPENSATION PROGRAM STATISTICS

Employment service.—The public employment service is a nationwide system providing no-fee employment services to job-seekers and employers. State employment service activities are financed by grants provided by formula to States. Funding allotments are provided annually on a Program Year basis beginning July 1 and ending June 30 of the following year.

Employment service activities serving national needs are conducted through specific reimbursable agreements between the States and the Federal Government under the Wagner-Peyser Act, as amended, and other legislation. States also receive funding under this activity for administration of the Work Opportunity Tax Credit, as well for amortization payments for those States that had independent retirement plans prior to 1980 in their State employment service agencies.

EMPLOYMENT SERVICE PROGRAM STATISTICS

Foreign Labor Certification.—This activity provides for the administration and operation of the foreign labor certification programs within the Employment and Training Administration. Under these programs, U.S. employers that can demonstrate a shortage of qualified, available U.S. workers and that there would be no adverse impact on similarly situated U.S. workers may seek the Secretary of Labor's certification as a first step in the multi-agency process required to hire a foreign worker to fill critical permanent or temporary vacancies. Major programs include the permanent, H-2A temporary agricultural, H-2B temporary non-agricultural, and H-1B temporary highly skilled worker visas. The account is divided into Federal and State activities.

Federal Administration.—Federal Administration provides leadership, policy, budget, program operations including staffing (Federal and contractors), information technology, three national processing center facilities, and operational direction to Federal activities supporting the effective and efficient administration of foreign labor certification programs.

State grants.—Provides grants to State workforce agencies in 54 States and U.S. territories funding employment-related activities required for the administration of Federal foreign labor certification programs. Includes State Workforce Agency posting and circulation of job orders and other assistance to employers in the recruitment of U.S. workers, processing of employer requests for prevailing wage determinations for the permanent and temporary programs, State safety inspection of housing provided by employers to workers, and State development of prevailing wage and prevailing practice surveys used to set wages and standards in a defined geographic area.

American Job Centers.—These funds are used to support the joint Federal-State efforts to improve the comprehensive American Job Center system authorized under WIOA. This system provides workers and employers with quick and easy access to a wide array of enhanced career development and labor market information services. A portion of these funds supports a joint initiative between the Employment and Training Administration and the Office of Disability Employment Policy to improve the accessibility and accountability of the public workforce development system for individuals with disabilities.

National Agricultural Workers Survey fee.—The Department of Labor conducts the National Agricultural Workers Survey (NAWS), which collects information annually about the demographic, employment, and health characteristics of the U.S. crop labor force. The information is obtained directly from farm workers through face-to-face interviews.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

The Budget proposes authorizing legislation to establish and retain fees to cover the costs of operating its foreign labor certification programs, which ensure that employers proposing to bring in immigrant workers have checked to ensure that domestic workers cannot meet their needs, and that immigrant workers are being compensated appropriately. The ability to charge fees for these programs would give the Department of Labor a more reliable, workload-based source of funding for this function (as the Department of Homeland Security has), and ultimately eliminate the need for discretionary appropriations. Specifically, the proposal would: 1) charge employer fees for its permanent labor certification program; 2) charge employer fees for H-2B non-agricultural workers; and 3) increase the H-2A agricultural worker application fee. In addition, while the H-2A fees are currently deposited in the General Fund, the Budget proposes to retain this revenue. The fee levels would be set in regulation to ensure that the amounts are subject to review.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

The Job-Driven Training Proposals include initiatives that equip workers with the skills they need to fill the in-demand jobs of the 21st century. The package includes the following proposals:

Apprenticeship Training Fund.—Provides $2 billion over 5 years to help more employers provide high-quality on-the-job training through apprenticeship; to equip states and regions with the expertise and resources to assist employers in creating or expanding apprenticeships; and to provide groups historically under-represented in apprenticeship pathways to success in Registered Apprenticeship programs. This one time investment would help meet the President's goal to double the number of apprentices across the United States.

American Talent Compact.—A $3 billion investment over 5 years to fund nearly half a million additional Americans to get access to training aligned to in-demand jobs in key regional sectors.

Career Navigators and WIOA Workforce Data Science and Innovation Fund.—A two-pronged $2 billion investment over 5 years to provide Americans with the information they need to build their careers. $1.5 billion will be provided to fund Career Navigators in American Job Centers who will proactively reach out to all long-term unemployed people, those who have dropped out of the labor force altogether, and people who are only able to find part time work and provide them with help looking for a job, identifying training options, and accessing additional supportive services. This proposal is paired with a $190 million investment to provide in-person reemployment services to the one-third of Unemployment Insurance beneficiaries most at risk of exhausting their benefits. An additional $500 million will fund the creation of a Workforce Data Science and Innovation Fund, which will improve the quality and utility of existing data, curate those data to facilitate analysis, and create tools and products that connect consumers and policy makers to the resulting information.

Opening Doors for Youth.—A multi-faceted $5.5 billion investment over 4 years to connect disadvantaged youth to educational and workforce pathways. $1.5 billion will be provided by formula to support summer job opportunities while an additional $2 billion will support first jobs for nearly 150,000 out-of-school, out-of-work youth. $2 billion will be used to initiate a competitive grant program to municipalities to reengage disconnected youth by creating educational and workforce pathways for them.

Program and Financing (in millions of dollars)

This account provides for general fund financing of extended unemployment benefit programs under certain statutes. It is also the mechanism used to make general fund reimbursements for some or all of the benefits and administrative costs incurred for temporary Federal programs. These funds are transferred from the Payments to the Unemployment Trust Fund account to a receipt account in the Unemployment Trust Fund (UTF) so that resources may be transferred to the Employment Security Administration Account in the UTF for administrative costs or to the Extended Unemployment Compensation Account in the UTF for benefit costs.

Program and Financing (in millions of dollars)

Short Time Compensation (STC), also known as work sharing, is a layoff aversion strategy that enables workers to remain employed and employers to retain their trained staff during times of reduced business activity. The Middle Class Tax Relief and Job Creation Act of 2012 codified and expanded the definition of STC. Under the STC program, workers receive a percentage of the unemployment benefits they would have received if totally unemployed based upon the percentage of reduction in their hours of work. States that had been operating an STC program before enactment of the Act had two and a half years to amend their laws to conform to the new definition (the deadline for conformity was August 2014). As an incentive for states to enact state STC programs and promote the use of STC, the Act provided for 100 percent reimbursement of STC benefit costs paid under state law for up to 156 weeks, or three years (reimbursement is subject to sequestration). Grant funding was also available to states whose permanent STC laws meet the new Federal definition (the application deadline was December 31, 2014).

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

This account provides mandatory general revenue funding for a temporary program established under the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) and subsequently extended. This program paid a supplement of $25 on every week of unemployment compensation. It was last extended in Public Law 111–157 and paid benefits through its December 7, 2010, phaseout period.

For repayable advances to the Unemployment Trust Fund as authorized by sections 905(d) and 1203 of the Social Security Act, and to the Black Lung Disability Trust Fund as authorized by section 9501(c)(1) of the Internal Revenue Code of 1986; and for nonrepayable advances to the revolving fund established by section 901(e) of the Social Security Act, to the Unemployment Trust Fund as authorized by 5 U.S.C. 8509, and to the "Federal Unemployment Benefits and Allowances" account, such sums as may be necessary, which shall be available for obligation through September 30, [2017] 2018. (Department of Labor Appropriations Act, 2016.)

This account makes available funding for repayable advances (loans) to two accounts in the Unemployment Trust Fund (UTF): the Extended Unemployment Compensation Account (EUCA) which pays the Federal share of extended unemployment benefits, and the Federal Unemployment Account (FUA) which makes loans to States to fund unemployment benefits. In addition, the account has provided repayable advances to the Black Lung Disability Trust Fund (BLDTF) when its balances proved insufficient to make payments from that account. The BLDTF now has authority to borrow directly from the Treasury under the trust fund debt restructuring provisions of Public Law 110–343. Repayable advances are shown as borrowing authority within the UTF or the BLDTF, and they do not appear as budget authority or outlays in the Advances to the Unemployment Trust Fund and Other Funds account.

This account also makes available funding as needed for nonrepayable advances to the Federal Employees Compensation Account (FECA) to pay the costs of unemployment compensation for former Federal employees and ex-servicemembers, and to the Federal Unemployment and Benefits and Allowances (FUBA) account to pay the costs of benefits and services under the Trade Adjustment Assistance for Workers (TAA) program. These advances are shown as budget authority and outlays in the Advances account. The 2014 appropriations language for this included new authority for nonrepayable advances to the revolving fund for the Employment Security Administration Account (ESAA) in the Unemployment Trust Fund. In turn, this revolving fund may provide repayable, interest-bearing advances to the ESAA account if it runs short of funds, and the borrowing authority will enable ESAA to cover its obligations despite seasonal variations in the account's receipts.

Advances were needed for the FUA and EUCA accounts in fiscal year 2014, and the Department estimates that no advances will be necessary in 2016 and 2017. Detail on the nonrepayable advances is provided above; detail on the repayable advances is shown separately in the UTF account.

To address the potential need for significant, and somewhat unpredictable advances to various accounts, the Congress appropriates such sums as necessary for advances to all of the potential recipient accounts. The fiscal year 2017 request continues this authority.

For expenses of administering employment and training programs, [$104,577,000] $128,311,000, together with not to exceed [$49,982,000] $52,515,000, which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

This account provides for the Federal administration of Employment and Training Administration programs.

Training and Employment services.— Training and Employment services provides leadership, policy direction and administration for a decentralized system of grants to State and local governments as well as federally administered programs for job training and employment assistance for low income adults, youth and dislocated workers; provides for training and employment services to special targeted groups; provides for the settlement of trade adjustment petitions; and includes related program operations support activities.

Workforce security.—Provides leadership and policy direction for the administration of the comprehensive nationwide public employment service system; oversees unemployment insurance programs in each State; supports a one-stop career center network, including a comprehensive system of collecting, analyzing and disseminating labor market information; and includes related program operations support activities.

Office of Apprenticeship.—Oversees the administration of a Federal-State apprenticeship structure that registers apprenticeship training programs meeting national standards, and provides outreach to employers and labor organizations to promote and develop high-quality apprenticeship programs. The office will broaden the reach of Registered Apprenticeship programs across the US in part through its grant funding.

Executive direction.—Provides leadership and policy direction for all training and employment services programs and activities and provides for related program operations support, including research, evaluations, and demonstrations.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

Workers Compensation Programs.—Section 5011 of Public Law 109–148 made $50,000,000 available to the New York State Uninsured Employers Fund for reimbursement of claims related to the September 11, 2001, terrorist attacks on the United States and for reimbursement of claims related to the first response emergency services personnel who were injured, were disabled, or died due to such terrorist attacks.

This account is a revolving fund that is available to make advances to the Employment Security Administration Account (ESAA) in the Unemployment Trust Fund under the provisions of section 901(e) of the Social Security Act. These repayable, interest-bearing advances permit financing of the Federal and State administrative costs of employment security programs when the balance in ESAA is insufficient. The borrowing authority also enables ESAA to cover its obligations despite seasonal variations in the account's receipts.

Trust Funds

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

The financial transactions of the Federal-State and railroad unemployment insurance systems are made through the Unemployment Trust Fund (UTF). All State and Federal unemployment tax receipts are deposited into the UTF and invested in Government securities until needed for benefit payments or administrative expenses. State payroll taxes pay for all regular State unemployment benefits. The Federal unemployment tax (FUTA) pays the costs of Federal and State administration of the unemployment insurance system, veterans' employment services, surveys of wages and employment, and about 97 percent of the costs of the Employment Service. In addition, the Federal tax pays for certain extended benefit payments. During periods of high State unemployment, there is a stand-by program of extended benefits (EB), financed one-half by State unemployment taxes and one-half by the FUTA payroll tax. The American Recovery and Reinvestment Act (Public Law 111–5), and subsequent legislation, temporarily made EB 100 percent federally financed. Temporary Federal EB programs, including the recently expired Emergency Unemployment Compensation program, are also funded from the Unemployment Trust Fund, either by the Federal tax or by reimbursement from Federal general revenues. The UTF also provides repayable advances (loans) to the States when the balances in their individual State accounts are insufficient to pay benefits. Federal accounts in the UTF may receive repayable advances from the general fund when they have insufficient balances to make advances to States, pay the Federal share of extended unemployment benefits, or pay for State and Federal administrative costs.

The Federal Employees Compensation Account (FECA) in the Trust Fund provides funds to States for unemployment compensation benefits paid to eligible former Federal civilian personnel, Postal Service employees, and ex-servicemembers. In turn, the various Federal agencies reimburse FECA for benefits paid to their former employees. FECA is not funded out of Federal unemployment taxes. Any additional resources necessary to assure that the FECA account can make the required payments to States are provided from the Advances to the Unemployment Trust Fund and Other Funds appropriation.

Both the benefit payments and administrative expenses of the separate unemployment insurance program for railroad employees are paid from the Unemployment Trust Fund, and receipts from a tax on railroad payrolls are deposited into the Trust Fund to meet expenses.

Status of Funds (in millions of dollars)

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)

Unemployment Insurance (UI) Reform.—The Budget proposes a cost-neutral suite of reforms to update the UI program so that it reflects the modern economy and workforce. These reforms will mean that more workers will have access to UI if they lose a job, and will strengthen the program's connection to work, protect workers if they have to take a pay cut when starting a new job, make the UI program more responsive to economic downturns, and improve the solvency of State programs. Specifically, the Budget:

Ensures that benefits are available to more workers who need them, including part-time workers, newer labor market entrants, certain low-income and intermittent earners, and workers who leave work for compelling family reasons (like to escape domestic violence).

Restores the standard UI maximum benefit duration to 26 weeks to give workers a meaningful opportunity to get back on their feet.

Establishes wage insurance for workers with at least three years of job tenure who lose their jobs and who take a new job that, at least initially, pays less than their prior job and less than $50,000 per year.

Expands Short-Time Compensation (STC), which encourages employers to avoid layoffs by temporarily reducing workers' hours when their need for labor falls by providing employees with a partial UI benefit to help compensate for their lower wages.

Creates a new Extended Benefits program to provide up to 52 weeks of additional Federally-funded benefits for States seeing increased and high unemployment, with the number of weeks tied to the State's unemployment rate.

Improves UI system solvency by helping States rebuild their trust fund balances to repay their loans, cover current benefits, and create reserves so they are better prepared to weather the next economic downturn.

Reemployment Services and Eligibility Assessments (RESEA).—The Administration proposes a program integrity cap adjustment for 2017 to fund RESEAs for claimants identified as most likely to exhaust benefits. These assessments and supplemental services help ensure that benefits go only to eligible claimants and that they get the services they need to return to work. Beginning in 2018, the Budget proposes to provide mandatory funding for States to provide RESEAs to the one-third of claimants identified as most likely to exhaust benefits as well as to all returning servicemembers who receive UI benefits.

UI Program Integrity.—The Administration proposes a broad package of proposals aimed at improving the integrity of the UI program. Included in this package are proposals to: allow for data disclosure to contractors for the Treasury Offset Program; expand State use of the Separation Information Data Exchange System (SIDES), which already improves program integrity by allowing States and employers to exchange information on reasons for a claimant's separation from employment and thereby helping States to determine UI eligibility; mandate the use of the National Directory of New Hires to conduct cross-matches for program integrity purposes; allow the Secretary to set corrective action measures for poor State performance; require States to cross-match claimants against the Prisoner Update Processing System (PUPS), which is currently used by some States; and allow States to retain five percent of overpayment and tax investigation recoveries to fund program integrity activities.

Federal Funds

For necessary expenses for the Employee Benefits Security Administration, [$181,000,000]$205,761,000, of which not less than $3,000,000 shall be made available through September 30, 2018, for the procurement of expert witnesses for enforcement litigation: Provided, That $6,500,000 shall be made available through September 30, 2018, to assist in the start-up of retirement savings programs in states: Provided further, That, with respect to the previous proviso, the Secretary is authorized to transfer these amounts to "Departmental Management" for use by the Office of the Chief Evaluation Officer within the Department of Labor for grants to states and is authorized to grant a temporary waiver of the preemption provisions of Section 514 of the Employee Retirement Income Security Act of 1974 until September 30, 2018. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

Employee Benefits Security Programs²- Conducts criminal and civil investigations to ensure compliance with the fiduciary provisions of the Employee Retirement Income Security Act (ERISA) and the Federal Employees' Retirement System Act (FERSA). Assures compliance with applicable reporting, disclosure and other requirements of ERISA as well as accounting, auditing, and actuarial standards. Discloses required plan filings to the public. Provides information, technical, and compliance assistance to benefit plan professionals and participants and to the general public. Conducts policy, research, and legislative analysis on pension, health, and other employee benefit issues. Provides compliance assistance to employers and plan officials. Develops regulations and interpretations. Issues individual and class exemptions from regulations. Provides leadership, policy direction, strategic planning, and administrative guidance in the support of the Department's ERISA responsibilities.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

The Administration seeks a $100,000,000 legislative proposal that will further expand access to retirement accounts and sow the seeds for future models that provide portable benefits coverage across multiple employers through: (1) innovation grants to spur the provision of new multiple-employer benefit models and (2) the creation of open multiple employer plans (open MEPs).

Federal Funds

The Pension Benefit Guaranty Corporation ("Corporation") is authorized to make such expenditures, including financial assistance authorized by subtitle E of title IV of the Employee Retirement Income Security Act of 1974, within limits of funds and borrowing authority available to the Corporation, and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations, as provided by 31 U.S.C. 9104, as may be necessary in carrying out the program, including associated administrative expenses, through September 30, [2016]2017, for the Corporation: Provided, That none of the funds available to the Corporation for fiscal year [2016]2017 shall be available for obligations for administrative expenses in excess of [$431,799,000]$421,006,000: Provided further, That an amount not to exceed an additional $98,500,000 shall be available through September 30, 2021, for costs associated with the acquisition, occupancy, and related costs of headquarters space: Provided further, That to the extent that the number of new plan participants in plans terminated by the Corporation exceeds 100,000 in fiscal year [2016]2017, an amount not to exceed an additional $9,200,000 shall be available through September 30, [2017]2018, for obligation for administrative expenses for every 20,000 additional terminated participants: Provided further, That obligations in excess of the amounts provided in this paragraph may be incurred for unforeseen and extraordinary pretermination expenses or extraordinary multiemployer program related expenses after approval by the Office of Management and Budget and notification of the Committees on Appropriations of the House of Representatives and the Senate. (Department of Labor Appropriations Act, 2016.)

Program and Financing (in millions of dollars)