II 

118TH CONGRESS 

2D SESSION S. 4501 

To amend the Workforce Innovation and Opportunity Act to improve the 

performance accountability system. 

IN THE SENATE OF THE UNITED STATES 

JUNE 11, 2024 

Mr. MULLIN introduced the following bill; which was read twice and referred 

to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To amend the Workforce Innovation and Opportunity Act 

to improve the performance accountability system. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘WIOA Performance 

5 Accountability Improvement Act’’. 

6 SEC. 2. PERFORMANCE ACCOUNTABILITY SYSTEM. 

7 (a) STATE PERFORMANCE ACCOUNTABILITY MEAS8 URES.— 

9 (1) PRIMARY INDICATORS OF PERFORMANCE.— 

10 Section 116(b)(2)(A) of the Workforce Innovation 


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1 and Opportunity Act (29 U.S.C. 3141(b)(2)(A)) is 

2 amended— 

3 (A) in clause (i)— 

4 (i) in subclause (II)— 

5 (I) by striking ‘‘fourth’’ and in6 serting ‘‘second’’; and 

7 (II) by inserting ‘‘and remain in 

8 unsubsidized employment during the 

9 fourth quarter after exit from the pro10 gram’’ after ‘‘the program’’; 

11 (ii) in subclause (V)— 

12 (I) by striking ‘‘, during a pro13 gram year,’’; 

14 (II) by striking ‘‘are in’’ and in15 serting ‘‘enter into’’; and 

16 (III) by inserting before the 

17 semicolon at the end the following: 

18 ‘‘within 6 months after the quarter in 

19 which the participant enters into the 

20 education or training program’’; and 

21 (iii) by amending subclause (VI) to 

22 read as follows: 

23 ‘‘(VI) of the program partici24 pants who received training services 

25 and who exited the program during a 


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1 program year, the percentage of such 

2 program participants who completed, 

3 prior to such exit, on-the-job training, 

4 employer-directed skills development, 

5 incumbent worker training, or an ap6 prenticeship.’’; 

7 (B) in clause (ii)— 

8 (i) in subclause (II), by striking 

9 ‘‘and’’ at the end; 

10 (ii) in subclause (III), by striking the 

11 period at the end and inserting ‘‘; and’’; 

12 and 

13 (iii) by adding at the end the fol14 lowing: 

15 ‘‘(IV) the percentage of program 

16 participants who, during a program 

17 year, participate in paid or unpaid 

18 work experiences as described in sec19 tion 129(c)(2)(C).’’; and 

20 (C) by striking clause (iv). 

21 (2) LEVELS OF PERFORMANCE.—Section 

22 116(b)(3)(A) of the Workforce Innovation and Op23 portunity Act (29 U.S.C. 3141(b)(3)(A)) is amend24 ed— 


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1 (A) by amending clause (iii) to read as fol2 lows: 

3 ‘‘(iii) IDENTIFICATION IN STATE

4 PLAN.— 

5 ‘‘(I) SECRETARIES.—For each 

6 State submitting a State plan, the 

7 Secretaries of Labor and Education 

8 shall— 

9 ‘‘(aa) not later than Decem10 ber 1 of the calendar year prior 

11 to the calendar year in which 

12 such State plan is submitted, for 

13 the first 2 program years covered 

14 by the State plan, and not later 

15 than December 1 of the year 

16 prior to the third program year 

17 covered by the State plan, for the 

18 third and fourth program years 

19 covered by the State plan, pro20 pose expected levels of perform21 ance for each of the cor22 responding primary indicators of 

23 performance for each of the pro24 grams described in clause (ii) for 

25 such State, which levels shall— 


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1 ‘‘(AA) be consistent 

2 with the factors listed in 

3 clause (v); and 

4 ‘‘(BB) be proposed in a 

5 manner that ensures suffi6 cient time is provided for 

7 the State to evaluate and re8 spond to such proposals; and 

9 ‘‘(bb) publish, on a public 

10 website of the Department of 

11 Labor, the statistical model de12 veloped under clause (viii) and 

13 the methodology used to develop 

14 each such proposed level of per15 formance. 

16 ‘‘(II) STATES.—Each State 

17 shall— 

18 ‘‘(aa) evaluate each of the 

19 expected levels of performance 

20 proposed under subclause (I) 

21 with respect to such State; 

22 ‘‘(bb) based on such evalua23 tion of each such proposed level 

24 of performance— 


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1 ‘‘(AA) accept the ex2 pected level of performance 

3 as so proposed; or 

4 ‘‘(BB) provide a coun5 terproposal for such pro6 posed expected level of per7 formance, including an anal8 ysis of how the counter9 proposal addresses factors or 

10 circumstances unique to the 

11 State that may not have 

12 been accounted for in the 

13 proposed expected level of 

14 performance; and 

15 ‘‘(cc) include in the State 

16 plan, with respect to each of the 

17 corresponding primary indicators 

18 of performance for each of the 

19 programs described in clause (ii) 

20 for such State— 

21 ‘‘(AA) the expected 

22 level of performance pro23 posed under subclause (I); 


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1 ‘‘(BB) the counter2 proposal for such proposed 

3 level, if any; and 

4 ‘‘(CC) the expected 

5 level of performance that is 

6 agreed to under clause 

7 (iv).’’; and 

8 (B) in clause (v)(II)— 

9 (i) in the matter preceding item (aa), 

10 by striking ‘‘based on’’ and inserting 

11 ‘‘based on (for each of the following factors 

12 that is found to be predictive of perform13 ance on an indicator for a program)’’; and 

14 (ii) in item (bb), by inserting ‘‘, foster 

15 care status, school status, education level, 

16 highest grade level completed, low-income 

17 status’’ after ‘‘ex-offender status’’. 

18 (b) PERFORMANCE REPORTS.—Section 116(d) of the 

19 Workforce Innovation and Opportunity Act (29 U.S.C. 

20 3141(d)) is amended— 

21 (1) by amending paragraph (1) to read as fol22 lows: 

23 ‘‘(1) IN GENERAL.— 

24 ‘‘(A) TEMPLATE FOR PERFORMANCE RE25 PORTS.—Not later than 12 months after the 


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1 date of enactment of the WIOA Performance 

2 Accountability Improvement Act, the Secretary 

3 of Labor, in conjunction with the Secretary of 

4 Education, shall develop, or review and modify, 

5 as appropriate, to comply with the requirements 

6 of this subsection, the template for performance 

7 reports that shall be used by States (including 

8 by States on behalf of eligible providers of 

9 training services under section 122) and local 

10 boards to produce a report on outcomes 

11 achieved by the core programs. In developing, 

12 or reviewing and modifying, such templates, the 

13 Secretary of Labor, in conjunction with the Sec14 retary of Education, shall take into account the 

15 need to maximize the value of the templates for 

16 workers, jobseekers, employers, local elected of17 ficials, State officials, Federal policymakers, 

18 and other key stakeholders. 

19 ‘‘(B) STANDARDIZED REPORTING.—In de20 veloping, or reviewing and modifying, the tem21 plate under subparagraph (A), the Secretary of 

22 Labor, in conjunction with the Secretary of 

23 Education, shall ensure that States and local 

24 areas, in producing performance reports for 

25 core programs and eligible training providers, 


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1 collect and report, in a comparable and uniform 

2 format, information on common data elements, 

3 which use terms that are assigned identical 

4 meanings across all such reports. 

5 ‘‘(C) ADDITIONAL REPORTING.—The Sec6 retary of Labor, in conjunction with the Sec7 retary of Education— 

8 ‘‘(i) in addition to information on the 

9 common data elements described in sub10 paragraph (B), may require a core pro11 gram to provide additional information as 

12 necessary for effective reporting; and 

13 ‘‘(ii) shall periodically review any re14 quirement for additional information to en15 sure the requirement is necessary and does 

16 not impose an undue reporting burden.’’; 

17 (2) in paragraph (2)— 

18 (A) by redesignating subparagraphs (J) 

19 through (L) as subparagraphs (K) through (M), 

20 respectively and inserting after subparagraph 

21 (I) the following: 

22 ‘‘(J) the median earnings gain of partici23 pants who received training services, calculated 

24 as the difference between— 


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1 ‘‘(i) median participant earnings in 

2 unsubsidized employment during the sec3 ond quarter after program exit; and 

4 ‘‘(ii) median participant earnings in 

5 unsubsidized employment in the second 

6 quarter prior to entering the program;’’; 

7 and 

8 (B) in subparagraph (L), as so redesig9 nated, by striking clause (ii); and 

10 (C) by striking ‘‘strategies for programs’’ 

11 and all that follows through ‘‘the performance’’, 

12 and inserting ‘‘strategies for programs, the per13 formance’’; 

14 (3) in paragraph (3)— 

15 (A) in subparagraph (B), by striking 

16 ‘‘and’’ at the end; 

17 (B) by redesignating subparagraph (C) as 

18 subparagraph (E); and 

19 (C) by inserting after subparagraph (B) 

20 the following: 

21 ‘‘(C) the percentage of the local area’s allo22 cation under section 133(b) that the local area 

23 spent on services paid for through an individual 

24 training account described in section 


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1 134(c)(3)(F)(iii) or a training contract de2 scribed in section 134(c)(3)(G)(ii); 

3 ‘‘(D) the percentage of the local area’s al4 location under section 133(b) that the local 

5 area spent on supportive services; and’’; 

6 (4) by amending paragraph (4) to read as fol7 lows: 

8 ‘‘(4) CONTENTS OF ELIGIBLE TRAINING PRO9 VIDERS PERFORMANCE REPORT.— 

10 ‘‘(A) IN GENERAL.—The State shall use 

11 the information submitted by the eligible pro12 viders of training services under section 122 

13 and administrative records, including quarterly 

14 wage records, of the participants of the pro15 grams offered by the providers to produce a 

16 performance report on the eligible providers of 

17 training services in the State, which shall in18 clude, subject to paragraph (6)(C)— 

19 ‘‘(i) with respect to each program of 

20 study (or the equivalent) of such a pro21 vider— 

22 ‘‘(I) information specifying the 

23 levels of performance achieved with 

24 respect to the primary indicators of 

25 performance described in subclauses 


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1 (I) through (IV) of subsection 

2 (b)(2)(A)(i) with respect to all individ3 uals engaging in the program of study 

4 (or the equivalent); and 

5 ‘‘(II) the total number of individ6 uals exiting from the program of 

7 study (or the equivalent); 

8 ‘‘(ii) with respect to all such pro9 viders— 

10 ‘‘(I) the total number of partici11 pants who received training services 

12 through each of the adult program, 

13 and the dislocated worker program, 

14 authorized under chapter 3 of subtitle 

15 B, disaggregated by the type of entity 

16 that provided the training, during the 

17 most recent program year and the 3 

18 preceding program years; 

19 ‘‘(II) the total number of partici20 pants who exited from training serv21 ices, disaggregated by the type of en22 tity that provided the training, during 

23 the most recent program year and the 

24 3 preceding program years; 


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1 ‘‘(III) the average cost for the 

2 participants who received training 

3 services, divided by the average earn4 ings received by such participants 

5 during the second quarter after exit 

6 from the program, disaggregated by 

7 the type of entity that provided the 

8 training, during the most recent pro9 gram year and the 3 preceding pro10 gram years; and 

11 ‘‘(IV) the number of individuals 

12 with barriers to employment served by 

13 each of the adult program, and the 

14 dislocated worker program, authorized 

15 under chapter 3 of subtitle B, 

16 disaggregated by each subpopulation 

17 of such individuals, and by race, eth18 nicity, sex, and age; and 

19 ‘‘(iii) with respect to each recognized 

20 postsecondary credential on the list of cre21 dentials awarded by eligible providers in 

22 the State described in section 122(d)— 

23 ‘‘(I) information specifying the 

24 levels of performance achieved with 

25 respect to the primary indicators of 


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1 performance described in subclauses 

2 (I) through (IV) of subsection 

3 (b)(2)(A)(i) for all participants in the 

4 State receiving such credential; and 

5 ‘‘(II) information specifying the 

6 levels of performance achieved with 

7 respect to the primary indicators of 

8 performance described in subclauses 

9 (I) through (IV) of subsection 

10 (b)(2)(A)(i) for participants in the 

11 State receiving such credential with 

12 respect to individuals with barriers to 

13 employment, disaggregated by each 

14 subpopulation of such individuals, and 

15 by race, ethnicity, sex, and age.’’; and 

16 (5) in paragraph (6)— 

17 (A) by amending subparagraph (A) to read 

18 as follows: 

19 ‘‘(A) STATE PERFORMANCE REPORTS.— 

20 The Secretary of Labor and the Secretary of 

21 Education shall annually make available the 

22 performance reports for States containing the 

23 information described in paragraph (2), which 

24 shall include making such reports available— 


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1 ‘‘(i) digitally using transparent, 

2 linked, open, and interoperable data for3 mats that are human readable and ma4 chine actionable such that the data from 

5 these reports— 

6 ‘‘(I) is easily understandable; and 

7 ‘‘(II) can be easily included in 

8 web-based tools and services sup9 porting search, discovery, comparison, 

10 analysis, navigation, and guidance; 

11 and 

12 ‘‘(ii) in a printable format.’’; and 

13 (B) in subparagraph (B)— 

14 (i) by striking ‘‘(including by elec15 tronic means), in an easily understandable 

16 format,’’; and 

17 (ii) by adding at the end the fol18 lowing: ‘‘The Secretary of Labor and the 

19 Secretary of Education shall include, on 

20 the website where the State performance 

21 reports required under subparagraph (A) 

22 are made available, a link to local area per23 formance reports and the eligible training 

24 provider report for each State. Such reVerDate Sep 11 2014 03:05 Jul 30, 2024 Jkt 049200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S4501.IS S4501

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1 ports shall be made available in each of the 

2 formats described in subparagraph (A).’’. 

3 (c) EVALUATION OF STATE PROGRAMS.—Section 

4 116(e) of the Workforce Innovation and Opportunity Act 

5 (29 U.S.C. 3141(e)) is amended— 

6 (1) in paragraph (1)— 

7 (A) in the first sentence, by striking ‘‘shall 

8 conduct ongoing’’ and inserting ‘‘shall use data 

9 to conduct analyses and ongoing’’; and 

10 (B) in the second sentence, by striking 

11 ‘‘conduct the’’ and inserting ‘‘conduct such 

12 analyses and’’; and 

13 (2) in paragraph (2), by adding ‘‘A State may 

14 use other forms of analysis, such as machine learn15 ing or other advanced analytics, to improve program 

16 operations and outcomes and to identify areas for 

17 further evaluation.’’ at the end. 

18 (d) SANCTIONS FOR STATE FAILURE TO MEET

19 STATE PERFORMANCE ACCOUNTABILITY MEASURES.— 

20 Section 116(f) of the Workforce Innovation and Oppor21 tunity Act (29 U.S.C. 3141(f)) is amended to read as fol22 lows: 

23 ‘‘(f) SANCTIONS FOR STATE FAILURE TO MEET

24 STATE PERFORMANCE ACCOUNTABILITY MEASURES.— 

25 ‘‘(1) TARGETED SUPPORT AND ASSISTANCE.— 


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1 ‘‘(A) IN GENERAL.—If a State fails to 

2 meet 80 percent of the State adjusted level of 

3 performance for an indicator described in sub4 section (b)(2)(A) for a program for any pro5 gram year, the Secretary of Labor and the Sec6 retary of Education shall provide technical as7 sistance. 

8 ‘‘(B) SANCTIONS.— 

9 ‘‘(i) IN GENERAL.—If the State fails 

10 in the manner described in subclause (I) or 

11 (II) of clause (ii) with respect to a pro12 gram year, the percentage of each amount 

13 that would (in the absence of this para14 graph) be reserved by the Governor under 

15 section 128(a)(1) for the immediately suc16 ceeding program year shall be reduced by 

17 5 percentage points. 

18 ‘‘(ii) FAILURES.—A State shall be 

19 subject to clause (i)— 

20 ‘‘(I) if (except in the case of ex21 ceptional circumstances as determined 

22 by the Secretary of Labor or the Sec23 retary of Education, as appropriate), 

24 such State fails to submit a report 


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1 under subsection (d) for the appro2 priate program year; or 

3 ‘‘(II) for a failure under subpara4 graph (A) that continues for a second 

5 consecutive year. 

6 ‘‘(2) COMPREHENSIVE SUPPORT AND ASSIST7 ANCE.— 

8 ‘‘(A) IN GENERAL.—If a State fails to 

9 meet an average of 90 percent of the State ad10 justed levels of performance for a single pro11 gram across all corresponding performance indi12 cators for any program year, or if a State fails 

13 to meet an average of 90 percent of the State 

14 adjusted levels of performance for a single cor15 responding performance indicator across all 

16 programs for any program year, the Secretary 

17 of Labor and the Secretary of Education shall 

18 provide technical assistance, as described and 

19 authorized under section 168(b), including as20 sistance in the development of a comprehensive 

21 performance improvement plan. 

22 ‘‘(B) SECOND CONSECUTIVE YEAR FAIL23 URE.—If such failure under subparagraph (A) 

24 continues for a second consecutive year, the 

25 percentage of each amount that would (in the 


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1 absence of this subsection) be reserved by the 

2 Governor under section 128(a)(1) for the imme3 diately succeeding program year shall be re4 duced by 10 percentage points. 

5 ‘‘(3) REALLOTMENT OF REDUCTIONS.—Any 

6 amounts not reserved under section 128(a)(1) for a 

7 State for a program year pursuant to paragraph 

8 (1)(B) or (2)(B) of this subsection shall be realloted 

9 to other States in a manner consistent with para10 graph (1)(B) or (2)(B) of section 132(b).’’. 

11 (e) SANCTIONS FOR LOCAL AREA FAILURE TO MEET

12 LOCAL PERFORMANCE ACCOUNTABILITY MEASURES.— 

13 Section 116(g) of the Workforce Innovation and Oppor14 tunity Act (29 U.S.C. 3141(g)) is amended— 

15 (1) in paragraph (1)— 

16 (A) by inserting ‘‘80 percent of the’’ before 

17 ‘‘local performance’’; and 

18 (B) by striking ‘‘local performance ac19 countability measures’’ and inserting ‘‘local 

20 level of performance for a single corresponding 

21 performance indicator for a single program, an 

22 average of 90 percent of the local levels of per23 formance across all corresponding performance 

24 indicators for a single program, or an average 

25 of 90 percent of the local levels of performance 


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1 for a single corresponding performance indi2 cator across all programs,’’; and 

3 (2) in paragraph (2)— 

4 (A) by amending subparagraph (A) to read 

5 as follows: 

6 ‘‘(A) IN GENERAL.—If such failure con7 tinues, the Governor shall take corrective ac8 tions, which shall include— 

9 ‘‘(i) in the case of a failure, as de10 scribed in paragraph (1), for a second con11 secutive year, on any individual indicator, 

12 across indicators for a single program, or 

13 on a single indicator across programs, a 5- 

14 percent reduction in the amount that 

15 would have otherwise been provided (in the 

16 absence of this clause) to the local area for 

17 the immediately succeeding program year 

18 under chapter 2 or 3 of subtitle B for the 

19 program subject to the performance fail20 ure; 

21 ‘‘(ii) in the case of a failure, as de22 scribed in paragraph (1), for a third con23 secutive year, the development of a reorga24 nization plan through which the Governor 

25 shall— 


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1 ‘‘(I) require the appointment and 

2 certification of a new local board, con3 sistent with the criteria established 

4 under section 107(b); 

5 ‘‘(II) prohibit the use of one-stop 

6 partners identified as achieving a poor 

7 level of performance; and 

8 ‘‘(III) revise or redesignate a 

9 local area, which may include merging 

10 a local area with another local area if 

11 the Governor determines that the like12 ly cause of such continued perform13 ance failure of a local area is due to 

14 such local area’s designation being 

15 granted without the appropriate con16 sideration of parameters described 

17 under section 106(b)(1)(B); or 

18 ‘‘(iii) other significant actions deter19 mined appropriate by the Governor.’’; 

20 (B) in subparagraph (B)(i), by inserting 

21 ‘‘(ii)’’ after ‘‘subparagraph (A)’’; and 

22 (C) by adding at the end the following: 

23 ‘‘(D) REALLOCATION OF REDUCTIONS.— 

24 Any amounts not allocated under chapter 2 or 

25 3 of subtitle B to a local area for a program 


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1 year pursuant to subparagraph (A)(i) retained 

2 by the Governor and added to the funds re3 served under section 128(a)(1) or 133(a)(1), as 

4 applicable.’’. 

5 (f) ESTABLISHING PAY-FOR-PERFORMANCE CON6 TRACT STRATEGY INCENTIVES.—Section 116(h) of the 

7 Workforce Innovation and Opportunity Act (29 U.S.C. 

8 3141(h)) is amended by striking ‘‘non-Federal funds’’ and 

9 inserting ‘‘the funds reserved under section 128(a)(1)’’. 

10 (g) FISCAL AND MANAGEMENT ACCOUNTABILITY IN11 FORMATION SYSTEMS.—Section 116(i) of the Workforce 

12 Innovation and Opportunity Act (29 U.S.C. 3141(i)) is 

13 amended— 

14 (1) in paragraph (2), by inserting ‘‘, and may 

15 use information provided from the National Direc16 tory of New Hires in accordance with section 

17 453(j)(8) of the Social Security Act (42 U.S.C. 

18 653(j)(8))’’ after ‘‘State law’’; 

19 (2) by redesignating paragraph (3) as para20 graph (4); and 

21 (3) by inserting after paragraph (2) the fol22 lowing: 

23 ‘‘(3) DESIGNATED ENTITY.—The Governor 

24 shall designate a State agency (or appropriate State 

25 entity) to assist in carrying out the performance reVerDate Sep 11 2014 03:05 Jul 30, 2024 Jkt 049200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S4501.IS S4501

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1 porting requirements for core programs and eligible 

2 providers of training services. The designated State 

3 agency (or appropriate State entity) shall be respon4 sible for— 

5 ‘‘(A) facilitating data matches using quar6 terly wage record information, including wage 

7 record information made available by other 

8 States, to measure employment and earnings 

9 outcomes; 

10 ‘‘(B) data validation and reliability, as de11 scribed in subsection (d)(5); and 

12 ‘‘(C) protection against disaggregation that 

13 would violate applicable privacy standards, as 

14 described in subsection (d)(6)(C).’’. 

Æ 


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