In August 1996, the Personal Responsibility and Work Opportunity Reconciliation Act reformed the nation's welfare laws. Moving people from welfare to work is now one of the primary goals of federal welfare policy. These grants will provide many welfare recipients with the job placement services, transitional employment, and other support services they need to make the successful progression into long-term unsubsidized employment.
Grantees have up to three years to spend the funds.
States must provide one dollar of non-federal funding match for every two dollars of federal funding provided under the formula. Funds are distributed to local areas by a formula. The Secretary of Labor must determine that the plan meets the statutory requirements. Governors are responsible for administering formula funds and for assuring that they are coordinated with funds spent under the TANF block grant. In general, programs at the local level are administered by PICs or WIBs established under the Job Training Partnership Act, in coordination with chief elected officials.