‘‘(C) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter and chapter 5 in coordination with evalua-
tions carried out by the Secretary under section 
172, research, and demonstration projects; 
‘‘(D) providing incentive grants to local 
areas for regional cooperation among local 
boards (including local boards in a designated 
region as described in section 116(c)), for local 
coordination of activities carried out under this 
Act, and for exemplary performance by local 
areas on the local performance measures; 
‘‘(E) providing technical assistance and ca-
pacity building to local areas, one-stop opera-
tors, one-stop partners, and eligible providers, 
including the development and training of staff, 
the development of exemplary program activi-
ties, and the provision of technical assistance to 
local areas that fail to meet local performance 
measures; 
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); and 
‘‘(G) carrying out monitoring and over-
sight of activities under this chapter and chap-
ter 5. 
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‘‘(2) LIMITATION.—Not more than 5 percent of 
the funds allotted under section 127(b) shall be used 
by the State for administrative activities carried out 
under this subsection and section 133(a). 
‘‘(3) PROHIBITION.—No funds described in this 
subsection or in section 134(a) may be used to de-
velop or implement education curricula for school 
systems in the State.’’. 
(e) LOCAL ELEMENTS AND REQUIREMENTS.— 
(1) PROGRAM DESIGN.—Section 129(c)(1) (29 
U.S.C. 2854(c)(1)) is amended— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘paragraph (2)(A) or (3), as 
appropriate, of’’; 
(B) in subparagraph (B), by inserting ‘‘are 
directly linked to one or more of the perform-
ance measures relating to this chapter under 
section 136, and that’’ after ‘‘for each partici-
pant that’’; and 
(C) in subparagraph (C)— 
(i) 
by 
redesignating 
clauses 
(i) 
through (iv) as clauses (ii) through (v), re-
spectively; 
(ii) by inserting before clause (ii) (as 
so redesignated) the following: 
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‘‘(i) activities leading to the attain-
ment of a secondary school diploma, Gen-
eral Educational Development credential 
(GED), or other State-recognized equiva-
lent 
(including 
recognized 
alternative 
standards for individuals with disabil-
ities);’’; 
(iii) in clause (ii) (as so redesignated), 
by inserting ‘‘and advanced training’’ after 
‘‘opportunities’’; 
(iv) in clause (iii) (as so redesig-
nated), by inserting ‘‘that lead to the at-
tainment of recognized credentials’’ after 
‘‘learning’’; and 
(v) by amending clause (v) (as so re-
designated) to read as follows: 
‘‘(v) effective connections to employ-
ers, including small employers, in sectors 
of the local and regional labor markets ex-
periencing high growth in employment op-
portunities.’’; and 
(D) provide assistance and support to out- 
of-school youth who lack the skill level to obtain 
employment. 
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(2) PROGRAM
ELEMENTS.—Section 129(c)(2) 
(29 U.S.C. 2854(c)(2)) is amended— 
(A) in subparagraph (A), by striking ‘‘sec-
ondary school, including dropout prevention 
strategies’’ and inserting ‘‘secondary school di-
ploma, General Educational Development cre-
dential (GED), or other State-recognized equiv-
alent (including recognized alternative stand-
ards for individuals with disabilities), including 
dropout prevention strategies’’; 
(B) in subparagraph (I), by striking ‘‘and’’ 
at the end; 
(C) in subparagraph (J), by striking the 
period at the end and inserting a semicolon; 
and 
(D) by adding at the end the following: 
‘‘(K) on-the-job training opportunities; and 
‘‘(L) financial literacy skills.’’. 
(3) 
ADDITIONAL
REQUIREMENTS.—Section 
129(c)(3)(A) (29 U.S.C. 2854(c)(3)(A)) is amended 
in the matter preceding clause (i) by striking ‘‘or ap-
plicant who meets the minimum income criteria to 
be considered an eligible youth’’. 
(4) 
PRIORITY
AND
EXCEPTIONS.—Section 
129(c) (29 U.S.C. 2854(c)) is further amended— 
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(A) by striking paragraphs (4) and (5) and 
redesignating paragraphs (6) through (8) as 
paragraphs (4) through (6), respectively; and 
(B) in paragraph (5) (as so redesignated), 
by striking ‘‘youth councils’’ and inserting 
‘‘local boards’’. 
SEC. 112. PROGRAMS FOR ADULTS AND DISLOCATED 
WORKERS. 
(a) TITLE AMENDMENT.— 
(1) The title heading of chapter 5 is amended 
to read as follows: 
‘‘CHAPTER 5—EMPLOYMENT AND TRAIN-
ING ACTIVITIES FOR ADULTS AND DIS-
CLOSED WORKERS’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) is amended by amending the 
item related to the heading for chapter 5 to read as 
follows: 
‘‘CHAPTER 5—EMPLOYMENT AND TRAINING ACTIVITIES FOR ADULTS AND 
DISLOCATED WORKERS’’. 
(b) GENERAL AUTHORIZATION.—Section 131 (29 
U.S.C. 2861) is amended by striking ‘‘paragraphs (1)(B) 
and (2)(B) of’’. 
(c) STATE ALLOTMENTS.—Section 132 (29 U.S.C. 
2862) is amended— 
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(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) reserve 5 percent of the amount appro-
priated under section 137 for a fiscal year, of 
which— 
‘‘(A) not less than 85 percent shall be used 
for national dislocated worker grants under sec-
tion 173; 
‘‘(B) not more than 10 percent may be 
used for demonstration projects under section 
171; and 
‘‘(C) not more than 5 percent may be used 
to provide technical assistance under section 
170; and 
‘‘(2) make allotments from 95 percent of the 
amount appropriated under section 137 for a fiscal 
year in accordance with subsection (b).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) ALLOTMENT AMONG STATES FOR EMPLOYMENT 
AND TRAINING ACTIVITIES FOR ADULT AND DISLOCATED 
WORKERS.— 
‘‘(1) RESERVATION FOR OUTLYING AREAS.— 
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