needs-related payments, that are necessary to enable 
an individual to participate in activities authorized 
under this Act. 
(11) 
WORK-BASED
LEARNING.—The 
term 
‘‘work-based learning’’ has the meaning given the 
term in section 3 of the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 2302), 
except that such term includes work-based learning 
in virtual settings. 
(12) WIOA TERMS.—The terms ‘‘in-demand in-
dustry sector or occupation’’, ‘‘individual with a dis-
ability’’, ‘‘in-school youth’’ , ‘‘local area’’, ‘‘local 
board’’, ‘‘out-of-school youth’’, ‘‘outlying area’’, 
‘‘poverty line’’, ‘‘recognized postsecondary creden-
tial’’, ‘‘State’’, ‘‘State board’’, and ‘‘unit of general 
local government’’ have the meanings given the 
terms in section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102). 
(13) YOUTH
WITH
A
BARRIER
TO
EMPLOY-
MENT.—The term ‘‘youth with a barrier to employ-
ment’’ means an eligible youth who— 
(A) is a homeless child or youth (as such 
term is defined in section 725 of the McKinney- 
Vento Homeless Assistance Act (42 U.S.C. 
11434a)); 
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(B) has been incarcerated or has past or 
current involvement with the criminal or juve-
nile justice systems; 
(C) is a current or former foster youth; 
(D) is an individual with a disability; 
(E) is pregnant or parenting; 
(F) is a school dropout (as defined by 
State law); 
(G) is from a family with an income level 
at or below 200 percent of the poverty line; or 
(H) is a member of another young-adult 
population, including racial groups, that is ex-
periencing disparate levels of youth disconnec-
tion, as defined by the local workforce develop-
ment board of the local area in which the youth 
resides. 
TITLE I—YOUTH PUBLIC 
EMPLOYMENT PROGRAM 
SEC. 101. FORMULA GRANTS TO STATES AND LOCAL AREAS. 
(a) FUNDING ALLOTMENTS AND ALLOCATIONS.— 
(1) STATE ALLOTMENTS.—To assist States and 
outlying areas, and to enable States and outlying 
areas to assist local areas, in carrying out subsidized 
employment programs described in subsection (b) for 
youth with a barrier to employment, from the funds 
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appropriated under section 105(a), the Secretary of 
Labor shall— 
(A) make an allotment in accordance with 
section 127(b)(1)(C)(ii) of the Workforce Inno-
vation 
and 
Opportunity 
Act 
(29 
U.S.C. 
3162(b)(1)(C)(ii)) to each State that meets the 
requirements of section 102 or 103 of such Act 
(29 U.S.C. 3112, 3113); and 
(B) award a grant to each outlying area 
that complies with the requirements of title I of 
the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3101 et seq.) to carry out subsidized 
youth employment programs for such youth. 
(2) WITHIN STATE ALLOCATION.— 
(A) STATEWIDE ACTIVITIES.—Each State 
shall reserve 25 percent of the allotment re-
ceived under paragraph (1)(A) to carry out 
statewide subsidized employment programs de-
scribed in subsection (b). 
(B) ALLOCATIONS
TO
LOCAL
AREAS.—A 
Governor of a State that receives an allotment 
under paragraph (1), in coordination with rel-
evant State and local stakeholders, shall use 
any remaining amounts (after reserving funds 
under subparagraph (A)), to allocate funds to 
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local areas, as long as not less than 65 percent 
of such remaining amount is allocated to— 
(i) high-poverty local areas with the 
highest youth unemployment rate com-
pared to other local areas in the State; and 
(ii) local areas with historically high 
levels of youth unemployment within the 
State. 
(b) USES OF FUNDS.— 
(1) SUBSIDIZED EMPLOYMENT PROGRAMS.— 
(A) IN
GENERAL.—Funds allotted to 
States for statewide programs, and funds allo-
cated to local areas under subsection (a), shall 
be used to carry out subsidized employment 
programs described in paragraph (3) that— 
(i) lead to unsubsidized, full-time em-
ployment for youth with a barrier to em-
ployment in such State or local area; or 
(ii) provide the necessary skills and 
competency attainment of at least 1 recog-
nized postsecondary credential to further 
the education or career of such youth. 
(2) FUNDING DISTRIBUTION.—Of the funds al-
lotted to States, or allocated to local areas, as de-
scribed in paragraph (1) for a fiscal year: 
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(A) Not less than 60 percent shall be used 
for wages and employment benefits to individ-
uals employed in subsidized employment pro-
grams funded under this section. 
(B) Not less than 30 percent for the first 
fiscal year for which such funds are so allotted 
or allocated, and not less than 20 percent for 
each fiscal year thereafter, shall be used to pro-
vide 
career 
services 
described 
in 
section 
134(c)(2) of the Workforce Innovation and Op-
portunity Act (29 U.S.C. 3174(c)(2)), training 
services, or youth workforce investment activi-
ties. 
(C) Any remaining funds may be used for 
administrative and other allowable costs (such 
as supplies, materials, equipment, and health 
and safety resources) incurred by the State or 
local area, as determined by the Secretary. 
(3) CONDITIONS.—Except as otherwise deter-
mined by the Secretary, the following conditions 
shall apply to each subsidized employment program 
funded under this section: 
(A) Each youth with a barrier to employ-
ment residing in the State or local area funding 
such program shall be entitled to an oppor-
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