(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— 
(A) by striking paragraphs (4) and (5); 
(B) by redesignating paragraph (6) as 
paragraph (4); 
(C) by redesignating paragraph (7) as 
paragraph (5), and in such redesignated para-
graph (5) by striking ‘‘youth councils’’ and in-
serting ‘‘local boards’’; and 
(D) by redesignating paragraph (8) as 
paragraph (6).
SEC. 112. COMPREHENSIVE PROGRAMS FOR ADULTS. 
(a) TITLE AMENDMENT.— 
(1) The title heading of chapter 5 is amended 
to read as follows: 
‘‘CHAPTER 5—COMPREHENSIVE EMPLOY-
MENT AND TRAINING ACTIVITIES FOR 
ADULTS’’. 
(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—Comprehensive Employment and Training Activities for Adults.’’. 
(b) GENERAL AUTHORIZATION.—Section 131 (29 
U.S.C. 2861) is amended— 
(1) 
by 
striking 
‘‘paragraphs 
(1)(B) 
and 
(2)(B)of’’; and 
(2) by striking ‘‘, and dislocated workers,’’. 
(c) STATE ALLOTMENTS.— 
(1) IN GENERAL.—Section 132(a) (29 U.S.C. 
2862(a)) is amended to read as follows: 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) reserve 10 percent of the amount appro-
priated under section 137(b) for a fiscal year, of 
which—
‘‘(A) not less than 75 percent shall be used 
for national dislocated worker grants under sec-
tion 173; 
‘‘(B) not more than 20 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 90 percent of the 
amount appropriated under section 137(b) for a fis-
cal year in accordance with subsection (b).’’. 
(2) 
ALLOTMENT
AMONG
STATES.—Section 
132(b) (29 U.S.C. 2862(b)) is amended to read as 
follows: 
‘‘(b) ALLOTMENT AMONG STATES FOR ADULT EM-
PLOYMENT AND TRAINING ACTIVITIES.— 
‘‘(1) RESERVATION FOR OUTLYING AREAS.— 
‘‘(A) IN
GENERAL.—From the amount 
made available under subsection (a)(2) for a 
fiscal year, the Secretary shall reserve not more 
than 1⁄4 of 1 percent to provide assistance to 
outlying areas to carry out employment and 
training activities for adults and statewide 
workforce investment activities.
‘‘(B) 
RESTRICTION.—The 
Republic 
of 
Palau shall cease to be eligible to receive fund-
ing under this paragraph upon entering into an 
agreement for extension of United States edu-
cational assistance under the Compact of Free 
Association (approved by the Compact of Free 
Association Amendments Act of 2003 (Public 
Law 108–188)) after the date of enactment of 
the Job Training Improvement Act of 2005. 
‘‘(2) STATES.—Subject to paragraph (5), of the 
remainder of the amount referred to under sub-
section (a)(2) for a fiscal year that is available after 
determining the amount to be reserved under para-
graph (1), the Secretary shall allot to the States for 
employment and training activities for adults and for 
statewide workforce investment activities— 
‘‘(A) 26 percent in accordance with para-
graph (3); and 
‘‘(B) 74 percent in accordance with para-
graph (4). 
‘‘(3) BASE FORMULA.— 
‘‘(A) FISCAL YEAR 2006.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in paragraph 
(2)(A) shall be allotted for fiscal year 2006
on the basis of allotment percentage of 
each State under section 6 of the Wagner- 
Peyser Act for fiscal year 2005. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2006 exceeds the amount that 
was available for allotment to the States 
under the Wagner-Peyser Act for fiscal 
year 2005, such excess amount shall be al-
lotted on the basis of the relative number 
of individuals in the civilian labor force in 
each State, compared to the total number 
of individuals in the civilian labor force in 
all States, adjusted to ensure that no State 
receives less than 3⁄10 of one percent of 
such excess amount. 
‘‘(iii) DEFINITION.—For purposes of 
this subparagraph, the term ‘allotment 
percentage’ means the percentage of the 
amounts allotted to States under section 6 
of the Wagner-Peyser Act that is received 
by the State involved for fiscal year 2005. 
‘‘(B) FISCAL
YEARS
2007
AND
THERE-
AFTER.—