(29 U.S.C. 2801 et seq.) is amended by inserting after 
section 173A (29 U.S.C. 2918a) the following: 
‘‘SEC. 173B. ON-THE-JOB TRAINING FOR ECONOMICALLY 
AND EXTREMELY ECONOMICALLY DISADVAN-
TAGED AREAS. 
‘‘(a) DEFINITIONS.—As used in this section— 
‘‘(1) the term ‘economically disadvantaged area’ 
means an area for which there is a single 5-digit 
postal zip code, and which includes any portion of a 
census tract in which the median annual household 
income is less than $40,000 per year; 
‘‘(2) the term ‘extremely economically disadvan-
taged area’ means any area which there is a single 
5-digit postal zip code, and includes any portion of 
a census tract in which the median household in-
come is less than $32,000 per year; and 
‘‘(3) the term ‘median household income’ means 
the median annual household income as determined 
by the 2010 census and as updated by the American 
Community Survey of the Bureau of the Census. 
‘‘(b) GRANTS.— 
‘‘(1) IN GENERAL.—From the amounts made 
available under subsection (h), and subject to para-
graph (2) and subsection (d), the Secretary shall 
make grants, on a discretionary basis, to State and 
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local boards, for adult on-the-job training, or dis-
located worker on-the-job training, carried out under 
section 134 and for State and local board functions 
described in subsection (f) within economically dis-
advantaged areas and extremely economically dis-
advantaged areas. 
‘‘(2) EXTREMELY
ECONOMICALLY
DISADVAN-
TAGED AREAS.—In making grants under this sub-
section for a fiscal year, the Secretary shall ensure 
that of the amount made available under subsection 
(h) for such fiscal year, the Secretary uses 25 per-
cent more of such funds to make grants to State 
and local boards located within extremely economi-
cally disadvantaged areas than to such boards lo-
cated within economically disadvantaged areas. 
‘‘(c) APPLICATION.—To be eligible to receive a grant 
under subsection (b), a State or a local board shall submit 
an application to the Secretary at such time, in such man-
ner, and containing such information as the Secretary may 
require. In preparing such an application for a grant 
under subsection (b), a local board shall consult with the 
corresponding State. 
‘‘(d) REIMBURSEMENT OF WAGE RATES.—Notwith-
standing the limitation in section 101(31)(B), in making 
the grants described in subsection (b), the Secretary may 
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allow for higher levels of reimbursement of wage rates the 
Secretary determines are appropriate based on factors 
such as— 
‘‘(1) employer size, in order to facilitate the 
participation of small- and medium-sized employers; 
‘‘(2) target populations, in order to enhance job 
creation for persons with barriers to employment; 
and 
‘‘(3) the number of employees that will partici-
pate in the on-the-job training, the wage and benefit 
levels of the employees (before the training and an-
ticipated on completion of the training), the relation-
ship of the training to the competitiveness of the 
employer and employees, and the existence of other 
employer-provided training and advancement oppor-
tunities. 
‘‘(e) ADMINISTRATION
BY SECRETARY.—The Sec-
retary may use an amount that is not more than 1 percent 
of the funds made available under subsection (h) for the 
administration, management, and oversight of the pro-
grams, activities, and grants, funded under subsection (b), 
including the evaluation of, and dissemination of informa-
tion on lessons learned through, the use of such funds. 
‘‘(f) STATE OVERSIGHT AND MONITORING.—A local 
board that receives a grant under subsection (b) and is 
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located in a State, shall provide not less than 5 percent 
of the grant funds to the State for State functions de-
scribed in sections 136(f), 184, and 185. 
‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect the manner in which sub-
title B is implemented, for activities funded through 
amounts appropriated under section 137. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
such sums as may be necessary for fiscal year 2014 and 
each subsequent fiscal year. 
‘‘(i) AREAS NOT WITHIN CENSUS TRACTS.—In the 
case of an area which is not tracted for population census 
tracts, the equivalent county divisions (as defined by the 
Bureau of the Census for purposes of defining poverty 
areas) shall be used for purposes of determining median 
annual household income.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents in section 1(b) of the Workforce Investment 
Act of 1998 (20 U.S.C. 9201 note) is amended by insert-
ing after the item relating to section 173A the following 
new item: 
‘‘Sec. 173B. On-the-job training for economically and extremely economically 
disadvantaged areas.’’. 
Æ 
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