Under the authorization of the Adult Education and Family Literacy Act (AEFLA), the federal government makes grants to states to support services to improve literacy and other basic skills among adults who are not enrolled in school. Commonly called "adult education," the activities funded by AEFLA provide educational services to adults at the secondary level and below, as well as English language training. AEFLA-supported adult education services are typically provided by local entities. Students include those seeking to develop basic skills, those seeking to obtain a secondary credential, and English language learners of various educational backgrounds. Curricula and other programmatic details vary based on local student needs and objectives. AEFLA programs are administered at the federal level by the U.S. Department of Education (ED) through its Office of Vocational and Adult Education (OVAE). AEFLA was originally enacted as Title II of the Workforce Investment Act of 1998 (WIA, P.L. 105-220 ). AEFLA authorized such sums as necessary to carry out its functions from FY1999 through FY20003. The General Education Provisions Act (GEPA) automatically extended AEFLA authorization through FY2004. After this extension expired, the programs authorized by the act continued to be funded through the annual appropriations process. In July 2014, AEFLA was reauthorized as Title II of the Workforce Innovation and Opportunity Act of 2014 (WIOA, P.L. 113-128 ). WIOA authorizes appropriations through FY2020. The AEFLA provisions of WIOA are scheduled to be incrementally implemented over the next several years. This means that, as of this writing, both the federal government and states are operating their adult education programs under the WIA provisions of AEFLA while preparing to implement the WIOA provisions. This report will focus on the WIOA provisions of AEFLA, though it will discuss prior WIA provisions as necessary. Note on terminology : Both WIA and WIOA authorized a group of workforce programs. In each law, Title II was called the Adult Education and Family Literacy Act. This report will refer to the prior adult education law as "the AEFLA provisions of WIA" and the 2014 provisions as "the AEFLA provisions of WIOA." The AEFLA provisions of WIOA maintained the general program structure established by the AEFLA provisions of WIA in 1998: the large majority of funding under the act is granted to state agencies that are required to subgrant the bulk of their federal funds to local agencies that provide the actual services. Smaller portions of the funds support activities of statewide and national significance. WIOA amended AEFLA to increase emphasis on transitions from adult education programs to employment and postsecondary education. As part of this increased emphasis, WIOA requires states to develop a unified state plan that coordinates and aligns the group of core WIOA-authorized workforce programs, including adult education. Previously, states developed a dedicated adult education plan. WIOA also aligns workforce programs by establishing a set of common performance indicators across the core WIOA programs that emphasizes employment outcomes and the attainment of credentials. Under prior law, adult education programs had their own set of indicators. WIOA authorizes AEFLA appropriations from FY2015 through FY2020. Nominal authorization levels increase each year. The authorization level for FY2015 is $577,667,000. Between FY2015 and FY2016, the authorization level increases 7.7%. Between FY2016 and FY2020, annual increases in authorization levels are between 2.1% and 2.4%. In FY2020, the authorization level is $678,640,000. Exact authorization levels for each year are in the "Authorization Level" row of Table 1 . Under the WIOA provisions, Section 202 of AEFLA specifies that the purpose of the legislation is to create a partnership between the federal government, states, and localities to provide services to (1) assist adults to become literate and obtain the knowledge and skills necessary for employment and economic self-sufficiency; (2) assist adults who are parents or family members to obtain the education and skills that- (A) are necessary to becoming full partners in the educational development of their children; and (B) lead to sustainable improvements in the economic opportunities for their family; (3) assist adults in attaining a secondary school diploma and in the transition to postsecondary education and training, including through career pathways; and (4) assist immigrants and other individuals who are English language learners in- (A) improving their- (i) reading, writing, speaking, and comprehension skills in English; and (ii) mathematics skills; and (B) acquiring an understanding of the American system of Government, individual freedom, and the responsibilities of citizenship. These provisions in WIOA represent an expansion of the purpose specified in the WIA version of AEFLA. Paragraph (3) expands the program purpose to include transition to postsecondary education and training. Paragraph (4) is a new provision in WIOA and has no direct counterpart in prior law. WIOA also amended the definition of "adult education" in statute to reflect an increased emphasis on the relationship between AEFLA-funded services and subsequent transitions to postsecondary education and employment. Under WIOA, adult education is defined as: [A]cademic instruction and education services below the postsecondary level that increase an individual's ability to— (A) read, write, and speak in English and perform mathematics or other activities necessary for the attainment of a secondary school diploma or its recognized equivalent; (B) transition to postsecondary education and training; and (C) obtain employment. Under WIA, the definition of adult education did not include employment or postsecondary education, though other provisions of the bill did mention these outcomes. Under the AEFLA provisions of WIOA, Sections 211 and 221 reserve or limit funds for specific purposes or activities. The collective effects of these provisions, as specified in statute, are summarized below. Total Appropriation Reservation for National Leadership Activities (2% of total appropriation) Unreserved funds (98% of total appropriation) English Literacy and Civics Education State Grants (12% of unreserved funds) Adult education state grant funds (88% of unreserved funds) Subgrants to local providers (at least 82.5% of adult education state grant funds) State leadership activities (up to 12.5% of adult education state grant funds) Administrative costs (up to 5% of adult education state grant) As noted in Table 1 , the AEFLA provisions of WIOA repealed two reservations that were enacted in the AEFLA provisions of WIA. Under the AEFLA provisions of both WIA and WIOA, statute specifies that the state grant funds that are allotted to the states are the funds that remain after the statutory reservations. As such, the repeals of two "off-the-top" reservations have the practical effect of increasing the portion of the AEFLA appropriation that is allotted to the states. Under the AEFLA provisions of WIOA, the 98% of the annual AEFLA appropriation that is not reserved for National Leadership Activities is granted to the states via two formula grants. Of the formula grant funds, 12% are reserved for English Literacy and Civics Education State Grants (EL-Civics) and allotted to the states via formula. (See the " English Literacy and Civics Education State Grants " section later in this report.) The remaining 88% of the unreserved funds is allocated to adult education state grants and allotted to the states using a second formula. The AEFLA provisions of WIOA specify a two-step process by which state grant funds are distributed. First, there is an initial allotment of $250,000 to each state and $100,000 to each eligible outlying area. The second step of the allotment process distributes the remainder of the funding by formula, which is based on each state's share of qualifying adults. Qualifying adults are individuals who are at least 16 years of age, are beyond the age of compulsory school attendance in their state, do not have a secondary school diploma or its recognized equivalent, and are not enrolled in secondary school. States must match their grants so that 25% of the state's total adult education resources are from non-federal sources. Non-federal matches may be cash or in-kind. In outlying areas, the non-federal share must be at least 12%. AEFLA's hold harmless provisions specify that states and outlying areas shall receive grants equal to at least 90% of the grant they received in the previous fiscal year. AEFLA's maintenance of effort provisions require each state and outlying area to expend at least 90% of what it spent in the prior year on adult education activities. WIOA did not change the factors, weights, or hold harmless provisions from the formula in the AEFLA provisions of WIA. Statute specifies that states may allocate up to 12.5% of their grants for state leadership activities and up to 5% for administrative expenses. At least 82.5% of their grants must be subgranted to local providers of adult education services. States may allocate up to 12.5% of their grants to state leadership activities (activities of statewide significance). The AEFLA provisions of WIOA specify four required state leadership activities: The alignment of adult education activities with other WIOA core programs and One-Stop partners to implement strategies identified in the unified state plan. (See " Unified State Plans " section later in this report.) The establishment or operation of professional development programs to improve instruction by local providers and dissemination of information and promising practices related to such programs.