---
kind: "section"
citation: "29 U.S.C. § 3162"
title: "29"
title_heading: "Labor"
number: "3162"
heading: "State allotments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/3162"
units:
  - "Chapter 32 — Workforce Innovation and Opportunity"
  - "Subchapter I — Workforce Development Activities"
  - "Part B — Workforce Investment Activities and Providers"
  - "Subpart 2 — youth workforce investment activities"
---

# §3162. State allotments

- (a) **In general—** The Secretary shall—
  - (1) for each fiscal year for which the amount appropriated under [section 3181(a) of this title](/usc/29/3181.md?p=a) exceeds $925,000,000, reserve 4 percent of the excess amount to provide [youth workforce investment activities](/usc/29/3102.md?p=71) under [section 3222 of this title](/usc/29/3222.md) (relating to migrant and seasonal farmworkers); and
  - (2) use the remainder of the amount appropriated under [section 3181(a) of this title](/usc/29/3181.md?p=a) for a fiscal year to make allotments and grants in accordance with [subsection (b)](#b).
- (b) **Allotment among States—**
  - (1) **Youth workforce investment activities—**
    - (A) **Native Americans—** From the amount appropriated under [section 3181(a) of this title](/usc/29/3181.md?p=a) for a fiscal year that is not reserved under [subsection (a)(1)](#a-1), the Secretary shall reserve not more than 1½ percent of such amount to provide [youth workforce investment activities](/usc/29/3102.md?p=71) under [section 3221 of this title](/usc/29/3221.md) (relating to Native Americans).
    - (B) **Outlying areas—**
      - (i) **In general—** From the amount appropriated under [section 3181(a) of this title](/usc/29/3181.md?p=a) for each fiscal year that is not reserved under [subsection (a)(1)](#a-1) and [subparagraph (A)](#b-1-A), the Secretary shall reserve not more than ¼ of 1 percent of such amount to provide assistance to the [outlying areas](/usc/29/3102.md?p=45) to carry out [youth workforce investment activities](/usc/29/3102.md?p=71) and statewide [workforce investment activities](/usc/29/3102.md?p=68).
      - (ii) **Limitation for outlying areas—**
        - (I) **Competitive grants—** The Secretary shall use funds reserved under [clause (i)](#b-1-B-i) to award grants to [outlying areas](/usc/29/3102.md?p=45) to carry out [youth workforce investment activities](/usc/29/3102.md?p=71) and statewide [workforce investment activities](/usc/29/3102.md?p=68).
        - (II) **Award basis—** The Secretary shall award grants pursuant to [subclause (I)](#b-1-B-ii-I) on a competitive basis and pursuant to the recommendations of experts in the field of employment and training, working through the Pacific [Region](/usc/29/3102.md?p=53) Educational Laboratory in Honolulu, Hawaii.
        - (III) **Administrative costs—** The Secretary may provide not more than 5 percent of the funds made available for grants under [subclause (I)](#b-1-B-ii-I) to pay the [administrative costs](/usc/29/3102.md?p=1) of the Pacific [Region](/usc/29/3102.md?p=53) Educational Laboratory in Honolulu, Hawaii, regarding activities assisted under this clause.
      - (iii) **Additional requirement—** The provisions of [section 1469a of title 48](/usc/48/1469a.md), permitting the consolidation of grants by the [outlying areas](/usc/29/3102.md?p=45), shall not apply to assistance provided to those areas, including Palau, under this subparagraph.
    - (C) **States—**
      - (i) **In general—** From the remainder of the amount appropriated under [section 3181(a) of this title](/usc/29/3181.md?p=a) for a fiscal year that exists after the Secretary determines the amounts to be reserved under [subsection (a)(1)](#a-1) and subparagraphs [(A)](#b-1-A) and [(B)](#b-1-B), the Secretary shall make allotments to the [States](/usc/29/3102.md?p=56) in accordance with [clause (ii)](#b-1-C-ii) for [youth workforce investment activities](/usc/29/3102.md?p=71) and statewide [workforce investment activities](/usc/29/3102.md?p=68).
      - (ii) **Formula—** Subject to clauses [(iii)](#b-1-C-iii) and [(iv)](#b-1-C-iv), of the remainder—
        - (I) 33⅓ percent shall be allotted on the basis of the relative number of [unemployed individuals](/usc/29/3102.md?p=61) in areas of substantial unemployment in each [State](/usc/29/3102.md?p=56), compared to the total number of [unemployed individuals](/usc/29/3102.md?p=61) in areas of substantial unemployment in all [States](/usc/29/3102.md?p=56);
        - (II) 33⅓ percent shall be allotted on the basis of the relative excess number of [unemployed individuals](/usc/29/3102.md?p=61) in each [State](/usc/29/3102.md?p=56), compared to the total excess number of [unemployed individuals](/usc/29/3102.md?p=61) in all [States](/usc/29/3102.md?p=56); and
        - (III) 33⅓ percent shall be allotted on the basis of the relative number of disadvantaged youth in each [State](/usc/29/3102.md?p=56), compared to the total number of disadvantaged youth in all [States](/usc/29/3102.md?p=56), except as described in [clause (iii)](#b-1-C-iii).
      - (iii) **Calculation—** In determining an allotment under [clause (ii)(III)](#b-1-C-ii-III) for any [State](/usc/29/3102.md?p=56) in which there is an area that was designated as a [local area](/usc/29/3102.md?p=32) as described in [section 3122(c)(1)(C) of this title](/usc/29/3122.md?p=c-1-C), the allotment shall be based on the higher of—
        - (I) the number of individuals who are age 16 through 21 in families with an income below the low-income level in such area; or
        - (II) the number of disadvantaged youth in such area.
      - (iv) **Minimum and maximum percentages and minimum allotments—** In making allotments under this subparagraph, the Secretary shall ensure the following:
        - (I) **Minimum percentage and allotment—** Subject to [subclause (IV)](#b-1-C-iv-IV), the Secretary shall ensure that no [State](/usc/29/3102.md?p=56) shall receive an allotment for a fiscal year that is less than the greater of—
          - (aa) an amount based on 90 percent of the allotment percentage of the [State](/usc/29/3102.md?p=56) for the preceding fiscal year; or
          - (bb) 100 percent of the allotments of the [State](/usc/29/3102.md?p=56) under section 127(b)(1)(C) of the Workforce Investment Act of 1998 [[29 U.S.C. 2852(b)(1)(C)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2852/b/1/C))] (as in effect on the day before July 22, 2014) for fiscal year 2014.
        - (II) **Small State minimum allotment—** Subject to subclauses [(I)](#b-1-C-iv-I), [(III)](#b-1-C-iv-III), and [(IV)](#b-1-C-iv-IV), the Secretary shall ensure that no [State](/usc/29/3102.md?p=56) shall receive an allotment under this subparagraph that is less than the total of—
          - (aa) <sup>3</sup>⁄<sub>10</sub> of 1 percent of $1,000,000,000 of the remainder described in [clause (i)](#b-1-C-i) for the fiscal year; and
          - (bb) if the remainder described in [clause (i)](#b-1-C-i) for the fiscal year exceeds $1,000,000,000, ⅖ of 1 percent of the excess.
        - (III) **Maximum percentage—** Subject to [subclause (I)](#b-1-C-iv-I), the Secretary shall ensure that no [State](/usc/29/3102.md?p=56) shall receive an allotment percentage for a fiscal year that is more than 130 percent of the allotment percentage of the [State](/usc/29/3102.md?p=56) for the preceding fiscal year.
        - (IV) **Minimum funding—** In any fiscal year in which the remainder described in [clause (i)](#b-1-C-i) does not exceed $1,000,000,000, the minimum allotments under subclauses [(I)](#b-1-C-iv-I) and [(II)](#b-1-C-iv-II) shall be calculated by the methodology specified in section 127(b)(1)(C)(iv)(IV) of the Workforce Investment Act of 1998 [[29 U.S.C. 2852(b)(1)(C)(iv)(IV)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2852/b/1/C/iv/IV))] (as in effect on the day before July 22, 2014).
  - (2) **Definitions—** For the purpose of the formula specified in [paragraph (1)(C)](#b-1-C):
    - (A) **Allotment percentage—** The term “allotment percentage”, used with respect to fiscal year 2015 or a subsequent fiscal year, means a percentage of the remainder described in [paragraph (1)(C)(i)](#b-1-C-i) that is received through an allotment made under [paragraph (1)(C)](#b-1-C) for the fiscal year. The term, used with respect to fiscal year 2014, means the percentage of the amount allotted to [States](/usc/29/3102.md?p=56) under section 127(b)(1)(C) of the Workforce Investment Act of 1998 [[29 U.S.C. 2852(b)(1)(C)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2852/b/1/C))] (as in effect on the day before July 22, 2014) that is received under such section by the [State](/usc/29/3102.md?p=56) involved for fiscal year 2014.
    - (B) **Area of substantial unemployment—** The term “area of substantial unemployment” means any area that is of sufficient size and scope to sustain a program of [workforce investment activities](/usc/29/3102.md?p=68) carried out under this part and that has an average rate of unemployment of at least 6.5 percent for the most recent 12 months, as determined by the Secretary. For purposes of this subparagraph, determinations of areas of substantial unemployment shall be made once each fiscal year.
    - (C) **Disadvantaged youth—** Subject to [paragraph (3)](#b-3), the term “disadvantaged youth” means an individual who is age 16 through 21 who received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed the higher of—
      - (i) the [poverty line](/usc/29/3102.md?p=49); or
      - (ii) 70 percent of the [lower living standard income level](/usc/29/3102.md?p=36-B).
    - (D) **Excess number—** The term “excess number” means, used with respect to the excess number of [unemployed individuals](/usc/29/3102.md?p=61) within a [State](/usc/29/3102.md?p=56), the higher of—
      - (i) the number that represents the number of [unemployed individuals](/usc/29/3102.md?p=61) in excess of 4.5 percent of the civilian labor force in the [State](/usc/29/3102.md?p=56); or
      - (ii) the number that represents the number of [unemployed individuals](/usc/29/3102.md?p=61) in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in such [State](/usc/29/3102.md?p=56).
    - (E) **Low-income level—** The term “low-income level” means $7,000 with respect to income in 1969, and for any later year means that amount that bears the same relationship to $7,000 as the Consumer Price Index for that year bears to the Consumer Price Index for 1969, rounded to the nearest $1,000.
  - (3) **Special rule—** For the purpose of the formula specified in [paragraph (1)(C)](#b-1-C), the Secretary shall, as appropriate and to the extent practicable, exclude college students and members of the Armed Forces from the determination of the number of disadvantaged youth.
- (c) **Reallotment—**
  - (1) **In general—** The Secretary shall, in accordance with this subsection, reallot to eligible [States](/usc/29/3102.md?p=56) amounts that are made available to [States](/usc/29/3102.md?p=56) from allotments made under this section or a corresponding provision of the Workforce Investment Act of 1998 for [youth workforce investment activities](/usc/29/3102.md?p=71) and statewide [workforce investment activities](/usc/29/3102.md?p=68) (referred to individually in this subsection as a “[State](/usc/29/3102.md?p=56) allotment”) and that are available for reallotment.
  - (2) **Amount—** The amount available for reallotment for a program year is equal to the amount by which the unobligated balance of the [State](/usc/29/3102.md?p=56) allotment, at the end of the program year prior to the program year for which the determination under this paragraph is made, exceeds 20 percent of such allotment for the prior program year.
  - (3) **Reallotment—** In making reallotments to eligible [States](/usc/29/3102.md?p=56) of amounts available pursuant to [paragraph (2)](#c-2) for a program year, the Secretary shall allot to each eligible [State](/usc/29/3102.md?p=56) an amount based on the relative amount of the [State](/usc/29/3102.md?p=56) allotment for the program year for which the determination is made, as compared to the total amount of the [State](/usc/29/3102.md?p=56) allotments for all eligible [States](/usc/29/3102.md?p=56) for such program year.
  - (4) **Eligibility—** For purposes of this subsection, an eligible [State](/usc/29/3102.md?p=56) means a [State](/usc/29/3102.md?p=56) that does not have an amount available for reallotment under [paragraph (2)](#c-2) for the program year for which the determination under [paragraph (2)](#c-2) is made.
  - (5) **Procedures—** The [Governor](/usc/29/3102.md?p=22) shall prescribe uniform procedures for the obligation of funds by [local areas](/usc/29/3102.md?p=32) within the [State](/usc/29/3102.md?p=56) in order to avoid the requirement that funds be made available for reallotment under this subsection. The [Governor](/usc/29/3102.md?p=22) shall further prescribe equitable procedures for making funds available from the [State](/usc/29/3102.md?p=56) and [local areas](/usc/29/3102.md?p=32) in the event that a [State](/usc/29/3102.md?p=56) is required to make funds available for reallotment under this subsection.

## Source credit

(Pub. L. 113–128, title I, § 127, July 22, 2014, 128 Stat. 1498.)

## Notes

### Editorial Notes

### References in Text

The Workforce Investment Act of 1998, referred to in subsec. (c)(1), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and was repealed by Pub. L. 113–128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. Pursuant to section 3361(a) of this title, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. For complete classification of the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see Short Title note set out under section 3101 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title.