---
kind: "section"
citation: "29 U.S.C. § 3163"
title: "29"
title_heading: "Labor"
number: "3163"
heading: "Within State allocations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/3163"
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"
---

# §3163. Within State allocations

- (a) **Reservations for statewide activities—**
  - (1) **In general—** The [Governor](/usc/29/3102.md?p=22) shall reserve not more than 15 percent of each of the amounts allotted to the [State](/usc/29/3102.md?p=56) under [section 3162(b)(1)(C) of this title](/usc/29/3162.md?p=b-1-C) and paragraphs (1)(B) and (2)(B) of [section 3172(b) of this title](/usc/29/3172.md?p=b) for a fiscal year for statewide [workforce investment activities](/usc/29/3102.md?p=68).
  - (2) **Use of funds—** Regardless of whether the reserved amounts were allotted under [section 3162(b)(1)(C) of this title](/usc/29/3162.md?p=b-1-C), or under paragraph (1)(B) or (2)(B) of [section 3172(b) of this title](/usc/29/3172.md?p=b), the [Governor](/usc/29/3102.md?p=22) may use the reserved amounts to carry out statewide activities under [section 3164(b) of this title](/usc/29/3164.md?p=b) or statewide [employment and training activities](/usc/29/3102.md?p=19), for [adults](/usc/29/3102.md?p=2) or [dislocated workers](/usc/29/3102.md?p=15), under [section 3174(a) of this title](/usc/29/3174.md?p=a).
- (b) **Within State allocations—**
  - (1) **Methods—** The [Governor](/usc/29/3102.md?p=22), acting in accordance with the [State plan](/usc/29/3102.md?p=58), and after consulting with [chief elected officials](/usc/29/3102.md?p=9) and [local boards](/usc/29/3102.md?p=33) in the [local areas](/usc/29/3102.md?p=32), shall allocate the funds that are allotted to the [State](/usc/29/3102.md?p=56) for youth activities and statewide [workforce investment activities](/usc/29/3102.md?p=68) under [section 3162(b)(1)(C) of this title](/usc/29/3162.md?p=b-1-C) and are not reserved under [subsection (a)](#a), in accordance with paragraph [(2)](#b-2) or [(3)](#b-3).
  - (2) **Formula allocation—**
    - (A) **Youth activities—**
      - (i) **Allocation—** In allocating the funds described in [paragraph (1)](#b-1) to [local areas](/usc/29/3102.md?p=32), a [State](/usc/29/3102.md?p=56) may allocate—
        - (I) 33⅓ percent of the funds on the basis described in [section 3162(b)(1)(C)(ii)(I) of this title](/usc/29/3162.md?p=b-1-C-ii-I);
        - (II) 33⅓ percent of the funds on the basis described in [section 3162(b)(1)(C)(ii)(II) of this title](/usc/29/3162.md?p=b-1-C-ii-II); and
        - (III) 33⅓ percent of the funds on the basis described in clauses (ii)(III) and (iii) of [section 3162(b)(1)(C) of this title](/usc/29/3162.md?p=b-1-C).
      - (ii) **Minimum percentage—** The [local area](/usc/29/3102.md?p=32) shall not receive an allocation percentage for a fiscal year that is less than 90 percent of the average allocation percentage of the [local area](/usc/29/3102.md?p=32) for the 2 preceding fiscal years. Amounts necessary for increasing such allocations to [local areas](/usc/29/3102.md?p=32) to comply with the preceding sentence shall be obtained by ratably reducing the allocations to be made to other [local areas](/usc/29/3102.md?p=32) under this subparagraph.
      - (iii) **Definition—** In this subparagraph, the term “allocation percentage”, used with respect to fiscal year 2015 or a subsequent fiscal year, means a percentage of the funds referred to in [clause (i)](#b-2-A-i), received through an allocation made under this subparagraph, for the fiscal year. The term, used with respect to fiscal year 2013 or 2014, means a percentage of the funds referred to in section 128(b)(1) of the Workforce Investment Act of 1998 [[29 U.S.C. 2853(b)(1)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2853/b/1))] (as in effect on the day before July 22, 2014), received through an allocation made under paragraph (2) or (3) of section 128(b) of the Workforce Investment Act of 1998 (as so in effect), for the fiscal year 2013 or 2014, respectively.
    - (B) **Application—** For purposes of carrying out [subparagraph (A)](#b-2-A)—
      - (i) references in [section 3162(b) of this title](/usc/29/3162.md?p=b) to a [State](/usc/29/3102.md?p=56) shall be deemed to be references to a [local area](/usc/29/3102.md?p=32);
      - (ii) references in [section 3162(b) of this title](/usc/29/3162.md?p=b) to all [States](/usc/29/3102.md?p=56) shall be deemed to be references to all [local areas](/usc/29/3102.md?p=32) in the [State](/usc/29/3102.md?p=56) involved; and
      - (iii) except as described in [clause (i)](#b-2-B-i), references in [section 3162(b)(1) of this title](/usc/29/3162.md?p=b-1) to the term “excess number” shall be considered to be references to the term as defined in [section 3162(b)(2) of this title](/usc/29/3162.md?p=b-2).
  - (3) **Youth discretionary allocation—** In lieu of making the allocation described in [paragraph (2)](#b-2), in allocating the funds described in [paragraph (1)](#b-1) to [local areas](/usc/29/3102.md?p=32), a [State](/usc/29/3102.md?p=56) may distribute—
    - (A) a portion equal to not less than 70 percent of the funds in accordance with [paragraph (2)(A)](#b-2-A); and
    - (B) the remaining portion of the funds on the basis of a formula that—
      - (i) incorporates additional factors (other than the factors described in [paragraph (2)(A)](#b-2-A)) relating to—
        - (I) excess youth poverty in urban, rural, and suburban [local areas](/usc/29/3102.md?p=32); and
        - (II) excess unemployment above the [State](/usc/29/3102.md?p=56) average in urban, rural, and suburban [local areas](/usc/29/3102.md?p=32); and
      - (ii) was developed by the [State board](/usc/29/3102.md?p=57) and approved by the Secretary as part of the [State plan](/usc/29/3102.md?p=58).
  - (4) **Local administrative cost limit—**
    - (A) **In general—** Of the amount allocated to a [local area](/usc/29/3102.md?p=32) under this subsection and [section 3173(b) of this title](/usc/29/3173.md?p=b) for a fiscal year, not more than 10 percent of the amount may be used by the [local board](/usc/29/3102.md?p=33) involved for the [administrative costs](/usc/29/3102.md?p=1) of carrying out local [workforce investment activities](/usc/29/3102.md?p=68) under this subpart or subpart 3.
    - (B) **Use of funds—** Funds made available for [administrative costs](/usc/29/3102.md?p=1) under [subparagraph (A)](#b-4-A) may be used for the [administrative costs](/usc/29/3102.md?p=1) of any of the local [workforce investment activities](/usc/29/3102.md?p=68) described in this subpart or subpart 3, regardless of whether the funds were allocated under this subsection or [section 3173(b) of this title](/usc/29/3173.md?p=b).
- (c) **Reallocation among local areas—**
  - (1) **In general—** The [Governor](/usc/29/3102.md?p=22) may, in accordance with this subsection and after consultation with the [State board](/usc/29/3102.md?p=57), reallocate to eligible [local areas](/usc/29/3102.md?p=32) within the [State](/usc/29/3102.md?p=56) amounts that are made available to [local areas](/usc/29/3102.md?p=32) from allocations 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) (referred to individually in this subsection as a “local allocation”) and that are available for reallocation.
  - (2) **Amount—** The amount available for reallocation for a program year is equal to the amount by which the unobligated balance of the local allocation, 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 allocation for the prior program year.
  - (3) **Reallocation—** In making reallocations to eligible [local areas](/usc/29/3102.md?p=32) of amounts available pursuant to [paragraph (2)](#c-2) for a program year, the [Governor](/usc/29/3102.md?p=22) shall allocate to each eligible [local area](/usc/29/3102.md?p=32) within the [State](/usc/29/3102.md?p=56) an amount based on the relative amount of the local allocation for the program year for which the determination is made, as compared to the total amount of the local allocations for all eligible [local areas](/usc/29/3102.md?p=32) in the [State](/usc/29/3102.md?p=56) for such program year.
  - (4) **Eligibility—** For purposes of this subsection, an eligible [local area](/usc/29/3102.md?p=32) means a [local area](/usc/29/3102.md?p=32) that does not have an amount available for reallocation under [paragraph (2)](#c-2) for the program year for which the determination under [paragraph (2)](#c-2) is made.

## Source credit

(Pub. L. 113–128, title I, § 128, July 22, 2014, 128 Stat. 1502.)

## 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.

### Workforce Response Activities

Pub. L. 116–136, div. A, title III, § 3515, Mar. 27, 2020, 134 Stat. 407, provided that: Administrative Costs.—Notwithstanding section 128(b)(4) of the Workforce Innovation [and] Opportunity Act (29 U.S.C. 3163(b)(4)), of the total amount allocated to a local area (including the total amount allotted to a single State local area) under subtitle B of title I of such Act (29 U.S.C. 3151 et seq.) for program year 2019, not more than 20 percent of the total amount may be used for the administrative costs of carrying out local workforce investment activities under chapter 2 [29 U.S.C. 3161 et seq.] or chapter 3 [29 U.S.C. 3171 et seq.] of subtitle B of title I of such Act, if the portion of the total amount that exceeds 10 percent of the total amount is used to respond to a qualifying emergency.Rapid Response Activities.— Statewide rapid response.—Of the funds reserved by a Governor for program year 2019 for statewide activities under section 128(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3163(a)) that remain unobligated, such funds may be used for statewide rapid response activities as described in section 134(a)(2)(A) of such Act (29 U.S.C. 3174(a)(2)(A)) for responding to a qualifying emergency. Local boards.—Of the funds reserved by a Governor for program year 2019 under section 133(a)(2) of such Act (29 U.S.C. 3173(a)(2)) that remain unobligated, such funds may be released within 30 days after the date of enactment of this Act [Mar. 27, 2020] to the local boards most impacted by the coronavirus at the determination of the Governor for rapid response activities related to responding to a qualifying emergency. Definitions.—Except as otherwise provided, the terms in this section have the meanings given the terms in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).”

[For definitions of “qualifying emergency” and “coronavirus” as used in section 3515 of Pub. L. 116–136, set out above, see section 3502 of Pub. L. 116–136, set out in a note under section 1001 of Title 20, Education.]