---
kind: "section"
citation: "29 U.S.C. § 3172"
title: "29"
title_heading: "Labor"
number: "3172"
heading: "State allotments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/3172"
units:
  - "Chapter 32 — Workforce Innovation and Opportunity"
  - "Subchapter I — Workforce Development Activities"
  - "Part B — Workforce Investment Activities and Providers"
  - "Subpart 3 — adult and dislocated worker employment and training activities"
---

# §3172. State allotments

- (a) **In general—** The Secretary shall—
  - (1) make allotments and grants from the amount appropriated under [section 3181(b) of this title](/usc/29/3181.md?p=b) for a fiscal year in accordance with [subsection (b)(1)](#b-1); and
  - (2)
    - (A) reserve 20 percent of the amount appropriated under [section 3181(c) of this title](/usc/29/3181.md?p=c) for the fiscal year for use under [subsection (b)(2)(A)](#b-2-A), and under [sections 3223(b)](/usc/29/3223.md?p=b) (relating to [dislocated worker](/usc/29/3102.md?p=15) technical assistance), 3224(c) (relating to [dislocated worker](/usc/29/3102.md?p=15) projects), and [3225](/usc/29/3225.md) of this title (relating to national [dislocated worker](/usc/29/3102.md?p=15) grants); and
    - (B) make allotments from 80 percent of the amount appropriated under [section 3181(c) of this title](/usc/29/3181.md?p=c) for the fiscal year in accordance with [subsection (b)(2)(B)](#b-2-B).
- (b) **Allotment among States—**
  - (1) **Adult employment and training activities—**
    - (A) **Reservation for outlying areas—**
      - (i) **In general—** From the amount made available under [subsection (a)(1)](#a-1) for a fiscal year, 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).
      - (ii) **Applicability of additional requirements—** From the amount reserved under [clause (i)](#b-1-A-i), the Secretary shall provide assistance to the [outlying areas](/usc/29/3102.md?p=45) for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19) and statewide [workforce investment activities](/usc/29/3102.md?p=68) in accordance with the requirements of [section 3162(b)(1)(B) of this title](/usc/29/3162.md?p=b-1-B).
    - (B) **States—**
      - (i) **In general—** After determining the amount to be reserved under [subparagraph (A)](#b-1-A), the Secretary shall allot the remainder of the amount made available under [subsection (a)(1)](#a-1) for that fiscal year to the [States](/usc/29/3102.md?p=56) pursuant to [clause (ii)](#b-1-B-ii) for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19) and statewide [workforce investment activities](/usc/29/3102.md?p=68).
      - (ii) **Formula—** Subject to clauses [(iii)](#b-1-B-iii) and [(iv)](#b-1-B-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 [adults](/usc/29/3102.md?p=2) in each [State](/usc/29/3102.md?p=56), compared to the total number of disadvantaged [adults](/usc/29/3102.md?p=2) in all [States](/usc/29/3102.md?p=56), except as described in [clause (iii)](#b-1-B-iii).
      - (iii) **Calculation—** In determining an allotment under [clause (ii)(III)](#b-1-B-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 [adults](/usc/29/3102.md?p=2) in families with an income below the low-income level in such area; or
        - (II) the number of disadvantaged [adults](/usc/29/3102.md?p=2) 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-B-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 an amount based on 90 percent of the allotment percentage of the [State](/usc/29/3102.md?p=56) for the preceding fiscal year.
        - (II) **Small State minimum allotment—** Subject to subclauses [(I)](#b-1-B-iv-I), [(III)](#b-1-B-iv-III), and [(IV)](#b-1-B-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 $960,000,000 of the remainder described in [clause (i)](#b-1-B-i) for the fiscal year; and
          - (bb) if the remainder described in [clause (i)](#b-1-B-i) for the fiscal year exceeds $960,000,000, ⅖ of 1 percent of the excess.
        - (III) **Maximum percentage—** Subject to [subclause (I)](#b-1-B-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-B-i) does not exceed $960,000,000, the minimum allotments under subclauses [(I)](#b-1-B-iv-I) and [(II)](#b-1-B-iv-II) shall be calculated by the methodology specified in section 132(b)(1)(B)(iv)(IV) of the Workforce Investment Act of 1998 [[29 U.S.C. 2862(b)(1)(B)(iv)(IV)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2862/b/1/B/iv/IV))] (as in effect on the day before July 22, 2014).
      - (v) **Definitions—** For the purpose of the formula specified in this subparagraph:
        - (I) **Adult—** The term “[adult](/usc/29/3102.md?p=2)” means an individual who is not less than age 22 and not more than age 72.
        - (II) **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 [clause (i)](#b-1-B-i) that is received through an allotment made under this subparagraph 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 132(b)(1)(B) of the Workforce Investment Act of 1998 [[29 U.S.C. 2862(b)(1)(B)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2862/b/1/B))] (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.
        - (III) **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 subclause, determinations of areas of substantial unemployment shall be made once each fiscal year.
        - (IV) **Disadvantaged adult—** Subject to [subclause (V)](#b-1-B-v-V), the term “disadvantaged [adult](/usc/29/3102.md?p=2)” means an [adult](/usc/29/3102.md?p=2) 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—
          - (aa) the [poverty line](/usc/29/3102.md?p=49); or
          - (bb) 70 percent of the [lower living standard income level](/usc/29/3102.md?p=36-B).
        - (V) **Disadvantaged adult special rule—** 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 [adults](/usc/29/3102.md?p=2).
        - (VI) **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—
          - (aa) 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
          - (bb) 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).
        - (VII) **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.
  - (2) **Dislocated worker employment and training activities—**
    - (A) **Reservation for outlying areas—**
      - (i) **In general—** From the amount made available under [subsection (a)(2)(A)](#a-2-A) for a fiscal year, the Secretary shall reserve not more than ¼ of 1 percent of the amount appropriated under [section 3181(c) of this title](/usc/29/3181.md?p=c) for the fiscal year to provide assistance to the [outlying areas](/usc/29/3102.md?p=45).
      - (ii) **Applicability of additional requirements—** From the amount reserved under [clause (i)](#b-2-A-i), the Secretary shall provide assistance to the [outlying areas](/usc/29/3102.md?p=45) for [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19) and statewide [workforce investment activities](/usc/29/3102.md?p=68) in accordance with the requirements of [section 3162(b)(1)(B) of this title](/usc/29/3162.md?p=b-1-B).
    - (B) **States—**
      - (i) **In general—** The Secretary shall allot the amount referred to in [subsection (a)(2)(B)](#a-2-B) for a fiscal year to the [States](/usc/29/3102.md?p=56) pursuant to [clause (ii)](#b-2-B-ii) for [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19) and statewide [workforce investment activities](/usc/29/3102.md?p=68).
      - (ii) **Formula—** Subject to [clause (iii)](#b-2-B-iii), of the amount—
        - (I) 33⅓ percent shall be allotted on the basis of the relative number of [unemployed individuals](/usc/29/3102.md?p=61) in each [State](/usc/29/3102.md?p=56), compared to the total number of [unemployed individuals](/usc/29/3102.md?p=61) 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 individuals in each [State](/usc/29/3102.md?p=56) who have been unemployed for 15 weeks or more, compared to the total number of individuals in all [States](/usc/29/3102.md?p=56) who have been unemployed for 15 weeks or more.
      - (iii) **Minimum and maximum percentages and minimum allotments—** In making allotments under this subparagraph, for fiscal year 2016 and each subsequent fiscal year, the Secretary shall ensure the following:
        - (I) **Minimum percentage and allotment—** 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 an amount based on 90 percent of the allotment percentage of the [State](/usc/29/3102.md?p=56) for the preceding fiscal year.
        - (II) **Maximum percentage—** Subject to [subclause (I)](#b-2-B-iii-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) **Definitions—** For the purpose of the formula specified in this subparagraph:
        - (I) **Allotment percentage—** The term “allotment percentage”, used with respect to fiscal year 2015 or a subsequent fiscal year, means a percentage of the amount described in [clause (i)](#b-2-B-i) that is received through an allotment made under this subparagraph for the fiscal year.
        - (II) **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 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).
- (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 [employment and training activities](/usc/29/3102.md?p=19) 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 for programs funded under [subsection (b)(1)(B)](#b-1-B) (relating to [adult](/usc/29/3102.md?p=2) employment and training) or for programs funded under [subsection (b)(2)(B)](#b-2-B) (relating to [dislocated worker](/usc/29/3102.md?p=15) employment and training) is equal to the amount by which the unobligated balance of the [State](/usc/29/3102.md?p=56) allotments for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19) or [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19), respectively, 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 allotments 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 under paragraph (1)(B) or (2)(B), respectively, of [subsection (b)](#b) 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 under paragraph [(1)(B)](#b-1-B) or [(2)(B)](#b-2-B), respectively, of [subsection (b)](#b) 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) with respect to funds allotted through a [State](/usc/29/3102.md?p=56) allotment for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19), a [State](/usc/29/3102.md?p=56) that does not have an amount of such funds available for reallotment under [paragraph (2)](#c-2) for the program year for which the determination under [paragraph (2)](#c-2) is made; and
    - (B) with respect to funds allotted through a [State](/usc/29/3102.md?p=56) allotment for [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19), a [State](/usc/29/3102.md?p=56) that does not have an amount of such funds 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, § 132, July 22, 2014, 128 Stat. 1511; Pub. L. 114–18, § 2(d), May 22, 2015, 129 Stat. 213.)

## 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.

### Amendments

2015—Subsec. (b)(1)(B)(iv)(I), (2)(B)(iii)(I). Pub. L. 114–18 inserted “less than” after “fiscal year that is”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–18 effective as if included in the Workforce Innovation and Opportunity Act [Pub. L. 113–128], see § 2(f) of Pub. L. 114–18, set out as a note under section 3112 of this title.

### 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.