---
kind: "section"
citation: "29 U.S.C. § 3173"
title: "29"
title_heading: "Labor"
number: "3173"
heading: "Within State allocations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/3173"
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"
---

# §3173. Within State allocations

- (a) **Reservations for State activities—**
  - (1) **Statewide workforce investment activities—** The [Governor](/usc/29/3102.md?p=22) shall make the reservation required under [section 3163(a) of this title](/usc/29/3163.md?p=a).
  - (2) **Statewide rapid response activities—** The [Governor](/usc/29/3102.md?p=22) shall reserve not more than 25 percent of the total amount allotted to the [State](/usc/29/3102.md?p=56) under [section 3172(b)(2)(B) of this title](/usc/29/3172.md?p=b-2-B) for a fiscal year for statewide [rapid response activities](/usc/29/3102.md?p=51) described in [section 3174(a)(2)(A) of this title](/usc/29/3174.md?p=a-2-A).
- (b) **Within State allocation—**
  - (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—
    - (A) the funds that are allotted to the [State](/usc/29/3102.md?p=56) 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) under [section 3172(b)(1)(B) of this title](/usc/29/3172.md?p=b-1-B) and are not reserved under [subsection (a)(1)](#a-1), in accordance with paragraph [(2)](#b-2) or [(3)](#b-3); and
    - (B) the funds that are allotted to the [State](/usc/29/3102.md?p=56) 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) under [section 3172(b)(2)(B) of this title](/usc/29/3172.md?p=b-2-B) and are not reserved under paragraph [(1)](#a-1) or [(2)](#a-2) of subsection (a), in accordance with [paragraph (2)](#b-2).
  - (2) **Formula allocations—**
    - (A) **Adult employment and training activities—**
      - (i) **Allocation—** In allocating the funds described in [paragraph (1)(A)](#b-1-A) 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 3172(b)(1)(B)(ii)(I) of this title](/usc/29/3172.md?p=b-1-B-ii-I);
        - (II) 33⅓ percent of the funds on the basis described in [section 3172(b)(1)(B)(ii)(II) of this title](/usc/29/3172.md?p=b-1-B-ii-II); and
        - (III) 33⅓ percent of the funds on the basis described in clauses (ii)(III) and (iii) of [section 3172(b)(1)(B) of this title](/usc/29/3172.md?p=b-1-B).
      - (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 amount allocated to [local areas](/usc/29/3102.md?p=32) under paragraphs (2)(A) and (3) of section 133(b) of the Workforce Investment Act of 1998 [[29 U.S.C. 2863(b)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2863/b))] (as in effect on the day before July 22, 2014), received through an allocation made under paragraph (2)(A) or (3) of that section for fiscal year 2013 or 2014, respectively.
    - (B) **Dislocated worker employment and training activities—**
      - (i) **Allocation—** In allocating the funds described in [paragraph (1)(B)](#b-1-B) to [local areas](/usc/29/3102.md?p=32), a [State](/usc/29/3102.md?p=56) shall allocate the funds based on an allocation formula prescribed by the [Governor](/usc/29/3102.md?p=22) of the [State](/usc/29/3102.md?p=56). Such formula may be amended by the [Governor](/usc/29/3102.md?p=22) not more than once for each program year. Such formula shall utilize the most appropriate information available to the [Governor](/usc/29/3102.md?p=22) to distribute amounts to address the [State](/usc/29/3102.md?p=56)’s worker readjustment assistance needs.
      - (ii) **Information—** The information described in [clause (i)](#b-2-B-i) shall include insured unemployment data, unemployment concentrations, plant closing and mass layoff data, declining industries data, farmer-rancher economic hardship data, and long-term unemployment data.
      - (iii) **Minimum percentage—** The [local area](/usc/29/3102.md?p=32) shall not receive an allocation percentage for fiscal year 2016 or a subsequent 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.
      - (iv) **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-B-i), received through an allocation made under this subparagraph for the fiscal year. The term, used with respect to fiscal year 2014, means a percentage of the amount allocated to [local areas](/usc/29/3102.md?p=32) under section 133(b)(2)(B) of the Workforce Investment Act of 1998 [[29 U.S.C. 2863(b)(2)(B)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t29/s2863/b/2/B))] (as in effect on the day before July 22, 2014), received through an allocation made under that section for fiscal year 2014.
    - (C) **Application—** For purposes of carrying out [subparagraph (A)](#b-2-A)—
      - (i) references in [section 3172(b) of this title](/usc/29/3172.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 3172(b) of this title](/usc/29/3172.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-C-i), references in [section 3172(b)(1) of this title](/usc/29/3172.md?p=b-1) to the term “excess number” shall be considered to be references to the term as defined in [section 3172(b)(1) of this title](/usc/29/3172.md?p=b-1).
  - (3) **Adult employment and training discretionary allocations—** In lieu of making the allocation described in [paragraph (2)(A)](#b-2-A), in allocating the funds described in [paragraph (1)(A)](#b-1-A) 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 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) **Transfer authority—** A [local board](/usc/29/3102.md?p=33) may transfer, if such a transfer is approved by the [Governor](/usc/29/3102.md?p=22), up to and including 100 percent of the funds allocated to the [local area](/usc/29/3102.md?p=32) under paragraph [(2)(A)](#b-2-A) or [(3)](#b-3), and up to and including 100 percent of the funds allocated to the [local area](/usc/29/3102.md?p=32) under [paragraph (2)(B)](#b-2-B), for a fiscal year between—
    - (A) [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19); and
    - (B) [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19).
  - (5) **Allocation—**
    - (A) **In general—** The [Governor](/usc/29/3102.md?p=22) shall allocate the funds described in [paragraph (1)](#b-1) to [local areas](/usc/29/3102.md?p=32) under paragraphs [(2)](#b-2) and [(3)](#b-3) for the purpose of providing a single system of [employment and training activities](/usc/29/3102.md?p=19) for [adults](/usc/29/3102.md?p=2) and [dislocated workers](/usc/29/3102.md?p=15) in accordance with subsections (c) and (d) of [section 3174 of this title](/usc/29/3174.md).
    - (B) **Additional requirements—**
      - (i) **Adults—** Funds allocated under paragraph [(2)(A)](#b-2-A) or [(3)](#b-3) shall be used by a [local area](/usc/29/3102.md?p=32) to contribute to the costs of the one-stop delivery system described in [section 3151(e) of this title](/usc/29/3151.md?p=e) as determined under [section 3151(h) of this title](/usc/29/3151.md?p=h) and to pay for [employment and training activities](/usc/29/3102.md?p=19) provided to [adults](/usc/29/3102.md?p=2) in the [local area](/usc/29/3102.md?p=32), consistent with [section 3174 of this title](/usc/29/3174.md).
      - (ii) **Dislocated workers—** Funds allocated under [paragraph (2)(B)](#b-2-B) shall be used by a [local area](/usc/29/3102.md?p=32) to contribute to the costs of the one-stop delivery system described in [section 3151(e) of this title](/usc/29/3151.md?p=e) as determined under [section 3151(h) of this title](/usc/29/3151.md?p=h) and to pay for [employment and training activities](/usc/29/3102.md?p=19) provided to [dislocated workers](/usc/29/3102.md?p=15) in the [local area](/usc/29/3102.md?p=32), consistent with [section 3174 of this title](/usc/29/3174.md).
- (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 paragraph [(2)(A)](#b-2-A) or [(3)](#b-3) of subsection (b) or a corresponding provision of the Workforce Investment Act of 1998 for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19), or under [subsection (b)(2)(B)](#b-2-B) or a corresponding provision of the Workforce Investment Act of 1998 for [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19) (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—
    - (A) for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19) is equal to the amount by which the unobligated balance of the local allocation under paragraph [(2)(A)](#b-2-A) or [(3)](#b-3) of subsection (b) for such activities, at the end of the program year prior to the program year for which the determination under this subparagraph is made, exceeds 20 percent of such allocation for the prior program year; and
    - (B) for [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19) is equal to the amount by which the unobligated balance of the local allocation under [subsection (b)(2)(B)](#b-2-B) for such activities, at the end of the program year prior to the program year for which the determination under this subparagraph 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)—
    - (A) with respect to such available amounts that were allocated under paragraph [(2)(A)](#b-2-A) or [(3)](#b-3) of subsection (b), an amount based on the relative amount of the local allocation under paragraph [(2)(A)](#b-2-A) or [(3)](#b-3) of subsection (b), as appropriate, for the program year for which the determination is made, as compared to the total amount of the local allocations under paragraph [(2)(A)](#b-2-A) or [(3)](#b-3) of subsection (b), as appropriate, for all eligible [local areas](/usc/29/3102.md?p=32) in the [State](/usc/29/3102.md?p=56) for such program year; and
    - (B) with respect to such available amounts that were allocated under [subsection (b)(2)(B)](#b-2-B), an amount based on the relative amount of the local allocation under [subsection (b)(2)(B)](#b-2-B) for the program year for which the determination is made, as compared to the total amount of the local allocations under [subsection (b)(2)(B)](#b-2-B) 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) with respect to funds allocated through a local allocation for [adult](/usc/29/3102.md?p=2) [employment and training activities](/usc/29/3102.md?p=19), a [local area](/usc/29/3102.md?p=32) that does not have an amount of such funds available for reallocation 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 allocated through a local allocation for [dislocated worker](/usc/29/3102.md?p=15) [employment and training activities](/usc/29/3102.md?p=19), a [local area](/usc/29/3102.md?p=32) that does not have an amount of such funds 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, § 133, July 22, 2014, 128 Stat. 1516.)

## 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.