Sec. 101. Formula grants to States and local areas
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For each fiscal year during a period described in section 2, to assist States and outlying areas, and to enable States and outlying areas to assist local areas, in carrying out subsidized public employment programs described in subsection
(b)for eligible youth, from the funds appropriated under section 103(1), the Secretary of Labor shall— make an allotment in accordance with section 127(b)(1)(C)(ii) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3162(b)(1)(C)(ii) ) to each State that meets the requirements of section 102 or 103 of such Act ( 29 U.S.C. 3112 , 3113); and award a grant to each outlying area that complies with the requirements of title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3101 et seq.) to carry out subsidized youth public employment programs for eligible individuals. Each State shall reserve 25 percent of the allotment received under paragraph (1)(A) to carry out statewide subsidized public employment programs described in subsection (b). A Governor of a State that receives an allotment under paragraph (1), in coordination with relevant State and local stakeholders, shall use any remaining amounts (after reserving funds under subparagraph (A)), to allocate funds to local areas, as long as not less than 65 percent of such remaining amount is allocated to— high-poverty local areas with the highest youth unemployment rate compared to other local areas in the State; and local areas with historically high levels of youth unemployment within the State. Funds allotted to States for statewide programs, and funds allocated to local areas under subsection (a), shall be used to carry out subsidized public employment programs described in paragraph
(3)that— lead to unsubsidized, full-time employment; or provide the necessary skills and competency attainment of at least 1 recognized postsecondary credential to further the education or career of youth participants. Of the funds described in paragraph (1): Not less than 60 percent of the funds for program year 2021 shall be used for wages and employment benefits to individuals employed in subsidized public employment programs funded under this section. Not less than 30 percent of the funds for program year 2021, and not less than 20 percent of such funds for any program year thereafter, shall be used to provide career services described in section 134(c)(2) of the Workforce Innovation and Opportunity Act, training services, or youth workforce investment activities. Any remaining funds may be used for administrative and other allowable costs (such as supplies, materials, equipment, and health and safety resources) incurred by the State or local area, as determined by the Secretary. Except as otherwise determined by the Secretary, the following conditions shall apply to each subsidized public employment program funded under this section: Only youth residing within the State or local area providing funding for the program shall be employed by such program, and the public services provided under such program, to the extent feasible, shall be designed to benefit the residents of such State or local area. Priority in filling jobs available under such program shall be given to— eligible youth who is an individual with a barrier to employment (including youth of color, opportunity youth or out-of-school youth, low-income youth, youth impacted by the juvenile or adult criminal justice systems, and underemployed youth); and eligible youth who are recipients of public assistance (or from a family receiving such assistance) or who are eligible for public assistance (or from a family eligible for such public assistance) but not receiving such assistance. Each individual employed under such program shall be a wage, which shall at least be the highest of the following: $12 an hour. The minimum wage under the applicable State or local minimum wage law. The prevailing rates of pay for individuals employed in similar occupations by the same employer. The minimum wage according to the amendments made to section 6 of the Fair Labor Standards Act of 1938, as proposed by H.R. 582 (116th Congress). With respect to a wage determined under subparagraph (C), the Secretary may promulgate regulations to increase such wage after consideration of industry, geographical region, skill requirements, and individual proficiency. An individual may self-attest to meeting the requirements to be an eligible youth, or to receive priority consideration under subparagraph (B), and verification of such eligibility may occur after the individual is employed under the program. Earnings from such program shall not be regarded as income and shall not be regarded as a resource for the month of receipt and the following 12 months, for purposes of determining the eligibility of the participant (or the participant’s spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. Such program shall coordinate with the workforce systems and activities promoted by the State or local board to connect eligible youth to educational or career opportunities. Such program shall establish or expand diversity and inclusion opportunities and collect disaggregated data on related efforts. To be an eligible youth, an individual shall be an in-school youth or an out-of-school youth.
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