Sec. 101. Formula grants
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Not later than 1 year after the date of the enactment of this Act, the Secretary shall award 5-year grants in accordance with subsection (b), to States to support efforts to— reduce and prevent unemployment; and limit the impact of disruptions (including economic-related, pandemic-related, automation-related, and trade-related disruptions and transitions due to business owner retirement) on labor markets. From the amount appropriated under section 105, the Secretary shall— reserve not more than 1/4 of 1 percent of such amount to provide assistance to the outlying areas to carry out the activities described in section 103; and make allotments to the States, for grants described in subsection (a), based on the formula in paragraph
(2)to— make allocations under subsection (c); and carry out the State activities described in subsection (d). The Secretary shall make an allotment in accordance with the formula in section 132(b)(1)(B)(ii) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3172(b)(1)(B)(ii) ), to each State that submits and obtains approval of a State plan under section 102. Subject to paragraph (2), the Governor of a State shall use a portion of not less than 60 percent of the allotment funds received under subsection (b)(2) to allocate funds to each local area in the State in accordance with section 133(b)(2)(A)(i) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3173(b)(2)(A)(i) ) to carry out the activities under section 103, in accordance with the State plan under section 102 and in consultation with the State board. The Governor of a State may use not more than 10 percent of the portion described in paragraph
(1)for administrative costs related to administering local activities described in paragraph (1). Subject to paragraph (2), the Governor of a State shall use the remaining amount of the allotment funds received under subsection (b)(2) not allocated under subsection
(c)to carry out the activities under section 103 in accordance with the State plan under section 102 and in consultation with the State board. The Governor of a State may use not more than 10 percent of the remaining amount described in paragraph
(1)for administrative costs related to carrying out State activities described in paragraph (1).
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