Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker Program Allotments for Program Year (PY) 2026.

The Workforce Innovation and Opportunity Act Dislocated Worker Program allotments are federal formula funds administered by the U.S. Department of Labor, Employment and Training Administration. The PY 2026 guidance was issued through Training and Employment Guidance Letter No. 10-25 on April 28, 2026, to provide states and outlying areas with the requirements and allotment information needed to obtain federal funds for WIOA Title I Dislocated Worker employment and training activities. The guidance applies to State Workforce Agencies and state workforce liaisons and explains how the funds are made available, reported, and distributed. For PY 2026, the total amount appropriated for Dislocated Worker Activities is $1,396,412,000. After a $251,000 reduction for authorized set-asides, $1,396,161,000 remains available. Of that amount, $1,095,349,000 is available for state formula allotments, $3,490,403 is available for outlying areas, and $297,321,597 remains in the National Reserve. The National Reserve supports National Dislocated Worker Grants, technical assistance and training, demonstration projects, Workforce Opportunity for Rural Communities, Community College Grants, and outlying area Dislocated Worker allotments. The WIOA Dislocated Worker formula uses three equally weighted data factors for federal allotments to states: each state’s relative share of total unemployed individuals, relative share of excess unemployed individuals, and relative share of individuals unemployed for 15 weeks or more. The comparison period for all three factors is the 12-month period from October 2024 through September 2025. WIOA applies a 90 percent stop-loss minimum based on the prior year allotment percentage and a 130 percent stop-gain maximum based on the prior year allotment percentage. Funds are made available in two portions. For state formula funds, $235,553,000 is available for obligation on July 1, 2026, and $859,796,000 is available for obligation on October 1, 2026. For the National Reserve, $99,688,706 is available on July 1, 2026, and $197,632,891 is available on October 1, 2026. ETA will issue allotments through two Notices of Award under the PY 2026 WIOA grant agreement, one for July 1 funds and one for October 1 advance funds. States must distribute Dislocated Worker Activities funds among local workforce areas in accordance with WIOA section 133 and the approved State Plan, subject to the Governor’s reservation of up to 25 percent for statewide Rapid Response activities and the 15 percent limitation for statewide employment and training activities. The sub-state formula must use insured unemployment data, unemployment concentrations, plant closing and mass layoff data, declining industries data, farmer-rancher economic hardship data, and long-term unemployment data. A state may assign zero weight to a factor only when the approved State Plan explains why appropriate data are unavailable and how the formula remains equitable. To receive funds, states must submit an electronically signed SF-424 through Grants.gov under Funding Opportunity Number ETA-TEGL-10-25-DW, CFDA 17.278. The SF-424 is due 30 days from the TEGL issue date, which makes the calculated deadline May 28, 2026. The estimated funding section must reflect the exact state allotment shown in the attachment, and the SF-424 must include the applicable CFDA number and indirect cost information. States must maintain current SAM registration, and submission questions may be sent to WIOA-WP-WIG-ETAGrants@dol.gov.

Use the exact allotment amount from Attachment G or H; confirm SAM registration before submission; initiate Grants.gov submission early enough to resolve technical issues; include the Funding Opportunity Number in any submission question email