Incentives and Sanctions for State Performance

20 C.F.R. Part ..., Subpart B
in effectEffective: 2024-07-01

20 C.F.R. § 666.200 Under what circumstances is a State eligible for an Incentive Grant?

A State is eligible to apply for an Incentive Grant if its performance for the immediately preceding year exceeds: (a) The State's negotiated levels of performance for the required core indicators for the adult, dislocated worker and youth programs under title I of WIA as well as the customer satisfaction indicators for WIA title I programs; (b) The adjusted levels of performance for title II Adult Education and Family Literacy programs; and (c) The adjusted levels of performance under section 113 of the Carl D. Perkins Vocational and Technical Education Act (20 U.S.C. 2301 et seq.). (WIA sec. 503.)

20 C.F.R. § 666.205 What are the time frames under which States submit performance progress reports and apply for incentive grants?

(a) State performance progress reports must be filed by the due date established in reporting instructions issued by the Department. (b) Based upon the reports filed under paragraph (a) of this section, we will determine the amount of funds available, under WIA title I, to each eligible State for incentive grants, in accordance with the criteria of § 666.230. We will publish the award amounts for each eligible State, after consultation with the Secretary of Education, within ninety (90) days after the due date for performance progress reports established under paragraph (a) of this section. (c) Within forty-five (45) days of the publication of award amounts under paragraph (b) of this section, States may apply for incentive grants in accordance with the requirements of § 666.220.

20 C.F.R. § 666.210 How may Incentive Grant funds be used?

Incentive grant funds are awarded to States to carry out any one or more innovative programs under titles I or II of WIA or the Carl D. Perkins Vocational and Technical Education Act, regardless of which Act is the source of the incentive funds. (WIA sec. 503(a).)

20 C.F.R. § 666.220 What information must be included in a State Board's application for an Incentive Grant?

(a) After consultation with the Secretary of Education, we will issue instructions annually which will include the amount of funds available to be awarded for each State and provide instructions for submitting applications for an Incentive Grant. (b) Each State desiring an incentive grant must submit to the Secretary an application, developed by the State Board, containing the following assurances: (1) The State legislature was consulted regarding the development of the application. (2) The application was approved by the Governor, the eligible agency (as defined in WIA section 203), and the State agency responsible for vocational and technical programs under the Carl D. Perkins Vocational and Technical Education Act. (3) The State exceeded the State negotiated levels of performance for title I, the levels of performance under title II and the levels for vocational and technical programs under the Carl D. Perkins Vocational and Technical Education Act. (WIA sec. 503(b).)

20 C.F.R. § 666.230 How does the Department determine the amounts for Incentive Grant awards?

(a) We determine the total amount to be allocated from funds available under WIA section 174(b) for Incentive Grants taking into consideration such factors as: (1) The availability of funds under section 174(b) for technical assistance, demonstration and pilot projects, evaluations, and Incentive Grants and the needs for these activities; (2) The number of States that are eligible for Incentive Grants and their relative program formula allocations under title I; (3) The availability of funds under WIA section 136(g)(2) resulting from funds withheld for poor performance by States; and (4) The range of awards established in WIA section 503(c). (b) We will publish the award amount for eligible States, after consultation with the Secretary of Education, within 90 days after the due date, established under § 666.205(a), for the latest State performance progress report providing the annual information needed to determine State eligibility. (c) In determining the amount available to an eligible State, the Secretary, with the Secretary of Education, may consider such factors as: (1) The relative allocations of the eligible State compared to other States; (2) The extent to which the negotiated levels of performance were exceeded; (3) Performance improvement relative to previous years; (4) Changes in economic conditions, participant characteristics and proposed service design since the negotiated levels of performance were agreed to; (5) The eligible State's relative performance for each of the indicators compared to other States; and (6) The performance on those indicators considered most important in terms of accomplishing national goals established by each of the respective Secretaries.

20 C.F.R. § 666.240 Under what circumstances may a sanction be applied to a State that fails to achieve negotiated levels of performance for title I?

(a) If a State fails to meet the negotiated levels of performance agreed to under § 666.120 for core indicators of performance or customer satisfaction indicators for the adult, dislocated worker or youth programs under title I of WIA, the Secretary must, upon request, provide technical assistance, as authorized under WIA sections 136(g) and 170. (b) If a State fails to meet the negotiated levels of performance for core indicators of performance or customer satisfaction indicators for the same program in two successive years, the amount of the succeeding year's allocation for the applicable program may be reduced by up to five percent. (c) The exact amount of any allocation reduction will be based upon the degree of failure to meet the negotiated levels of performance for core indicators. In making a determination of the amount, if any, of such a sanction, we may consider factors such as: (1) The State's performance relative to other States; (2) Improvement efforts underway; (3) Incremental improvement on the performance measures; (4) Technical assistance previously provided; (5) Changes in economic conditions and program design; (6) The characteristics of participants served compared to the participant characteristics described in the State Plan; and (7) Performance on other core indicators of performance and customer satisfaction indicators for that program. (WIA sec. 136(g).) (d) Only performance that is less than 80 percent of the negotiated levels will be deemed to be a failure to achieve negotiated levels of performance. (e) In accordance with 20 CFR 667.300(e), a State grant may be reduced for failure to submit an annual performance progress report. (f) A State may request review of a sanction we impose in accordance with the provisions of 20 CFR 667.800.

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