2004 Public Policy Recommendation

Appropriate $33.5 million in FY 2005 for the Veterans Workforce Investment Program (VWIP).

U.S. Senators—All Senators—Write a letter to Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (Labor-H) Chair Arlen Specter (R-PA) and Ranking Member Tom Harkin (D-IA) urging them to include $33.5 million for the Veterans Workforce Investment Program (VWIP) in the “Chairman’s Mark” of the FY 2005 Labor-H appropriations measure.  Senators on the Appropriations Committee—Prepare to offer an amendment during markup of the FY 2005 Labor-H appropriations measure to increase funding for VWIP to $33.5 million.

U.S. Representatives—All Representatives—Write a letter to House Appropriations Committee Chairman C.W. Bill Young and Ranking Member David Obey (D-WI) expressing concern with the Committee’s decision to provide only level funding of $7.5  million for the Veterans Workforce Investment Program, and to urge them to increase funding to $533.5 million in a floor amendment to the Committee-passed measure.

Issue Status

The President’s FY 2005 Budget, submitted to Congress in February 2004, included $7.5 million for the Veterans Workforce Investment Program, the same level as appropriated to it in FY 2004. 

In late July, the Appropriations Committee of the House of Representatives approved an FY 2005 Labor-H appropriations measure with $7.5 million for VWIP.

The Senate Labor-H Subcommittee may mark-up its version of an FY 2005 Labor-H appropriations bill in early September.

Why this Matters

• VWIP ensures the provision of specialized services to veterans with serious barriers to employment who are likely to fall through the cracks of the traditional workforce investment system without significant supplemental assistance. 
• Both those agencies that receive VWIP funds and those hoping to apply face the problem of resource scarcity.
• Due to funding limitations, agencies and organizations receive VWIP funds in only 16 states.
• The need for the type of targeted assistance that VWIP offers is clearly needed in all states.
• Additionally, caps on the size of grant awards make it difficult for existing grantees to recruit and retain staff.  This limits program effectiveness and the collaborative process.

Background

The Veterans Workforce Investment Program (VWIP), within the Department of Labor’s Veterans Employment and Training Service (VETS), provides grants to states and community-based, faith-based, and local public organizations to offer workforce services targeted to veterans with service connected disabilities, with active duty experience in a war or campaign, recently separated from the service, or facing significant barriers to employment (including homelessness). 

At least 80 percent of total VWIP funds is distributed via competition.  State governments have traditionally been the exclusive eligible applicant for competitive funds.  The states then publish requests for proposals, to which local governments, workforce investment boards, and community organizations may respond.  The states monitor the projects and frequently provide matching funds to increase opportunities.  While matching funds are not required, applicants can gain up to ten points on their application if they demonstrate effective leveraging.  In 2003, VWIP competitive funds were awarded to state agencies in AL, CA, HI, IN, ME, MA, PA, TN, and TX.

VETS may reserve 20 percent of total VWIP funds for discretionary grants.  VETS uses discretionary funds for studies, demonstration projects, and additional funding to supplement competitive grants.  Discretionary grant applications are accepted directly from local governments, workforce investment boards, community-based, and faith-based organizations.  In 2003, VWIP discretionary funds were awarded to organizations in CA, DC, FL, MS, NY, SC, OH, PA, and VA.

VWIP was first authorized under the Job Training Partnership Act.  The program was subsequently reauthorized under Section 168 of the Workforce Investment Act (WIA).  Reauthorization of VWIP is pending as part of WIA reauthorization.

The FY 2004 appropriation for VWIP is $7.5 million.

Committees of Jurisdiction

Senate—Appropriations, Labor, Health and Human Services, Education, and Related Agencies Subcommittee.  Chair, Arlen Specter (R-PA); Ranking Member, Tom Harkin (D-IA).

House—Appropriations, Labor, Health and Human Services, Education, and Related Agencies Subcommittee.  Chair, Ralph Regula (R-OH); Ranking Member, David Obey (D-WI).

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