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DOL/ETA RIN: 1205-AB15 Publication ID: Fall 1997 
Title: ●Welfare to Work Grants 
Abstract: The Employment and Training Administration is proposing to publish regulations covering the implementation of the Welfare-to-Work Grants Program. The Personal Responsibility and Work Opportunity Reconciliation Act reformed the Nation's welfare laws, when enacted in August 1996, by creating a new system of block grants to the States for Temporary Assistance for Needy families (TANF). Moving people from welfare to work is one of the primary goals of Federal welfare policy as well as one of five goals the Secretary of Labor has identified for the Department of Labor. Section 5001 of the Balanced Budget Act of 1997 authorized the Department of Labor to provide Welfare-to-Work Grants to States and local communities to create additional job opportunities for the hardest-to-employ recipients of TANF. The Welfare-to-Work Grants will be provided to the States through the use of a formula, and in a competitive process to local communities. A small amount of total grant funds will be set aside for special purposes: One percent for Indian tribes, 0.8 percent for evaluation; and $100 million for performance bonuses to successful States. ^PThe proposed regulations and other guidance will focus on providing maximum local flexibility. Guidance and regulations will reflect minimal amplification of the law and will be written only when further information or clarification is needed to make the program operational. Existing regulations and systems will be used wherever possible. Reporting requirements will assure program integrity and provide timely information for tracking performance against established standards. Performance standards established will be consistent with long-term goals and support potential evaluation criteria under a long-term evaluation. Products provided will seek to link welfare agencies and workforce development system agencies at the operational level of service provision to welfare recipients in order to maximize resources available and avoid duplication and overlap. Leveraging of non-Federal resources at the State and local level will be encouraged. ^PThese funds will allow States and local communities to help move eligible individuals into jobs by: job creation through public or private sector wage subsidies; on-the-job training; contracts with public or private providers of job readiness, job placement, and post-employment services; job vouchers for similar services; community service or work experience; or job retention and supportive services (if such services are not otherwise available). 
Agency: Department of Labor(DOL)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: Not yet determined     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 42 USC 603(a)(5)(C)(viii)   
Legal Deadline:
Action Source Description Date
Final  Statutory  90 days from enactment  11/03/1997 

Statement of Need: Since the passage of the Personal Responsibility and Work Opportunity Reconciliation Act, the President and the Congress recognized the need for a measure to complement the Temporary Assistance for Needy Families (TANF) block grant created as a result of the Act. On August 5, 1997, President Clinton signed into law the Balanced Budget Act of 1997, which authorized the Department of Labor to provide Welfare-to-Work Grants to States and local communities to create additional job opportunities for the hardest-to-employ recipients of TANF. The basic goal of the program is to move welfare recipients into unsubsidized jobs with good career potential for economic self-sufficiency. Welfare-to-Work formula and competitive grants provide States and local communities with an array of tools to help them accomplish this goal in ways that make sense and are most effective for their particular population needs. The Employment and Training Administration will issue regulations and other guidance, provide technical assistance, and establish performance standards which will drive State and local efforts towards the program's goal while still allowing maximum local flexibility. ^PSuccessful implementation of the Welfare Reform's efforts launched last year is a top Presidential priority. The Department of Labor and its partners must move quickly to mount this important new program. The law requires that regulations or other published guidance must be issued within 90 days.

Alternatives: Regulatory alternatives will be developed once determinations have been made with regard to the scope and nature of the regulatory guidance which will be necessary to carry out the new provisions.

Anticipated Costs and Benefits: Preliminary estimates of the anticipated costs of this regulatory action have not been determined at this time and will be determined at a later date. It is anticipated, however, that the successful implementation of this program will result in significant benefits to the nation. Welfare recipients will receive job placement and temporary, transitional employment opportunities leading to lasting employment and self-sufficiency. Employers will have ready access to a large pool of motivated, hard-working entry-level workers who will be eligible for job retention and support services to maintain employment. Businesses will be eligible to receive wage and on-the-job training subsidies when they hire the hard-to-employ welfare recipients.

Risks: This action does not affect public health, safety, or the environment.

Timetable:
Action Date FR Cite
Interim Final Rule  11/00/1997    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Local, State, Tribal 
Included in the Regulatory Plan: Yes 
Agency Contact: