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DOL/ETA RIN: 1205-AB15 Publication ID: Spring 2001 
Title: Welfare-to-Work (WTW) Grants 
Abstract: The Employment and Training Administration published interim final regulations on November 18, 1997, implementing 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. 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 and certain noncustodial parents. 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; and 0.8 percent for evaluation. Guidance and regulations reflect minimal amplification of the law and provide further information or clarification as needed to make the program operational. Existing regulations and systems are used wherever possible. Reporting requirements will assure program integrity and provide timely information for tracking performance. Leveraging of non-Federal resources at the State and local level is encouraged. These funds have allowed 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; short-term vocational educational training and 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: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 20 CFR 645   
Legal Authority: 42 USC 603(a)(5)(c)(ix)    PL 106-113, Division B, sec 1000(a)(4)   
Legal Deadline:
Action Source Description Date
Other  Statutory  for 1999 amendments.  01/01/2000 
Final  Statutory  90 days from enactment.  11/03/1997 

Statement of Need: 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 issued combined Final and Interim Final regulations to finalize the earlier rulemaking and to implement the 1999 Amendments. The passage of the Welfare-to-Work and Child Support Amendments of 1999 necessitated the publication of a new interim final rule to reflect the changes in eligibility and certain other areas.

Summary of the Legal Basis: Promulgation of these regulations is authorized by SSA section 403 (a)(1)(5)(C)(ix). Section 801(f) of HR 3424, the Welfare-to-Work and Child Support Amendments of 1999, enacted by section 1000(a)(4) of Division B of the Consolidated Appropriations Act for August 2000 (PL 106-113) authorizes interim final regulations to implement the changes made by those amendments.

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. 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  11/18/1997  62 FR 61587   
Interim Final Rule  01/11/2001  66 FR 2690   
Interim Final Rule Comment Period Extended to 4/11/01  02/12/2001  66 FR 9763   
Interim Final Rule Comment Period End  03/12/2001    
Final Rule  01/11/2001  66 FR 2689   
Final Rule Effective  02/12/2001    
Effective Date of Final Rule Delayed Until 4/13/01  02/12/2001  66 FR 9763   
Final Rule  07/00/2001    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Local, State, Tribal 
Federalism: No 
Included in the Regulatory Plan: Yes 
Agency Contact:
Dennis Lieberman
Director, Division of Welfare to Work
Department of Labor
Employment and Training Administration
200 Constitution Avenue NW, N4671, FP Building,
Washington, DC 20210
Phone:202 693-3375