Allowing transfers to support workforce development

(a) In general Section 404(d) of the Social Security Act (42 U.S.C. 604(d)) is amended— (1) in paragraph (1), by adding at the end the following: (C) Title I of the Workforce Innovation and Opportunity Act.; (2) in paragraph (2)— (A) in the heading, by striking subtitle 1 and inserting subtitle a; and (B) in subparagraph (A), by striking subtitle 1 and inserting subtitle A; and (3) in paragraph (3)— (A) in subparagraph (B)— (i) in the heading, by striking 1 of title xx and inserting a of title xx and title i of WIOA; and (ii) by striking 1 of title XX and inserting A of title XX or title I of the Workforce Innovation and Opportunity Act; and (B) by adding at the end the following: (C) Funds transferred to title I of WIOA program (i) Limitation on reservation of funds In the case of funds transferred under paragraph (1)(C) of this subsection, not more than 15 percent of the funds shall be reserved for statewide workforce investment activities referred to in section 128(a)(1) of the Workforce Innovation and Opportunity Act. (ii) Submission of combined State plan under WIOA If a State intends to transfer funds under paragraph (1)(C) of this subsection, the State shall— (I) submit to the Secretary and the Secretary of Labor a combined State plan pursuant to section 103 of the Workforce Innovation and Opportunity Act that covers the State program to be carried out pursuant to this part; and (II) in doing so, apply section 102(c)(3) of such Act to the programs referred to in section 103(a)(2)(B) of such Act covered by the combined plan.. (b) Effective date The amendments made by subsection (a) shall take effect on October 1, 2026.