Reservations; Reallocation

(a) Reservations for statewide activities Section 128(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3163(a)) is amended— (1) in paragraph (2), by striking reserved amounts in each place and inserting reserved amounts required under paragraph (1); and (2) by adding at the end the following: (3) Critical industry skills fund, and industry sector partnership and career pathways development fund (A) Authorized reservation In addition to the reservations required under paragraph (1) and section 133(a)(2), and subject to subparagraph (B), the Governor may reserve not more than 10 percent of each of the amounts allotted to the State under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for a fiscal year to establish and administer any one, or both, of the following: (i) A critical industry skills fund described in section 134(a)(4). (ii) An industry or sector partnership and career pathways development fund described in section 134(a)(5). (B) Matching funds (i) Requirement The amount of funds reserved by a Governor under subparagraph (A) for a fiscal year may not exceed the amount of funds that such Governor commits to using from any of the funds listed in clause (ii) of this subparagraph for the purposes of establishing and administering the funds described in clauses (i) and (ii) of subparagraph (A) for such fiscal year. (ii) Sources of matching funds The funds listed in this clause are as follows: (I) Funds reserved by the Governor under paragraph (1) of this subsection. (II) Other Federal funds not described in subclause (I). (III) State funds.. (b) Reallocation among local areas Section 128(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended— (1) in paragraph (1), by inserting the following before the period at the end: as performance-based incentive payments; and (2) in paragraph (4)— (A) by striking that does not and inserting the following: that— (A) does not; (B) by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (B) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the youth program authorized under this chapter for the most recent program year for which performance data is available; and (C) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made..