Under what circumstances may mechanisms other than Individual Training Accounts be used to provide training services?
20 C.F.R. § 680.320
in effectEffective: 2024-07-01(a) Contracts for services may be used instead of ITAs only when one or more of the following five exceptions apply, and the local area has fulfilled the consumer choice requirements of § 680.340:
(1) When the services provided are on-the-job-training (OJT), customized training, incumbent worker training, or transitional jobs.
(2) When the Local WDB determines that there are an insufficient number of eligible training providers in the local area to accomplish the purpose of a system of ITAs. The determination process must include a public comment period for interested providers of at least 30 days, and be described in the Local Plan.
(3) When the Local WDB determines that there is a training services program of demonstrated effectiveness offered in the area by a community-based organization or another private organization to serve individuals with barriers to employment, as described in paragraph (b) of this section. The Local WDB must develop criteria to be used in determining demonstrated effectiveness, particularly as it applies to the individuals with barriers to employment to be served. The criteria may include:
(i) Financial stability of the organization;
(ii) Demonstrated performance in the delivery of services to individuals with barriers to employment through such means as program completion rate; attainment of the skills, certificates or degrees the program is designed to provide; placement after training in unsubsidized employment; and retention in employment; and
(iii) How the specific program relates to the workforce investment needs identified in the local plan.
(4) When the Local WDB determines that it would be most appropriate to contract with an institution of higher education (see WIOA sec. 3(28)) or other provider of training services in order to facilitate the training of multiple individuals in in-demand industry sectors or occupations, provided that the contract does not limit consumer choice.
(5) When the Local WDB is considering entering into a Pay-for-Performance contract, and the Local WDB ensures that the contract is consistent with § 683.510 of this chapter.
(b) Under paragraph (a)(3) of this section, individuals with barriers to employment include those individuals in one or more of the following categories, as prescribed by WIOA sec. 3(24):
(1) Displaced homemakers;
(2) Low-income individuals;
(3) Indians, Alaska Natives, and Native Hawaiians;
(4) Individuals with disabilities;
(5) Older individuals, i.e., those aged 55 or over;
(6) Ex-offenders;
(7) Homeless individuals;
(8) Youth who are in or have aged out of the foster care system;
(9) Individuals who are English language learners, individuals who have low levels of literacy, and individuals facing substantial cultural barriers;
(10) Eligible migrant and seasonal farmworkers, defined in WIOA sec. 167(i);
(11) Individuals within 2 years of exhausting lifetime eligibility under TANF (part A of title IV of the Social Security Act);
(12) Single-parents (including single pregnant women);
(13) Long-term unemployed individuals; or
(14) Other groups determined by the Governor to have barriers to employment.
(c) The Local Plan must describe the process to be used in selecting the providers under a contract for services.
Source: eCFRURL: https://www.ecfr.gov/api/versioner/v1/full/2024-07-01/title-20.xmlFetched: 7/26/2026