WIOA Title I-A & I-B Policy & Procedure Manual
Ch. 4) Fiscal Management

4.17 Expenditure Requirements for the Youth Program



4.17.1 Expenditure Requirement for Out-of-School Youth

Effective date: January 1, 2019

Local WDBs must expend at least 75 percent of their annual WIOA Youth formula allocation on youth workforce investment activities for out-of-school youth (OSY) during the two-year grant period.1 Local WDB administrative expenses are not included in the 75 percent OSY minimum expenditure calculation; therefore, the local WDB's OSY expenditure rate is calculated after subtracting funds spent on administrative costs.2

The 75 percent OSY expenditure requirement also applies to statewide youth activities.3 Only statewide funds spent on direct services to youth are subject to the OSY expenditure requirement.4 Demonstration projects related to meeting the education and employment needs of eligible youth are an allowable statewide activity and youth participating in such demonstration projects would be considered receiving direct services from statewide funds.5

Costs associated with the following statewide activities are not subject to the OSY expenditure requirement:

  • state administrative activities6
  • self-service activities (such as job searches, career exploration, or use of career center resources)7
  • providing assistance to local areas on redesignation of local areas and/or regional planning 8
  • providing additional assistance to local areas that have high concentrations of eligible youth9
  • monitoring and oversight activities10
  • providing technical assistance11
  • conducting evaluations for accountability measures and program effectiveness12
  • disseminating a list of eligible providers13
  • operating a fiscal and management accountability information system14

The OSY expenditure rate for statewide funds is calculated after subtracting funds that are not spent on direct services to youth.15

Note: States and local areas may choose to spend up to 100 percent of their WIOA youth funds on OSY.16




Direct Services

Effective date: January 1, 2019

Those services delivered by local program staff or service providers (e.g., staff-assisted services).

TEGL 21-16, p. 9