Early Implementation of the Welfare-to-Work Grants Program: Report to Congress. Diverse Sources of Other Funds Are Being Tapped to Complement WtW Grants


To varying degrees, many of the organizations that have received WtW grants already have experience delivering similar services to low­income, disadvantaged populations and thus have developed other funding sources to conduct their work.  Grantees were asked to identify other funding sources that they expect to draw on, in combination with their WtW grant, to support their overall WtW services.  Sixty­five percent of survey respondents (270 grantees) reported that, during the first grant year, they plan to complement WtW dollars with funds from other sources.  JTPA funding and TANF block grants are the most common sources of complementary funding (Figure B.1).  PICs can use JTPA funding for WtW participants as long as these participants meet JTPA eligibility criteria, and, in many jurisdictions, PICs have been long­standing providers of services to welfare recipients under contract to human services agencies.5  A smaller proportion of grantees have support for WtW interventions from other state or municipal funds and One­Stop Center funds, and a few have support from foundations and private corporations.


Figure showing grantees plans for using other sources to complement first grant year.



1.  PICs or designated alternatives would receive 85 percent of the 75 percent of WtW funds that go to states under formula allocations.  States can designate alternative entities to administer WtW funds in particular SDAs, under Section 5001(a) of the BBA.

2.  Only three of these 33 organizations were among the 11 designated alternative entities included in the survey sample.  In other cases, respondents classified themselves as public service agencies, nonprofit groups, or "other" organizations.  All of these respondents appear to be the prime contractor for the appropriate JTPA administrative entity.

3.  Among survey respondents, 366 of the organizations that received formula grants reported their performance periods.  Of these, 66 (or 18.0 percent) reported performance periods of one year or less.  Periods of less than one year are most likely defined to extend to the end of the DOL program year in which the grant was awarded.

4.  Grantees were also asked to report the amount they would spend from grant funds in the first year of program operations, and those figures also suggest that average funding levels are lower for formula grants ($959,206) than for competitive grants ($1,495,184).

5.  All people on TANF are categorically eligible for the JTPA Title II-A Adult Training Program.