Passaic County Workforce Development Board
Individual Training Accounts (ITAs) Policy
Purpose
This policy governs the provision of Individual Training Accounts (ITAs) for participants in Workforce Innovation and Opportunity Act (WIOA) programs, including Out-of-School Youth aged 16–24.
Background
WIOA Title I-funded training services are delivered through ITAs to eligible participants. With ITA funds, participants may purchase training services from eligible providers of their choice, in consultation with a Career Training Services Provider. Participants should use resources such as skills assessments, labor market data, and training provider performance to actively shape their career paths through ITAs.
Policy
Eligible participants in Passaic County must: Attend Passaic County One-Stop Career Center, complete the initial intake, and meet with a Career Services Counselor to discuss available programs, needs, and goals. Individuals must be authorized to work in the United States. Be funded by ITAs only after: Completing an assessment that shows a training need leading to self-sufficiency or wages at or above the participant’s prior earnings and demonstrates the ability to successfully complete the chosen program. The customer will be provided all available provider cost and performance information to make an informed choice of training.
Completing an Individual Employment Plan (IEP) or Individual Service Strategy (ISS) that specifies the selected training program along with anticipated start and end dates.
Demonstrating that grant assistance from other sources is unavailable or insufficient to cover training costs, or that additional support beyond what is available from other sources is needed to achieve training goals.
Selecting training programs that are on the Eligible Training Provider List (ETPL) and align with in-demand industry sectors or occupations with strong potential for sustained demand and growth in the WDB local area.
Maintain satisfactory progress and academic performance.
The documentation of these requirements must be documented in the participant’s AOSOS record.
A. Coordinating WIOA Funds and Other Federal Assistance:
WIOA Training Providers should look for other grant sources to cover training costs, so WIOA funds add to, not replace, them. WIOA funding is for participants who cannot get other grant support to cover training costs, or who need more help than those grants provide. When deciding, consider the total cost of participating in training, including supportive services and related expenses. Other potential sources of grant assistance include: TANF-WorkFirst, Title IV programs (Pell Grants, Academic Competitiveness Grants, Federal Supplemental Educational Opportunity Grants, Federal Work-Study) and State-funded grants.
Veterans and spouses are not required to use VA education benefits before being considered for WIOA-funded training, and VA benefits do not need to be weighed in the eligibility decision. Training Providers must document in the participant file the availability of other grant sources (excluding loans) to pay training costs, ensuring WIOA funds supplement rather than supplant. It is not allowed for WIOA funds to pay down a participant’s personal loan. However, the existence of a federal loan, regardless of status, must not affect ITA eligibility decisions. Training Service Providers should collaborate with participants to identify opportunities to braid funding sources as appropriate, and they must record the availability and coordination of other training funds in the participant’s file.
B. ITA Authorization
An ITA must be approved by a WIOA Training Service Provider authorized representative before it is issued. The authorization must be documented in the participant’s record. ITAs may only be issued for training programs listed on the Eligible Training Provider List (ETPL), in accordance with WIOA Section 134(C)(F)(iii).
Note: ITAs may be used for pre-apprenticeship programs, but only if the program is ETPL-listed. ITAs may also be authorized for online training programs if the program is ETPL-listed.
C. Other Funding Mechanisms (besides ITAs)
There are funding options for training services that are not formal occupational skills training, including individualized services like workforce preparation activities or short-term pre-vocational services. These fall under WIOA Sections 134(d)(3)(C) and 134(d)(3)(C)(vi). Individualized services can include literacy support, internships, work experience, and other activities that may not provide formal occupational skills training and may not be appropriate for an ITA. Short-term prevocational services help prepare someone for work but don’t teach formal occupational skills.
ITAs aren’t available for individualized short-term prevocational training. These activities may cover skills like learning strategies, communication, interviewing, punctuality, personal upkeep, professional behavior, or other non-occupation-specific topics that prepare people for unsubsidized work or further training. See 20 FR 680.320 for guidance on ITA exceptions.
D. ITA Funding Limit:
In our area, the ITA limit is $7,500 for tuition. The ITA isn’t guaranteed money; the award amount and duration are decided case by case. Funding amount will take into account the total cost of the chosen program, any other financial help the participant has, and available WIOA funding. If other funds exist (Pell Grants, scholarships, severance pay, etc.), a program that costs more than the limit can still be funded. ITA funds cover training-related costs only, such as instructor pay and benefits, classroom space, materials, fees, testing and certification, tuition, books, and supplies or equipment listed on the ETPL.
E. ITA Continued Funding and Progress:
Continued ITA funding depends on: Availability of WIOA funds – The participant making satisfactory progress in their program, unless there is good cause. Training Service Providers must review the participant’s: Training progress and expenses every quarter. Training Service Providers must complete training progress reports in time to process payments. Any progress reports, transcripts, or other training updates should be part of the participant’s file. Training Service Providers, together with the participant, must create a service strategy to address barriers that hinder progress for those not achieving satisfactory progress in coursework. “Good cause” means any factors that would cause a reasonable person in similar circumstances to fail to make satisfactory progress (as determined by the program).
F. ITA Modifications:
An ITA can be adjusted to help the participant reach their educational goals and subsequent employment. In certain situations (e.g., when a program is removed from the ETPL, when extraordinary training costs arise, or during state/national emergencies), the participant and the career counselor must decide whether to: Complete the plan with the current provider, find a similar program, discontinue training. If a program is removed from the ETPL, participants in that program may complete their training. However: An ITA should not be modified or extended beyond the original plan approval for that former program. Training Service Providers must use discretion in implementing these changes to ensure alignment with the participant’s goals and funding rules.
G. Documentation Requirements:
The following items must be documented in case notes and reflected in the participant’s training record: Assessed results showing the training is needed, including evidence that the participant has the skills and qualifications to complete the training successfully, and the participant is unlikely or unable to obtain or retain self-sustaining employment or higher wages through career services alone.
Evidence that the chosen program will lead to employment with economic self-sufficiency or wages equal to or higher than prior earnings. Proof that the selected training is directly linked to an in-demand industry sector or occupations with strong growth or sustained demand in the local area.
Completed IEP (Adult and Dislocated Worker) or ISS (Out-of-School Youth, ages 16–24) documenting the chosen program, expected and actual study start/end dates, and training outcomes. Evidence that the participant cannot obtain grant funding from other sources to cover training costs, or requires assistance beyond available external grants.
Verification of FAFSA or other financial aid status, if applicable. Authorization of the Individual Training Account (ITA) and any approved modifications. Copies of transcripts, grades, progress reports, or other documents showing satisfactory training progress.
