Employment and Training Services – Funding and Resources

INFORMATION MEMORANDUM

ACF-OCSS-IM-25-01

DATE: January 16, 2025

TO: State and Tribal IV-D Agencies

SUBJECT: Employment and Training Services - Funding and Resources

With publication of the Final Rule - Employment and Training Services for Noncustodial Parents in the Child Support Program  (PDF), OCSS advances its support of employment services for noncustodial parents to improve the effectiveness of the child support program. Federal financial participation (FFP) funds are now available to child support programs for designated employment and training services. 

This Information Memorandum provides funding and resource options to consider as you develop and implement an employment and training program. In addition to the FFP available under the Final Rule’s state and tribal plan options, funding is also available under 1115 waivers, incentive exemptions (for states), grant opportunities (for states), and by partnering with other agencies and private organizations. Funding from other sources provides added flexibility to develop a program best suited to the noncustodial parents in your jurisdiction.   

FUNDING

Federal Financial Participation (States and Tribes)

The Employment and Training Services Final Rule permits state and tribal programs, at their discretion and upon approval of the applicable IV-D plan amendment, to use FFP funding to provide any of the following services: job search assistance; job readiness training; job development and placement services; skills assessments to facilitate job placement; job retention services; work supports, such as transportation assistance, uniforms, and tools; and occupational training and other skills training directly related to employment.

• Funding stream: 
  • State programs: FFP is 66% and state funding is 34%. 
  • Tribal programs: FFP is 100%.
• Time limits: If the state or tribal program opts in, the funding may continue indefinitely.

Section 1115 Waivers (States and Tribes)

As an option for pursuing funding for employment and training services not eligible for FFP, you may request a Section 1115 waiver. OCSS can waive certain program requirements or funding restrictions for child support agencies to carry out time-limited activities aimed at improving children's financial well-being. See ACF-OCSS-IM-24-03 for details about the waiver authority, funding, and application process.

• Funding stream: 
  • States: FFP is 66%. The funding must be “new” and cannot take away from current IV-D funding levels. The waiver can authorize use of private funding as the state’s share. 
  • Tribes: Waivers are funded 100% with federal funds (effective Oct. 1, 2024).
• Time limits: The project time frame will be up to five years with new federal funding limited to $2 million.

Incentive Exemptions (States)

Another option for funding employment and training services not eligible for FFP is an incentive exemption. Upon a state’s request, OCSS may grant an exemption that would allow incentive payments to be used to fund work activities for noncustodial parents that are not eligible for FFP. States must submit requests in accordance with AT-20-01, Reinvesting Child Support Incentive Payments.

• Funding stream:
  • States: Incentive funds.  
• Time limits: Maximum of five years. 

Grant Opportunities (States)

Historically, OCSS and other federal agencies have offered demonstration grants to fund employment and training services. The rules and requirements for each grant are provided with each grant announcement. Most recently (August 2024), OCSS awarded the Next Generation Child Support Employment Services grant to eight child support agencies to develop and refine child support-led employment efforts to benefit noncustodial parents. 

Note: Effective Oct. 1, 2024, tribal child support agencies are no longer eligible to apply for discretionary grant funding because tribal project costs are covered by Title IV-D mandatory funding. Tribal agencies may instead apply for a waiver to conduct experimental, pilot, or demonstration projects (reference ACF-OCSS-TDCL-24-02).

Partnerships

Partnering with other agencies allows child support programs to broaden the types of services they provide to noncustodial parents. Other agencies may have available funding or existing employment programs that can be leveraged to support the noncustodial parents in your caseload.  Working with other agencies also enhances the coordination of services to prevent duplication of effort which is a requirement when using FFP.  Agencies that administer TANF, SNAP or Job Services might be valuable partners as you plan for funding and develop the parameters of your employment services program. 

In addition, there are private organizations that also help individuals prepare for and gain employment. For example, there may be fatherhood and reentry programs, community action agencies, community colleges, or other organizations already providing employment services in your area. OCSS encourages child support agencies to partner wherever possible with local American Job Centers to leverage their specialized experience and knowledge of job development and with labor organizations to access their employment and training services. 

Note: State agencies must comply with the requirements and limitations set forth in 45 CFR 304.30 regarding what may be considered as the state share in claiming federal reimbursement.

RESOURCES

Over the years, many projects have connected noncustodial parents to employment services.  These projects used a variety of funding sources, and they varied in their scope and approach.  Valuable information and guidance from previous projects are available on the OCSS website. 

Tribal Employment Pathways (Tribes)

The Tribal Employment Pathways initiative can help tribal child support programs plan and implement a program for employment and training services. The website provides information around funding models, designing an employment program, employment program partners, sample forms and templates, and links to trainings. The initiative does not provide funding.

Knowledge Works (States)

The Knowledge Works initiative helps state child support agencies implement or enhance a noncustodial parent employment program. The website shares trainings and resource documents from other existing program models. The website stores planning tools and trainings as well. The initiative does not provide funding.

OCSS encourages state and tribal child support programs to promote and strengthen employment and training services for noncustodial parents. The funding and resource options in this IM provide background and support for your efforts to help parents become financially self-sufficient and gain better outcomes for families. 

INQUIRIES: OCSS Regional Program Managers

Tanguler Gray
Commissioner
Office of Child Support Services