Use of Individual Training Accounts

Individual Training Accounts (ITAs) are payment agreements established on behalf of an individual participant with a training provider for the provision of training services. ITAs are the primary method to be used for procuring training services for adults, dislocated workers, and some youth participants.

Participants purchase training services from eligible training providers they select in consultation with career planners. This includes discussion of program quality and performance information regarding the available eligible training providers. ITAs allow participants the opportunity to choose the training provider that best meets their needs. To receive funds from an ITA, the training provider must be on the Eligible Training Provider List (ETPL).

In order to enhance consumer choice in education and training plans, as well as to provide flexibility to service providers, youth program-funded ITAs may be used for out-of-school youth (OSY) ages 16-24, when appropriate. In-school youth (ISY) cannot use youth program-funded ITAs. However, ISY between the ages of 18 and 21 may co-enroll in the adult program and receive training services through an adult program-funded ITA.

Payments from Individual Training Accounts

Payments from ITAs may be made in a variety of ways, including the electronic transfer of funds through financial institutions, vouchers, or other appropriate methods. Payments also may be made incrementally, for example, through payment of a portion of the costs at different points in the training course. Under limited conditions, Local Workforce Development Board (WDB) may contract for these services, rather than using an ITA for this purpose.

Limitations on Individual Training Accounts

Local WDBs may impose limits on ITAs, such as limitations on the dollar amount and/or duration, and may be established in the following ways:

• There may be a limit for an individual participant that is based on the needs identified in the Individual Employment Plan or Individual Service Strategy, such as the participant’s occupational choice or goal and the level of training needed to succeed in that goal; or
• There may be a policy decision by the Local WDB to establish a range of amounts and/or a maximum amount applicable to all ITAs.

Limitations established by Local WDBs must be described in the local plan, but must not be implemented in a manner that undermines WIOA’s requirement that training services are provided in a manner that maximizes customer choice in the selection of an eligible training provider.

Exceptions to ITA limitations may be provided on a case-by-case basis. Allowable exceptions must be described in the local plan.

A participant may select training that costs more than the maximum amount available for ITAs under a local policy when other sources of funds are available to supplement the ITA. These other sources may include: Pell Grants, scholarships, severance pay, and other sources.

Individual Training Accounts and Registered Apprenticeships

Registered apprenticeships automatically qualify to be on a State’s ETPL. Accordingly, ITAs can be used to support placing participants in registered apprenticeship through quality pre-apprenticeship training and training services provided under a registered apprenticeship program.