Why Employers Need Action on WIOA Reauthorization and the Telehealth Expansion Act

Learn how WIOA reauthorization supports employer-driven skill development, combats talent shortages, and boosts U.S. competitiveness and economic growth.

As the end of the year approaches, a critical moment has arrived for employers across the country. Two key pieces of legislation—the reauthorization of the Workforce Innovation and Opportunity Act (WIOA) and the passage of the Telehealth Expansion Act—hang in the balance, and their fate could profoundly impact workplace readiness, productivity, and competitiveness.

The Importance of Reauthorizing WIOA

WIOA serves as the cornerstone of federal workforce development efforts. It brings together a network of stakeholders—federal, state, and local governments; community colleges; workforce boards; and private employers—all working in concert to cultivate a skilled labor force that drives economic growth. At its heart, WIOA aims to streamline and strengthen training programs, ensure accountability in outcomes, and align workforce initiatives with the real needs of employers.

WIOA’s Role in Workforce Development: Why Employers Should Care

Without WIOA reauthorization, critical programs that train and upskill workers risk stagnation. Employers could face an ongoing shortage of workers equipped with the necessary skills to excel in an increasingly complex and tech-driven economy. Over time, this leads to unfilled positions, higher recruitment costs, and diminished productivity. In particular, companies that rely on specialized skill sets—be it in advanced manufacturing, healthcare, IT, or logistics—could see their talent pipelines dry up without the supportive infrastructure WIOA provides.

WIOA is widely regarded as the primary federal vehicle for workforce development, shaping the infrastructure that equips America’s labor force with the skills demanded in today’s rapidly changing economy. By fostering partnerships among federal, state, and local governments, community colleges, workforce boards, and private employers, WIOA helps streamline training programs and align them with real-world job requirements. Research consistently shows that when workforce development initiatives are closely attuned to employer needs, both productivity and economic growth benefit.

Evidence of Impact on Skill Development and Competitiveness 

Peer-reviewed studies have underscored the value of well-structured workforce programs. According to an analysis published in the Journal of Labor Economics (2018), participants in federally funded workforce training programs were more likely to secure stable employment and earn higher wages compared to similar individuals who did not receive training. Another study in the Journal of Vocational Behavior (2019) found that aligning training curricula with employer-driven competencies led to a marked increase in job performance, job satisfaction, and long-term career retention. Moreover, data from the U.S. Department of Labor’s Employment and Training Administration (ETA) highlights WIOA’s tangible benefits. In Program Year 2020, WIOA Adult program participants who received training services had a 72.5% employment rate in the second quarter after exit—a clear indicator that these investments translate into real job placement outcomes. This is especially critical as many industries, including advanced manufacturing, information technology, healthcare, and logistics, continue to evolve at breakneck speed, demanding new and ever-changing skill sets. Without a robust system like WIOA to support the continuous updating and upgrading of worker competencies, employers could find themselves facing persistent talent shortages and escalating hiring costs.

Consequences of Letting WIOA Lapse 

Without WIOA reauthorization, the integrated network that currently channels skilled workers to employers risks fragmentation. A lapse could mean training programs become outdated, misaligned with current industry standards, or insufficiently funded to meet regional labor market demands. In practical terms, employers would struggle to fill positions that require specialized technical proficiencies, while newly created roles in emerging fields might go unfilled for extended periods. A shortage of adequately skilled candidates has downstream effects. Employers may be forced to invest heavily in in-house training—often at higher costs and with varying outcomes. Over time, this scenario leads to reduced competitiveness, slower innovation, and the possibility of losing market share to global competitors who invest more strategically in their workforce pipelines. A 2021 meta-analysis published in the International Journal of Training and Development supports this notion, finding that countries and regions with robust workforce development systems experience more sustainable economic growth and are better positioned to adopt new technologies without disruptive skill gaps.

The Employer’s Stake in WIOA Reauthorization 

If WIOA is reauthorized and modernized, it will also enhance employer engagement. Employers gain a stronger voice in shaping training curricula and influencing how workforce boards allocate resources. This collaborative model ensures that training is not only responsive but also anticipatory—preparing workers for emerging trends before skill shortages become crises. In other words, employers stand to benefit from a proactive system that reduces the guesswork in hiring, minimizes talent mismatches, and keeps the nation’s workforce one step ahead of global shifts in technology and consumer demand. In the absence of WIOA reauthorization, however, employers lose that crucial influence. The current synergy—where businesses can guide education and training providers to focus on in-demand skills—could weaken. Companies might find themselves reacting to talent shortfalls instead of helping prevent them, ultimately placing a drag on their own productivity and growth trajectories.

A Broader Economic Perspective 

The stakes extend beyond individual employers. Without the infrastructure that WIOA provides, entire sectors may struggle to adapt to changes in the global marketplace. A poorly skilled workforce is not only an employer problem; it’s a national economic concern. Studies published in the Industrial and Labor Relations Review have shown that systemic skill gaps can reduce GDP growth, limit innovation, and exacerbate income inequality. When workers can’t access quality training or when employers can’t find the skilled labor they need, everyone loses—consumers pay higher prices, regions lose potential investment, and the nation’s competitive edge dulls over time.

The Case for Swift Action 

Reauthorizing WIOA is about safeguarding America’s workforce pipeline and ensuring employers have a consistent, competent pool of talent. From peer-reviewed research to government data, the evidence is clear: workforce development systems like WIOA contribute to sustainable economic prosperity, better matching workers to jobs and helping companies thrive in an era of rapid technological change. By renewing and strengthening WIOA, Congress can empower employers to remain competitive, adapt to evolving market conditions, and maintain a skilled workforce capable of meeting the challenges of tomorrow’s economy. Without it, the risk of stagnation looms large—leading to talent shortages, higher operational costs, reduced competitiveness, and a diminished economic outlook for everyone involved.Additionally, WIOA reauthorization is poised to modernize existing systems, making them more flexible and responsive. This means employers would have a stronger voice in shaping training curricula and skill development initiatives. Without it, employers lose that crucial seat at the table, making it harder to cultivate a workforce that can adapt to evolving industry standards, meet shifting consumer demands, and remain globally competitive. Ultimately, failing to renew WIOA could trap the economy in a cycle of talent deficits and hinder the nation’s growth trajectory.

The Importance of Passing the Telehealth Expansion Act

The Telehealth Expansion Act would permanently extend pre-deductible coverage of telehealth services for workers enrolled in high-deductible health plans (HDHPs) paired with health savings accounts (HSAs). This measure is about more than just convenience—it’s about ensuring employees can access essential healthcare services, including mental health support, without significant financial barriers. Currently, this pre-deductible telehealth coverage is set to expire on December 31, 2024.

Why Should Employers Care?

Employers rely on a healthy workforce to maintain productivity and reduce absenteeism. Without the permanent extension provided by the Telehealth Expansion Act, employees with HDHP-HSAs might face steeper out-of-pocket costs for virtual visits, discouraging them from seeking timely care. Over time, untreated health conditions—both physical and mental—can worsen, leading to more significant medical interventions down the line, longer absences from work, and increased healthcare premiums for employers. For businesses operating in multiple locations, or for those with remote and hybrid teams, telehealth has become a lifeline, allowing employees to access care without taking extended time off. Eliminating or reducing pre-deductible coverage would create hurdles in this healthcare delivery model, potentially straining employee morale, increasing turnover, and eroding trust in employer-sponsored benefits. Simply put, maintaining telehealth flexibility helps employers keep their teams healthy, engaged, and ready to perform at their best.

The Cost of Inaction: A Ripple Effect on Competitiveness

If Congress does not act on both the WIOA reauthorization and the Telehealth Expansion Act, the ripple effects could be significant for employers:

1. Talent Shortages and Skill Gaps: Without a modernized workforce development system, businesses will struggle to find qualified candidates. Skills gaps will widen, forcing employers to invest more heavily in training, onboarding, and retention efforts, potentially eroding profit margins.

2. Increased Healthcare Costs and Absenteeism: If telehealth coverage becomes more restrictive, employees may delay seeking care, resulting in more costly interventions later and greater time away from work. This cycle undermines productivity, raises healthcare expenses, and can diminish an employer’s overall competitiveness.

3. Reduced Flexibility in Benefits Offerings: Employers that pride themselves on comprehensive benefit packages may find it harder to stand out in a tight labor market if telehealth accessibility is rolled back. This could impair recruitment strategies and weaken an organization’s position as an employer of choice.

4. Stifled Innovation and Growth: Both skilled talent and accessible healthcare options are essential ingredients for innovation. Without these elements, companies may struggle to adapt to market changes, adopt new technologies, and seize growth opportunities. The absence of robust training pipelines and flexible healthcare benefits can ultimately limit a company’s long-term success.

A Call to Action for Employers

The end of the year presents a critical window for employers to have their voices heard. Advocating for WIOA reauthorization and the Telehealth Expansion Act is not just about policy—it’s about shaping a future where businesses can thrive with the support of a skilled, healthy workforce.Employers can:

• Contact Members of Congress: Reach out to local representatives and senators, emphasizing the importance of these two legislative measures.

• Partner with Industry Groups: Join forces with other organizations and advocacy groups who are committed to improving workforce readiness and healthcare accessibility.

• Communicate with Employees: Inform staff about the importance of these policy changes, fostering a sense of shared purpose and demonstrating that their well-being and professional growth matter.

  
  

Charting a Path Forward

Briason Associates believes that strong workforce development policies, paired with accessible healthcare solutions, lay the groundwork for a resilient economy. Employers who invest time in advocacy can help ensure that workers remain competitive, healthy, and equipped to navigate a rapidly changing world.

The time for action is now. By advocating for WIOA reauthorization and the Telehealth Expansion Act, employers can help shape a future where opportunity, well-being, and innovation flourish—not just for their companies, but for the entire workforce and the communities they serve.

Briason Associates