June 29, 1983
NOTE TO: MR. BROUGHMAN
SUBJECT:Use of CDBG Funds as a Stipend for Persons in Job Training Programs
This is in response to your questions as to whether block grant funds may be used to pay stipends for enrollees in job training programs under the recently enacted Jobs Training Partnerships Act (JTPA). Unlike the CETA program (which was superseded by JTPA), training funds under JTPA cannot be used for stipends. You have asked for an opinion outside of a §570.204(c) context.
In the past, in connection with the CETA program, we determined that block grant funds could properly be used to pay for costs related to job training, including stipends for enrollees. Such activities were deemed eligible as public service activities under §570.201(e). Similarly, assuming that all other program requirements are met, we are of the opinion that block grant funds may properly be used under §570.201(e) to pay stipends for enrollees in job training programs under the JTPA. In this regard, we do not consider the proscription on the use of JTPA funds for enrollee stipends as a bar to such an expenditure under the block grant program.
Vincent R. Landau
Associate General Counsel
Block Grants Division