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In 1998, Congress passed the Workforce Investment Act (WIA), seeking to create a system connecting employ., educ., and train. serv. to better match job seekers to labor market needs. It allows train. and employ. programs to be designed and managed at the local level to meet the unique needs of local businesses and individuals. To determine how states and local areas are assisting dislocated workers (DW) under WIA, this report determines: how WIA has affected the serv. provided to DW at the local level; how funds set aside for rapid response and other statewide activities are used to assist DW under WIA; and whether the DW funding formula dist. funds to state in relation to their DW population. Charts and tables.