President Clinton signed the School-to-Work Opportunities Act on May 4, 1994. The Act authorized $300 million for fiscal year 1995 and "such sums as may be necessary for each of the fiscal years 1996 through 1999." In 1994, eight states were awarded five-year implementation grants: Kentucky, Maine, Massachusetts, Michigan, New Jersey, New York, Oregon, and Wisconsin. All states received funds to plan and develop their programs in late 1993 and early 1994. In addition, 15 local partnerships were funded.

The following is a synopsis of the Act that quotes liberally from the Act itself. The administrative rules and regulations were not available at the time of publication. Readers are cautioned to consult the final rules and regulations when they do become available.

The rationale for the law included the finding by Congress (Sec. 2) that "three-fourths of high school students in the United States enter the workforce without baccalaureate degrees"; many lack "the academic and entry-level occupational skills necessary to succeed in the changing United States workplace, which is changing in response to heightened international competetition and new technologies." These same forces "which are ultimately beneficial to the nation are shrinking the demand for and undermining the earning power of unskilled labor." Unemployment among U.S. youths is "intolerably high and earnings of high school graduates have been falling relative to earnings of individuals with more education." At the same time, "a substantial number of youths in the United States, especially disadvantaged students, students of diverse racial, ethnic, and cultural backgrounds, and students with disabilities, do not complete high school." (In 1992, approximately 11 percent of youths age 16 to 24 had not completed high school and were not enrolled in school.)

"The United States lacks a comprehensive and coherent system to helps its youth . . . make an effective transition from school to career-oriented work or to further education and training." While many students have "part-time jobs, there is infrequent linkage" between these jobs and school-based learning or career planning for students. Work-based learning, "which is modeled after the time-honored apprenticeship concept, integrates theoretical instruction with structured on-the-job training, and this approach, combined with school-based learning, can be very effective in engaging student interest, enhancing skill acquisition, developing positive work attitudes, and preparing youths for high-skill, high-wage careers." Students "in the United States can achieve high academic and occupational standards, and many learn better and retain more when the students learn in context, rather than in the abstract." A final rationale for the law is that the "Federal government currently funds a series of categorical, work-related education and training programs, many of which serve disadvantaged youth, that are not administered as a coherent whole."