; Reallocation (a) Reservations for statewide activities Section 128(a) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3173(a) ) is amended— (1) in paragraph (2), by striking reserved amounts in each place and inserting reserved amounts under paragraph (1) ; and (2) by adding at the end the following: (3) Statewide critical industry skills fund (A) Authorized reservation In addition to the reservations required under paragraph (1) and section 133(a)(2), and subject to subparagraph (B), the Governor may reserve not more than 10 percent of each of the amounts allotted to the State under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for a fiscal year to establish and administer a critical industry skills fund described in section 134(a)(4). (B) Matching funds (i) Requirement The amount of funds reserved by a Governor under subparagraph (A) for a fiscal year may not exceed the amount of funds that such Governor commits to using from any of the funds listed in clause (ii) for such fiscal year for the purposes of establishing and administering the critical industry skills fund for which funds are reserved under subparagraph (A). (ii) Sources of matching funds The funds listed in this clause are as follows: (I) Funds reserved by the Governor under paragraph (1) of this subsection. (II) Other Federal funds not described in subclause (I). (III) State funds. . (b) Reallocation among local areas Section 128(c) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3173(c) ) is amended— (1) in paragraph (1), by inserting the following before the period at the end: as performance-based incentive payments ; and (2) in paragraph (4)— (A) by striking that does not and inserting the following: that— (A) does not ; (B) by striking the period at the end and inserting a semicolon