through the one-stop delivery system. . (d) Permissible local employment and training activities (1) Activities Section 134(d)(1)(A) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(d)(1)(A) ) is amended— (A) by amending clause (iii) to read as follows: (iii) implementation of a pay-for-performance contract strategy for training services, for which the local board may reserve and use not more than 40 percent of the total funds allocated to the local area under paragraph (2) or (3) of section 133(b), except that after 2 fiscal years of a local board implementing such pay-for-performance contract strategy, the local board may request approval from the Governor to reserve and use not more than 60 percent of the total funds allocated to the local area under paragraph (2) or (3) of section 133(b) for such strategy for the following fiscal year if the local board can demonstrate to the Governor the performance improvements achieved through the use of such strategy