When it comes to America’s future, the Department of Labor has decided to step up and make a bigger impact than ever before. The U.S. Department of Labor has announced a significant investment of up to $30 million to boost job training programs across America. This new wave of funding, administered through the Industry-Driven Skills Training Fund grant program, aims to tackle workforce shortages by supporting training in high-demand and emerging industries.
State Workforce Agencies are eligible for grants of up to $8 million each, with a special focus on employer-led training initiatives that not only upskill workers but also develop the talent pipelines businesses need to thrive in today’s competitive landscape.
Prioritizing American Workers
Guided by a commitment to equity and economic opportunity, the Administration is making record investments to ensure that every American has access to good-paying, future-ready jobs regardless of background or ZIP code.
“These grant opportunities will help fill the good-paying, in-demand jobs being created by President Trump’s successful efforts to restore America as the world’s leading manufacturing superpower and secure our position as the dominant global leader in AI,” said Secretary of Labor Lori Chavez-DeRemer.
The Targeted Industries
This program is focused on creating a skilled workforce for high-demand and emerging sectors that power the nation’s economic future. Targeted industries are artificial intelligence infrastructure, advanced manufacturing, nuclear energy, domestic mineral production, and information technology.
Notably, at least $5 million is explicitly dedicated to boosting the skilled workforce in shipbuilding, a sector critical to national security and the maritime economy.
The Industry-Driven Skills Training Fund Grant Program
This $30 million initiative to close workforce gaps in fast-growing sectors was designed as a public-private partnership. The grant program enables State Workforce Agencies to work closely with employers to identify critical skill needs and deliver tailored training programs that lead to real job outcomes.
“The Industry-Driven Skills Training Fund grants will ensure employers drive workforce training that is critical for their business needs, while also upskilling workers and developing a critical talent pipeline to fulfill this Administration’s goal of putting American workers and employers first,” said Chavez-DeRemer.
Up to $8 Million Per Award
Grants from $3 million to $8 million are awarded to states demonstrating strong industry partnerships and effective talent development strategies. At least 90% of each grant must be used to directly reimburse employers for costs associated with training new hires or upskilling incumbent workers, while the remaining 10% supports program operations.
Additional rounds of grants may be considered if more funding becomes available. Each award supports projects for up to 45 months, allowing recipients to design, launch, and scale impactful training initiatives.
Outcome-Based Reimbursement Model
This grant program uses an outcome-based reimbursement model, ensuring taxpayer dollars deliver tangible results. Under this model, employers are reimbursed for up to 80% of the actual cost of eligible training, but only when participants reach key milestones.
This two-step payment process incentivizes employers and training providers to focus on graduation and real employment outcomes.
Addressing Workforce Shortages
This initiative enables businesses to create and expand training pipelines for new entrants and incumbent workers, particularly in sectors struggling to find skilled talent. With training reimbursements tied to real job outcomes, employers are incentivized to prioritize recruitment, skill-building, and retention, effectively bridging the gap between available jobs and qualified workers.
Encouraging Training Expansion
The initiative supports employers in developing new training programs and expanding existing ones to reach a broader range of workers. The program incentivizes scalable, innovative training models, including classroom, customized, and on-the-job training, that are closely aligned with evolving industry needs. Businesses are encouraged to ramp up recruitment and upskilling efforts, confident that the outcome-based reimbursement system will reward demonstrated growth.
Why AI and Skilled Trades Matter
AI is revolutionizing industries by driving innovation, automating routine tasks, and enabling employers to make smarter, data-driven decisions. Its influence creates new roles focused on oversight, programming, and system optimization. In the same breath, skilled trades are essential in the modern economy.
They need physical dexterity, real-time problem-solving, and human judgment, which advanced machines and algorithms cannot fully replicate. Together, these sectors promise stronger job security, better wages, and new opportunities for career advancement.
Supporting State Workforce Agencies
By aligning projects with statewide workforce development strategies, including Workforce Innovation and Opportunity Act (WIOA) State Plans, agencies can design and manage customized programs that bring real skills training directly to the regions that need it most. State Workforce Agencies also ensure that everything runs smoothly.
Identifying key talent gaps, recruiting employers to participate, ensuring training aligns with industry demand, and tracking outcomes for continuous improvement.
Feedback from Labor Leaders
Acting Assistant Secretary Lori Frazier Bearden noted that these grants “will address critical workforce needs for in-demand skilled trade careers and in high-growth and emerging industries” by encouraging businesses to invest in training solutions that directly respond to rapidly evolving skill requirements. Labor leaders from various sectors also point to outcome-based reimbursement as a forward-thinking model, incentivizing both employer accountability and worker success.
Grant Application Process
State Workforce Agencies must submit complete electronic applications by September 5, 2025, including a detailed project narrative, SF-424 form, budget and budget narrative, implementation and oversight strategies, and evidence of industry partnerships. The project narrative should outline the target industries, service area, alignment with the Workforce Innovation and Opportunity Act (WIOA) State Plan, employer outreach and eligibility criteria, and strategies for ensuring training effectiveness and accountability.
Successful applicants enter a 60-day planning phase to finalize a comprehensive Statement of Work, including specific performance targets, staffing plans, and partnership agreements, before receiving grant funding.
Presidential Endorsement
Backed by Executive Order 14278, “Preparing Americans for High-Paying Skilled Trade Jobs of the Future” and the America’s AI Action Plan, the initiative directly reflects the White House’s commitment to developing a modern, resilient workforce. The presidential support ensures that workforce development remains a national priority tied to broader economic and technological leadership.
Equity in Opportunity
The DOL stresses the importance of equitable access, aiming to support a diverse range of American workers. According to SWACCA, “Eligible training participants must be: (1) a newly hired or incumbent worker who is employed with a participating employer seeking reimbursement; and (2) at least 17 years old and not currently enrolled in secondary school within a local educational agency.”
The initiative helps ensure equitable access to economic advancement, turning skills gaps into opportunities and contributing to more resilient, diverse, and vibrant communities nationwide.
Training Milestones and Metrics
Grantees must report quarterly on key performance metrics: the number of participants who complete training, earn recognized credentials, and are retained by their employer for at least six months. In addition, progress is measured using Workforce Innovation and Opportunity Act (WIOA) indicators, including employment rates in the second and fourth quarters after exit, median earnings, and credential attainment.
This data-driven approach goes beyond basic completion or enrollment numbers; it focuses on gaining job-relevant skills, long-term employment, and wage growth.
Strengthening Employer Engagement
Employers are actively involved at every stage: identifying the in-demand skills needed for their industries, shaping the design of training programs, and participating in program management and oversight. This model ensures that training is customized to real-world job requirements and that workers are equipped for immediate success upon program completion.
Employers as full stakeholders in the strategic planning and day-to-day delivery of training, the program addresses current skills shortages. It builds robust talent pipelines for long-term economic growth.
Success Stories Expected
As grants roll out, officials anticipate significant success stories of workers transitioning into high-paying, high-growth careers. Early outcomes will likely highlight trainees who attain industry certifications, secure good-paying jobs, and enjoy upward mobility, while companies benefit from increased productivity and a deepened talent pool. These stories will reflect how strategic investment and innovative workforce policy can unlock potential for thousands of Americans.
Ongoing Funding Possibilities
While the Department of Labor’s initial allocation of $30 million will be awarded in grants ranging from $3 million to $8 million to State Workforce Agencies, federal officials have indicated that additional funding rounds may be pursued should more resources become available. Leveraged resources can include public workforce system expertise, employer commitments, and co-enrollment with other federally funded programs.
Building Resilient Local Economies
Targeted grants empower regions to address skills shortages in priority industries, while connecting workers to good-paying, sustainable careers. As businesses expand training capacity and workers gain in-demand skills, local communities are better equipped to attract new industries and investment, foster innovation, and reduce unemployment.
A New Era for Job Training in America
The launch of the Industry-Driven Skills Training Fund marks the dawn of a new era for job training in America. Grounded in outcome-based models and committed to equity, this initiative promises to transform how talent is developed, making apprenticeship, credential attainment, and career mobility accessible nationwide.
It demonstrates a future-facing approach, where training responds dynamically to employers’ needs and regional economic imperatives, empowering individuals to build resilient, rewarding careers.