Leveling the Field for American Workers in U.S.-Mexico Trade

The U.S. Department of Labor, through its Bureau of International Labor Affairs (ILAB), Office of Trade and Labor Affairs (OTLA), has announced the availability of approximately ten million dollars under Funding Opportunity Announcement FOA-ILAB-25-43, Leveling the Field for American Workers in U.S.-Mexico Trade. This cooperative agreement seeks to reduce wage suppression and unfair labor practices in Mexico’s key trade sectors that undermine the competitiveness of American workers. ILAB’s mission is to promote fair labor conditions globally by enforcing labor provisions in trade agreements, ensuring U.S. workers and businesses benefit from a level playing field in international commerce. The purpose of this program is to strengthen enforcement of Mexico’s 2019 labor reform, particularly in three to five Mexican states, with a focus on industries directly tied to U.S.-Mexico trade. Applicants are expected to partner with state governments, private sector employers, and worker organizations to promote fair labor practices. Specific goals include supporting state labor authorities to enforce labor laws, helping employers develop compliance systems aligned with United States-Mexico-Canada Agreement (USMCA) requirements, and equipping workers to understand their rights, negotiate collectively, and pursue remedies when violations occur. Activities may involve capacity-building, compliance training, collaborative dialogues, and the creation of tools for monitoring and remediation of workplace violations. Funding will be provided through one cooperative agreement of up to ten million dollars, with a performance period of fifty-four months. ILAB will remain heavily involved in the project’s oversight, including review of work plans, monitoring and evaluation strategies, and sustainability planning. Award recipients must conduct in-country needs assessments and stakeholder consultations within the first six months to refine and validate project design. Allowable activities include labor law enforcement support, development of compliance tools, training for employers and workers, and convening state-level dialogues to share lessons and best practices. Applicants must allocate at least five percent of their budget for monitoring and evaluation, and dedicate funds to communications materials as required. Eligibility extends broadly to U.S. and non-U.S. entities, including nonprofits, for-profit organizations, higher education institutions, public international organizations, community-based groups, and faith-based organizations. Restrictions apply to organizations associated with terrorism, those debarred or suspended by the U.S. government, or foreign governments and agencies. Cost sharing or matching is not required. Multiple applications by the same organization are not allowed; however, applicants may participate as partners in another entity’s submission. Applications must be submitted electronically through Grants.gov by 11:59 p.m. Eastern Time on September 26, 2025. Applicants are encouraged to begin the registration process early to avoid delays, as a Unique Entity Identifier and active registration in the System for Award Management (SAM) are required. Questions related to the announcement must be submitted no later than ten business days prior to the closing date. Award decisions are anticipated between September 30 and December 31, 2025. Applicants must follow strict submission requirements, including providing a technical proposal (not exceeding fifty pages), a cost proposal, work plan, sustainability strategy, and evidence of country presence. Proposals will be evaluated on problem analysis, project strategy, sustainability, milestones, monitoring and evaluation capacity, work plan clarity, organizational qualifications, partnerships, and management structure. Applications will be reviewed by a merit panel and undergo risk assessment before final award determination. Award notices will be issued directly by the Department of Labor, with negotiations on staffing, funding, and program design occurring prior to finalization. For questions, applicants should contact the Office of Grants Management at ogm_ilab@dol.gov, referencing FOA-ILAB-25-43. Additional details are available on Grants.gov, and applicants are encouraged to consult the Management Procedures and Guidelines for ILAB cooperative agreements. Successful applicants will be required to comply with federal reporting requirements, including quarterly financial reports, semi-annual technical progress reports, and final closeout documentation at the end of the award period.