Direct Care Workforce Innovation Grant Program

The Direct Care Workforce Innovation Program is administered by the Maryland Department of Labor through its Division of Workforce Development and Adult Learning (DWDAL). The program was established in 2021 by the Maryland General Assembly to address a critical shortage in the direct care workforce by supporting innovative projects that enhance recruitment and retention of direct care workers across the state. The program specifically aims to strengthen Maryland’s healthcare and human services sectors by increasing the availability of qualified professionals to provide essential, hands-on care to vulnerable populations. This grant initiative is designed to provide matching funds to eligible applicants who propose projects focused on overcoming employment barriers and improving workforce outcomes for direct care workers. Eligible applicants include nonprofits, labor organizations, direct care employers, and entities with shared labor-management oversight. These applicants must either have an established track record in recruiting or training direct care workers or must partner with a qualifying training provider to develop a new initiative. Special consideration is given to proposals that benefit Maryland’s designated ENOUGH communities—areas with high child poverty rates that are prioritized under the state’s place-based poverty reduction strategy. Projects funded through this program must develop and implement strategies for the recruitment, retention, or advancement of direct care workers. Grant funds may be used to provide stipends for training, direct financial support to participants through allowable supportive services, and limited administrative costs (capped at 10%). At least five percent of the award must be used for direct financial support to participants, such as transportation, uniforms, childcare, union initiation fees, or other approved barrier removal services. Projects must be supplementary in nature and cannot replace existing funding streams. The maximum award amount is $50,000 per year for up to three years. The application requires a detailed project plan that outlines labor market needs, outreach strategies, innovative training or support models, career planning integration, data tracking systems, and consultation efforts with stakeholders including direct care workers and their communities. Applications must demonstrate how proposed benefits and services will be offered at no cost to program participants. Letters of support are required based on applicant type, and collaborative efforts with state agencies, educational institutions, and community organizations are strongly encouraged. Applications opened on January 30, 2026, and are due by April 3, 2026. A virtual pre-proposal conference is scheduled for February 11, 2026, to provide additional guidance to applicants. All application materials must be submitted electronically to the designated Program Manager, and late submissions will not be considered. Grants will be awarded based on a competitive review process conducted by a panel including DWDAL leadership and representatives from the Maryland Department of Health. Notifications of approval or denial will be sent via email, and successful applicants must enter into grant agreements and begin programmatic activities starting June 1, 2026. The program operates on a cost-reimbursement basis, and selected grantees must submit monthly fiscal and program reports to remain eligible for ongoing funding. Reports must document participant outcomes, expenditures, employer and participant satisfaction, and performance indicators such as job placement, credential attainment, and measurable skills gain. Compliance with data security, nondiscrimination, and record retention policies is strictly enforced, and monitoring activities are conducted by MD Labor to ensure accountability and transparency throughout the grant cycle.