Pay-for-Performance (PfP) Incentive Payments Program

The Pay-for-Performance (PfP) Incentive Payments Program is a federal funding initiative administered by the U.S. Department of Labor’s Employment and Training Administration (ETA). Through this funding opportunity announcement (FOA-ETA-26-19), the Department seeks to disburse approximately $145 million in grants under cooperative agreements, ranging between $10 million and $40 million each. The program’s strategic objective is to accelerate the growth and scaling of Registered Apprenticeship Programs (RAPs) as part of the broader effort to meet the administration’s national workforce goals, including the aim to exceed one million active apprentices. The PfP Incentive Payments Program supports the implementation of several presidential executive orders by incentivizing Registered Apprenticeship sponsors through structured, performance-based payments. Applicants must submit proposals under one of two categories: Category 1 focuses on the rapid expansion of RAPs within designated industries (such as healthcare, IT, AI infrastructure, transportation, telecommunications, and shipbuilding), while Category 2 supports the scaling of RAPs across all other sectors not funded under Category 1 or the Department’s separate American Manufacturing Incentive Fund. Applicants are expected to direct at least 85% of their awarded funds toward incentive payments to RAP sponsors. These payments are linked to apprentice milestones, such as program enrollment, retention beyond 90 days, and optional progression benchmarks. Eligible lead applicants include a wide range of national and regional entities: state agencies, national labor management organizations, workforce intermediaries, economic development entities, professional consulting organizations, and consortia led by eligible entities. Partnerships are mandatory and must include national industry associations, regional associations, or national/regional employers operating in at least three or more states or territories. Faith-based and community-based organizations are encouraged to apply, provided they meet all other eligibility requirements. Applications must be submitted through Grants.gov by April 3, 2026, at 11:59 PM Eastern Time. All applications must consist of four parts: the SF-424 form, a detailed project budget (SF-424A and budget narrative), a project narrative submitted using the Department’s required PfP Incentive Plan template, and attachments including Letters of Commitment or Memoranda of Understanding from partners. A three-page project abstract is recommended but not mandatory. A pre-recorded applicant webcast will be made available by February 20, 2026, to provide further guidance. The anticipated start date for funded projects is July 1, 2026, with a four-year period of performance. Applicants are evaluated based on a 100-point scoring system, which considers factors such as the clarity of need, expected outcomes, project design, past performance, and budget justification. A rigorous review process will ensure alignment with program goals. Selected grantees must commit to transparent reporting and participate in DOL-led evaluations and annual assessments. Program outcomes include the number of new apprentices enrolled, the number of sponsors receiving payments, and national geographic coverage. The funding program does not require cost sharing or matching funds. However, applicants may list additional leveraged resources without scoring advantage. Payments to apprenticeship sponsors are only issued after apprentices have been enrolled for at least 90 days. The Department will coordinate with awardees during a 120-day implementation phase to finalize plans, determine eligible occupations, and establish verification and tracking systems. Applications that fail to meet eligibility criteria or submission requirements will be deemed non-responsive and not reviewed.

Applicants must use the official Incentive Plan template, meet the 85% fund usage rule, justify outcomes with labor market data, and clearly specify eligibility and payment structures.