Pay-for-Performance Incentive Payments Program

The Pay-for-Performance Incentive Payments Program is a discretionary funding initiative administered by the U.S. Department of Labor through its Employment and Training Administration. This program represents a strategic effort to expand and rapidly scale the National Apprenticeship System across the United States, targeting key industries vital to economic development and national competitiveness. The initiative aligns with the Administration’s overarching objective of surpassing one million active apprentices and is designed to support this goal through financial incentives distributed to Registered Apprenticeship sponsors. The program will fund up to five cooperative agreements with a four-year period of performance. Four of these awards will focus specifically on incentivizing apprenticeship sponsors in designated industries, which currently include AI, semiconductor manufacturing, nuclear energy infrastructure, shipbuilding, defense industrial base, information technology, healthcare, transportation, and telecommunications. These sectors were selected based on their strategic importance and existing apprenticeship infrastructure, allowing for rapid program expansion. The fifth cooperative agreement will support growth across additional industries outside the pre-designated sectors, incentivizing broader expansion and increased enrollment in apprenticeship programs through performance-based funding. Funding for this opportunity totals an estimated $145 million, with individual awards ranging between $10 million and $40 million. Awarded applicants will be responsible for managing and distributing incentive payments to apprenticeship sponsors based on enrollment benchmarks. The funding is intended to stimulate rapid apprenticeship growth, and recipients will need to operate or partner with entities capable of administering a robust payment management system that can handle the scale and complexity of the incentive structures involved. Eligible applicants include a wide range of organizations with a demonstrated capacity to manage apprenticeship or workforce development programs. These include state agencies and territories, national industry associations, labor management organizations, workforce intermediary organizations, consulting entities, and relevant consortia. Importantly, all applicants must include at least one national or regional industry association or a national/multi-regional employer partner, demonstrating strong industry support and partnership capacity. Faith-based organizations are explicitly encouraged to apply, and the Department emphasizes non-discriminatory practices in award selection and grant administration. As this is a forecasted opportunity, the full Funding Opportunity Announcement (FOA) is still under development. The estimated post date is January 29, 2026, with applications expected to be due by March 20, 2026, at 11:59 PM Eastern Time. The estimated start date for funded projects is July 1, 2026. During the forecast period, limited information will be made available; however, prospective applicants are encouraged to subscribe to updates via Grants.gov. Inquiries can be directed to the program’s dedicated inbox at [email protected]. The application and evaluation processes are expected to emphasize both organizational capacity and the ability to rapidly distribute and manage payments tied to apprenticeship enrollment outcomes. While specific evaluation criteria and required application components have not yet been released, applicants should prepare to demonstrate a comprehensive plan for partnership engagement, fiscal and administrative oversight, and systems for managing performance-based payments within the designated timeframe and budget.