Pay-for-Performance Incentive Payments Program (PfP IPP)

The Pay-for-Performance Incentive Payments Program (PfP IPP), administered by the U.S. Department of Labor’s Employment and Training Administration (ETA), is a forthcoming federal funding initiative aimed at strengthening the Registered Apprenticeship system in the United States. This program represents a critical investment in workforce development, specifically targeting sectors deemed vital to national interests and economic competitiveness. The forecasted opportunity outlines a total program funding of $145 million, with awards ranging between $10 million and $40 million for selected applicants. The program is grounded in the current administration’s workforce priorities and is designed to incentivize apprenticeship sponsors through performance-based funding mechanisms. The primary goal of the PfP IPP is to rapidly scale and expand both new and existing Registered Apprenticeship programs. Four of the five cooperative agreements anticipated will focus on expanding apprenticeships within high-priority sectors, including AI/Semiconductor/Nuclear Energy Infrastructure, Shipbuilding and Defense Industrial Base, Information Technology, Healthcare, Transportation, and Telecommunication. The fifth agreement will focus on supporting broad, cross-sector expansion of apprenticeships across industries not covered in the aforementioned categories. All incentive payments will be tied to outcomes, particularly the number of new apprentices enrolled or increases in cohort sizes, depending on the agreement type. Applicants must demonstrate their capacity to manage substantial fiscal and administrative responsibilities and to operate a robust payment management system capable of distributing apprenticeship incentive payments at scale. Required partnerships must include at least one national or regional industry association or a multi-regional/national employer, demonstrating both industry engagement and capacity for large-scale implementation. Applications must detail how the partnership structure will support execution and how business relationships will be leveraged throughout the grant’s period of performance. The funding mechanism for this opportunity is a cooperative agreement, allowing for close federal oversight and collaboration throughout the four-year period of performance, beginning July 1, 2026. The estimated application opening date is January 29, 2026, with applications due by March 20, 2026, at 11:59 PM Eastern Time. Due to the program's performance-based nature and substantial funding amounts, rigorous application evaluation is expected, though specific evaluation criteria will be outlined in the final Funding Opportunity Announcement (FOA). Matching contributions are not required for this program. Currently in a forecasted stage, the FOA is under development, and limited public information is available beyond what is published. Interested applicants are encouraged to monitor Grants.gov for updates and to use the subscription function to receive notifications. All questions can be directed to the designated program contact via email. While additional supporting documents are not yet published, this initial notice provides a robust overview of program intentions and expectations, allowing potential applicants time to build partnerships and prepare internal infrastructure for the forthcoming application cycle.