Industry-Driven Skills Training Fund Grant Program

The U.S. Department of Labor’s Employment and Training Administration (ETA) has announced the availability of approximately $30 million in funding through the Industry-Driven Skills Training Fund Grant Program. This program is designed to support State Workforce Agencies (SWAs) in addressing urgent workforce development needs by creating partnerships with eligible employers to deliver targeted training that aligns with rapidly evolving industry skill demands. This funding opportunity is part of a broader national effort to equip workers with the competencies needed for in-demand skilled trade careers and high-growth, emerging industries. It also supports national strategies outlined in Executive Order 14278, "Preparing Americans for High-Paying Skilled Trade Jobs of the Future," and America’s AI Action Plan. The primary objective of this grant is to provide performance-based reimbursement to employers for training costs related to both new and incumbent workers in high-priority sectors. These include shipbuilding, artificial intelligence (AI) infrastructure, advanced manufacturing, nuclear energy, domestic mineral production, and information technology, among others. At least $5 million of the total program funding is reserved specifically to support training in the shipbuilding industry. Grants will be awarded for amounts ranging from $3 million to $8 million, with up to 80% of individual training costs reimbursable upon achievement of training and employment milestones. Only State Workforce Agencies (SWAs) are eligible to apply, as they are uniquely positioned to develop statewide workforce strategies and administer WIOA Title I programs. SWAs that are currently designated as “at-risk” or under grant drawdown restrictions for other DOL grants are ineligible. Participating employers must operate within the applying state, be part of one or more priority industries, and commit to training new or current employees with an aim to build industry-aligned skill pipelines. Training participants must be employed with a participating employer and at least 17 years old, not currently enrolled in secondary school. Applications must be submitted electronically via Grants.gov no later than 11:59 PM ET on September 5, 2025. The anticipated grant period of performance is 45 months beginning October 1, 2025, and includes a 60-day planning phase post-award to finalize the Statement of Work, budget, and performance projections. Application packages must include the SF-424 form, project budget (SF-424A and narrative), an 8-page project narrative, and attachments such as a project abstract and performance documentation. Evaluation of applications will be conducted by a merit review panel and scored based on two main categories: Background and Management (up to 34 points) and Strategy and Innovation (up to 30 points), for a total of 64 points. Strong applicants will demonstrate evidence-based need for training in specified industries, a clear and data-driven implementation strategy, mechanisms for employer engagement, and a history of successful workforce training initiatives. Grantees are required to track both outcome and performance metrics including employment retention, credential attainment, and post-training earnings through the Workforce Integrated Performance System (WIPS). They will also be required to submit quarterly financial and narrative reports and may be selected for further evaluation by the Department. For further questions, applicants may contact Daniela Petchik, Grants Management Specialist, at petchik.daniela.m@dol.gov.

Ensure alignment with state workforce plans; describe innovative models and data-driven approaches to training outcomes.