Pay-for-Performance Incentive Payments Program FOA-ETA-26-19.pdf

U.S. DEPARTMENT OF LABOR

Employment and Training Administration

NOTICE OF AVAILABILITY OF FUNDS AND FUNDING OPPORTUNITY

ANNOUNCEMENT FOR: Pay-for-Performance Incentive Payments Program

ANNOUNCEMENT TYPE: Initial

FUNDING OPPORTUNITY NUMBER: FOA-ETA-26-19

ASSISTANCE LISTING NUMBER: 17.285

Submit all applications in response to this announcement through https://www.grants.gov.

FUNDING DETAIL:

Expected Total Available Funding $145,000,000

Expected Number of Awards 5

Funding Range Per Award $10,000,000–$40,000,000

Awards made under this Announcement are subject to the availability of federal funds. In the event that additional funds become available, we reserve the right to use these funds to select more grantees from the applications submitted in response to this Announcement.

KEY DATES:

Application Deadline 04/03/2026. We must receive applications no later than 11:59 pm Eastern Time.

Expected Period of Performance Start Date 07/01/2026

Period of Performance Length 48

On approximately February 20, 2026, a pre-recorded Prospective Applicant Webcast will be available at https://www.dol.gov/agencies/eta/grants/apply/find-opportunities and available for viewing any time after that date. While review of this Webcast is strongly encouraged to support successful grant applications, it is not mandatory.

https://www.dol.gov/agencies/eta/grants/apply/find-opportunities

Table of Contents

I. EXECUTIVE SUMMARY

II. ELIGIBILITY

A. Eligible Applicants

B. Cost Sharing

C. Period of Performance

III. PROGRAM DESCRIPTION

A. Purpose

B. Program Goals and Objectives

C. Expected Performance Outcomes

D. Funding Type

E. Eligible Participants

F. Program Authority

G. Definitions

H. Funding Restrictions, Policies and Limitations

I. Required Partnerships

IV. APPLICATION CONTENT AND FORMAT

A. SF-424, Application for Federal Assistance

B. Project Budget, Composed of the SF-424A and Budget Narrative

C. Project Narrative

D. Attachments to the Project Narrative

V. SUBMISSION REQUIREMENTS AND DEADLINES

A. How to Obtain an Application Package

B. Unique Entity Identifier and System for Award Management

C. Submission Instructions

D. Intergovernmental Review

E. Other Submission Requirements

VI. APPLICATION REVIEW INFORMATION

A. Responsiveness Review

B. Review Criteria

C. Review and Selection Process

D. Risk Review

VII. AWARD NOTICES

A. Award Document

B. Award Timing and Notification to Applicants

VIII. POST AWARD REQUIREMENTS AND ADMINISTRATION

A. Administrative and National Policy Requirements

B. Reporting

IX. RESOURCES

X. OMB INFORMATION COLLECTION

APPENDIX A: Pay for Performance Incentive Plan Document

APPENDIX B: Suggested Abstract Template

APPENDIX C: Expected Outcomes and Outputs Table

I. EXECUTIVE SUMMARY

The Employment and Training Administration (ETA), U.S. Department of Labor (DOL, or the

Department, or we), announces the availability of grant funds for the Pay-for-Performance (PfP)

Incentive Payments Program. This Funding Opportunity (FOA) announces approximately $145 million to fund up to five cooperative agreements authorized by the Full-Year Continuing

Appropriations and Extensions Act, 2025, Public Law 119-4 specifically to expand opportunities through apprenticeships only registered under the National Apprenticeship Act. Each cooperative agreement, which ranges from $10 million to $40 million, is a Pay-for-Performance

(PfP) Incentive Payments Program designed to generate further, meaningful, and rapid expansion of the National Apprenticeship System. This initiative is being undertaken to meet the

Administration’s bold commitment to achieve and exceed 1 million active apprentices.

The PfP Incentive Payments Program represents a significant and decisive action to prepare the workforce for the Golden Age of the American economy in alignment with America’s Talent

Strategy. Most importantly, it demonstrates the Administration’s commitment to strengthening the National Apprenticeship System and reinforcing Registered Apprenticeship as the premier, high-quality solution to strengthen America’s talent development pipeline. Investments such as this, which support skills and training for American workers, are crucial for economic strength, creating pathways to self-sufficiency, and ensuring the nation's leadership in a changing global economy.

The creation of the PfP Incentive Payments Program will also expand opportunities for innovation in the funding and rapid expansion of Registered Apprenticeship, helping to enhance this proven work-based learning model and develop new models for incentivizing employers and other stakeholders to develop and expand Registered Apprenticeship programs. Vitally, this initiative is also designed to both ensure that federal resources are directed at supporting the most well-crafted proposals, while also directly linking discretionary funding to a set of specific and robust outcomes that can be realized quickly. The program will further build out Registered

Apprenticeships through the achievement of DOL’s desired objective of registering meaningful numbers of new apprentices and creating new Registered Apprenticeship programs or expanding existing programs to significantly grow the system. The cooperative agreements supported through this program will also facilitate funding for Registered Apprenticeships for small/mid-https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/2025/08/Americas-Talent-Strategy-Building-the-Workforce-for-the-Golden-Age.pdf https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/2025/08/Americas-Talent-Strategy-Building-the-Workforce-for-the-Golden-Age.pdf sized employers, who might not otherwise pursue federal grant funding. They will focus on incentivizing the expansion and growth of the National Apprenticeship System both overall and in high-growth, high-demand industry sectors.

Applicants are strongly encouraged to review the funding opportunity announcement and the

2026 DOL Application Guide in their entirety.

For further information or technical questions about this FOA, please contact Carmen Mew, Grants Management Specialist, Office of Grants Management, at PfP_FOA-ETA-26-

19@dol.gov and specifically reference FOA-ETA-26-19. This Announcement is available on the ETA website at https://www.dol.gov/agencies/eta/grants and at https://www.grants.gov.

II. ELIGIBILITY

A. Eligible Applicants

The following entities are eligible to serve as the lead applicant:

• State Agencies and Territories

• National Industry Groups and Associations

• National Labor Management Organizations

• National Economic Development Entities: Organizations that focus on economic development and/or economic recovery strategies to support the labor market.

• Registered Apprenticeship or Workforce Intermediary Organizations: Organizations functioning as business related entities/workforce intermediaries for the expressed purpose of serving the needs of businesses, individual businesses, or consortia of businesses.

• Professional Consulting Organizations: Organizations that are for-profit or not-for-profits that primarily house subject matter experts that can provide independent and objective advice and support to organizations to define and achieve their goals through improved utilization of resources.

• Consortia: A consortium of organizations that is led by an entity that is eligible to serve as lead applicant and whose principal function(s) is consistent with the capabilities associated with either one or more of the above-listed organizations. Additionally, a consortium may be comprised of multiple regional entities otherwise consistent with any one of the above-listed organizations to achieve a national reach. A consortium is a group made up of two or more organizations, higher education institutions, companies, or governments that work together to achieve a common objective.

The lead applicant will serve as the grantee and have overall fiscal and administrative responsibility for the grant.

Faith-based organizations are encouraged to apply, as are all organizations. Those that meet the eligibility requirements may receive awards under this funding opportunity. DOL will not, in the selection of recipients and administration of the grant, discriminate on the basis of an organization’s religious character, affiliation, exercise, or lack thereof, or on the basis of conduct that would not be considered grounds to favor or disfavor a similarly situated secular organization.

https://www.dol.gov/agencies/eta/grants/resources mailto:PfP_FOA-ETA-26-19@dol.gov mailto:PfP_FOA-ETA-26-19@dol.gov https://www.dol.gov/agencies/eta/grants https://www.grants.gov/

Number of Applications Applicants May Submit

An eligible lead applicant must specify a PfP Incentive Payments Program category for their application; see section III.A.1 for information on program categories.

The following guidelines apply:

• Category 1: One cooperative agreement will be awarded per industry (up to four awards).

o Eligible lead applicants may submit one application per allowable industry for

Category 1; in other words, eligible lead applicants may submit multiple applications for Category 1 so long as the applications are for different allowable industries.

o If an eligible lead applicant submits multiple applications for the same industry, only the most recently received application that meets the deadline will be considered. If the most recent application is disqualified for any reason, we will not replace it with an earlier application.

o Eligible lead applicants may not be awarded more than one cooperative agreement, and applications will be selected based on the strength of the program design.

• Category 2: One cooperative agreement will be awarded under Category 2; therefore, applicants may submit only one application for Category 2.

If one application is submitted for both categories, or if an application does not clearly specify the selected category in the Abstract, all application(s) will be deemed non-responsive and will not proceed to the review phase of this competition. An applicant will not be awarded a grant under both categories.

The Department reserves the right to change the amount of grant funds awarded depending on the quantity and quality of applications submitted. Awards made under this FOA are subject to the availability of federal funds. If additional funds become available, we reserve the right to select additional awardees from applications submitted in response to this FOA.

B. Cost Sharing

This program does not require cost sharing (including matching) funds. Applicants that include such funds will not receive additional consideration during the review process. Instead, the agency considers any resources contributed to the project beyond the funds provided by the agency as leveraged resources. Section IV.B provides more information on leveraged resources.

For a complete understanding of this application requirement, see the 2026 Application Guide, Section II.B Cost Sharing.

C. Period of Performance

The performance period on the front page of this FOA includes all necessary implementation and start-up activities.

The Period of Performance (POP) is four years, starting on July 1, 2026.

https://www.dol.gov/agencies/eta/grants/resources

Post-award, there will be an initial implementation period lasting up to 120 days during which the Department will collaborate with awardees to provide feedback on the incentive plan as needed and approve a final incentive plan for implementation.

III. PROGRAM DESCRIPTION

A. Purpose

The Administration is committed to protecting and strengthening Registered Apprenticeships and building on their successes to seize new opportunities and unlock the limitless potential of the

American worker. The PfP Incentive Payments Program supports the implementation of several

Presidential Executive Orders related to expanding Registered Apprenticeships including, “Preparing Americans for High-Paying Skilled Trade Jobs of the Future,” “Advancing Artificial

Intelligence Education for American Youth,” “Restoring America’s Maritime Dominance,” and

“Reinvigorating the Nuclear Industrial Base,” which call for the growth of Registered

Apprenticeships to better prepare our workforce for industry needs of today and tomorrow.

This FOA provides guidance and outlines the requirements for the PfP Incentive Payments

Program. The Department will award up to five cooperative agreements with a four-year POP focused on rapid expansion and scaling of Registered Apprenticeship programs across industries by offering incentive payments to program sponsors. The PfP Incentive Payments Program requires that at least 85 percent of the total grant funds awarded be used for incentive payments to Registered Apprenticeship program sponsors to scale and expand Registered Apprenticeship programs. The Department encourages applicants to propose incentive payments that exceed 85 percent of the total grant funds to maximize the impact of the PfP model proposed in response to this FOA. This grant program expands on the Department’s $35.8 million investment in a PfP incentive model awarded to the Arkansas Department of Commerce, Division of Workforce

Services, to expand Registered Apprenticeship programs in advanced manufacturing sectors nationwide through the American Manufacturing Apprenticeship Incentive Fund.

This Funding Opportunity Announcement solicits applications for the PfP Incentive Payments

Program.

1. PfP Incentive Payments Program Categories

The PfP Incentive Payments Program will be distributed through a “pay for performance” model, where payments are linked to specific performance criteria or predefined outcomes. The program aims to stimulate innovation and reduce barriers that prevent sponsors from committing to developing or scaling Registered Apprenticeships.

Applicants must select one of two program categories for their application to maximize impact: 1) Rapid Expansion of Registered Apprenticeship within an Industry specified by the Department through per apprentice incentive payments, and 2) Rapid Scaling of the Registered Apprenticeship System across all other industries not funded by the

Department in Category 1. Advanced manufacturing is also excluded from Category 2 because of the Department’s existing American Manufacturing Incentive Fund led by the

Arkansas Department of Commerce targeting this sector. Applicants must select one category for their application.

a. Category 1: Rapid Expansion of Registered Apprenticeship Within a Specific

Industry https://www.bing.com/ck/a?!&&p=c0d47ac7d96806d6896ff306fd8fd2e0d3b7854659c9259ddfa73a3b59fb1e60JmltdHM9MTc2Njk2NjQwMA&ptn=3&ver=2&hsh=4&fclid=0d785332-6512-6aee-078f-45f7641d6b28&psq=Preparing+Americans+for+High-Paying+Skilled+Trade+Jobs+of+the+Future&u=a1aHR0cHM6Ly93d3cud2hpdGVob3VzZS5nb3YvcHJlc2lkZW50aWFsLWFjdGlvbnMvMjAyNS8wNC9wcmVwYXJpbmctYW1lcmljYW5zLWZvci1oaWdoLXBheWluZy1za2lsbGVkLXRyYWRlLWpvYnMtb2YtdGhlLWZ1dHVyZS8 https://www.bing.com/ck/a?!&&p=cdfaf94925bd2e02f16f79462fa8ea72ed3b1e86f45ec211d2f7653afd760303JmltdHM9MTc2Njk2NjQwMA&ptn=3&ver=2&hsh=4&fclid=0d785332-6512-6aee-078f-45f7641d6b28&psq=Advancing+Artificial+Intelligence+Education+for+American+Youth&u=a1aHR0cHM6Ly93d3cud2hpdGVob3VzZS5nb3YvcHJlc2lkZW50aWFsLWFjdGlvbnMvMjAyNS8wNC9hZHZhbmNpbmctYXJ0aWZpY2lhbC1pbnRlbGxpZ2VuY2UtZWR1Y2F0aW9uLWZvci1hbWVyaWNhbi15b3V0aC8 https://www.bing.com/ck/a?!&&p=cdfaf94925bd2e02f16f79462fa8ea72ed3b1e86f45ec211d2f7653afd760303JmltdHM9MTc2Njk2NjQwMA&ptn=3&ver=2&hsh=4&fclid=0d785332-6512-6aee-078f-45f7641d6b28&psq=Advancing+Artificial+Intelligence+Education+for+American+Youth&u=a1aHR0cHM6Ly93d3cud2hpdGVob3VzZS5nb3YvcHJlc2lkZW50aWFsLWFjdGlvbnMvMjAyNS8wNC9hZHZhbmNpbmctYXJ0aWZpY2lhbC1pbnRlbGxpZ2VuY2UtZWR1Y2F0aW9uLWZvci1hbWVyaWNhbi15b3V0aC8 https://www.bing.com/ck/a?!&&p=f3461e6a975f7ac10a084b9b04873e5e449f1d46e6fc6b629ba6fb53c2e827f8JmltdHM9MTc2Njk2NjQwMA&ptn=3&ver=2&hsh=4&fclid=0d785332-6512-6aee-078f-45f7641d6b28&psq=Restoring+America%e2%80%99s+Maritime+Dominance&u=a1aHR0cHM6Ly93d3cud2hpdGVob3VzZS5nb3YvcHJlc2lkZW50aWFsLWFjdGlvbnMvMjAyNS8wNC9yZXN0b3JpbmctYW1lcmljYXMtbWFyaXRpbWUtZG9taW5hbmNlLw https://www.bing.com/ck/a?!&&p=51b489fbfa07dbe47ed23d34ec221de0680993ddf7572b944a3fe2f15990e105JmltdHM9MTc2Njk2NjQwMA&ptn=3&ver=2&hsh=4&fclid=0d785332-6512-6aee-078f-45f7641d6b28&psq=Reinvigorating+the+Nuclear+Industrial+Base&u=a1aHR0cHM6Ly93d3cud2hpdGVob3VzZS5nb3YvcHJlc2lkZW50aWFsLWFjdGlvbnMvMjAyNS8wNS9yZWludmlnb3JhdGluZy10aGUtbnVjbGVhci1pbmR1c3RyaWFsLWJhc2Uv https://arkansasosd.com/mfgfund/

Cooperative Agreements will focus on expanding Registered Apprenticeship programs in one target industry per application for their PfP Incentive Payments

Program. Applicants must select from the following list of industries and may propose to target large subsectors within the below list of industries:

• Shipbuilding and Defense Industrial Base

• Artificial Intelligence (AI), Semiconductor, and Nuclear Energy Infrastructure

• Information Technology

• Healthcare

• Transportation

• Telecommunication

The Department is particularly interested in expanding Registered Apprenticeship in

Shipbuilding and Defense Industrial Base and intends to make an award for this industry, contingent on receiving a quality application.

Artificial Intelligence (AI), Semiconductor, and Nuclear Energy Infrastructure, as a collective, refer to the building and maintenance of infrastructure within these industries. In other words, it is not our intent to isolate these industries; they should be considered together. This includes, but is not limited to, skill sets needed to build and maintain data centers, semiconductor fabrication facilities, and nuclear power facilities. Do not consider them as isolated industries, with disparate or unconnected talent supply needs. The Department is particularly interested in applications that focus on the infrastructure across all three industries (AI, Semiconductor, and Nuclear

Energy Infrastructure). However, the Department will consider applications that propose targeting the infrastructure for one or two of these industries. Eligible

Registered Apprenticeship sponsors requesting incentive payments within this industry category will be required to demonstrate that apprentices are placed into

Registered Apprenticeship programs directly tied to the building and maintenance of infrastructure within these industries.

Category 1 will focus on scaling Registered Apprenticeship programs in targeted industries by offering incentive payments to Registered Apprenticeship program sponsors on a per-apprentice basis for “new” apprentices enrolled in relevant occupations during the POP. Applicants may identify broad, recognized sub-sectors and occupations within each targeted industry and are encouraged to provide a logical rationale to ensure sufficient coverage of the selected industry. During the implementation phase, grantees will work with the Department to identify eligible occupations for which Registered Apprenticeship sponsors can receive incentive fund payments.

b. Category 2: Rapid Scaling of the Registered Apprenticeship System

Cooperative agreements will focus on scaling Registered Apprenticeship programs by providing incentive funding in all industries or subsectors not funded under Category

1. Advanced manufacturing is also excluded from Category 2 because it is the focus of the Department’s existing American Manufacturing Incentive Fund led by the

Arkansas Department of Commerce targeting this sector.

2. Pay for Performance Incentive Payment Program

In response to the Project Narrative in Section IV.C, applicants must submit a PfP Incentive

Plan. The PfP Incentive Plan will serve as the Project Narrative. At a minimum, the Plan must include:

• Statement of Need: Describes labor demand and current labor market dynamics for relevant industry (or overall labor market if Category 2).

• Incentive Model: Identifies sponsor eligibility criteria, and the incentive payment structure, including payment amounts and any additional progression benchmarks for payment.

• Payment Management System: Identifies the entity responsible and the system for managing, processing, verifying apprentice enrollment and retention for at least 90 days and other progression benchmarks established by the applicant based on their plan, and issuing payments to sponsors. For the purposes of this FOA, verification requirements include procedures and safeguards ensuring entities receiving payments are Registered

Apprenticeship program sponsors and are eligible to receive per apprentice incentive payments. The entity designated to operate this management system may be a partner organization instead of the lead entity.

• Expected Outcomes and Outputs: Identifies clearly defined goals and objectives of the project, including the number of program sponsors that will be supported by the grant awards.

• Outreach and Communications Plan: Applicants will support any Department-led

Registered Apprenticeship national marketing campaign efforts and must provide a comprehensive outreach and communication plan to raise awareness of their PfP

Incentive Payment Program.

• Organizational Capacity: Describes the lead applicant’s capacity to effectively manage each component of the program at a national level, including a project management plan for efficient and effective management of the project with all partners and staff. The lead applicant must demonstrate its capacity to establish effective procurement processes, systems, and procedures and those of any partners who will be providing any services or conducting any activities under the grant (where applicable).

3. Geographic Scope

The PfP Incentive Payment Program’s scope is nationwide, and applicants must allow eligible

Registered Apprenticeship sponsors in any State and Territory, as defined in Section III.G, to apply for incentive funding. Applicants must demonstrate they have the capacity to provide incentive payments to eligible sponsors across all States and Territories.

B. Program Goals and Objectives

The goal of the PfP Incentive Payments Program is to address the urgent need to grow and modernize the U.S. workforce and in direct response to the national call to expand access to

Registered Apprenticeship programs, and motivate sponsors on a national scale to develop, expand, and/or join established Registered Apprenticeship Programs and hire apprentices.

The focus of the grant program is to incentivize the expansion and growth of Registered

Apprenticeship programs on a national scale. The program is built on a “pay for performance” model, ensuring taxpayer dollars deliver measurable outcomes—real jobs, real skills, and real growth.

1. "New Apprentices" Eligible for Incentive Payments

Under cooperative agreements in both categories, sponsors may receive incentive payments for any new apprentices enrolled in an eligible program and being trained for an eligible occupation after the grant’s program start date of July 1, 2026, that are enrolled beyond a suggested substantial growth threshold of 125% of the program’s three-year average enrollment in that eligible occupation.

The substantial growth threshold for sponsors operating programs developed after the grant program start date is zero, meaning any apprentices enrolled in such a program and being trained for an eligible occupation are considered new apprentices and sponsors will be eligible to receive payments for those apprentices. Requiring a program to exceed this substantial growth threshold ensures that funds support expansion by incentivizing increased apprentice numbers, rather than subsidizing programs with stable counts.

When calculating three-year average enrollment for programs that have not existed for at least three years, the average will be based on any years of operation. See Section III.G for an example.

The Department recognizes that there may be novel program designs that require flexibility on the substantial growth threshold based on current industry needs.

Therefore, applicants may use the substantial growth threshold suggested by the

Department or may propose a different substantial growth threshold percentage and/or methodology if they provide sufficient justification. Post-award, the Department will work closely with all grantees to ensure they have a substantial growth threshold in place that is appropriate for their project’s scope and the grant’s intended goals of incentivizing growth within the identified industry or broader Registered Apprenticeship system.

2. PfP Incentive Payment Requirements

Applicants will propose a spending structure that will best meet the industry needs of

Registered Apprenticeship program sponsors, and subject to approval by ETA post award.

The following requirements apply to each category:

• At least 85 percent of funds awarded must be issued to Registered Apprenticeship program sponsors as incentive payments.

• No payments are made until an apprentice is enrolled for at least 90 days (or an alternative initial payment benchmark of more than 90 days proposed by the applicant, and subject to approval by ETA post award). Partial payments for apprentices that do not meet the 90-day benchmark are not allowable.

• In addition to the initial payment after at least 90 days of enrollment, incentive payments may be paid to sponsors for their apprentice's achievement of different progression benchmarks within a program, such as the completion of the probationary period, retention for a certain period, or the achievement of other benchmarks related to an apprentice’s progression through the program. Incentive payments for progression benchmarks must take place during the award POP. Including additional payments within the spending structure is optional and progression benchmarks for any additional payments will be specified by the applicant.

• The total amount paid per apprentice, which is the sum of both the initial payment and any additional payments, cannot exceed the maximum amounts specified in this FOA in

Section III.B.3 Table 1.

• Up to 15 percent of the funds awarded may be used for other direct and indirect costs associated with the grant, including outreach and communication to increase awareness of the incentive fund model; oversight, administration and staffing of the project; and other necessary and allowable costs.

3. Incentive Payment Structures by Category

As defined above, “new apprentices” means all apprentices enrolled in an eligible occupation beyond the substantial growth threshold (which is zero for new programs and 125% of three-year average enrollment within an eligible occupation for programs registered prior to the

POP start date). The payment structure available to sponsors for enrolling eligible “new apprentices” differs across the two award categories.

a. Payment Structure for Category 1: Individual Per New Apprentice Payments.

Sponsors will be eligible for initial payments for each “new apprentice” enrolled after at least 90 days. An applicant may also specify that a sponsor could receive additional incentive payments if their apprentices achieve applicant-specified progression benchmarks, such as program retention and completion. The maximum total amount for per apprentice payments (i.e. sum of initial and any additional payments) may not exceed

$6,000.

b. Payment Structure for Category 2: Batch Based New Apprentice Payments.

Sponsors will be eligible to receive initial payments after meeting an applicant specified quantity of new apprentices (i.e., batch of new apprentices) enrolled in the program for at least 90 days. Applicants may also issue additional payments when batches of a sponsor’s apprentices meet progression benchmarks specified by the applicant. The amount of both initial and any additional payments should be informed by labor market data. The maximum total payment amount (i.e. sum of initial and any additional payments) for a batch of apprentices cannot exceed $3,000 per apprentice.

o The applicant may propose differentiated batch sizes based on the size of the employer. For example, applicants may establish higher industry-dependent batch size thresholds for medium sized and large employers based on market dynamics in the industry(ies) they are serving. The minimum required batch size is 3 apprentices. Applicants must propose a batch size structure and, upon award, will collaborate with the Department to determine the final batch size structure.

Table 1: New Apprentice Payment Structure under each Category

PfP Incentive

Payment

Category

Category 1: Rapid Expansion of

Registered Apprenticeship Within a

Specific Industry

Category 2: Rapid Scaling of the

Registered Apprenticeship System

Payment

Structure

Individual Per New Apprentice

Payments

Batch Based New Apprentice Payments

Maximum

Payment Cap per

Apprentice

Up to $6,000 Up to $3,000

Payment

Structure

Required Initial Payment: at least

90 days after program enrollment

Required Initial Payment: at least 90 days after program enrollment, after the applicant-specified batch size (i.e. number of apprentices that must be enrolled in the program for a sponsor to receive payment) is met.

Additional Payments (Optional):

Additional per apprentice payments are allowable after a sponsor’s apprentices achieve applicant-specified progression benchmarks, not to exceed the $6,000 per apprentice cap overall.

Additional Payments (Optional):

Additional per batch payments are allowable after a batch of a sponsor’s apprentices achieve applicant-specified progression benchmarks, not to exceed the

$3,000 per apprentice cap overall.

Example

Payment

Structures

A sponsor receives a first initial payment of $3,000 after an eligible new apprentice is enrolled for at least

90 days. An additional payment of

$1,000 is given to the sponsor if the apprentice is retained in the program for a year. This would be a total payment of $4,000 per apprentice.

A sponsor receives the first initial payment of $10,000 once a batch of 20 eligible new apprentices have been enrolled for at least 90 days (an effective rate of $500 per apprentice). An additional payment of $8,000 is given to the sponsor once these 20 new eligible apprentices are retained in the program for a year (an effective rate of $400 per apprentice). This would be a total payment amount of $900 per apprentice.

C. Expected Performance Outcomes

Applicants must propose performance target outcomes to track, report, and demonstrate proof of concept and support evidence that Registered Apprenticeship will benefit greatly through a PfP incentive payment model. These proposed targets must be based on evidence and labor market analysis. Therefore, applicants must provide target goals for the following performance measures for each year of the POP:

• The total number of apprentices enrolled for which Registered Apprenticeship sponsors received incentive payments.

o To calculate the total number of apprentices, applicants may divide the amount of funding available for incentive payments by the average expected payment under the proposed incentive payment model.

▪ Applicants that are proposing progression benchmarks may also consider the estimated percentage of apprentices that will attain those progression benchmarks when developing the average expected payment.

• The total number of Registered Apprenticeship sponsors that received incentive payments.

o To calculate the total number of Registered Apprenticeship sponsors, applicants may base their estimate on their understanding of the industry (or overall labor market) and the type of entities that may serve as Registered Apprenticeship sponsors.

• The total number of States and Territories with Registered Apprenticeship stakeholders engaged by the awardee.

o Given the national scope of this project, applicants will engage stakeholders across all States and Territories. Accordingly, applicants should generally set a goal of all States and Territories to engage for each year of the POP.

o The Department recognizes that certain industries are geographically concentrated. If a goal to serve all States and Territories is not appropriate for your industry, applicants may also consider whether relevant supply chains and related occupations should be incorporated to expand both industry and geographic coverage. Applicants should clearly describe and justify your proposed geographic goal and include industry data and Labor Market

Information to support their justification. Regardless of the proposed geographic goal, all awardees must serve any Registered Apprenticeship Sponsor with an

Eligible Occupation that applies to access the Incentive Fund. Awardees will be required to serve any sponsor that qualifies for funding under the incentive payment structure.

• The total number of States and Territories with Registered Apprenticeship sponsors receiving incentive fund payments.

o Given the national scope of this project, applicants are encouraged to serve as many States and Territories as possible and should set an ambitious goal accordingly.

o This target goal should be informed by the applicant’s proposed goal for “total number of States and Territories with Registered Apprenticeship stakeholders engaged by the awardee”.

• For planning purposes, applicants must propose annual anticipated spend down rates, including the level of funds expended through incentive payments.

While applicants must propose values, once awarded, this requirement does not prohibit grantees from using funds more quickly in response to increases in demand at any point of the POP.

Target goals may be revised and finalized during the implementation period in consultation with the Department.

D. Funding Type

Funding will be provided in the form of a Cooperative Agreement. Throughout this FOA, all references to grants are applicable to cooperative agreements.

E. Eligible Participants

Awardees under this FOA will not directly serve participants/apprentices.

Veterans' Priority for Participants

38 U.S.C. 4215 requires DOL grantees to provide priority to veterans and spouses of certain veterans for employment, training, and placement services in any job training program directly funded, in whole or in part, by DOL.

For a complete understanding of this application requirement, see the 2026 Application Guide, Section III.E Veterans’ Priority for Participants.

F. Program Authority

The Full Year Continuing Appropriations and Extensions Act, 2025, Public Law 119-4 authorizes this program.

G. Definitions

• Apprentice: A worker at least 16 years of age, except where a higher minimum age standard is otherwise fixed by law, who is employed to learn an apprenticeable occupation as provided in 29 C.F.R. § 29.4 under standards of apprenticeship fulfilling the requirements of 29 C.F.R. § 29.5.

• Apprenticeship Agreement: A written agreement that contains the terms and conditions of the employment and training of the apprentice.

• Eligible Occupation: An occupation that sponsors may receive incentive payments for enrolling apprentices in beyond the substantial growth threshold. Under Category 1, eligible occupations are occupations identified by applicants within each targeted industry. The Department will finalize this list of eligible occupations with awardees during the implementation period. Under Category 2, eligible occupations are all occupations in industries or subsectors not funded under Category 1 or funded by the

Department’s existing American Manufacturing Incentive Fund led by the Arkansas

Department of Commerce.

• Initial Incentive Payment: Incentive payment provided to a sponsor for having an apprentice (or a batch of apprentices if under Category 2) enrolled in their program for at least 90 days (or an alternative initial payment benchmark of more than 90 days proposed by the applicant, and subject to approval by ETA post award).

• New Apprentices: Under this FOA, new apprentices are apprentices that are all apprentices enrolled beyond the substantial growth threshold during the POP. For new programs developed after the grant’s program start date, all apprentices enrolled are “new apprentices” eligible for payment.

• New Registered Apprenticeship Program: A program developed after the start of the

POP.

• Progression Benchmarks: The benchmarks that an apprentice(s) must achieve for a sponsor to receive additional incentive payments. These progression benchmarks are specified by the applicant and can include, but are not limited to, benchmarks like https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section4215&num=0&edition=prelim completing the probationary period, being retained in the program for a year, or completing the program.

• Registered Apprenticeship Partners Information Data System (RAPIDS): Primary platform for sponsors to manage their apprentices, occupations, job openings, and other relevant program information.

• Registered Apprenticeship Program: Registered Apprenticeship programs are registered programs with OA or a DOL-recognized State Apprenticeship Agency as set out in 29 CFR Part 29.

• Registered Apprenticeship Sponsor: Any person, association, committee, business, or organization operating a Registered Apprenticeship program in whose name the program is (or is to be) registered or approved.

• Registration Agency: OA or a federally recognized State Apprenticeship Agency that has responsibility for registering apprenticeship programs and apprentices, providing TA, conducting reviews for compliance with 29 CFR Part 29, and quality assurance assessments.

• States and Territories: For the purposes of this FOA, States and Territories are defined as follows. The term “state” means “any of the 50 states of the United States and the

District of Columbia.” The term “territory” means any territory or possession of the

United States. For the purposes of this FOA, territories or possessions of the United

States are defined as: Puerto Rico, U.S. Virgin Islands, Guam, the Commonwealth of the

Northern Mariana Islands, and American Samoa.

• Substantial Growth Threshold: The enrollment threshold within an eligible occupation that sponsors must achieve before apprentices are considered “new” and count for per apprentice or meeting batch payments. The Department suggests a substantial growth threshold of 125% of the program’s three-year average enrollment in the eligible occupation. For example, under the Department’s proposed substantial growth threshold, if a Registered Apprenticeship program had 10 active apprentices within the eligible occupation on average over the last three years, the sponsor would be eligible to count the

13th active apprentice they enroll in the eligible occupation and every additional active apprentice above this threshold thereafter towards incentive payments (i.e., eligible for per apprentice payments under Category 1 or eligible to count towards the batch size for payment under Category 2). The substantial growth threshold for a sponsor who develops a program after the grant’s start date is zero. Applicants may propose a different substantial growth threshold percentage and/or methodology if they provide sufficient justification that is appropriate for their project’s scope and the grant’s intended goals of incentivizing growth within the identified industry or broader Registered

Apprenticeship system.

For a complete understanding of this application requirement, see the 2026 Application Guide, Section VIII.G Definitions.

H. Funding Restrictions, Policies and Limitations

All proposed project costs must be necessary and reasonable and in accordance with federal guidelines.

The PfP Incentive Payments grant program has funding restrictions, policies, and limitations that are referenced in Section III.B. Applicants must review that section for a full understanding of the required funding restrictions, policies and limitations.

For a complete understanding of this application requirement, see the 2026 Application Guide, Section III.H Funding Restrictions, Policies and Limitations.

Evaluation and Data-Related Costs

Labor and other costs related to data and evaluation are allowable, as defined in 2 CFR Part

200.455. Data and evaluation activities may include staff participating in interviews, focus groups, and surveys; staff working to execute data sharing agreements; staff preparing datasets required for an evaluation; staff participating in evaluation meetings; and other costs related to

DOL’s evaluations and data-related activities.

Salary and Bonus Limitations

By law, no “Employment and Training Administration” appropriated funds may be used by a recipient or subrecipient of such funds to pay the salary and bonuses of an individual, either as direct costs or indirect costs, at a rate in excess of Executive Level II. The Executive Level II salary may change yearly and is located on the OPM.gov website. This limitation does not apply to contractors (vendors) providing goods and services as defined in 2 CFR 200.331. Where states are recipients of such funds, states may establish a lower limit for salaries and bonuses paid by subrecipients. To establish these limits, states may consider the relative cost of living in the state, the salary levels for comparable state or local government employees, and the size of the organizations that administer Federal programs involved, including ETA programs. See the

Program Authority found in TEGL 10-24 for additional information.

I. Required Partnerships

All applicants must include at least one of the required partnership categories listed below as a required partner:

• A national industry association. The association must represent industry practitioners or other relevant stakeholders. The association must have members or provide coverage to at least 30 States or Territories. Including an industry association not only demonstrates broad industry buy-in but also shows that the applicant will be able to leverage broader business partnerships once funded. Under Category 2 the association must represent broad business/economic development interests (e.g., Chamber of

Commerce); or

• Three or more regional industry associations. The associations must represent industry practitioners or other relevant stakeholders. Each association must have members or provide coverage to at least three States or Territories not covered by the other associations to count towards this requirement. Under Category 2, the association(s) must represent broad business/economic development interests (e.g., multiple Regional Economic Development Agencies); or

• Three national employers. These employers must have employees in at least 30 States or Territories that anticipate becoming sponsors or participating employers in this grant program; or https://www.dol.gov/agencies/eta/grants/resources https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/ https://www.dol.gov/agencies/eta/advisories/tegl-10-24

• Five regional employers. These employers must have employees in at least three States or Territories that anticipate becoming sponsors or participating employers in this grant program.

Identifying industry and employer partners in the application will allow for more immediate implementation, shows an applicant’s existing connections within the industry, and demonstrates the demand and scalability of their proposal.

Optional Partner: Payment Management System Operator

As described under Section IV.C.3.b., Project Narrative, all applicants must identify the entity responsible for running the process for issuing payments. This entity may be the applicant, or the applicant may identify a partner organization. If a partner organization is identified as the entity fulfilling this role, the applicant must submit a letter of commitment or MOU between the applicant and this partner organization clearly describing the responsibilities of both parties. The description of the partner organization’s responsibilities must align with the payment system described in the applicant’s project narrative.

Other Partners: Applicants are not restricted in engaging with additional partners. For entities focused within specific sub-sectors, applicants may also consider partnering with an entity with expertise in the larger sector. However, a partner may only receive grant funds in accordance with this FOA.

Partnership Documentation: Applicants must submit signed and dated Letters of Commitment or Memoranda of Understanding between the applicant and each partner organization identified in the application. These letters must be uploaded as an attachment to the application package and labeled “Letters of Commitment.”

IV. APPLICATION CONTENT AND FORMAT

Applications submitted in response to this FOA must consist of four separate and distinct parts:

A. SF-424, “Application for Federal Assistance”;

B. Project Budget, composed of the SF-424A and Budget Narrative;

C. Project Narrative; and

D. Attachments to the Project Narrative.

You must make sure that the funding amount requested is consistent across all parts and sub-parts of the application. You must submit your application in one package. Documents received separately will be tracked separately and will not be attached to your application for review.

A. SF-424, Application for Federal Assistance

You must complete the SF-424, “Application for Federal Assistance”

For a complete understanding of this application requirement, see the 2026 Application Guide, Section IV.A SF-424 Application for Federal Assistance.

B. Project Budget, Composed of the SF-424A and Budget Narrative

You must complete the SF-424A Budget Information Form and a Budget Narrative. The Budget and Budget Narrative do not count against the page limit requirements for the Project Narrative.

For a complete understanding of this application requirement, see the 2026 Application Guide, Section IV.B Project Budget, Composed of the SF-424A and Budget Narrative.

C. Project Narrative

You must include a Project Narrative with your application. The Project Narrative shows that the applicant can implement the grant project explained in this Announcement. Applicants must describe how they will meet the requirements listed below. Applicants must show that their planned activities will meet the project goals. As appropriate, applicants should see Section IX.

Resources, E. DOL’s Clearinghouse for Evaluation and Research (CLEAR) and DOL’s Chief

Evaluation Office as well as F. Data and Other Evidence Resources for starting places to find research that could provide evidence of a sound approach.

The Project Narrative is limited to 15 double-spaced single-sided 8.5 x 11-inch pages with Times

New Roman 12-point text font and 1-inch margins. It must include the section headers listed below. The agency will evaluate the Project Narrative using the evaluation criteria identified in

Section VI.B. We will not read or consider any materials beyond the specified page limit (except for attachments listed in Section IV.D that impact the scoring of the application).

Applicants must submit their Project Narrative using the PfP Incentive Plan document provided in Appendix A. This document is clearly aligned with the Project Narrative headers in this section. Applicants must clearly review the scoring criteria outlined in this section (Project

Narrative) and respond accordingly to the sections outlined in the PfP Incentive Plan document.

1. Statement of Need (Up to 8 Points)

Scoring under this criterion is dependent on clear, logical, well-supported, and accurate interpretation of data. All data sources must include citations that provide information that enables the identification and verification of data. To receive full points for this section, an applicant must:

i. Demonstrate that there is industry demand (or overall labor market demand if Category

2) for skilled workers, the current extent of Registered Apprenticeship within this industry (or overall labor market), and why Registered Apprenticeship is poised for scaling and expansion within this industry (or the overall labor market). Applicants must discuss this need using both quantitative and qualitative terms and cite sources for this labor market analysis, such as Bureau of Labor Statistics or other DOL sources, state workforce agency sources, employers, or other written labor market information provided by employers or other knowledgeable parties. If applying under Category 1, applicants are strongly encouraged to identify broad, recognized sub-sectors and occupations within each targeted industry. Applicants that target large, recognized sub-sectors and occupations within the selected industry must provide a logical rationale to ensure sufficient coverage of the selected industry. (Up to 4 points)

ii. Clearly demonstrate that the applicant has the relevant expertise, including prior work, and partnerships necessary to assist this industry (or overall labor market) to address this labor demand and expand Registered Apprenticeship programs. (Up to 4 points)

2. Expected Outcomes and Outputs (Up to 8 Points)

To receive full points for this section, applicants must include the following elements:

i. Identify the following items for their proposed project (Up to 4 Points)

a. Provide the expected number of States and Territories engaged (via sponsor engagement in that State or Territory) and States and Territories served (via sponsors served in that State or

Territory).

• For targeted industries that are geographically dependent and as a result, a goal to serve all states and territories may not be appropriate, applicants should clearly describe and justify any proposed goal, including providing industry and/or Labor

Market Information to support this justification. If an applicant proposes a goal of serving less than all States and Territories, this does not affect the program requirement that awardees will be required to serve any Registered Apprenticeship

Sponsor with an Eligible Occupation that applies to access the Incentive Fund.

• If applicable, applicants may also consider whether relevant supply chains and related occupations should be incorporated into the program to support both industry and geographic coverage.

b. Provide the expected number of Registered Apprenticeship program sponsors that will receive funding under the award during each year of…