U.S. DEPARTMENT OF LABOR

Employment and Training Administration

NOTICE OF AVAILABILITY OF FUNDS AND FUNDING OPPORTUNITY

ANNOUNCEMENT FOR: Workforce Opportunity for Rural Communities (WORC) Round 7:

A Grant Initiative for the Appalachian, Delta, and Northern Border Regions

ANNOUNCEMENT TYPE: Initial

FUNDING OPPORTUNITY NUMBER: FOA-ETA-26-23

ASSISTANCE LISTING NUMBER: 17.280

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

FUNDING DETAIL:

Expected Total Available Funding $49,200,000

Expected Number of Awards 6-24

Funding Range Per Award $2,000,000 - $8,000,000

The funding available reflects the amounts available in the Fiscal Year (FY) 2025 appropriation, for Program Year (PY) 2025 and for which ETA must obligate by September 30, 2026. The

Department reserves the right to also apply funding from the FY 2026 appropriation, up to an additional approximately $54,000,000, to this Funding Opportunity Announcement (FOA), should the Department receive sufficient qualifying applications.

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 07/23/2026 We must receive applications no later than 11:59 pm Eastern Time.

Expected Period of Performance Start Date 10/01/2026

Period of Performance Length 36

On approximately June 26, 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

C. Remedies for Noncompliance

IX. RESOURCES

X. OMB INFORMATION COLLECTION

APPENDIX A

APPENDIX B

APPENDIX C

APPENDIX D

APPENDIX E

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 Workforce Opportunity for

Rural Communities (WORC) Round 7: A Grant Initiative for the Appalachian, Delta, and

Northern Border Regions.

The Workforce Opportunity for Rural Communities (WORC) Initiative Round 7 is a partnership between the Department of Labor’s Employment and Training Administration (ETA) and three regional commissions—the Appalachian Regional Commission (ARC), the Delta Regional

Authority (DRA), and the Northern Border Regional Commission (NBRC). WORC 7 will address the critical workforce needs of employers in high-growth and emerging industries across the Appalachian, Delta, and Northern Border regions (WORC regions). Eligible applicants include industry and employer associations; labor-management organizations; education/training providers; workforce development entities; Native American tribal governments and organizations; and state, county, and local governments. Eligible applicants will contribute to large-scale regional economic development models through the formation or enhancement of regional industry and sector partnerships that bring together employers, education and training providers, and workforce development entities, among other partners, to design and implement grant projects that embed industry-driven strategies, including Registered Apprenticeships, and enhance worker mobility. WORC 7 grant projects will be responsive to industry needs by providing both short-term training and longer-term career pathways programs. These career pathways programs will offer high-quality occupational skills training that leads to stackable credentials, capacity-building activities that support regional industry and sector partnerships’ training efforts and connect participants to robust supportive services that enable rural populations to successfully complete training and secure employment. Eligible training participants include dislocated workers, incumbent workers, and new entrants to the workforce.

For further information or technical questions about this FOA, please contact Shanell McNamee, Grants Management Specialist, Office of Grants Management, at worc7_foa-eta-26-23@dol.gov and specifically reference FOA-ETA-26-23. 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 are the eligible applicants, subject to the additional eligibility requirements described further below.

• State governments

• County governments

• City or township governments

• Independent school districts

• Public/state controlled institutions of higher education

• Indian/Native American tribal governments (Federally recognized)

• Indian/Native American tribal organizations (other than Federally recognized)

• Nonprofits with 501(c)(3) IRS status, (other than institutions of higher education)

• Nonprofits without 501(c)(3) IRS status, (other than institutions of higher education)

• Private institutions of higher education

• Historically Black Colleges and Universities (HBCUs)

• Tribally Controlled Colleges and Universities (TCCUs)

• Other

The only organizations included in "Other" referenced above are State and Local Workforce

Development Boards, Industry and Employer Associations, Labor-Management Organizations, Indian/Native American tribal governments (other than Federally recognized), and Indian/Native

American tribal organizations (Federally recognized).

Lead Applicant

The lead applicant, based on the eligible applicant types listed above, will serve as the grantee and have overall fiscal and administrative responsibility for the grant. Eligible lead applicants must: 1) fall into one of the six categories of organizations described below; 2) operate within the

WORC regions; 3) establish or collaborate with an existing regional industry and sector partnership that includes the entities described as required partners in Section III.I; and 4) function as the sector convener or intermediary to guide, support, and champion the work of the sector partnership. While an eligible lead applicant may represent one of the required partners listed in Section III.I, applicants must demonstrate quality representation from each of the 3-4 required partner categories (see Section III.I. Required Partnerships for more information).

Therefore, the lead applicant cannot serve as more than one type of required partner for the purpose of meeting the Section III.I requirements.

As stated above, among the eligible applicant types provided, the lead applicant must also fall into one of the six categories of organizations listed below and must specify their organization type on the Abstract.

mailto:worc7_foa-eta-26-23@dol.gov https://www.dol.gov/agencies/eta/grants https://www.grants.gov/

• Industry and Employer Associations including regional industry associations, employer associations, or employer intermediary organizations such as chambers of commerce, which may have a cross-industry or broad talent strategy focus or may be focused on specific industry sectors; if focused on specific industries, these should target skilled trades/construction, health care, information technology, manufacturing, domestic energy production, or business/professional occupations. See Appendix A for definitions of these industry sectors. An industry association, also known as a trade association, industry trade group, business association, sector association, or industry body, is defined as an organization founded and funded by businesses that operate in the relevant sectors above. An employer association is defined as a collective organization that represents and supports the interests of its member employers, providing advice, advocacy, and representation in workplace matters.

• Labor-Management Organizations that support collaborative efforts between employers and workers in the skilled trades/construction, health care, information technology, manufacturing, domestic energy production, or business/professional services sectors.

• Education/Training Provider(s): Public or private nonprofit education and training providers, including public or other non-profit institutions of higher education as defined in Section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001); Historically black colleges and universities; Tribal colleges and universities; community and technical colleges and systems; independent school districts; nonprofit and community-based organizations that offer job training, and non-profit organizations that provide training programs, including programs on the State's Eligible Training Provider List under WIOA.

• Workforce Development Entities involved in administering the public workforce system established under WIOA, including State and Local Workforce Development

Boards (WDBs) and Indian and Native American Program entities eligible for funding under WIOA Section 166 (29 U.S.C. 3221).

• Native American Tribal Governments and Organizations which are defined as the governing bodies of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, or any affiliated tribal organization that provides relevant education and training services to tribal members.

• State, County, and Local Governments, including cities and townships, and State

Workforce Agencies (State government agencies that receive funds pursuant to the

Wagner-Peyser Act (29 U.S.C. 49 et seq.) to administer the State’s public labor exchange activities or the lead state agency responsible for the administration of WIOA title I activities).

The lead applicant must also have the organizational capacity to carry out the grant.

Responsibilities include:

• Being the point of contact that receives and responds to all inquiries or communications from DOL;

• Maintaining authority to withdraw or draw down funds through the Department of Health and Human Services - Payment Management System (HHS-PMS);

• Submitting all required deliverables, regardless of which partnership member performed the work;

• Agreeing to amend the grant agreement or statement of work as necessary;

• Carrying out the programmatic functions of the grant;

• Overseeing and managing all expenditures under the grant;

• Coordinating with the national evaluator, as needed, if selected by DOL to participate in a grant program evaluation; and

• Working with DOL to close out the grant.

See also Funding Restrictions in Section III.H and Application Screening Criteria in Section

VI.A to learn more about lead applicant requirements.

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.

2. Number of Applications Applicants May Submit

We will consider only one application from each organization. If an organization submits multiple applications, 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.

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.

The Department strongly encourages applicants to contribute leveraged funds to provide supportive services, expand the training types offered, and/or sustain effective models beyond the life of the grant.

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.

We expect that start-up activities, such as hiring appropriate grant program staff and project design activities, will begin immediately after grant award. Grantees are expected to start enrolling participants in high-quality training programs and Registered Apprenticeship programs by at least month nine, though sooner is preferred. We strongly encourage grantees to develop their internal project work plans and timelines accordingly. Grantees must plan to fully expend grant funds during the period of performance. DOL does not anticipate period of performance extensions under this FOA.

III. PROGRAM DESCRIPTION

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

A. Purpose

WORC 7 will invest in large-scale regional industry and sector partnerships that will design and implement industry-driven training programs that close skills gaps and increase the talent pipeline in critical sectors and support increased worker mobility by engaging individuals disconnected from the workforce and offering career pathways into high-wage occupations for rural populations in WORC regions. For the purposes of this FOA, a large-scale regional area means multiple counties (or parishes), jurisdictions, municipalities, metropolitan statistical areas, or census tracts within one state or across state lines. WORC 7 grant projects are intended to support economic development models that are broad in scale and scope to ensure maximum impact across the WORC regions.

Successful applicants will develop grant projects focused on at least one of the following high-growth and emerging industry sectors: skilled trades/construction, health care, information technology, manufacturing, domestic energy production, and business/professional services.

Sector partnerships comprised of employers, education and training providers, and workforce development entities, at a minimum, will collectively develop or enhance programs to provide the critical skills and credentials to meet the needs of employers in the targeted service areas through a variety of training options. These training options will include early occupational and career exposure opportunities through career and technical education (CTE) that offers dual enrollment that leads to recognized postsecondary credentials; high-quality, short-term training programs that aim to become eligible for the newly authorized Workforce Pell Grants; as well as

Registered Apprenticeships and pre-apprenticeship programs that lead into Registered

Apprenticeships.

In turn, rural communities historically hard-hit by economic distress will receive training and education opportunities and resources that lead to employment and wage growth and stimulate economic mobility, self-sufficiency, and increased labor force participation. These federal workforce investments will support America's reindustrialization and equip American workers to fill the growing demand for skilled trades and other occupations. Through these efforts, WORC 7 will support the implementation of America's Talent Strategy: Building the Workforce for the

Golden Age, Executive Order 14278: Preparing Americans for High-Paying Skilled Trade Jobs of the Future, and the Administration's priority goal for reaching and surpassing one million active apprentices.

Due to the unique experiences and circumstances facing communities across the Appalachian, Delta, and Northern Border regions, the WORC regional commissions will provide technical assistance to prospective applicants in their respective regions, as well as assistance and support to grantees throughout the life of the Initiative. Prospective applicants are encouraged to visit the websites for the Appalachian Regional Commission, Delta Regional Authority, or Northern

Border Regional Commission for more information, including dates and locations for pre-application technical assistance meetings.

B. Program Goals and Objectives

WORC 7 will fund grants to regional industry and sector partnerships that will develop, enhance, or expand workforce solutions that support implementation of America’s Talent Strategy in

WORC regions by addressing the following core elements:

• Core Element 1: Industry-Driven Strategies 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 https://www.whitehouse.gov/presidential-actions/2025/04/preparing-americans-for-high-paying-skilled-trade-jobs-of-the-future/ https://www.whitehouse.gov/presidential-actions/2025/04/preparing-americans-for-high-paying-skilled-trade-jobs-of-the-future/ http://www.arc.gov/ https://dra.gov/ https://www.nbrc.gov/ https://www.nbrc.gov/ o Successful applicants will contribute to economic development models driven by the needs of industry across a large-scale regional area. See Section III.A for the definition of a "large-scale regional" area. Grantees should support a large, regional partnership that addresses similar workforce needs, including emerging workforce needs resulting from new investments in U.S. manufacturing, energy production, technology, and infrastructure.

o Regional industry and sector partnerships will identify and address the workforce challenges of their targeted service areas. Grant projects will be designed to build or strengthen reliable talent pipelines across a large regional area that are responsive to industry needs in high-growth and emerging industry sectors and help individuals in rural communities reenter and advance in the labor market.

o WORC 7 grant projects must focus on at least one of the following high-growth and emerging industry sectors: skilled trades/construction, health care, information technology, manufacturing, domestic energy production, and business/professional services occupations. Applicants must target occupations with demonstrated higher-level skills and wage progression opportunities along an identified career pathway. Examples include but are not limited to progressing from an equipment operator to crane operator; a certified nursing assistant to a licensed practical nurse; material handler to a maintenance technician; or an accountant to a financial advisor.

o Applicants will bring together partnerships of employers, industry partners, education and training providers, workforce development entities, regional and state partners, as well as WORC region partners from local economic areas within the targeted service area that share workforce needs. These industry and sector partnerships will identify and develop a variety of career pathways to meet their industry needs. Programs of study will include CTE programs and high school dual enrollment programs, shorter-term programs that lead to industry-recognized credentials and support immediate hiring requirements for employers (such as those that may qualify for Workforce Pell), and high-quality work-based learning opportunities, including pre-apprenticeships. All industry and sector partnerships must incorporate Registered Apprenticeships into their training strategy as a career pathway for new entrants to the industry and for incumbent worker upskilling. This can include developing new Registered Apprenticeship programs designed to meet the specific needs of the target industry, expanding existing

Registered Apprenticeship programs, and enhancing partnerships with education and training providers to deliver the related instruction component of Registered

Apprenticeship programs.

o Examples of existing large-scale industry and sector partnerships include:

▪ Cyber ACCESS (Appalachian Community Colleges Eco-System

Sustainability): This collaborative project is advancing cybersecurity workforce training programs across 30 community colleges in all 13

Appalachian states. The Cyber ACCESS project aims to directly increase the number of qualified cybersecurity professionals in Appalachia by facilitating collaboration between employers and community colleges to upskill and train regional talent; preparing students to obtain new and existing credentials; and creating regional communities of cybersecurity practice for knowledge-sharing.

▪ The Maine Construction Industry Workforce Partnership: An innovative regional sector partnership in the Northeast, that brings together the construction industry, workforce development entities, and seven community colleges to strategize and expand short-term construction training opportunities for jobseekers that result in an industry-recognized credential, upskill incumbent workers to advance to higher-skilled positions, promote wage progression, and expand the talent pipeline.

• Core Element 2: Worker Mobility o Successful applicants will address worker mobility by prioritizing the needs of the

WORC regions' disconnected workforce, including individuals receiving public benefits and subject to enhanced work requirements, and addressing barriers to employment through rural community reengagement efforts. Applicants will also support the mobility and career advancement of incumbent workers and develop clear pathways for these individuals to gain the skills necessary to secure higher-paying employment within the target industry sectors. Grant projects will embed the use of skills-based assessments into participant intake to determine baseline competencies and recognize prior experience in establishing their workforce development service strategy and career plan.

o Regional industry and sector partnerships will strategize effective ways to leverage resources and provide robust supportive services that assist workers with challenges to persistence and completion of training and help them secure and retain employment within the target industry sectors. These partnerships will leverage other sources of funding, including through community-based organizations and other federal and state programs to sustainably support WORC regions' residents' ongoing needs. Successful applicants may supplement the supportive services provided through these partnerships with grant-funded supportive services to cover unmet needs after exhausting opportunities to use leveraged resources and funding. See Section III.H for funding restrictions.

Partnerships are also encouraged to explore ways to use leveraged resources to provide targeted supportive services to participants who have exited their training program, if such services are designed to maintain employment and temporarily replace lost benefits as the exited participant secures higher earnings through employment.

o Grantees are encouraged to use grant funds to support the use of and/or connection to Learning and Employment Records (LERs), as well as regional

Talent Marketplaces, with the aim of strengthening the connection between skill development and employment outcomes, to create a sustainable workforce ecosystem.

Required Activities

Projects funded by WORC 7 must offer a grant-funded industry-driven training program that consists of an appropriate and relevant combination of the following:

• Occupational skills training resulting in a credential of value (see TEN 25-19) in regionally high-demand industry sectors including skilled trades, construction, health care, information technology, manufacturing, domestic energy production, and business/professional services.

o This training model must offer and include all of the below components; however, not every participant needs to receive each component (e.g., not every participant needs to participate in a Registered Apprenticeship).

▪ Work-based learning such as pre-apprenticeships, or on-the-job training

(OJT) that is paired with related instruction/classroom training.

▪ Registered Apprenticeship programs.

o Training should emphasize third-party validated credentials related to occupational priorities. Applicants looking for information on which credentials are relevant for which occupations can use DOL's Certification Finder currently housed in the CareerOneStop website, credential registries developed by states, Credential Engine, and/or a similar functional tool to map needed skills to occupations.

o All training programs must lead to a recognized postsecondary credential. A recognized postsecondary credential is a credential consisting of an industry-recognized certificate or certification, a certificate of completion of a Registered

Apprenticeship, a license recognized by the state involved or Federal

Government, or an associate or baccalaureate degree. For further information, see

TEN 25-19 Understanding Postsecondary Credentials in the Public Workforce

System. A project’s employer or industry/trade association partners should validate the recognized postsecondary credential(s) offered through the training model as directly aligned with the skill demands and hiring requirements of the target occupations.

o Regional industry and sector partnerships must develop strong supportive service strategies that benefit rural populations and help increase labor force participation.

Generally, supportive services (see Training and Employment Guidance Letter

No. 19-16 and Section III.G. Definitions for a detailed description) are customized to meet the specific needs of an individual to help enable them to participate in or complete a workforce development program and secure employment.

o Successful applicants must leverage resources and funding, including through community-based organizations and other local, state or federally funded programs, to provide supportive services. Up to 10 percent of grant funds may be used to supplement the supportive services leveraged from other resources to cover unmet needs after exhausting opportunities to use leveraged resources and funding. Grantees who provide supportive services with grant funds are required to assess all participants for supportive service need using a consistent policy.

• Capacity-building activities that support regional industry and sector partnerships to develop and implement training that is responsive to industry needs. This could include program development activities to establish Registered Apprenticeship programs, such as https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-25-19 https://www.careeronestop.org/Toolkit/Training/find-certifications.aspx https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-25-19 creating standards and curriculum, registering programs, building employer partnerships, or enhancing data systems to track and measure effectiveness. Other capacity-building activities could include the development of new programs, or the enhancement of existing programs, designed to meet Workforce Pell eligibility requirements, which offer career pathways with multiple on- and off-ramps resulting in stackable short-term credentials. Successful applicants may also consider leveraging or enhancing existing employment and training infrastructure such as Talent Marketplaces or Learning and

Employment Records (LERs). Additional examples include activities to expand and sustain regional industry and sector partnerships and elements of the program design beyond the life of the grant.

Other Allowable Activities

The following activities are also allowable, but not required:

• In-person and/or virtual classroom training can be provided as a standalone activity, separate from a training model that incorporates structured work-based learning. Such training must be validated by industry and responsive to employers’ needs.

• Artificial intelligence (AI) literacy development, which may be provided in the context of

OJT, occupational training, or a classroom setting (see TEN 07-25, The U.S. Department of Labor's Artificial Intelligence Literacy Framework).

• Funding incentive-based reimbursement training models for employers, such as the

Industry-Driven Skills Training Fund Grant Program. In such models, employers commit to upskilling current employees and create entry pipelines and pathways for hiring and training new employees, and in turn, they are reimbursed for training that is responsive to rapidly evolving skill demands and local workforce conditions. The goal is to encourage businesses to invest in workforce training that can effectively respond to those changes and build a stronger talent pipeline for the targeted industries.

• Employment-related services such as career coaching/mentoring, in-depth participant assessments, and job matching services.

• Digital literacy training (see Appendix A).

See Section III.H. Funding Restrictions, Policies and Limitations for more information on the use of grant funds for the above-mentioned required and optional activities.

Applicants are encouraged to leverage other resources to support and expand their training program activities. Leveraged resources may include, but are not limited to, Governor’s Reserve and other WIOA funds, including DOL’s American Manufacturing Apprenticeship Incentive

Fund, other leveraged federal resources, if applicable, such as the Department of Education’s

Connecting Talent to Opportunity Challenge, as well as non-federal resources, such as state funds or non-government resources. Such resources could help with providing additional incentives for employers to train, hire and upskill their employees, as well as providing additional funding to support the buildout and enhancement of Talent Marketplaces and LERs.

C. Expected Performance Outcomes

To demonstrate program effectiveness and ensure performance accountability, successful applicants will be required to collect, track, and report data for the following indicators and outcome measures:

https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEN/2025/TEN%2007-25/TEN%2007-25%20%28complete%20document%29.pdf https://www.dol.gov/agencies/eta/dislocated-workers/grants/industry-driven-skills https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/active-awards https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/active-awards https://www.ed.gov/about/news/press-release/us-department-of-education-launches-15-million-challenge-create-next-generation-of-talent-marketplaces

I. Tracking Indicator

a. Total number of participants who received education/job training activities

II. Performance Outcome Measures

a. Total number of participants who completed education/job training activities

b. Total number of participants who entered Registered Apprenticeship programs

c. Total number of participants who entered training-related employment after training program completion

As part of your application, you will provide targets for each indicator and outcome measure.

Appendix B provides instructions for submitting targets and contains a sample target table you can include as an attachment. The instructions include detailed definitions of each indicator and outcome measure and the required target submission format. Applicants are strongly encouraged to carefully review the performance reporting requirements for this Initiative and propose targets that align with their project design, are attainable, and will demonstrate effective use of grant funds to achieve the goals of this grant program.

While applicants are required to propose targets for the tracking indicator and performance outcome measures identified above, which are specific to this FOA, the following WIOA primary indicators of performance will also be tracked for all awarded grants:

III. WIOA Primary Indicators of Performance

a. Employment Rate 2nd Quarter After Exit

b. Employment Rate 4th Quarter After Exit

c. Median Earnings 2nd Quarter After Exit

d. Credential Attainment

Applicants are not required to provide targets for these WIOA indicators. Employment Rate and

Median Earnings Indicators are tracked by DOL on behalf of grantees using the Common

Reporting Information System (CRIS). Grantees are responsible for tracking and reporting

Credential Attainment.

D. Funding Type

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

We expect availability of approximately $49,200,000 to fund approximately 6-24 grants. The funding available reflects the amounts available in the Fiscal Year (FY) 2025 appropriation, for

Program Year (PY) 2025 and for which ETA must obligate by September 30, 2026. The

Department reserves the right to also apply funding from the FY 2026 appropriation, up to an additional approximately $54,000,000, to this FOA, should the Department receive sufficient qualifying applications. In the event that sufficient applications are received, we reserve the right to use such funds to select additional grantees from the applications submitted in response to this

Announcement. Applicants may apply for awards ranging from $2,000,000 to $8,000,000.

E. Eligible Participants

All participants enrolled in WORC 7 grant projects must live or work within a community that is part of the WORC regions. Participants eligible to receive services provided through this program represent three primary categories that are named in the appropriation: new entrants to https://www.dol.gov/agencies/eta/performance/cris https://www.dol.gov/agencies/eta/performance/cris the workforce, dislocated workers, and incumbent workers. We note that these categories are flexible enough to generally encompass any individual (including older youth) seeking training and employment opportunities. These broad categories of eligible participants include within them low-income individuals, ex-offenders, individuals with disabilities, and the long-term unemployed, among others. See Section III.G. Definitions for specific definitions of each category of eligible participant.

Note: Grant recipients must establish, document, and follow the documented process to determine an individual's eligibility to be enrolled in the project prior to enrollment and maintain documentation on the eligibility of all enrolled participants.

Veterans' Priority for Participants

38 U.S.C. 4215 requires DOL grantees to provide priority of service 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

Section 169(c) of the Workforce Innovation and Opportunity Act (WIOA) authorizes this program. The funds for this grant program are appropriated in Titles I and IX of Pub. L. 119-4, Full-Year Continuing Appropriations and Extensions Act, 2025, March 15, 2025. The

Department also may use funding appropriated in Title I of Div. B of Pub. L. 119-75, Consolidated Appropriations Act, 2026.

G. Definitions

See Appendix A for definitions specific to this FOA.

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.

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.

Use of Grant Funds for Work-Based Learning https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section4215&num=0&edition=prelim https://www.dol.gov/agencies/eta/grants/resources

All participants in work-based learning activities provided as part of a training program funded by this grant must be paid. Participants are paid wages by participating employers for any work-based learning activities. Grant funds may be used to reimburse employers for a portion of participants’ wages depending on the type of work-based learning activity and as outlined below.

See Appendix A for additional descriptions of each work-based learning type.

• On-the-job training (OJT): Grant funds can be used to reimburse employers for a percentage of the participant wages to offset OJT activity costs. Through the OJT contract, occupational training is provided for the WIOA participant in exchange for the reimbursement, typically up to 50 percent of the wage rate of the participant, for the extraordinary costs of providing the training and supervision related to the training.

However, grantees may reimburse OJT up to 75 percent of the wage rate of the participant when appropriate based on the size of the employer, the quality of the training, or the qualifications of the participants.

We also encourage grantees to negotiate lower rates or variable rates (such as starting at the maximum allowable reimbursement rate and reducing the subsidy over time) where possible to ensure that the maximum number of participants will be served by the project.

The following are additional restrictions for OJT:

o Participant OJT placements may only be reimbursed for private for-profit and nonprofit sectors. While the grant allows for public sector OJT placements, they are not allowed to be reimbursed for any portion of the training costs with grant funds;

o No placement may be made through staffing agencies providing workers on a temporary basis to employers for which the agency receives compensation from an employer; and o The period of reimbursement should be an adequate length to ensure the participant has acquired the technical skills needed for employment, but no longer than 12 months.

Individuals may not be co-enrolled in other programs for the purpose of extending OJT employer reimbursement beyond 12 months. Twelve months exceeds the average length of time for current OJT activities; therefore, grantees should negotiate contracts with employers that lead transitioning participants to permanent employment as soon as possible. Grantees may establish contracts that will be longer than 12 months for multiple participants; however, the reimbursement for each individual that participates in OJT cannot be longer than 12 months.

• Registered Apprenticeship programs: Grant funds can be used to reimburse employers for up to 50 percent of the participant’s hourly wage for the duration of the Registered

Apprenticeship, up until the grant’s period of performance ends. Grant funds can also be used to pay for any costs of the related instruction component of a Registered

Apprenticeship program and to provide supportive services to participants while they are in a Registered Apprenticeship program, consistent with the requirements for supportive services explained below.

• Pre-apprenticeships: Pre-apprenticeship, as defined in 20 CFR 681.480, means a program designed to prepare individuals to enter and succeed in a Registered

Apprenticeship and includes the following elements: 1) Training and curriculum that aligns with the skill needs of employers in the economy of the state or region involved; 2) https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=77b4eb8b15df766568784291d74c9882&term_occur=999&term_src=Title:20:Chapter:V:Part:680:Subpart:F:680.700 https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=7c38840a8ccc75edb5401866b84f03ff&term_occur=999&term_src=Title:20:Chapter:V:Part:680:Subpart:F:680.700 https://www.ecfr.gov/current/title-20/chapter-V/part-681/subpart-C/section-681.480

Access to educational and career counseling and other supportive services, directly or indirectly; 3) Hands-on, meaningful learning activities that are connected to education and training activities, such as exploring career options, and understanding how the skills acquired through coursework can be applied toward a future career; 4) Opportunities to attain at least one industry-recognized credential; and 5) A partnership with one or more

Registered Apprenticeships that assists in placing individuals who complete the pre-apprenticeship program in a Registered Apprenticeship.

Supportive Services

Regional industry and sector partnerships must develop supportive service strategies in which they prioritize leveraging other resources to provide supportive services to participants, including through co-enrolling participants in WIOA. Grantees may use up to 10 percent of grant funds to supplement other leveraged resources for supportive services. See Section III.G for the definition of supportive services. Grantees who provide supportive services with grant funds are required to assess all participants for supportive service need using a consistent policy.

To be an allowable expenditure, a supportive service may only be provided:

• After a participant has been assessed for need; and

• To address a specific barrier identified during the needs assessment that prevents the individual from fully participating in training.

See Section IV.C.3 for more information on supportive services.

Incentive Payments

Grantees may use up to 1.5 percent of grant funds to incentivize grant participants or former grant participants to provide information about grant outcomes, such as employment status after they complete their training program. These incentives can be provided as gift cards or other payments. Grantees must have a policy in place about how incentives will be distributed prior to using grant funds for incentives. The use of grant funds for incentive payments other than to collect participant information on grant outcomes is not allowed.

Equipment and Minor Alterations

Expenditures for equipment and/or minor alterations, if specific to the project, are allowable with prior written approval from the Grant Officer. Total costs to the grant of all equipment purchased cannot exceed 15 percent, or $100,000, of a grant award, whichever is less. Equipment purchased with grant funds must be installed and ready to use no later than 24 months from the start of the period of performance.

The award of a grant under this FOA does not constitute prior approval of equipment or minor alterations. After grant awards are made, grantees will be required to obtain specific Grant

Officer approval before acquiring equipment or proceeding with proposed alteration of facilities.

The Grant Officer must determine that all proposed equipment and/or alterations are (1) allocable, necessary, and reasonable; (2) tied to specific grant-related deliverables and outcomes outlined in the grantee’s statement of work (SOW); and (3) consistent with the FOA. Applicants proposing to spend grant funds on equipment and/or alterations must demonstrate in their SOW and budget narrative how these expenditures will further the goals of their training program.

Grant Profit

While for-profit entities are not eligible applicants, for-profit education/training providers are eligible as partner organizations.

For all grant recipients and sub-recipients, the earning of profit is not an allowable cost item.

Earnings above actual costs incurred are to be treated as program income. Any program income earned must be used for program purposes.

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

Robust and sustainable industry and sector partnerships are a critical component of WORC 7.

Successful applicants must demonstrate they have signed partnership agreements in place with all required partners to support an effective industry and sector partnership that will quickly convene, strategize, and mobilize to implement effective grant projects that meet the goals of this initiative. Applicants must identify the following required partners, at a minimum, in the proposed service area, though other partners may also be included in the project design and proposal:

1. Employers: At least three employers or industry/trade associations (for each proposed industry sector) who will be engaged in the industry and sector partnership and willing to commit to offering interviewing or hiring opportunities for open positions for successful program participants or upskilling opportunities for existing employees, as well as supporting the project through these additional strategies:

o Providing feedback on job requirements, necessary credentials, and training content;

o Offering work-based learning and participating in Registered Apprenticeship programs in the targeted industry(ies) to participants; and o Identifying recruitment and referral networks for participant outreach.

2. Workforce Development Entities: At least one entity involved in administering the public workforce system established under WIOA, including State and Local Workforce

Development Boards (WDBs), Indian and Native American Program entities eligible for funding under WIOA Section 166 (29 U.S.C. 3221), and American Job Center operators or partner programs. The inclusion of a workforce system partner will allow the grantee to build upon existing infrastructure rather than spark duplication and will contribute to the sustainability of the project after the grant period concludes.

3. Education/Training Provider(s): At least one public or private education and training provider, including institutions of higher education as defined in Section 101(a) of the https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/ https://www.dol.gov/agencies/eta/advisories/tegl-10-24 https://www.ecfr.gov/current/title-20/chapter-V/part-678/subpart-B/section-678.400

Higher Education Act of 1965 (20 U.S.C. 1001); Historically black colleges and universities; Tribal colleges and universities; community and technical colleges and systems; independent school districts; nonprofit and community-based organizations that offer job training, including that provide training programs included on the State's

Eligible Training Provider List under WIOA.

4. State Apprenticeship Agencies (SAAs): Applicants proposing Registered

Apprenticeships in states with federally recognized SAAs must include the SAA as a required grant partner, if the SAA partnership is required for activities proposed in the grant application (such as developing and registering new apprenticeship programs).

Applicants may only represent one required partnership role.

At a minimum, applicants must provide signed documentation of commitment in their application from all employer partners. Successful applicants will have up to 30 days from grant award to submit documentation of commitment for any remaining required partners.

However, applicants are strongly encouraged to submit documentation of commitment from as many required partners as possible at the time of application submission. Documentation of commitment includes letters of commitment or other types of signed agreement that clearly indicate: 1) the roles, 2) responsibilities, and 3) contributions (e.g., financial, other resources, etc.) of the partner in the grant activity. See Appendix D for further examples and details.

Failure to include complete documentation from all required employer partners will result in the applicant not receiving full points under the Sector Partnership and Industry Engagement rating factor in the Project Narrative. Applications will be evaluated on the level and quality of involvement of required partners in the project as documented in the signed commitments.