Industry-Driven Skills Training Fund Grant Program

The Department of Labor's Employment and Training Administration is seeking applications for the Industry-Driven Skills Training Fund Grant Program, which aims to support workforce development through outcomes-based reimbursement to employers for training costs in high-growth and emerging industries. State Workforce Agencies responsible for WIOA programs are the only eligible applicants, with the program prioritizing training in sectors such as skilled trades, shipbuilding, AI infrastructure, advanced manufacturing, nuclear energy, domestic mineral production, and information technology. The grants will reimburse employers up to 80% of actual training costs through two performance-based payments: one upon training completion and another after six-month job retention. Applicants must submit an SF-424 form, budget narrative, and an 8-page project narrative addressing the statement of need, implementation strategy, employer outreach plans, and past workforce training experience. The application deadline is September 5, 2025, at 11:59 PM ET, with an anticipated start date of October 1, 2025.

The total funding available is approximately $30 million for this initial funding round, with individual grants ranging from $3 to $8 million and awards anticipated for 5-10 State Workforce Agencies. At least $5 million must be specifically allocated to shipbuilding industry training, and a minimum of 90% of grant funds must be used for employer reimbursements, with the remaining 10% available for administrative costs. The grant period of performance is 45 months, including a 60-day planning phase. Successful applicants will be expected to develop comprehensive training programs that address critical workforce needs in targeted high-growth industries, with a focus on creating sustainable employment opportunities and supporting economic development.