Work Opportunity Tax Credit Initial Funding Allotments for Fiscal Year 2026

Closed Posted

Opportunity number
ETA-WOTC-TEGL-09-25
Agency
Applications due
Award size
$36,000 to $1,742,067

Opportunity facts

Assistance listings
Funding instrument
Grant
Category
  • Employment, Labor and Training
Eligible applicants
  • Other
Points of contact

Opportunity details come from Grants.gov. Updated .

About this opportunity

The Department of Labor Employment and Training Administration (ETA) is soliciting applications from State Workforce Agencies (SWAs) to administer Work Opportunity Tax Credit (WOTC) activities for Fiscal Year 2026. Applicants must submit electronically signed SF-424 Applications for Federal Assistance forms to Grants.gov within 30 calendar days of the posting date using funding opportunity number "ETA-WOTC-TEGL-09-25" and CFDA number 17.271. Key requirements include establishing standard operating procedures, developing backlog reduction plans, designating state coordinators, implementing quality review processes, and submitting quarterly financial and performance reports using ETA Form 9130 and the SWARAS system. Grantees must process and certify WOTC requests only for hires who began work on or before December 31, 2025, as Congress has not extended legislative authority beyond that date. The application deadline is May 28, 2026, and inquiries may be directed to Charlene Wright at wright.charlene@dol.gov.

Total FY 2026 WOTC funding available is $15,203,383, with individual state allotments calculated using a formula-based approach comprising 40% based on certifications issued, 40% based on denials issued, and 20% based on civilian labor force averages, resulting in awards ranging from a $93,680 minimum to $1,742,067 for California. The grant program operates on a two-year performance cycle, with grantees required to maintain three-year records of certifications and one-year records of denials in compliance with IRS requirements. Performance will take place within respective state workforce agencies, and entities expending $750,000 or more in federal assistance annually are subject to single or program-specific audits under 2 CFR 200.

Synopsis

This TEGL announces the availability of WOTC FY 2026 state allotments to conduct WOTC activities and grant award application requirements for grantees to receive funding allocations. In addition, it provides general administrative policies and procedural guidance set forth by ETA and requirements outlined in the WOTC Statement of Work. Questions regarding this funding opportunity may be emailed to Charlene Wright (wright.charlene@dol.gov).

Files

File Type Posted
TEGL 09-25.pdf PDF

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