WIOA Dislocated Worker National Reserve Demonstration Grants

The Department of Labor Employment and Training Administration funded 14 dislocated worker demonstration grants totaling $161.8 million as of October 1, 2025, under CFDA 17.280, the most recent award date in the portfolio.

The program supports pilot and demonstration projects that develop and test innovative training models addressing the employment and training needs of dislocated workers, incumbent workers, and new entrants to the workforce across diverse industries. Recent awards show concrete application: grants fund industry-driven skills training addressing critical workforce shortages (such as upskilling pathways for state economies), defense shipbuilding and advanced manufacturing training, and WORC (Workforce Opportunity for Rural Communities) initiatives targeting workers in Appalachian, Delta, and Northern Border regions to access stable, high-quality jobs in infrastructure, clean energy, care, and climate resiliency sectors. A representative award provided $20 million to support industry-driven skills training, while another $7.2 million grant focused on HVAC-R certification and training to fill approximately 80 positions within five years, targeting 33 students. The program also funded the Critical Sectors Job Quality initiative, which expanded job quality in care, hospitality, and climate resiliency sectors through labor-management partnerships and worker-centered sector strategies, with planning grants as small as $294 thousand and implementation grants reaching $7.2 million.

Activity remains strong. The portfolio shows 256 total awards disbursed since 2012, with award volume increasing in recent years: 49 awards in 2024 and 14 awards in the first ten months of 2025 (through October 1). Most projects last less than three years, with period-of-performance extensions available upon Grant Officer approval.

Grant awards are predominantly Project Grants (255 of 256 awards), with the Department of Labor Employment and Training Administration as the sole funder, obligating $740.9 million in federal dollars. Combined federal and non-federal dollars total $759.6 million, indicating modest cost-sharing from recipients. Recent awards range from approximately $1.2 million to $20 million, reflecting flexibility in project scope.

Eligible applicants include state and local governments, federal agencies, private for-profit and nonprofit organizations (including faith-based and community-based organizations), and educational institutions. Applicant eligibility may be restricted within particular solicitations. Recipients must maintain accounting records for three years from final payment.

Multiple grant opportunities remain active. The Industry-Driven Skills Training Fund Grant Program (ETA-TEGL-02-25) was posted July 7–8, 2026, with a due date of August 17, 2026, accepting applications from state governments and other eligible entities. The Workforce Opportunity for Rural Communities (WORC) Round 7 FOA (FOA-ETA-26-23) posted June 10, 2026, with a due date of July 23, 2026, is open to a broad applicant base including higher education institutions, nonprofits, tribal governments, county and city governments, and special districts, targeting workforce development in Appalachian, Delta, and Northern Border regions.