Change 1 to Training and Employment Guidance Letter 02-25, Industry-Driven Skills Training Fund Grant Program
This grant supports industry-driven skills training, with guidance and updates available through designated contacts and Grants.gov subscriptions.
Funder: Employment and Training Administration
Due Dates: August 17, 2026: Full application submission deadline (applications must be submitted electronically no later than 11:59 p.m. Eastern Time)
Funding Amounts: $3,000,000–$8,000,000 per award; approximately $40 million total program funding; 45-month project period
Summary: Supports state workforce agencies in partnering with employers to provide outcomes-based reimbursement for industry-driven skills training in high-demand sectors.
Key Information: Only State Workforce Agencies are eligible lead applicants; no cost sharing required; at least $5M reserved for shipbuilding training.
Description
This federal grant program provides substantial funding to State Workforce Agencies (SWAs) to form partnerships with employers in priority industry sectors, supporting the creation or expansion of training programs that address critical skill gaps and in-demand jobs. The program is designed to incentivize employer investment in workforce training through outcomes-based reimbursement, ensuring alignment with rapidly evolving industry needs and state workforce strategies. At least $5 million is reserved for shipbuilding industry training, and aerospace has been added as a priority sector in this round. The focus is on upskilling both new hires and incumbent workers, with a strong emphasis on performance outcomes and data-driven accountability.
