Dive Brief:
- The U.S. Department of Labor announced Feb. 13 that it will grant awardees up to $145 million to expand the national apprenticeship system.
- The agency’s Employment and Training Administration will give up to five cooperative agreements over a four-year performance period in two categories as part of its Pay-for-Performance Incentive Payments program, according to a press release.
- Financial awards will range from $10 million to $40 million, per the funding opportunity announcement. Applicants have until April 3 to apply.
Dive Insight:
The Labor Department will award up to four cooperative agreements in the first category, focused on the rapid expansion of registered apprenticeship in targeted industries, including shipbuilding and the defense industrial base, artificial intelligence, semiconductor and nuclear energy infrastructure.
However, the Labor Department is “particularly interested” in expanding the registered apprenticeship and aims to make an award in shipbuilding and the defense industrial base, the agency said in the announcement.
The Labor Department also intends to award one cooperative agreement under the second category, which focuses on scaling the registered apprenticeship system in other industries or subsectors that are not funded under the first category. The agency will provide incentive funding to the registered sponsor operating the apprenticeship program, which will gradually increase based on the number of cohort apprentices employed.
Contenders must select one of two program categories for their application to be considered.
Advanced manufacturing is excluded from the second category, as the program builds on the American Manufacturing Apprenticeship Incentive Fund. The Labor Department launched the $35.8 million initiative on Jan. 28, which is managed by the Arkansas Department of Commerce through a cooperative agreement. The new incentive fund prioritizes expanding registered apprenticeship programs in advanced manufacturing nationwide.
There is no deadline, and applications will be accepted on a rolling basis until the manufacturing incentive funds are exhausted.
The manufacturing apprenticeship program will also distribute funds and cooperative agreements through a pay-for-performance model, according to the state’s Commerce Department website. Under a cooperative agreement, the federal government will be more involved and ensure that recipients fulfill their obligations under their contracts.
Moreover, the pay-for-performance model aligns with the Labor Department’s workforce development strategy to hold workers and businesses accountable.
The two apprenticeship incentives support many of President Donald Trump’s executive orders, including those regarding AI, nuclear and maritime. However, his executive order on apprenticeships aims to reach more than 1 million active apprenticeships in the United States.
