On July 7, 2026, the US DOL announced the availability of new grants to support Industry-Driven Skills Training. See Change 1 to Training and Employment Guidance Letter 02-25, Industry-Driven Skills Training Fund Grant Program Application Instructions and Program Description
The Department of Labor, Employment and Training Administration (ETA) is funding demonstration grants to states to support businesses in creating or expanding training programs that provide workers with the critical industry skills needed to fill in demand jobs in those states and advance national economic priorities. These grants provide outcomes-based reimbursement funds to employers for training that is responsive to rapidly evolving skills demands and local workforce conditions, with the goal of encouraging businesses to invest in workforce training that can effectively respond to those changes and build a stronger talent pipeline for the targeted industries. Successful applications will engage employers within targeted industry sectors who commit to upskilling current employees and creating entry pipelines and pathways to hiring and training new employees, ranging from new entrants to the workforce to those needing to change careers.
Approximately $40 million is available in this second round of the Industry-Driven Skills Training Fund (“Training Fund”) grants, with at least $5 million of the total available funding to be awarded to support training in the shipbuilding industry. Aerospace is also identified as a priority industry.
The application procedures solicit applications from State Workforce Agencies for the Training Fund Grant Program.
Interested and eligible entities, as described in Attachment I, must submit complete applications to www.grants.gov no later than 11:59 PM ET on August 17, 2026, in accordance with the application instructions in Attachment II.
We encourage employers to work with state workforce agencies in the development of grant applications to address Industry-Driven Skills Training.
