The Industry-Driven Skills Training Fund (“Training Fund”) provides grants to State Workforce Agencies to form partnerships with eligible employers in key high-growth and emerging industry sectors to provide skills training to their current employees or newly hired workers. Participating employers can apply for outcomes-based partial reimbursement of actual training costs on a per-employee basis. Grantees will prioritize training for in-demand skilled trades including shipbuilding occupations, occupations essential to the buildout of artificial intelligence (AI) infrastructure, advanced manufacturing, nuclear energy, domestic mineral production, aerospace, and information technology including AI.
These grants are authorized under section 169(c) of the Workforce Innovation and Opportunity Act (WIOA) and section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (ACWIA), as amended (codified at 29 U.S.C. 3224a).
In September 2025, DOL awarded more than $86 million in grants to 14 states in the first round of Training Fund grants. In September 2026, DOL awarded $43 million in grants to seven additional states for the second round of grants. These investments will accelerate innovation, strengthen domestic production, and address critical workforce needs across the country.
For more information about the Training Fund, please see the following:
- The Industry-Driven Skills Training Fund Training and Employment Guidance Letter No. 02-25 and Change 1
- Information on Round 1 grants awarded
The Round 2 Training Fund recipients are as follows:
| Grantee Name | State | Industries | Award Amount |
|---|---|---|---|
| Colorado Department of Labor and Employment | CO | Advanced manufacturing, aerospace, artificial intelligence (AI) infrastructure, information technology (IT), nuclear energy, and domestic mineral production | $6,740,000 |
| Indiana Department of Workforce Development | IN | Advanced manufacturing, IT (with AI), building and construction (with AI), and healthcare | $6,7400,000 |
| Montana Department of Labor and Industry | MT | Advanced manufacturing and computing, including photonics and quantum, and construction trades | $4,837,533 |
| Nebraska Department of Labor | NE | Advanced manufacturing, industrial IT, bioeconomy and biosciences, domestic mineral production | $4,633,750 |
| Oregon Higher Education Coordinating Commission | OR | Shipbuilding and marine trades, advanced manufacturing (including semiconductors), aerospace and Unmanned Aerial Systems (UAS), IT, AI infrastructure, and cybersecurity, and healthcare | $6,740,517 |
| Pennsylvania Department of Labor and Industry | PA | Shipbuilding and maritime supply chain | $6,740,000 |
| Washington Employment Security Department | WA | Shipbuilding and its supply chain, nuclear energy and fusion, AI and data center infrastructure, aerospace and space production, and advanced manufacturing | $6,740,000 |