Important News

Labor Department opens $145 million Pay-for-Performance funding to expand Registered Apprenticeships

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Key takeaways

  • The Department of Labor announced a funding opportunity of up to $145 million for the Pay-for-Performance Incentive Payments Program.
  • ETA will award up to five cooperative agreements for a four-year period to expand new and existing Registered Apprenticeship programs.
  • Targeted industries include shipbuilding and the defense industrial base; AI, semiconductors, and nuclear energy infrastructure; information technology; healthcare; transportation; and telecommunications.
  • The department intends to make an award specifically for shipbuilding and defense if a quality application is received and will also award one cooperative agreement focused on rapid scaling across industries.
  • The initiative is aligned with America’s Talent Strategy and aims to help reach and surpass 1 million active apprentices nationwide.
  • The program builds on the recently announced $35.8 million American Manufacturing Apprenticeship Incentive Fund with Arkansas and aims to support small and mid-sized employers.

Follow Up Questions

What is a Registered Apprenticeship and how does it differ from other training programs?Expand

A Registered Apprenticeship is an employer-driven, industry-recognized training model that combines paid on-the-job learning with related classroom instruction, a nationally recognized credential, and standards registered with the U.S. Department of Labor or a State Apprenticeship Agency; it differs from other training (e.g., short courses or non‑credited workforce programs) by requiring employer sponsorship, wage progression, competency-based benchmarks, and federal/state registration that ensures quality and protections for apprentices.

How does the Pay-for-Performance Incentive Payments Program determine and measure the performance that triggers payments?Expand

The Pay-for-Performance program ties incentive payments to measurable apprenticeship outcomes proposed by applicants and approved by ETA—typically counts of new apprentices or ‘‘cohort’’ increases and other performance metrics in the FOA; payments are made based on documented achievement of those targets during the cooperative agreement period (per‑apprentice payments or cohort-based milestones as described in the FOA).

Who is eligible to apply for these cooperative agreements (for example, employers, industry associations, community colleges, or training providers)?Expand

Eligible applicants include a broad set of organizations: state agencies and territories; institutions of higher education (public and private); national industry groups and associations; labor‑management organizations; registered apprenticeship and workforce intermediary organizations; national economic development entities; consulting organizations; small businesses and for‑profits; nonprofits; and consortia led by eligible entities (see FOA for full details).

What is a cooperative agreement compared with a grant, and what additional responsibilities would awardees have?Expand

A cooperative agreement is a federal assistance award like a grant but anticipates substantial agency involvement—awardees implement the program while ETA provides technical direction, oversight, and collaboration during performance; awardees must follow FOA terms, reporting, monitoring, and coordination requirements beyond those for a standard grant.

Are applicants required to provide matching funds or other cost-sharing as part of their proposals?Expand

No—this FOA states there is no cost‑sharing or matching requirement (cost sharing: No), though applicants must follow budget and allowable cost rules in the FOA and justify proposed incentive models and budgets.

What does the department mean by making an award for shipbuilding and defense "contingent on receiving a quality application"?Expand

It means the Department plans to award at least one cooperative agreement focused on shipbuilding and the defense industrial base only if a submitted application for that industry meets the FOAs quality criteria; if no applicant demonstrates sufficient quality or fit, DOL may not make that specific award.

Where and how do organizations apply, and what are the application deadlines and review timelines?Expand

Organizations apply electronically through Grants.gov using FOA-ETA-26-19 (Pay-for-Performance Incentive Payments Program); applications were due April 3, 2026 by 11:59 pm ET per the FOA, and ETA provided a four-year performance period for awards—selection and award timelines follow the FOA review process (see Grants.gov/opportunity page and FOA for review details and email questions to PfP_FOA-ETA-26-19@dol.gov).

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