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US Department of Labor announces launch of American Manufacturing Apprenticeship fund, designed to support, expand registered apprenticeships

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Key takeaways

  • The Department of Labor launched the American Manufacturing Apprenticeship Incentive Fund through a $35.8 million cooperative agreement with the Arkansas Department of Commerce, Division of Workforce Services.
  • Employers nationwide will be incentivized via a pay-for-performance model and will receive $3,500 for each new apprentice hired.
  • The fund targets expansion of advanced manufacturing Registered Apprenticeships, especially supporting small- and mid-sized manufacturing firms.
  • The program is administered by the Employment and Training Administration (ETA).
  • The initiative supports America’s Talent Strategy and several of President Trump’s executive orders; the department also issued an RFI on Registered Apprenticeship Industry Intermediaries.

Follow Up Questions

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

A Registered Apprenticeship (RA) is a formal, Department of Labor– or State Apprenticeship Agency–approved training program where workers are employees from day one, earn wages that increase as their skills grow, receive structured on‑the‑job training plus related classroom instruction, and on completion earn a portable, nationally recognized credential. Because RA programs are “registered,” they must meet federal or state standards for quality, safety, equal opportunity, and wage progression, and they are recorded in official apprenticeship systems.

Other apprenticeships or training programs (including many employer training schemes, unregistered apprenticeships, or internships) may offer work experience or classes but are not reviewed or approved by DOL/SAAs, are not required to provide progressive wages or a nationally recognized credential, and generally are not eligible for the same federal apprenticeship funding and incentives.

Which employers or organizations are eligible to receive the $3,500 payment for each new apprentice?Expand

The fund is designed for:

  • Advanced manufacturing Registered Apprenticeship sponsors and manufacturing employers nationwide that either operate, develop, or join a registered advanced manufacturing apprenticeship program; and
  • Employers/sponsors that apply through the Arkansas‑run incentive portal and are found eligible under program rules.

Arkansas’ Department of Commerce says the state is the sole grantee and national administrator and that “sponsors and employers seeking to receive incentive funds must complete an application process to determine their eligibility” and, if eligible, receive $3,500 per apprentice after the probation period. Program materials indicate more than 90% of the $35.8 million will flow directly to eligible Registered Apprenticeship sponsors and manufacturing employers across the U.S., with special emphasis on small‑ and mid‑sized firms.

How does the "pay-for-performance" model work in practice for this fund (timing of payments, performance metrics, documentation required)?Expand

In this initiative, “pay‑for‑performance” means employers/sponsors are paid only after they achieve specific results, not up front:

  • Trigger for payment: Arkansas, as fund administrator, will pay **$3,500 for each apprentice only after the apprentice successfully completes a 90‑day probationary period in an advanced manufacturing Registered Apprenticeship.
  • Timing: Payments are made once the 90‑day retention milestone is verified, not at the time of hire.
  • Performance focus: The model is intended to drive measurable growth in apprentice enrollment, retention and completion, by linking incentives to real apprentices starting and staying in RA programs.
  • Documentation/administration: Public documents state that sponsors and employers must apply and be determined eligible, and that payments are tied to predefined outcomes. However, detailed rules on what records must be submitted (for example, exact forms, data systems, or payroll documentation) have not been fully published; those operational details are to be provided in Arkansas’ application guidance and FAQs for participating employers.

So, what is clearly defined publicly is the performance trigger (a new apprentice who completes 90 days in a registered advanced manufacturing apprenticeship) and that payment follows that milestone; finer‑grained documentation procedures are not yet fully specified in public-facing materials.

What specific role will the Arkansas Department of Commerce, Division of Workforce Services play under the cooperative agreement?Expand

Under the $35.8 million cooperative agreement, the Arkansas Department of Commerce, Division of Workforce Services (through Arkansas Workforce Connections and the Office of Skills Development) will:

  • Serve as the sole grantee and national administrator of the American Manufacturing Apprenticeship Incentive Fund, even though the incentives are available to employers nationwide.
  • Manage and operate the fund day‑to‑day, including designing and running the application portal, determining employer/sponsor eligibility, and issuing the $3,500 per‑apprentice incentive payments.
  • Lead a nationwide expansion of registered apprenticeships in advanced manufacturing (120+ occupations such as aerospace, automotive, biotech, shipbuilding, semiconductors, and nuclear energy), provide technical assistance, and coordinate with national partners.
  • Report back to the U.S. Department of Labor on outcomes and use of funds, as required by the cooperative agreement.

Program FAQ materials specify that the Incentive Fund is “managed and operated by the Arkansas Department of Commerce, Division of Workforce Services,” and is 100% financed by the U.S. Department of Labor.

How can employers apply or join existing Registered Apprenticeship programs to qualify for these incentives?Expand

To qualify for these incentives, an employer generally must participate in an advanced manufacturing Registered Apprenticeship and then apply to the Arkansas‑run fund. In practice this means:

  1. Connect with the apprenticeship system

    • If you do not yet have a Registered Apprenticeship, use Apprenticeship.gov’s “Express Interest in Starting a Program” form to be connected with a DOL or State Apprenticeship consultant who can help design and register a program.
    • Alternatively, you can partner with an existing Registered Apprenticeship sponsor (such as a joint apprenticeship committee, industry association, or community college) and become a participating employer in that program.
  2. Ensure the program is officially registered

    • Your advanced manufacturing apprenticeship must be approved and registered with either the U.S. Department of Labor’s Office of Apprenticeship or a State Apprenticeship Agency to be considered a Registered Apprenticeship Program (RAP).
  3. Apply to the Incentive Fund

    • Once your advanced manufacturing RAP is in place, submit an application through Arkansas’s American Manufacturing Apprenticeship Incentive Fund portal (ArkansasOSD.com/MFGfund) once it opens. Arkansas will verify eligibility and, if approved, will pay $3,500 for each new apprentice who completes the 90‑day probation period.

These steps align with Apprenticeship.gov guidance on starting or joining a Registered Apprenticeship, and Arkansas’s description of its national administrator role and application portal for the incentive fund.

Over what time period will the $35.8 million be distributed and how many apprentices is the program expected to support?Expand

Public documents describe the fund’s timeframe clearly but do not state an official target number of apprentices.

  • Time period: Both the U.S. Department of Labor and Arkansas describe this as a four‑year, $35.8 million cooperative agreement, with Arkansas as sole grantee. Arkansas indicates the application portal opens January 28, 2026, and applications will be accepted on a rolling basis until all funds are obligated, implying distributions will occur over roughly four years from late 2025 into 2029.
  • Number of apprentices supported: No formal projection is published. Since each incentive payment is $3,500 per apprentice, the theoretical maximum—if nearly all funds went to incentives—would be on the order of 9,000–10,000 apprentices nationwide, but this is an arithmetic upper bound, not an official target (some funds are reserved for administration and technical assistance).

Because the program sponsors have not released a specific apprentice headcount goal, any more precise number would be speculative.

Where can I find the department’s request for information (RFI) on Registered Apprenticeship Industry Intermediaries and additional details on the fund?Expand

You can find these materials here:

These sources collectively provide the RFI context, the fund’s purpose and rules, and where and how employers can apply once the portal is open.

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