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Education Last Reviewed: April 2026 GM-INS-064 // MARCH 2026

Workforce Development Grants 2026: DOL Training and Employment Funding

Summary

The Workforce Innovation and Opportunity Act (WIOA) provides the core federal funding framework for job training and employment services in every state. In 2026, additional workforce investments from the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act have significantly expanded available funding for sector-based training, registered apprenticeships, and clean energy workforce development. The American Job Center network is the primary public access point for these services.

WIOA: The Foundation of the Public Workforce System

The Workforce Innovation and Opportunity Act (WIOA) of 2014 is the primary federal workforce legislation, distributing approximately $3 billion annually to states for adult, dislocated worker, and youth employment and training services. These funds flow from the Department of Labor to State Workforce Agencies, which then allocate funds to local workforce development boards (WDBs) in each region. Local WDBs oversee the American Job Center (AJC) network, which provides career counseling, job search assistance, skills training, and access to other services at publicly accessible locations in every state.

WIOA Title I funds four core programs: Adult (serving workers 18 and older), Dislocated Worker (serving laid-off workers and those unlikely to return to their previous occupation), Youth (serving young people ages 14–24, with an emphasis on out-of-school youth), and Employment Service (Wagner-Peyser Act activities including labor market information and job matching). Individuals can access WIOA services at their local American Job Center without a formal grant application β€” these services are available to the public. Training providers (community colleges, vocational schools, training organizations) seeking to offer training funded through WIOA Individual Training Accounts must become approved Eligible Training Providers listed on their state's Eligible Training Provider List (ETPL).

Registered Apprenticeship Grants

The Department of Labor's Office of Apprenticeship administers the federal Registered Apprenticeship (RA) program, which combines on-the-job learning with related technical instruction. Federal grants support expansion of registered apprenticeships through several mechanisms. The ApprenticeshipUSA State Expansion grants have helped states build infrastructure for apprenticeship development. The Apprenticeship Building America grants provided $113 million in FY2022 for industry and equity-focused expansion, with follow-on competitions in subsequent years.

The CHIPS and Science Act included dedicated workforce development provisions with apprenticeship components for the semiconductor industry. The IRA funded apprenticeship requirements as part of prevailing wage and apprenticeship provisions tied to clean energy tax credits β€” employers using registered apprentices for qualifying clean energy projects can receive enhanced tax credits (the full 30% ITC rather than the base 6%). This financial incentive has driven new employer participation in registered apprenticeship programs. Sponsors seeking to establish new RA programs work with their State Apprenticeship Agency or the DOL regional office. Intermediary organizations (including community colleges, trade associations, and nonprofits) can apply for DOL grants to support apprenticeship expansion in specific sectors or communities.

Good Jobs Challenge and Sector-Based Training

The EDA's Good Jobs Challenge, funded at $500 million by the American Rescue Plan Act, is one of the most ambitious workforce development grant programs in recent federal history. The program awarded 32 grants to employer-led workforce systems working to train workers for jobs in high-demand sectors including healthcare, information technology, clean energy, manufacturing, and transportation. While the initial round of awards has been made, grantees are actively implementing programs through 2026, and some are seeking additional partners and participants.

Sector-based training (also called sector partnerships or industry partnerships) is the organizing model behind Good Jobs Challenge and much of current federal workforce policy. This approach brings together multiple employers in a specific industry with training providers, workforce organizations, and community partners to address shared talent needs. Local workforce development boards are encouraged to facilitate sector partnerships using WIOA funds, and many states have invested state funds in industry-sector training initiatives. Organizations interested in workforce funding should identify the dominant industries in their region and explore whether an employer coalition already exists β€” joining an established partnership is often faster than building a new one.

Community College and Higher Education Workforce Programs

Community colleges are the backbone of the publicly funded workforce training system in most states. The Department of Education's Trade Adjustment Assistance Community College and Career Training (TAACCCT) grants, though completed as a program, generated extensive curriculum and partnership infrastructure that continues to operate. The Department of Labor's Community College Consortium grants have funded workforce training programs in high-demand fields. Under WIOA, community colleges must be included as required partners in the American Job Center system.

The Department of Education administers the Carl D. Perkins Career and Technical Education Act, which distributes over $1.3 billion annually to states for career and technical education (CTE) programs in secondary and postsecondary settings. Perkins funds flow to local education agencies and community colleges for equipment, curriculum development, teacher training, and work-based learning programs. The American Rescue Plan Act provided additional Strengthening Community Colleges Training Grants through the Department of Labor, funding community colleges to develop or expand short-term training programs for workers affected by the pandemic. Many of these programs are still active in 2026, particularly in healthcare, clean energy, and technology sectors.

Clean Energy Workforce Grants

The Inflation Reduction Act's clean energy provisions have created unprecedented demand for skilled workers in solar, wind, battery storage, electric vehicle manufacturing, and building electrification β€” and federal agencies have responded with workforce grants aligned to this demand. The DOE Office of Energy Efficiency and Renewable Energy (EERE) administers clean energy workforce development grants through its Office of State and Community Energy Programs. The Weatherization Assistance Program training network has been expanded. Solar Energy Technologies Office and Wind Energy Technologies Office programs include workforce components.

The Department of Labor's Pathways to Employment grants have targeted clean energy and climate workforce development, and the WIOA system is increasingly aligned with clean energy sector partnerships. The DOE's Workforce Development for Teachers and Scientists (WDTS) program funds internships and fellowships connecting students and educators with DOE national laboratories. Electric utilities, solar developers, HVAC contractors, and clean energy manufacturers seeking to build their workforce pipelines can engage with their local American Job Center, community college, and regional workforce development board to access WIOA training funds and develop apprenticeship programs that support their hiring needs. States like California, New York, Illinois, Colorado, and Massachusetts have particularly active state-funded clean energy workforce programs that complement federal investments.

β—† Primary Sources & Further Reading

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