Industry-Driven Skills Training Fund initial grant round

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 WIOA
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OWI
             Washington, D.C. 20210                       DATE
                                                          August 6, 2025

ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 02-25

TO:             STATE WORKFORCE AGENCIES
                STATE WORKFORCE ADMINISTRATORS
                STATE WORKFORCE LIAISONS
                STATE WORKFORCE BOARD CHAIRS AND DIRECTORS

FROM:           LORI FRAZIER BEARDEN
                Acting Assistant Secretary

SUBJECT:        Industry-Driven Skills Training Fund Grant Program Application
                Instructions and Program Description

1. Purpose. To announce the availability of approximately $30 million for an initial round of
   the Industry-Driven Skills Training Fund (“Training Fund”) grants, with award amounts of up
   to $8 million. Pending the availability of funds, there may be additional rounds of this grant
   program. These grants will address critical workforce needs for in-demand skilled trade
   careers and in high-growth and emerging industries, in support of Executive Order 14278,
   Preparing Americans for High-Paying Skilled Trade Jobs of the Future and America’s AI
   Action Plan, and at least $5 million of the total available funding will be awarded to support
   training in the shipbuilding industry.

2. Action Requested. Interested and eligible entities, as described in Attachment I, must submit
   complete applications no later than 11:59 PM ET on September 5, 2025, in accordance with
   the application instructions in Attachment II.

3. Summary and Background.

   a. Summary – This Training and Employment Guidance Letter (TEGL) announces
      application procedures to solicit applications from State Workforce Agencies for the
      Training Fund Grant Program. This TEGL describes the program goals and objectives;
      expected performance outcomes; eligibility; funding restrictions, policies, and limitations;
      period of performance; application requirements; and post-award policies related to this
      grant program.

   b. Background – The purpose of this grant initiative is to fund 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.

   RESCISSIONS                                             EXPIRATION DATE
   None                                                    Continuing

      These grants provide outcomes-based reimbursement funds to employers for training that
      is responsive to rapidly evolving skill 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 applicants will engage employers within targeted industry sectors who commit
      to upskilling current employees and creating entry pipelines and pathways for hiring and
      training new employees, ranging from new entrants to the workforce to those needing to
      change careers.

      Project Planning Phase (Post Award) – Before implementing projects, during a 60-day
      planning phase, successful applicants will finalize their grant Statement of Work,
      including final project designs and outcome goals, in collaboration with the Department
      of Labor, Employment and Training Administration (the Department or Department of
      Labor). Details of the planning phase, and information that will be required, are described
      in Attachment III. Project Planning Phase Requirements.

      Authorization – 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).

4. Training Fund Program Description and OMB Information Collection.

   See Attachment I, Program Description for specific program details and requirements.

   OMB Information Collection.
   OMB Information Collection number 1225-0086, Expires June 30, 2028.

   According to the Paperwork Reduction Act of 1995, no persons are required to respond to a
   collection of information unless such collection displays a valid OMB control number. The
   public reporting burden for this collection of information is estimated to average 50 hours per
   response, including time for reviewing instructions, searching existing data sources,
   gathering and maintaining the data needed, and completing and reviewing the collection of
   information. Send comments about the burden estimated or any other aspect of this collection
   of information, including suggestions for reducing this burden, to the U.S. Department of
   Labor, to the attention of the Departmental Clearance Officer, 200 Constitution Avenue NW,
   Room N1301, Washington, D.C. 20210. Comments may also be emailed to:
   [email protected]. (Please do not return your grant application to this address.
   Send only comments about the burden caused by the collection of information to this
   address. Send your grant application to the Employment and Training Administration (ETA)
   via https://www.grants.gov as described in Attachment II.)

   This information is being collected for the purpose of awarding a grant. The Department will
   use the information collected through this “Funding Opportunity Announcement” to ensure

   that grants are awarded to the applicants best suited to perform the functions of the grant.
   This information is required to be considered for this grant.

5. Inquiries. Please direct questions regarding this funding opportunity to Daniela Petchik,
   Grants Management Specialist, at [email protected].

6. References.
      • Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) (July 22,
         2014)
      • Section 414(c) of the American Competitiveness and Workforce Improvement Act of
         1998 (ACWIA), as amended (codified at 29 U.S.C. 3224a)

7. Attachment(s).
   Attachment I. Program Description
   Attachment II. Application Requirements, Review Process, and Award Notices
   Attachment III. Project Planning Phase Requirements
   Attachment IV. Performance Reporting Requirements
   Attachment V. Definitions
   Attachment VI. Abstract Template

                                                                                     Attachment I

                                       Program Description
I.        Catalog of Federal Domestic Assistance (CFDA) Number: 17.261

II.       Program Goals and Objectives
The Industry-Driven Skills Training Fund (“Training Fund”) Grant Program provides grants to
State Workforce Agencies to form partnerships with eligible employers in key industry sectors
that apply for outcomes-based reimbursement for actual training costs associated with providing
skills training to their employees. The training fund represents a public-private partnership
between the grantees and employers where employers play the leading role in defining in-
demand skills and delivering the training programs aligned to industry needs.
Applicants must propose a model to award funds to employers for training and retaining new or
incumbent workers in high-growth and emerging industries critical to American competitiveness
and drive economic resurgence. Priority industries include, but are not limited to, in-demand
skilled trades including shipbuilding occupations, occupations essential to the buildout of
artificial intelligence (AI) infrastructure, advanced manufacturing, nuclear energy, domestic
mineral production, and information technology including AI. The Department of Labor (the
Department) will award at least $5 million of grant funding to support training in the
shipbuilding industry. The Department encourages applicants to align their projects with the
talent development strategies in their Workforce Innovation and Opportunity Act (WIOA) State
Plans.
Applicants must provide a project narrative that addresses the following:
      •   the target critical industry(ies) for the grant program;
      •   the anticipated service area for the grant program (e.g., state-wide, targeted local
          workforce areas, specific counties);
      •   alignment of the proposed project to the state’s workforce development strategies,
          including those in the WIOA State Plan as relevant;
      •   the strategy for implementing and managing the Training Fund grant (e.g., procurement
          through a subrecipient, partnering with an educational institution, or other training
          provider, and/or collaboration with existing industry partnership(s)) with an emphasis on
          transparency, accountability, and data-driven outcomes;
      •   the planned approach to identify and recruit employers within the target industry(ies) who
          are seeking to build pathways to fill critical vacancies;
      •   the plan to ensure the use of training strategies aligned to industry skill demands;
      •   the planned strategies and processes that will be used to assess employer eligibility; and
      •   past experience administering workforce training programs that included training
          participants and employer engagement and how that experience will be leveraged to
          operate a grant under this funding opportunity.

                                                                                        Attachment I

III.      Eligibility

       A. Eligible Lead Applicants
          The lead applicant will serve as the grantee and have overall fiscal and administrative
          responsibility for the grant. Eligible lead applicants for this funding opportunity are
          limited to State Workforce Agencies, defined as state agencies responsible for developing
          statewide workforce policy and administering the state’s WIOA title I programs.
          Applicants are ineligible to apply if their State Workforce Agency falls into any of the
          following categories:
             •   For any active grants, is formally designated by the Department’s regional office
                 as “at-risk”
             •   Is on a grant drawdown restriction for another Department of Labor grant
          The lead applicant must have the organizational capacity to:
             • Collaborate with the Department to finalize the Statement of Work (SOW);
             • Carry out and/or oversee the programmatic functions of the grant;
             • Receive and respond to all inquiries or communications from the Department;
             • Oversee and manage all expenditures under the grant with an emphasis on
                 transparency, accountability, and data-driven outcomes;
             • Withdraw or draw down funds through the Department of Health and Human
                 Services - Payment Management System (HHS-PMS);
             • Submit all required deliverables;
             • Amend the grant agreement or SOW as necessary;
             • Collect, synthesize, and report data received by employers for all training
                 participants to the Department;
             • Coordinate with the national evaluator, as needed, if selected by the Department
                 to participate in a grant program evaluation; and
             • Work with the Department to close out the grant.

          See also Section IX. Funding Restrictions, Policies, and Limitations to learn more
          about lead applicant requirements.

       B. Eligible Employers
          Applicants will use grant funds to form partnerships with eligible employers and
          reimburse those employers for training costs as described in Section IX. Funding
          Restrictions, Policies, and Limitations. Grantees can identify eligible employers
          throughout the period of performance of the grant and must describe their policy for
          identifying and validating the eligibility of employers in the grant application and the
          final SOW.

                                                                                      Attachment I

         Employers eligible to participate and receive training cost reimbursement from the
         grantee must:
            • Operate within the grantee’s state and targeted service area;
            • Conduct business in one or more of the key industries identified by the grantee;
            • Commit to recruit and train new hires and/or upskill current employees;
            • Identify employee training needs;
            • Collaborate with the grantee to develop a training strategy to meet the employee
                training needs and identify how the training will be provided (e.g., in-house
                training, third-party training provider, or a combination) and the total training
                cost;
            • Ensure that training provided to employees aligns with the industry skills needed;
                and
            • Agree to report training and employment outcomes to the grantee for the purposes
                of reimbursement and grant reporting requirements and provide necessary data to
                the state to calculate employment outcomes.

         Employers are responsible for 1) assessing critical industry workforce development
         needs; 2) determining necessary skills and credentials; 3) identifying the appropriate
         training and working collaboratively with the grantee to develop it; 4) providing training
         or partnering with a training provider to do so, as applicable; and 5) recruiting employees
         and new hires and assessing for eligibility to participate in training that leads to skill
         gains and career advancement.

      C. Eligible Training Participants
         To be eligible to participate in the training, an individual must be:
            • A newly hired or incumbent worker who is employed with a participating
                employer seeking reimbursement, and
            • At least 17 years old and not currently enrolled in secondary school within a local
                educational agency.

IV.      Expected Performance Outcomes
         The Department will use the following tracking indicators and outcome measures to
         assess program progress and impact:

      A. Tracking Indicators:
            •   Total number of participating employers
            •   Total number of participants who are newly hired employees
            •   Total number of participants who are incumbent workers

                                                                                    Attachment I

      B. Outcome Measures:
           •   Total number of participants who complete training
           •   Total number of participants who complete training and earn a recognized
               postsecondary credential
           •   Total number of participants who complete training that are retained in
               employment with the same employer for six months
           •   In addition to the tracking indicators and outcome measures listed above, grantees
               will also report on the following WIOA primary indicators of performance for
               participants through the Workforce Integrated Performance System (WIPS):
                   o Employment Rate – 2nd Quarter After Exit
                   o Employment Rate – 4th Quarter After Exit
                   o Median Earnings – 2nd Quarter After Exit
                   o Credential Attainment

        Details about grant reporting requirements are described in Attachment IV.
        Performance Reporting Requirements.

V.      Reporting
        Grantees must follow the Department’s reporting requirements for quarterly financial and
        performance reports. Details about grant performance reporting requirements are
        described in Attachment IV. Performance Reporting Requirements.

VI.     Availability of Funds and Award Information
        The Department anticipates the availability of approximately $30 million for the initial
        round of funding to award 5-10 Training Fund grants. Applicants may apply for grants
        ranging from $3 to $8 million. Awards made under this TEGL are subject to the
        availability of federal funds. If additional funds become available, the Department may
        use such funds to select additional grantees from applications submitted in response to
        this TEGL.

        Pending the availability of funds, the Department anticipates that there may be additional
        rounds of this grant program.

VII.    Period of Performance
        The period of performance is 45 months with an anticipated start date of October 1, 2025.
        This period of performance will include a 60-day Project Planning phase to finalize the
        SOW, budget, and performance outcomes (see Attachment III. Project Planning Phase
        Requirements). The Department does not anticipate period of performance extensions.

                                                                                    Attachment I

VIII. Cost Sharing
         This program does not require cost sharing (including matching) funds. Instead, ETA
         considers any resources contributed to the project beyond the funds provided by the
         agency as leveraged resources.
         State Workforce Agencies (SWAs) are strongly encouraged to contribute leveraged funds
         to expand the training types offered, integrate training programs with existing state and
         local workforce development programs, provide supportive services, and/or sustain
         effective models beyond the life of the grant.
         Successful SWA applicants are strongly encouraged to leverage public workforce system
         resources and expertise to support the development and implementation of the grant
         project. This may include, but is not limited to, activities such as:
            1. understanding and analyzing the need for critical industry skills education and
               training in the state, including providing relevant sources of data, such as labor
               market information and other tools or reports;
            2. engaging and supporting potential eligible employers to participate in the training
               program;
            3. assessing, identifying and referring candidates to employers for participation in
               education and training programs;
            4. providing supportive services to eligible participants to enable their enrollment,
               persistence, and completion of training;
            5. co-enrolling participants across other federally-funded programs; and
            6. collecting, tracking, and reporting participant data to ETA.

         Leveraged resources may include, but are not limited to, state funds, Governor’s Reserve
         and other WIOA funds, funds from other Federal investments, and other leveraged non-
         federal resources, such as resources committed by employers to complement the grant
         activities.
         Please note that the leveraged resources discussed here are separate from how the SWA
         will determine the maximum training reimbursement and related employer contributions
         to the training. See Section IX.C below for information on the Eligible Employer
         Reimbursements.

IX.      Funding Restrictions, Policies, and Limitations
         All proposed project costs must be necessary and reasonable and in accordance with
         federal guidelines.

      A. Allowable Training Activities
         Training programs eligible for reimbursement must offer an appropriate and relevant
         combination of training and education services and/or work-based learning activities,

                                                                               Attachment I

   depending on the needs of the employers in targeted industries. Allowable activities
   include:
      •   Classroom and virtual instruction;
      •   Customized training; and
      •   Employer-provided work-based learning modes including on-the-job-training.

   Note that these Allowable Training Activities do not include supportive services. See
   Attachment V. Definitions for additional details and clarification of terms in this
   section.

B. Training Costs
   A minimum of 90 percent of the grant funds must be used to reimburse employers for
   allowable training costs, as defined in Attachment V. Definitions. The remaining 10
   percent may be spent on program operation costs, including personnel, indirect costs, and
   program implementation costs such as employer outreach, web development, software
   licenses, hardware, and data management and security.
   Example:
      •   An applicant is awarded a $1,000,000 grant. The grantee is required to use at least
          $900,000 (90 percent) of the grant award on reimbursements to eligible
          participating employers for costs associated with training employees. No more
          than $100,000 (10 percent) of the grant funds may be spent on administrative
          costs and program implementation expenses.
   Employers cannot be reimbursed for training that began or was completed prior to being
   approved as a participating employer in the Training Fund grant program by the grantee.

C. Eligible Employer Reimbursements
   Grantees may use grant funds to reimburse employers for up to 80% of the actual cost of
   a participant’s training. Reimbursements occur in two performance-based payments at the
   following training milestones:
      •   Upon training completion by a participant, and
      •   When the participant has retained his or her job with the employer for six months
          post-training completion.
   The amount to be disbursed at each of the two training milestones must be pre-
   determined by the applicant. The total amount reimbursed after the second milestone
   cannot exceed the 80% maximum reimbursable amount.
   Example:
   A grantee receives a request from an eligible employer for an applicable training program
   that costs $2,000 per participant. The grantee has proposed a model in which

                                                                                 Attachment I

   participating employers receive 50 percent of the maximum reimbursable amount when
   the participant completes the training program and the remaining 30 percent when they
   have met the six months post-program completion employment goal.
      •    The maximum reimbursable amount of the training cost per participant is $1,600
           (80 percent of $2,000 total training cost = $1,600).
      •    For each participant who completes the training program, the employer can be
           reimbursed $1,000 (50 percent of $2,000 total training cost = $1000).
      •    For each of the program completers who retain their position of employment for
           six months, the employer can be reimbursed an additional $600 (30 percent of
           $2,000 total training cost = $600).
   Applicants may propose tiered training reimbursements within the 80 percent
   reimbursement limit (e.g. higher reimbursement rates, bonus reimbursements, etc.)
   to incentivize one or more of the following:
      •    Training that results in an industry-recognized postsecondary credential
      •    Training of newly hired workers
      •    Small business participation (Under 100 full-time employees)

   Example:

   A successful applicant decides to provide size-based reimbursements to employers and
   sets total reimbursement rates as follows:

       •   50% for employers with over 500 employees
       •   65% for employers with 101-500 employees
       •   80% (the maximum reimbursable percentage) for employers with less than 100
           employees.

D. Employee Training Cost Reimbursement Ceiling
   Grantees must establish a per-employee training cost reimbursement ceiling agreement
   with employer partners. Grantees may propose the ceiling amount but the ceiling amount
   must be applied consistently across all employer partners of that grantee.

E. Special Program Design Requirements and Limitations
   For models that propose to reimburse employers upon completion of a training program
   that results in a credential, the credential must be a recognized postsecondary credential,
   as described in TEGL 10-16, Change 3: Performance Accountability Guidance for
   Workforce Innovation and Opportunity Act (WIOA) Core Programs and Training and
   Employment Notice (TEN) 25-19: Understanding Postsecondary Credentials in the
   Public Workforce System.

                                                                                  Attachment I

X.   Additional Application Requirements
     For all other application requirements that apply to this funding opportunity, see the 2025
     Funding Opportunity Announcement Application Guide.

                                                                                     Attachment II

                Application Requirements, Review Process, and Award Notices
 I.      Application Submission Requirements

      A. Unique Entity Identifier and System for Award Management
         All applicants for Federal grant funding must have a Unique Entity Identifier and be
         registered in the System for Award Management. For a complete understanding of this
         application requirement, see the 2025 Application Guide, Section V.B. Unique Entity
         Identifier and System for Award Management.

      B. Submission Instructions
         Applicants must electronically submit their application through Grants.gov by 11:59 p.m.
         Eastern Time on September 5, 2025. ETA will not review applications received after
         11:59 p.m. Eastern Time on the closing date. ETA will not accept applications sent by
         hardcopy (mail or hand delivery), e-mail, telegram, or facsimile (FAX). For a complete
         statement of this application requirement, see the 2025 Application Guide, Section V.C.
         Submission Instructions.

      C. Intergovernmental Review
         This funding opportunity is not subject to Executive Order 12372, “Intergovernmental
         Review of Federal Programs.”

II.      Application Content and Format
 ETA will consider only one application from each state or territory. If an organization submits
 multiple applications, only the most recently received application that meets the deadline will be
 considered. If the most recent application is disqualified for any reason, ETA will not replace it
 with an earlier application.
 Applications submitted in response to this solicitation must consist of four separate and distinct
 parts:
      A. SF-424, “Application for Federal Assistance;”
      B. Project Budget, composed of the SF-424A and Budget Narrative;
      C. Project Narrative; and
      D. Attachments to the Project Narrative.

 The applicant must make sure that the funding amount requested is consistent across all parts and
 sub-parts of the application. The applicant must submit the application is in one package.
 Documents received separately will be tracked separately and will not be attached to the
 application for review.

                                                                             Attachment II

A. SF-424, Application for Federal Assistance
   You must complete the SF-424, “Application for Federal Assistance.”
   For a complete description of this application requirement, see the 2025 Application
   Guide, Section IV.A SF-424 Application for Federal Assistance.

B. Project Budget, Composed of the SF-424A and Budget Narrative
   You must complete the SF-424A Budget Information Form and a Budget Narrative. The
   Budget and Budget Narrative do not count against the page limit requirements for the
   Project Narrative. Applications that do not include a Budget and Budget Narrative
   will be considered non-responsive and will not be reviewed. The Budget and Budget
   Narrative provided with the grant application are not the final budget (please see
   Attachment III. Project Planning Phase Requirements) but are used to indicate an
   initial understanding of and alignment with the project design and funding requirements
   outlined in this funding opportunity.

   For a complete description of this application requirement, see the 2025 Application
   Guide, Section IV.B Project Budget, Composed of the SF-424A and Budget Narrative.
   An optional template applicants can use to submit the required budget is available on
   grants.gov; see
   https://apply07.grants.gov/apply/opportunities/instructions/PKG00274055-
   instructions.pdf.

C. Project Narrative
   To demonstrate your ability to implement this grant, you must include a Project Narrative
   with your application that is responsive to the requests for information in Sections C1a,
   C1b, and C2 as described below. The narrative must be no more than eight (8) pages and
   meet the following formatting requirements:
      •   double-spaced
      •   single-sided
      •   page size of 8.5 x 11-inches
      •   1-inch page margins
      •   Times New Roman 12-point font
      •   includes the section headers listed in this announcement for each section
   The Project Narrative shows that you can operate and manage a grant project that will
   meet the program goals and requirements explained in this funding opportunity. Note that
   after grant award, successful applicants will expand on their application Project
   Narratives to finalize a Statement of Work (SOW) in collaboration with the Department.
   Attachment III. Project Planning Phase Requirements describes the program design
   components that grantees will be required to conceptualize and build into their training
   fund models after award, as well as the process for finalizing the SOW.

                                                                           Attachment II

The agency will evaluate application Project Narratives using the evaluation criteria
listed for each Project Narrative section below. The Department will not read or consider
any information or material beyond the specific page limit of eight (8) pages when
evaluating the Project Narrative.

SECTION 1 - BACKGROUND AND MANAGEMENT (Up to 34 Points):
       a. Statement of Need (Up to 24 Points)
       Applicants must identify the targeted industry(ies) on which the project will focus
       and fully describe the current and future projected employment opportunities
       within the state. Applicants are required to include at least one of the priority
       industries outlined in Attachment I. Program Description - Section I. Program
       Goals and Objectives.

           •   The Department is seeking applications that will increase training
               opportunities in the target industries of skilled trades including
               occupations essential to the buildout of AI infrastructure, shipbuilding,
               advanced manufacturing, nuclear energy, domestic mineral production,
               and information technology including AI. Applicants must specify their
               targeted industry(ies) and may propose industries beyond those listed.
               Applicants must cite evidence that the industry sector(s) they are targeting
               are high-growth or emerging according to one or more of the following
               factors: 1) projected to add substantial numbers of new jobs to the
               economy; 2) are being transformed by technology and innovation
               requiring new skill sets for workers; 3) represent new and emerging
               businesses that are projected to grow; or 4) have a significant impact on
               the economy overall or on the growth of other industries and occupations.
           •   For applicants that include shipbuilding in their application, the applicant
               must identify what portion of the requested grant award amount is
               intended to fund training in shipbuilding, and may identify what portion of
               the requested grant award amount is intended to fund training in each of
               any other industry. Applicants that do not include shipbuilding in their
               application may also provide a similar plan, but this is not required.
           •   The applicant must identify how the targeted industry(ies) and proposed
               employer partners support a skilled domestic workforce. The description
               should include specific details of the employer partners’ workforce
               challenges and role in addressing these needs.
           •   Identify the service area for the grant program (e.g., statewide, targeted
               local workforce areas, specific counties).
           •   Describe how the industry(ies) align with key strategies and goals within
               the state’s workforce strategies, including those in the WIOA State Plan as
               relevant.

                                                                            Attachment II

     b. Implementation, Oversight and Management Plan (Up to 10 Points)
     Applicants must provide the following information for this criterion:
        •   the strategy for implementing and managing the Training Fund grant (e.g.,
            procurement through a subrecipient, partnering with an educational
            institution or other training provider, and/or collaboration with existing
            industry partnership(s)); and
        •   the performance management strategy to ensure transparency,
            accountability, and accuracy for complete data on necessary performance
            outcomes from employers for participant reporting and training (see
            Attachment IV. Performance Reporting Requirements).

SECTION 2 – STRATEGY AND INNOVATION (Up to 30 Points):

     Applicants must describe their approaches to three components of their project
     design, as explained further below: Employer Outreach and Engagement;
     Employer Participation; and Employer-Driven Training Approach. Applicants
     must also demonstrate evidence of past innovation in meeting the training needs
     of employers.

     a. Employer Outreach and Engagement (Up to 6 Points)
     Applicants must describe the planned approach to identify and recruit employers
     within the target industry(ies) that are seeking to build upskilling pathways to fill
     critical vacancies strategies. This may include, but is not limited to, engaging
     intermediaries, local workforce development boards, or other partner
     organizations to support these strategies, leveraging existing employer
     partnerships, and using an existing pipeline of employers to build new project-
     focused partnerships.

     b. Employer Participation (Up to 6 Points)
     Applicants must propose eligibility criteria for employers to participate in the
     grant and receive reimbursement for employee training costs. At a minimum, the
     eligibility criteria identified in the Project Narrative must meet the criteria listed
     in Attachment I. Section II.B. Eligible Employers. Applicants may propose
     additional eligibility criteria to ensure the program addresses critical industry
     workforce needs of the state. Along with the criteria proposed, applicants must
     include a description of anticipated strategies and existing processes they plan to
     use to assess employer eligibility, as well as a description of how the criteria for
     employer participation will be designed to minimize paperwork and
     administrative burden for participating employers.

                                                                              Attachment II

          c. Employer-Driven Training Approach (Up to 10 Points)
          Applicants must describe the steps they will take to ensure that their approach for
          collaborating with employers results in training models that are responsive to
          employer needs and will lead to successful employment outcomes for the
          participant. The description must include a proposed approach for ensuring the
          use of training models that will support the critical competencies that are
          responsive to employer needs and target industry skill demands. Applicants
          should also describe how they may encourage employers to use innovative and/or
          accelerated models for effective training, where appropriate (e.g., virtual
          platforms, artificial intelligence resources, and competency-based assessments).

          d. Past Demonstration of Innovation in Workforce Training (Up to 8 Points)
          To demonstrate programmatic capacity for successfully implementing a project
          that meets the goals of this grant initiative, applicants must provide information
          about one (1) applicant-led workforce training program, grant, or cooperative
          agreement developed in partnership with employers to address a specific
          workforce challenge using WIOA Governor’s Reserve, State-appropriated funds,
          or other sources within the past five (5) years. Applicants do not need to have
          tested the model described in this grant initiative or a similar model to get full
          points for this criterion.

          Applicants should describe the workforce challenge to be addressed; the critical
          elements of the model that supported success, including what elements were
          innovative in their application, scale, collaboration, or some other element; and
          the description of the outcomes and/or workforce changes delivered as a result of
          the project.

          Applicants that do not demonstrate development of a workforce training program,
          grant, or cooperative agreement with employers that meets the above criteria
          within the past five years or who do not provide applicable information will
          receive zero points for this section.

   Panelists will determine whether the applicant thoroughly meets, partially meets, or fails
   to meet each numbered evaluation element of Section 1 – Background and
   Management and Section 2 – Strategy and Innovation based on the definitions below:

Standard Rating          Definition                                      Standard for
                                                                         Calculating Points
Thoroughly Meets         The application thoroughly responds to the      Full Points
                         evaluation element and fully and

                                                                                    Attachment II

                          convincingly satisfies all of the stated
                          specifications.
Partially Meets           The application responds incompletely to         Half Points
                          the evaluation element or the application
                          convincingly satisfies some, but not all, of
                          the stated specifications.
Fails to Meet             The application does not respond to the          Zero Points
                          evaluation element or the application does
                          respond to the evaluation element but does
                          not convincingly satisfy any of the stated
                          specifications.

D. Attachments to the Project Narrative
   In addition to the Project Narrative, the application also includes required attachments as
   explained below. These attachments must be clearly labeled and do not count toward the
   Project Narrative page limit. Any other attachments included beyond those listed below
   will not be reviewed in the scoring of the application.
   Applicants are encouraged to name the files using the document names listed below. Do
   not include special characters (e.g. &,–,*,%,/,#). However, underscores (for example:
   My_Attached_File.pdf) to separate a file name are acceptable.

    1. Required Attachments
       a. Abstract
       Applicants must submit a 1-2 page abstract summarizing the proposed project. An
       abstract template is available in Attachment VI. If you do not submit the abstract,
       your application will still be reviewed, but it may impact your score. If you are
       selected for an award, the information provided in your abstract may be published to
       a public facing website as a summary of your project. The abstract must include the
       following:
       •   applicant organization name
       •   applicant location (state)
       •   service area (the local/regional service area if other than statewide)
       •   the project title
       •   the project purpose and key activities
       •   a description of the key industry(ies) targeted
       •   the funding level requested
       •   subrecipient names and roles, if applicable
       •   public contact information

                                                                                        Attachment II

              b. Budget and Budget Narrative
              Submit a Budget and Budget Narrative as described in Section II.B above.

III.      Application Review Information

          A. Responsiveness Review

          Application Screening Criteria
          Use the checklist below as a guide when preparing your application package to ensure
          your application meets all of the screening criteria and contains all required items.
          Applicants should not include the checklist in the application package. Applications that
          do not meet all the requirements in the table below will not move forward through the
          merit review process or be considered for an award.

                            Application Requirement                      Instructions      Complete?
                                                                      Section I.B
           Submission requirements are met
                                                                      (Attachment II)
                                                                      Section II.A
           Eligibility criteria are met
                                                                      (Attachment I)
           Components of the application are saved in one of the
           specified formats and are not corrupt. (We will attempt Section I.B
           to open the document but will not take any additional   (Attachment II)
           measures in the event of problems with opening.)
                                                                      Section I.A
           SAM Registration
                                                                      (Attachment II)
           SF-424 includes a Unique Entity Identifier (UEI) and       Section I.A
           line 18a. is between $3,000,000 and $5,000,000             (Attachment II)
                                                                      Section II.B
           SF-424A, Budget Information Form
                                                                      (Attachment II)
                                                                      Section II.B
           Budget Narrative
                                                                      (Attachment II)
                                                                      Section II.C
           Project Narrative
                                                                      (Attachment II)

       B. Merit Review
          A technical merit review panel will carefully evaluate applications based on the
          selection criteria. As outlined in Section II above, the selection criteria are based on the
          policy goals, and priorities explained in this funding opportunity.

                                                                                   Attachment II

        Up to 64 points may be awarded to an applicant, depending on the quality of the
        responses provided. The final scores (which may include the mathematical
        normalization of review panels) will serve as the primary basis for selecting applications
        for funding. The panel results are advisory in nature and not binding on the Grant
        Officer. The Grant Officer can make selections based solely on the final scores or take
        into consideration other relevant factors when applicable. Such factors may include the
        geographic distribution of funds, proposed industry sectors, and other relevant factors.
        The Grant Officer may consider any information that comes to their attention.

        The government may elect to award the grant(s) with or without discussion with the
        applicant. If a grant is awarded without discussion, the award will be based on the
        applicant’s signature on the SF-424, including electronic signature via E-Authentication
        on https://www.grants.gov, which constitutes a binding offer by the applicant.

IV.    Other Review Criteria, Selection Process and Award Information
For a complete understanding of all other application review information, award notices, and
post-award requirements and administration, please see the 2025 Application Guide.

                                                                                  Attachment III

                                 Project Planning Phase Requirements

Successful applicants will establish and implement a well-developed and cohesive program that
provides performance-based reimbursement to employers for costs associated with training
workers for occupations in the targeted industries. As a condition of award, grantees will have a
60-day project planning phase to expand their project narratives into a comprehensive Statement
of Work (SOW) that contains an updated and finalized program design, numerical projections for
the performance outcomes listed below, a timeline and staffing plan for implementation, an
updated budget, and an updated abstract.
During this 60-day period, grantees are expected to work with the Department to solidify the
final components of their program. Once approved, the SOW developed during the planning
phase will be processed into the grant award through a grant amendment. To be approved by the
Department, the SOW must contain the following information and/or documentation:

    1.   Project Narrative (see more detail below)
    2.   Performance Targets (see more detail below)
    3.   Timeline for Project Implementation
    4.   Staffing Plan
    5.   Budget and Budget Narrative
    6.   Project Abstract

   •    Project Narrative Details: The project narrative must include the below information to
        be considered complete:
            Project Scope and Design
            o The targeted industries
                    ▪ If proposing shipbuilding as an industry, the amount of grant funding that
                        will be provided for shipbuilding. Note: this amount cannot be less than
                        what was proposed in the grant application)
            o The targeted service area
            o A description of the employer-driven training approach, including any innovative
               and/or accelerated training strategies that will be encouraged
            o Alignment of the project with state workforce strategies, which may include
               WIOA State Plans or other initiatives or existing programs in the state
            o The process for identifying prospective employers, including strategies for
               outreach and recruitment, and the procedures for ensuring employers meet the
               eligibility criteria; at a minimum, the procedures adopted must be able to establish
               the eligibility criteria listed in Attachment I. Section II.B. Eligible Employers,
               as well as any additional criteria that will be used in the selection process
            o The strategies for collaborating with employers to ensure alignment exists
               between proposed training models and employee training needs, and for assisting
               employers with finding training that meets their employees’ needs
            Employer Reimbursement Requirements

                                                                                 Attachment III

           o The proposed per-employer cost reimbursement ceiling
           o The proposed per-employee cost reimbursement ceiling
           o The maximum reimbursement percentage for individual participants, up to 80%
              of the total cost of the training
           o The terms to which employers will agree in order to receive reimbursements for
              employee training, and how employers will communicate their agreement with
              those terms (e.g., memoranda of understanding, contracts, etc.)
           Project Management and Oversight
           o Procedures for obtaining necessary programmatic- and performance-related
              information from employers on an ongoing and timely basis (See Attachment IV.
              Performance Reporting Requirements)
           o Oversight procedures to monitor program performance across all participating
              employers and ensure adherence to program requirements. At a minimum,
              grantees must have processes in place to enable them to communicate program
              requirements and provide ongoing guidance to employers; monitor, track, and
              document employer performance; receive participant data from employers; and
              consolidate the data received from all employers in preparation to report on grant
              participants to the Department each quarter.
           o If applicable, a description of the subrecipient or partner organization(s) that will
              take on project responsibilities and the roles they will play in grant operations
           o The amount, type, and source of leveraged resources that have been secured, if
              applicable

   •   Performance Target Details: Successful applicants must provide numerical projections
       for the following key data points:
           • Total number of participating employers
           • Total number of participants who will receive training that is reimbursed with
               grant funds
                   o Note that the Department may request additional targets for other indicators
                      or outcomes identified in Attachment I. Section III. Expected
                      Performance Outcomes.

Additional instructions about the planning phase and timeline for submitting a final SOW will be
provided to successful applicants shortly after award.

                                                                                  Attachment IV

                            Performance Reporting Requirements

Grantees are required to submit two reports each quarter to document their program activities
and participant performance. These two reports will be submitted using the Department’s
Workforce Integrated Performance System (WIPS):

   •   Quarterly Performance Report (QPR)
         • A quantitative summary of participant outcomes
         • Compiled from an uploaded data file on all participants
   •   Quarterly Narrative Report (QNR)
         • A qualitative summary of grant activities for that reporting quarter

Training Fund grantees will use the Demonstration Grant (“Demo”) Participant Individual
Record Layout (PIRL) schema to report participant outcomes to the Department. The Demo
PIRL schema is a comprehensive list of data elements that grantees will be required to collect
and report on participants. Successful applicants for this grant must be prepared to collect
sufficient data from employers to report on a subset of data elements from the Demo PIRL
schema that will be provided after award. The data collected from employers must be
consolidated into one master participant data file for your grant before submission to the
Department. Grantees will use their own internal management information system or database to
track and submit the data from employers through WIPS.

Applicants are strongly encouraged to review the Demo PIRL schema, which may be viewed at
https://www.dol.gov/agencies/eta/performance/wips.

The data submitted in the data file populates the QPR each quarter to show participant progress
toward participant-level performance indicators and outcomes, specifically those listed in
Attachment I. Section III. Expected Performance Outcomes. Grantees will use their QNR to
report each quarter on the number of participating employers.

Successful applicants will receive additional guidance and training on performance reporting
after award.

                                                                                     Attachment V

                                            Definitions
Customized Training: Training that is designed to meet the specific requirements of an
employer (or group of employers) and is conducted with a commitment by the employer(s) to
retain an individual upon successful completion of the training.
Incumbent Workers: Individuals employed with a participating employer who need training to
advance in their careers or retain their current positions.
Leveraged Resources: Monetary or in-kind resources committed by businesses, industry
associations, labor organizations, community-based organizations, education and training
providers, federal, state, and local government programs, or other sources to complement and
support the grant funding and activities.
Newly Hired Workers: Individuals who have been hired by a participating employer within six
months of beginning training.
On-the-Job Training (OJT): Training by an employer that is provided to a paid participant
while engaged in productive work in a job that:
   •   Provides knowledge or skills essential to the full and adequate performance of the job;
   •   Provides some reimbursement to the employer for the extraordinary costs of providing
       the training and additional supervision related to the OJT; and
   •   Is limited in duration as appropriate to the occupation for which the participant is being
       trained, considering the content of the training, the prior work experience of the
       participant, and the service strategy of the participant, as appropriate.
Participant: An employee working for a participating employer who is determined eligible to
have their training paid for by the grant and who starts grant-funded training after the
determination of eligibility.
Participating Employer: An employer that is determined eligible to receive reimbursements for
the cost of employee training and commits to adhere to program requirements in exchange for
receiving the reimbursement funds.
Supportive Services: Services provided to participants to address external barriers that prevent
participation in, or successful completion of, education and training activities. Examples of such
services include, but are not limited to, childcare, dependent care, transportation, mental health
counseling, books, academic fees, supplies, parking, printing, tutoring, licensing exam fees,
professional dues, housing, and needs-related payments that enable an individual to participate in
education and training activities. Leveraged resources may be used to provide the actual
supportive service (e.g., childcare), a voucher for the service (e.g., public transportation cards or
tokens), or a stipend directly to the participant to pay for the service. ETA strongly encourages
grantees to leverage partnerships with their local workforce boards and other programs, such as
WIOA or other programs where appropriate, to meet these needs.
Training Costs: Costs incurred by an eligible employer which are paid to or on behalf of
eligible training participants for their education and training expenses. Examples include tuition,

                                                                                    Attachment V

academic fees, books, course supplies or equipment, exam preparation courses, and other costs
that directly support training activity. Wages paid by employers for work performed while in a
structured work-based learning activity (such as OJT) are also training costs. Costs for providing
supportive services are not included in this TEGL’s definition of training costs.
Training and Education Services: Services that may include, but are not limited to, classroom
occupational training, distance learning, technology-based learning, or simulation training. All
these strategies can be combined to accelerate credential attainment or program completion.
Accelerated and competency-based education strategies can rapidly train participants efficiently
and effectively for employment. They can include competency-based programs that give
participants credit for skills they have already developed and allow participants to move through
coursework based on mastery of skills or online programs. Accelerated learning strategies may
include, but are not limited to, the following:
   •   Competency-based education and assessment: An outcomes-oriented approach in
       which student mastery of learning outcomes is assessed and certified through
       observational methods, such as task performance, exams, demonstrations, or other direct
       measures of proficiency. Credentials are awarded based on the mastery of specific
       competencies as demonstrated through performance-based assessments.
   •   Credit for prior learning and prior learning assessments: Often used interchangeably,
       these terms refer to a process for evaluating skills and knowledge acquired from prior
       coursework or outside the classroom (e.g., in the workplace) for the purpose of
       recognizing mastery against a given set of standards, competencies, or learning outcomes
   •   Integrated education and career-focused training programs that offer accelerated
       and contextualized education: Instruction that embeds traditional academic content
       (e.g., reading, writing, mathematics) within technical coursework that is meaningful to
       students’ daily lives and/or interests. This model often occurs in tandem with co-requisite
       or concurrent models of instruction, which involve simultaneous enrollment of students
       in remedial coursework and college-level coursework.
   •   Stacked and latticed credentials: Credentials that can be earned in sequence and build
       upon previously learned content as individuals progress along a career pathway or up a
       career ladder. They allow individuals the ability to build a portfolio of credentials as they
       transition from learning to work or to different and potentially higher-paying jobs.
Training Program: A defined set of instructional activities, including training and educational
services and/or work-based learning, that results in the acquisition of skills, experience, or
credentials when all activities are completed.
Work-Based Learning: Training activity that includes sustained interactions with industry or
community professionals in real workplace settings or simulated environments. These
interactions are designed to provide in-depth, firsthand engagement with the tasks required in a
given career field and are aligned with educational curriculum and instruction. Work-based
learning aims to bridge the gap between training and employment by ensuring that the skills and
knowledge gained through training are directly applicable to the workplace.

                                                                                     Attachment VI

                                        Abstract Template
Applicants are strongly encouraged to use the below abstract template. If this template is not
used, the abstract submitted with the grant application must include the information below. Note
that this is not the template for the finalized project abstract that will be submitted during the 60-
day project planning phase.

Category                          Description

Applicant Organization
                                  Insert name of organization to be awarded the grant.
Name

Applicant Location (State):       Insert the state of the applicant.

Service Area                      Specify the local/regional service area if other than statewide.

Project Title                     Insert title of grant project.

Project Purpose and Key           Provide 3–5 sentences that provide a high-level overview of the
Activities                        purpose and key activities of your grant project.
                                  Insert a description of the key industries targeted.
Target Industries

Funding Level Requested           Insert requested amount of Federal funding.

Subrecipient Names and            Insert the names and roles of each subrecipient in the grant
Roles (if applicable)             project, if applicable.

                                  Provide your organization's contact information.
                                  Authorized Representative:
Public Contact Information:
                                  Phone:
                                  E-mail: