DOL Industry-Driven Skills Training Fund Grants Guide 2025

If you’ve heard there’s no funding for worker training in defense, the U.S. Department of Labor’s Industry-Driven Skills Training Fund just proved otherwise, awarding $86 million to 14 states in September 2025, with $5 million reserved for shipbuilding. Here’s what the fund covers, who can apply, and the application process.

Total funding awarded in 2025: $86 million ·
States awarded grants: 14 ·
Minimum set-aside for shipbuilding industry: $5 million ·
Program name: Industry-Driven Skills Training Fund

Key program details are summarized in the table below, drawn from official DOL guidance.

Will the social welfare pay for courses?

A common point of confusion: the Industry-Driven Skills Training Fund is a federal grant program, not social welfare. It operates through the U.S. Department of Labor’s Employment and Training Administration, not through state welfare agencies. Social welfare programs like Temporary Assistance for Needy Families (TANF) may offer training vouchers, but those are structurally separate from this DOL grant.

The fund reimburses eligible employers for training costs through State Workforce Agencies (administrative bodies responsible for workforce policy) — not individual workers. According to the DOL’s TEGL 02-25, lead applicants must be state agencies responsible for WIOA Title I programs. So if you’re a worker asking “will my course be paid for,” the answer depends on whether your employer partners with a state agency that has received grant funds.

The implication: understanding this distinction prevents wasted effort. State workforce agencies control the purse, not welfare offices.

Can you get a grant to do an apprenticeship?

Yes, the Industry-Driven Skills Training Fund can reimburse employers for training apprentices. The allowable activities include classroom instruction, virtual training, customized training, and on-the-job training (per DOL guidance). For an employer running an apprenticeship program in a targeted industry, the fund covers the cost of instruction and related training expenses.

The grant operates on an outcomes-based reimbursement model. That means the employer pays for training upfront, then gets reimbursed after the training is completed and verified. The application process requires employers to partner with a State Workforce Agency that has already received grant funds.

What not to say when applying for a grant?

• Avoid vague statements about needing funding without backing them with specific hiring or training plans. According to DOL guidance, applications must include concrete plans for employer recruitment, eligibility assessment, and how the agency will leverage past experience.
• Do not propose training for industries outside the fund’s target sectors: defense manufacturing, shipbuilding, and other high-growth industries including AI infrastructure as outlined in GrantedAI grant tracking platform.
• Don’t request funding for supportive services like transportation or child care — those are explicitly excluded in the DOL’s TEGL 02-25 attachment.

The implication: grant reviewers are looking for specificity and alignment with national workforce priorities. A generic “we need training money” pitch will get passed over.

The pattern: successful applicants anchor their proposals in concrete hiring targets and validated training curricula.

How much is the training allowance?

Training allowances under the Industry-Driven Skills Training Fund are not fixed amounts per worker — they vary by state program, the employer’s training plan, and the industry. The DOL set a floor: at least $5 million of the total funding must go to shipbuilding training. Individual grant awards ranged from $3 million to $8 million per state, according to DOL ETA TEGL 02-25 Attachment I (grant conditions).

The total pot was $86 million distributed across 14 states in September 2025, as announced by the U.S. Department of Labor. But $86 million split among 14 states plus the $5 million shipbuilding set-aside means the per-worker allowance depends heavily on how many workers each state trains.

The catch: because reimbursement flows to employers, not directly to workers, “training allowance” can mean very different things depending on whether you’re an employer submitting a reimbursement claim or a worker looking for a stipend. The fund does not provide a per-worker cash allowance.

What this means: states with large defense sectors will be able to train more workers per dollar, amplifying regional advantages.

What funds are available for training?

The Industry-Driven Skills Training Fund is one of several federal workforce development grants, but it has a distinct focus: defense and shipbuilding. Other DOL training funds include the H-1B Skills Training Grants, which target a broader range of industries. The Massachusetts Workforce Training Fund and Canada’s BC Future Skills Grant are separate programs that operate under different rules entirely.

What makes this fund unique is its explicit tie to Executive Order 14278 and America’s AI Action Plan, as stated in the DOL’s TEGL 02-25. It’s not a general training fund — it’s a strategic workforce investment in sectors the federal government considers critical to national security and economic competitiveness.

What is the training support grant?

The term “training support grant” often gets used interchangeably with the Industry-Driven Skills Training Fund, but technically it refers to the broader category of DOL-administered grants that reimburse employers for training costs. The DOL’s program specifically requires partnerships between State Workforce Agencies and eligible employers in key sectors.

Future skills that align with grant priorities include digital literacy, advanced manufacturing, and cybersecurity — competencies directly relevant to defense and shipbuilding, according to the grant’s focus on high-growth industries.

What are the top 10 future skills?

While the Industry-Driven Skills Training Fund doesn’t prescribe a specific list of future skills, the industries it targets reveal the priorities: advanced manufacturing techniques, digital literacy for industrial settings, cybersecurity for defense supply chains, maritime engineering, welding and fabrication, industrial automation, supply chain logistics, AI infrastructure management, composite materials handling, and regulatory compliance for defense contracts. Employers proposing training in these areas will have a stronger application.

The pattern: the fund is not about generic job training — it’s about filling specific skill gaps in industries the government has identified as strategically important. Employers who align their training plans with these gaps will find the most receptive audience.

When should employers apply?

For the 2025 grant cycle, the application deadline was September 5, 2025, at 11:59 PM ET via Grants.gov (SWACCA industry trade association reporting). The CFDA number is 17.280 for Employment, Labor and Training, as listed on TechnologyGrants.info (grant tracking database).

For inquiries about future rounds, the DOL contact is Daniela M. Petchik at petchik.daniela.m@dol.gov.

Application steps for State Workforce Agencies

1. Prepare an application that includes concrete plans for employer recruitment, eligibility assessment, and leveraging past experience, per DOL TEGL 02-25 guidance.
2. Submit the application via Grants.gov using CFDA number 17.280 by the published deadline.
3. Upon award, partner with eligible employers in target industries (defense, shipbuilding, AI infrastructure) to design training programs.
4. Deploy funds to reimburse employers after training completion and verification.

Timeline

The timeline shows a compressed cycle: announcement, application, and award happening within the same fiscal year. For employers, this means planning for the next funding round requires monitoring DOL advisories closely.

What’s confirmed and what’s still unclear

The contrast: the DOL has been explicit about funding amounts and admin structure, but state-level discretion leaves important gaps for workers and employers alike.

Expert perspectives

The Department will award at least $5 million of grant funding to support training in the shipbuilding industry.

— U.S. Department of Labor, TEGL 02-25

In September 2025, DOL awarded more than $86 million in grants to 14 states to accelerate innovation, strengthen domestic production, and support the defense industrial base.

— DOL official grant announcement

These statements underscore the fund’s strategic intent: it is a targeted investment, not a general workforce benefit.

Frequently asked questions