Labor Department Targets AI and Defense Sectors with $145 Million Apprenticeship Fund
April 2, 2026 · 2 min read
Jared Klein
The U.S. Department of Labor's Employment and Training Administration is accepting applications for up to $145 million in Pay-for-Performance apprenticeship cooperative agreements, with a deadline of April 3, 2026. The program will fund up to five awards ranging from $10 million to $40 million each over four-year performance periods.
This is not a conventional grant program. Payments are tied to measurable outcomes — apprenticeship completions, credential attainment, and employment retention — rather than disbursed upfront. The model rewards organizations that deliver results rather than those that simply enroll participants.
Six Priority Industries Where Workforce Gaps Are Most Acute
The program targets registered apprenticeship expansion in six sectors the federal government considers strategically critical: shipbuilding and defense industrial base; artificial intelligence, semiconductor, and nuclear energy infrastructure; information technology; healthcare; transportation; and telecommunications.
Applicants must choose one of two program categories: targeted industry expansion, which focuses on apprenticeship growth within a specific sector, or broad system scaling, which aims to build apprenticeship infrastructure across multiple industries and geographies.
The emphasis on AI and semiconductor workforce development aligns with the broader federal push to onshore critical technology supply chains. Organizations already operating registered apprenticeship programs in these sectors have a significant competitive advantage.
Who Should Apply and How to Compete
Eligible applicants include national industry associations, workforce development boards, community colleges, labor-management partnerships, and other entities with demonstrated capacity to operate registered apprenticeship programs at scale. The $10 million floor means this competition favors organizations with existing infrastructure — not first-time applicants.
With only five awards available, competition will be intense. Applicants should demonstrate established employer partnerships, a track record of apprenticeship completions, and a credible plan for scaling operations across the target sectors.
Details are available on Apprenticeship.gov. Organizations tracking workforce development funding can find additional opportunities on grantedai.com.
For in-depth analysis of DOL apprenticeship funding strategies, visit the Granted blog.