The Labor Department's Employment and Training Administration has announced the availability of approximately $30 million in grants through a new Industry-Driven Skills Training Fund program designed to address critical workforce needs in high-demand skilled trades and emerging industries.

The program, announced August 6, 2025, in Training and Employment Guidance Letter No. 02-25 , will award grants of $3 million to $8 million to state workforce agencies to form partnerships with employers who commit to training current employees and creating pathways for new hires. Priority industries include skilled trades, shipbuilding occupations, roles essential to artificial intelligence infrastructure buildout, advanced manufacturing, nuclear energy, domestic mineral production, and information technology. 

The program is authorized under the Workforce Innovation and Opportunity Act and aims to encourage businesses to invest in workforce training that responds to rapidly evolving skill demands and local workforce conditions.

"These grants will address critical workforce needs for in-demand skilled trade careers and in high-growth and emerging industries," said Acting Assistant Secretary Lori Frazier Bearden in the Training and Employment Guidance Letter announcing the program.

The initiative provides outcomes-based reimbursement to employers for up to 80% of actual training costs. Payments are structured around two milestones: upon training completion and when participants retain employment for six months post-training.

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Eligible training activities include classroom and virtual instruction, customized training, and employer-provided work-based learning, including on-the-job training. The program requires that 90% of grant funds be used for employer reimbursements, with the remaining 10% available for program operations.

Applications are due by 11:59 PM ET on September 5, 2025. The Department anticipates awarding five to 10 grants in this initial round, with additional funding rounds possible based on availability.

Successful applicants will undergo a 60-day planning phase to finalize their program design and performance targets in collaboration with the Department. The grants have a 45-month performance period starting October 1, 2025.