🗞️ $81 Million Federal Bet on Second Chances: DOL Launches RESTART Grants for Formerly Incarcerated Workers

The U.S. Department of Labor (DOL) announced on February 25, 2026, the availability of approximately $81 million in competitive grant funding under its newly named RESTART initiative — Reentry Employment in Skilled Trades, Advanced Manufacturing, Registered Apprenticeships, and Training. Administered by the Employment and Training Administration (ETA), the grants are designed to connect formerly incarcerated individuals and those with prior criminal justice involvement to training and employment pathways in skilled trades and other high-demand sectors.

The department intends to fund up to 20 projects nationwide. Approximately $30 million is reserved for national or regional intermediary organizations serving youth and young adults, with individual project awards capped at approximately $5.1 million. The balance will be distributed to states, territories, and tribes to support projects that integrate RESTART activities with the existing public workforce system under the Workforce Innovation and Opportunity Act (WIOA). Eligible training services include pre-apprenticeships, work-based learning, AI and digital literacy training, credential attainment, and paid work experiences, with an explicit emphasis on placing participants into Registered Apprenticeship programs.

The announcement gives priority consideration to applicants focused on shipbuilding — a sector the administration has highlighted across multiple recent funding actions, including a separate $145 million Pay-for-Performance Apprenticeship grant announced February 13, 2026. Secretary of Labor Lori Chavez-DeRemer stated the program is intended to offer individuals with criminal backgrounds opportunities to gain in-demand skills and achieve economic self-sufficiency, describing it as part of DOL's broader workforce development goals.

The RESTART grants build on prior DOL reentry programming, notably the Reentry Employment Opportunities (REO) program, which has historically provided employment-centered grants incorporating job training, mentoring, and transitional services for justice-involved populations. Research on the effectiveness of employment-focused reentry programs presents a mixed picture: while stable employment is broadly associated with reduced recidivism, randomized controlled studies have shown that job training and subsidized employment alone do not reliably reduce reincarceration rates. The CSG Justice Center and other researchers have argued that measuring program success requires tracking outcomes beyond recidivism, including housing stability, wage growth, and social reintegration.

The grants will leverage existing WIOA workforce infrastructure. The administration's FY26 budget request had proposed consolidating 11 workforce programs — including the Reentry Employment Opportunities program — into a single block grant called Make America Skilled Again (MASA), at a reduction from current combined funding levels. However, the Consolidated Appropriations Act, 2026, signed February 3, 2026, rejected the MASA consolidation and maintained separate WIOA program accounts at largely steady funding levels. Organizations seeking to apply for RESTART grants can access the full solicitation and application guidance through grants.gov.

Key Points

• The DOL's RESTART initiative makes approximately $81 million available to train and employ formerly incarcerated individuals in skilled trades and high-demand industries.
• Up to 20 projects will be funded; ~$30M is designated for intermediary organizations serving youth, with remaining funds going to states, territories, and tribes via WIOA integration.
• Shipbuilding and partnerships with Registered Apprenticeship sponsors receive priority consideration.
• Eligible services include pre-apprenticeships, AI/digital literacy training, credential attainment, and paid work experiences.
• The initiative runs parallel to the administration's broader apprenticeship expansion push, including a separate $145M apprenticeship grant announced February 13, 2026.
• Research on employment-focused reentry programs shows mixed recidivism outcomes; experts recommend holistic success metrics beyond reincarceration rates.
• The grants leverage WIOA infrastructure; the administration's FY26 budget had proposed consolidating WIOA programs into the MASA block grant, but Congress rejected that proposal in the Consolidated Appropriations Act, 2026, signed February 3, 2026.

Primary Source Author: U.S. Department of Labor, Employment and Training Administration

Primary Source: U.S. Department of Labor, Employment and Training Administration

Primary Source Link: https://www.dol.gov/newsroom/releases/eta/eta20260225

Supplemental Links

• RESTART Grant Application — Grants.gov
• DOL Employment and Training Administration
• Workforce Innovation and Opportunity Act (WIOA) — DOL
• Registered Apprenticeship Program — DOL
• WorkforceGPS — Reentry Employment Opportunities Community
• DOL $145M Apprenticeship Pay-for-Performance Grant (Feb. 2026)
• JFF — FY26 Budget Request Fact Sheet (MASA Analysis)
• NIJ — Research on Returning Offender Programs and Promising Practices
• CSG Justice Center — Beyond Recidivism: Redefining Reentry Success Metrics
• DOL — Supporting Reentry Employment and Success (ETA Research Brief)