News

🗞️ DOL Launches $145M Pay-for-Performance Apprenticeship Initiative

The U.S. Department of Labor announced $145 million in funding through a pay-for-performance model to expand Registered Apprenticeships nationwide, supporting the administration's goal of reaching one million active apprentices.

onthelaborfront

06 Jan 2026 — 2 min read

On January 6, 2026, the U.S. Department of Labor released a forecast notice announcing the availability of $145 million in funding to support a pay-for-performance incentive payments program aimed at expanding the national apprenticeship system. The initiative, overseen by the Employment and Training Administration, will award up to five cooperative agreements for a four-year period focusing on both newly developed Registered Apprenticeships and the growth of existing programs across industries.

The program emphasizes a pay-for-performance model, ensuring taxpayer dollars deliver measurable outcomes rather than simply funding program development. This approach prioritizes industries with well-established Registered Apprenticeship infrastructure and aims to accelerate program growth through partnerships with employers, unions, national and regional industry groups, and other stakeholders.

The announcement represents the most significant investment taken to date in response to President Trump's April 2025 executive order directing the Department of Labor to develop a plan to reach and exceed one million active apprentices nationwide. The initiative supports implementation of several presidential executive orders related to workforce development, including directives on preparing Americans for skilled trade jobs, advancing artificial intelligence education, restoring maritime dominance, and reinvigorating the nuclear industrial base.

As of fiscal year 2024, approximately 680,000 active apprentices participate in Registered Apprenticeship programs across the United States, representing a 114% increase from fiscal year 2014. However, the one-million-apprentice goal faces challenges, including retention issues—nearly half of all apprentices drop out before completing their programs—and concerns about reduced funding and policy changes affecting diversity, equity, and inclusion initiatives.

The pay-for-performance model has shown success in other countries, particularly the United Kingdom, which scaled apprenticeships to over 850,000 participants in approximately eight years through incentivizing intermediaries. The model typically provides direct payments to employers for each apprentice who completes specified milestones, with the goal of driving measurable growth in enrollment, retention, and completion rates.

Key Points

Funding Amount: $145 million available through pay-for-performance incentive payments program
Award Structure: Up to five cooperative agreements for four-year performance periods
Target Goal: Support presidential directive to reach and exceed one million active apprentices
Current Status: Approximately 680,000 active apprentices nationwide as of FY2024 (114% increase since FY2014)
Focus Areas: Both new program development and expansion of existing Registered Apprenticeships
Priority Industries: Sectors with established apprenticeship infrastructure, including skilled trades, AI, maritime, and nuclear industries
Payment Model: Performance-based funding ensures measurable outcomes rather than upfront program grants
Key Challenge: Nearly 50% apprentice dropout rate before program completion
Application Process: Forecast notice published; detailed funding opportunity announcement forthcoming
Oversight: Administered by Department of Labor's Employment and Training Administration