🗞️ Washington Bets $85 Million on Apprenticeships, but Questions Linger Over Whether the Money Is Enough

The Labor Department is offering $85 million in formula grants to all 50 states and territories to expand registered apprenticeships, a program the Trump administration has made central to its workforce strategy.

🗞️ Washington Bets $85 Million on Apprenticeships, but Questions Linger Over Whether the Money Is Enough

The U.S. Department of Labor announced on April 13, 2026, that it would make available approximately $85 million in grant funding under the fourth round of its State Apprenticeship Expansion Formula program. The money is intended to help states grow their registered apprenticeship systems, with a particular emphasis on sectors the administration has identified as strategic priorities: shipbuilding, artificial intelligence infrastructure, and manufacturing.

The funding formula is designed to reward performance. States receive allocations based on recent growth in active and new apprentices, and each eligible applicant must commit to matching at least 50 percent of its award through other federal or state funding sources, such as Workforce Innovation and Opportunity Act reserve funds or Perkins V career and technical education dollars. States and territories must also set expansion goals and direct a share of funding specifically toward employer engagement in priority industries.

The announcement arrives against a complicated backdrop. President Trump signed an executive order in April 2025 directing the secretaries of Labor, Commerce, and Education to develop a plan to reach one million active apprentices. As of March 2026, there were roughly 700,000 active apprentices enrolled across nearly 27,000 programs nationwide — a figure that has actually declined slightly from the prior fiscal year, according to Department of Labor data, marking the first such dip in a decade. The administration has since framed its target as reaching one million active apprentices by 2029, a revision from the original goal of adding one million new apprentices.

Critics, including former Labor Department officials and workforce development researchers, have noted that annual federal appropriations for apprenticeships have remained at approximately $285 million since 2023, a level many argue is insufficient to reach the administration's stated ambitions. The SAEF fourth-round announcement builds on parallel investments: a $145 million Pay for Performance Incentive Payments Program and a $35.8 million American Manufacturing Apprenticeship Incentive Fund administered through Arkansas, both announced in the past several months.

States with federally recognized apprenticeship agencies are also required under the new grant terms to publish average program approval times, a transparency measure aimed at reducing registration backlogs that have historically slowed employer participation.


Key Points

  • The Department of Labor announced $85 million in fourth-round State Apprenticeship Expansion Formula grants, available to all 50 states and U.S. territories.
  • Grant allocations are calculated using a performance-based formula that rewards recent growth in apprentice enrollment and employer participation.
  • Recipients must commit to matching at least 50% of their formula allocation through other federal or state resources.
  • Priority sectors include shipbuilding, AI infrastructure, and manufacturing.
  • As of March 2026, there were approximately 700,388 active apprentices in the U.S., down slightly from the prior fiscal year — the first annual decline in a decade.
  • The administration's apprenticeship goal has been revised to one million active apprentices by 2029, from an original target of one million new apprentices.
  • Independent workforce experts and former DOL officials have questioned whether current federal investment levels are sufficient to meet the administration's targets.
  • The SAEF round four announcement complements a $145 million Pay for Performance program and a $35.8 million manufacturing apprenticeship fund.

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

Primary Source: U.S. Department of Labor Press Release — "US Department of Labor announces availability of $85M in grant funding to support Registered Apprenticeship expansion, modernization"

Primary Source Link: https://www.dol.gov/newsroom/releases/eta/eta20260413


Supplemental Sources