Change 1 to Training and Employment Guidance Letter 02-25, Industry-Driven Skills Training Fund Grant Program

The Employment and Training Administration is announcing the availability of approximately $40 million for a second round of the Industry-Driven Skills Training Fund grants. The goal of this program is to support businesses in creating or expanding training programs that provide workers with critical industry skills. Eligible lead applicants are limited to State Workforce Agencies, and they must submit complete applications to www.grants.gov by August 17, 2026. The program aims to encourage businesses to invest in workforce training that can respond to rapidly evolving skills demands and local workforce conditions. Some key aspects of the program include: * Providing outcomes-based reimbursement funds to employers for training * Encouraging employers to upskill current employees and create entry pipelines and pathways to hiring and training new employees * Supporting training in priority industries such as aerospace and shipbuilding * Requiring grantees to submit quarterly performance reports and narrative reports * Encouraging grantees to leverage partnerships with local workforce boards and other programs to provide supportive services to participants