What is the Department of Labor’s Industry Driven Skills Training Fund Program and How Will It Impact American Manufacturers?

Workforce development training happening as a result of DOL Training Fund.

By: Micki Vandeloo, President, Lakeview Consulting

In September of 2025, the United States Department of Labor awarded over $86 million to 14 states through the Industry Driven Skills Training Fund Program.  This funding is meant to encourage states to develop skills training programs to help address each state’s workforce challenges by developing workforce training grant programs.

The 14 states provided the industries they would target for the funding, and many have since announced the programs that have been funded by this grant opportunity.  In many cases, awards from the resulting programs are far above normal training grant amounts.  Below is a synopsis of each of the state grant programs from the first round of awards.  Note that for all awards both incumbent workers and those newly hired are eligible trainees.  Many of the grant programs also require that the trainee obtain an industry recognized credential.

Another round of this funding for 10 additional states just concluded in mid-August.  The grants from the first and second rounds provide a tremendous opportunity for manufacturers in these states to upskill current and new employees at a greater reduced cost.  The table below lists each recipient of the federal funding, provides a link to the funding program (if announced), awards for each state and resulting grant awards to companies in each state, and the industries each state targeted for workforce development funding.

StateGrant TitleAward InformationService AreaTarget Industries
ArizonaIndustry Grant$5,000,000, program not announced as of 8/31/26Pinal and Maricopa Counties (including the city of Phoenix)Advanced Manufacturing
ConnecticutConnecticut Industry-Driven Skills Training Fund$8,000,000, funding dispersed to regional workforce boardsStatewideShipbuilding and supply chain; Advanced Manufacturing; Information Technology; Construction and other skilled trade with AI integration; Healthcare and social assistance; transportation, distribution and logistics
GeorgiaGeorgia Industry-Driven Skills Training Fund$5,000,000, awards up to $7,000 per trainee for up to 60 trainees per companyStatewideEnergy; Construction; and Advanced Manufacturing
IowaAMP’D – Advanced Manufacturing Pathways$4,682,000, awards up to 80% of training costs up to $4,000 per employee and $250,000 per businessStatewideAdvanced Manufacturing, primarily focused on production and maintenance positions
IdahoIndustry-Driven Skills Training Fund$8,000,000, awards up to 80% of training costs up to $25,000 per employeeStatewideAdvanced manufacturing; nuclear energy; mineral extraction
LouisianaWorkforce Outcomes and Reimbursement for Key Sectors (WORKS) Training Fund$7,000,000, awards range from 60 to 80% of training costsStatewideConstruction and industrial trades; Advanced manufacturing; Artificial intelligence (AI)-enabling occupations supporting data centers and digital infrastructure
MaineMaine Defense Shipbuilding and Advanced Manufacturing Training Fund$7,999,000, awards up to $8,000 per trainee and up to $250,000 per companyStatewideShipbuilding; Defense; Aerospace; Advanced Manufacturing
MichiganMichigan Industry-Driven Skills Training Program (MIDSTP)$8,000,000, awards up to $10,000 per trainee and up to $200,000 per employerStatewideShipbuilding is the targeted industry for this grant including shipbuilding contractors, maritime suppliers, defense and commercial maritime sectors.
MississippiMAST-Mississippi Advanced Shipbuilding Training$5,705,000Jackson, Harrison, and Hancock Counties on the Mississippi Gulf Coast within the Twin Workforce Development Area (LWDA)Districts LocalShipbuilding (funding is targeted for 3 major employers to upskill and attract employees)
OklahomaOklahoma Talent Accelerator$5,999,255, awards up to $12,500 per trainee and up to $500,000 per employerStatewideAerospace and defense; Advanced Manufacturing; Artificial Intelligence (AI) Infrastructure and Data Centers
TennesseeTennessee Talent$5,000,000Statewide with focus on: East (Nuclear), Middle (Technology and Advanced Manufacturing), and West (Logistics and Advanced Manufacturing)Nuclear Energy; Artificial Intelligence; Advanced Manufacturing
TexasTexas Industry-Driven Skills Training$5,399,992StatewideShipbuilding, advanced manufacturing, artificial
intelligence (AI), information technology (IT),
semiconductor manufacturing, aerospace/aviation & defense, energy, and healthcare. Occupations requiring middle- to high-level skills that contribute to the pipeline of workers eligible for H-1B positions in these sectors.
WisconsinWisconsin Training for Resilient Advanced Industry Needs (WisTRAIN)$7,330,022Statewide, with a focus on Southeast Wisconsin
(Milwaukee); Northeast Wisconsin (Green
Bay/Appleton); and Central Wisconsin
(Madison/Wausau)
Advanced Manufacturing/Industry 4.0; Generative Artificial Intelligence (AI)
WyomingIndustry-Driven Skills Training Fund Grant Program$3,000,000Statewide with targeted outreach for Albany, Campbell,
Converse, Crook, Natrona, Sweetwater, and Weston
counties
Artificial intelligence (AI), advanced manufacturing,
nuclear energy, domestic mineral production, and
information technology (IT). The project will also serve
traditional in-demand industries such as construction,
finance and insurance, healthcare and social assistance,
manufacturing, technology, and hospitality and tourism.