Registered Apprenticeship Programs are a vital way to fill high-skill roles within companies. Finding funding options can be time-consuming and challenging.
Reducing funding uncertainty for Apprenticeship Programs demands long-term company support and, in many cases, a commitment to uncovering federal and state funding opportunities.
Unfortunately, there’s no central hub for locating funding sources, and not every Apprenticeship qualifies for funding. However, learning how to understand and navigate the funding landscape can help you discover funding sources, such as grants and incentives, and which qualifications are required for each.
What is a Registered Apprenticeship Program?
Registered Apprenticeship Programs are proven training models that can help you keep your labor pipeline full, whether your company needs dog groomers, daycare directors, or cybersecurity analysts for the IT department.
Through on-the-job training, technical instruction, and mentorships, Apprenticeship Programs establish cost-effective, long-term solutions to build qualified employees from within.
Employers hire apprentices with little to no experience in the occupation and pay them a wage from the beginning. Workers progress through wage schedules in line with their technical competencies. As they master new skills, apprentices earn more.
Upon completion of the Registered Apprenticeship Program, candidates receive nationally recognized credentials and, often, an offer of full-time employment. They may also get college credit.
Apprenticeship Funding: What You Need to Know
The U.S. Department of Labor (U.S. DOL) offers a wealth of funding opportunities for Registered Apprenticeship Programs. If you're new to the process, wading through a sea of funding opportunities can be daunting.
U.S. DOL announces funding opportunities annually, many focusing on Apprenticeship expansion opportunities. Each opportunity details funding amounts, the purpose for the funds, eligible applicants, and the application process.
It’s important to note the U.S. DOL does not award funds directly to for-profit organizations. The U.S. DOL funds national or state organizations and entities. Funds may go to the state DOL, which then distributes them indirectly to organizations. For instance, Florida DOL cannot directly fund for-profit companies with a Registered Apprenticeship Program. However, the state can give money to educational providers that supply the RTI component of the for-profit organization’s Apprenticeship program.
The U.S. DOL can distribute funds to nonprofits so they can help companies and organizations set up Apprenticeships. For example, funding might go to Jobs for the Future, which uses the money to help its member companies advocate for and set up Apprenticeships.
Federal grants mandate tracking Participant Individual Reporting Layout (PIRL) data. The PIRL reporting structure requires companies to track standard data elements on every Apprentice for Workforce Integrated Performance System (WIPS) compliance.
The purpose of grant funding is to increase the number of Apprenticeships nationwide, but it’s not yet a perfect system. All too often, intermediaries receive the money, find employers to partner with to drive up Apprenticeship program numbers quickly, then fail to set up employers for long-term success. Employers are given money upfront to launch and scale their Apprenticeship programs without an adequate operating system to track and meet all requirements and standards.
An Apprenticeship Management Tool aids compliance long term. Using an Apprenticeship Management System like ApprentiScope for grant management helps your organization track PIRL data, hit performance goals for the Apprenticeship program, and stay in WIPS compliance.
Related Content: With a Surge in Federal Funding, Apprenticeships Continue to Flourish
State and Federal Grants
Grants are available at state and federal levels, but how can your organization discover these opportunities? Funding opportunities can vary widely from region to region and change constantly.
The best approach is to call the local DOL office and explain your situation, what you are looking for, and what you hope to gain through an Apprenticeship program. These entities can point you toward funding opportunities or someone who can help you find them.
Grants from the federal and state governments vary in form and size. Each grant spells out compliance guidelines, criteria, and other vital details to help you uncover those that best fit your Registered Apprenticeship Program.
More extensive Apprenticeships might have access to multiple funding sources. One apprentice may be funded entirely by a specific grant, while another may only be partially funded. Funding varies from grant to grant.
Grants also are complex, which for many small organizations can put federal grants out of reach. The resources consumed in the application process can be unrealistic for some small companies, which may not have a grant writer on staff or the budget to handle the detailed application process.
Private grants, also known as industry grants, can be a more workable option for smaller companies. Applying for this money can be less involved than for federal grants but can still help employers achieve their Registered Apprenticeship goals.
Incentives
Many states offer tax incentives to help employers fund and implement Registered Apprenticeship Programs. These opportunities are not funding per se but a financial award for hiring apprentices. Connecticut, for instance, provides tax credits to businesses that employ apprentices in manufacturing, plastic, or construction occupations.
Both employers and apprentices can benefit from state incentives. For instance, Georgia gives tuition support to apprentices who attend classes through a technical college. At the same time, Iowa provides forgivable loans to businesses if the business uses the funding to train a specified number of workers.
Generally, the incentive resources include:
- Income tax credits for hiring new apprentices
- Tax credits for equipment or property used by the Apprenticeship program
- Grants to launch Apprenticeships in specific industries
- Grants to boost participation in state Apprenticeship programs
Most states require apprentices to register with the U.S. Department of Labor's Employment and Training Administration to qualify for incentives.
Takeaway: Apprenticeship Funding is Out There
While no one-stop shop or website lists all Apprenticeship funding opportunities available, they are there if you know where to look. But the payoff can be well worth the time and resources needed to uncover funding.
Federal, state, and local grants and incentives can offset the operational costs of your Registered Apprenticeship program. But every funding opportunity has requirements and standards employers must meet for program compliance.
Funding and an operating system for tracking are equally as crucial for a successful program. Adding a software management tool helps you track all relevant records and data to ensure your program complies with regulations so you can get and keep funding.
Most employers find that the effort put into acquiring funding and running their Apprenticeship Program is worth it when they consider the significant benefits reaped.
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