Why Workforce Development Is a Priority Funding Area
Workforce development sits at the intersection of economic development, education, and social equity — three of the most active funding categories in American philanthropy and federal grant-making. Funders from across the political spectrum invest in workforce programs because the return on investment is visible, measurable, and economically significant: connecting one person to a living-wage job generates years of increased tax revenue, reduced public assistance costs, and economic multiplier effects in local communities.
The result is a robust and competitive funding landscape with multiple entry points for workforce development organizations, community colleges, nonprofits, and employer-led training programs.
Federal Workforce Development Programs
Workforce Innovation and Opportunity Act (WIOA)
WIOA is the primary federal legislation governing the public workforce system and distributes over $3 billion annually to states, which in turn fund local Workforce Development Boards (WDBs) and service providers. WIOA Title I funds adult, dislocated worker, and youth programs through formula grants. Title II funds adult literacy and education. Title III funds Wagner-Peyser Employment Service. Title IV funds vocational rehabilitation.
Nonprofits, community colleges, and workforce training organizations access WIOA funds through competitive RFPs issued by local WDBs. Award amounts vary by local area and program, typically ranging from $100,000 to $3 million for multi-year service contracts. Contact your local American Job Center to identify your regional WDB and current solicitations.
Department of Labor Workforce Grants
The Department of Labor issues competitive grants for specific workforce priorities throughout the year. Active program areas in 2025–2026 include:
- Apprenticeship Building America Grants: $35 million available for apprenticeship expansion, with awards up to $5 million for intermediary organizations building industry-wide apprenticeship programs.
- Good Jobs Challenge (EDA): $500 million for regional workforce training systems connected to employer demand in key industries (advanced manufacturing, healthcare, IT, transportation).
- Reentry Employment Opportunities (REO): Grants for nonprofits providing employment services to people re-entering the workforce after incarceration. Grants range from $500,000 to $3.5 million.
- Women in Apprenticeship and Nontraditional Occupations (WANTO): Up to $1 million for organizations expanding women's participation in nontraditional industries including construction, manufacturing, and technology.
EDA Good Jobs Challenge
The Economic Development Administration's Good Jobs Challenge deployed $500 million in workforce development grants under the American Rescue Plan. A second round of similar investments is anticipated under continuing economic development appropriations. EDA workforce grants fund sector-based workforce training systems that connect directly to employer demand — proposals must demonstrate employer partnerships and job placement commitments.
State-Level Workforce Funding
Skills Development Funds
Several states operate dedicated skills development or incumbent worker training funds separate from WIOA. Examples:
- Texas Skills Development Fund: One of the largest state workforce grant programs in the U.S., distributing over $60 million annually. Grants fund customized training partnerships between employers and community colleges. Awards range from $50,000 to $2 million.
- California Employment Training Panel (ETP): Funds employer-driven training for employed workers at risk of dislocation, with multi-year contracts up to $3 million.
- Ohio TechCred: Reimbursement-based program paying employers up to $2,000 per employee per credential earned in technology-related fields.
Foundation Grants for Workforce Development
JPMorgan Chase New Skills at Work
JPMorgan Chase has committed $350 million to its New Skills at Work initiative, which funds community colleges, training providers, and workforce intermediaries to align training with employer needs in advanced manufacturing, technology, healthcare, and financial services. Grants range from $500,000 to $5 million for multi-year initiatives. JPMorgan funds national and local organizations and prioritizes programs in communities with high levels of economic distress.
Lumina Foundation
Lumina Foundation funds initiatives that increase the proportion of Americans with high-quality credentials beyond high school — including workforce credentials, certificates, and degrees. Lumina grants for workforce-connected learning and stackable credentials range from $100,000 to $1 million. The foundation works primarily through networks and intermediaries rather than direct service providers, but accepts letters of inquiry for strategic workforce alignment projects.
Joyce Foundation
The Joyce Foundation funds workforce development in the Great Lakes region (Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). Its Workforce Development portfolio supports sector-based training models, workforce intermediaries, and policy advocacy. Grants typically range from $100,000 to $500,000 per year for multi-year projects.
Kresge Foundation
Kresge's Social Investment Practice and its Human Services portfolio both support workforce development, with an emphasis on urban community colleges, sector partnerships, and career pathways for low-income adults. Grants range from $200,000 to $1 million. Kresge also uses Program Related Investments (PRIs) to fund workforce training infrastructure at scale.
Building a Winning Workforce Grant Application
- Lead with employer demand: The most fundable workforce programs begin with employer partners who have committed to interviewing or hiring program graduates. Letters of commitment from hiring employers are a competitive differentiator.
- Use labor market data: Reference Bureau of Labor Statistics occupational projections, regional job posting data (Burning Glass/Lightcast is the standard source), and local unemployment data to establish the labor market need for your training program.
- Define your credentials: Name the specific credentials your program produces — industry certifications (AWS, CompTIA, AWS Certified Cloud Practitioner, OSHA 30, CNA, etc.) carry more weight than generic "soft skills training."
- Track and report wage outcomes: Funders increasingly require wage data at 90 days, 6 months, and 12 months post-placement. Build data infrastructure to track this before you need it for reporting.
- Address barriers to participation: Childcare, transportation, and income support barriers are why low-income adults drop out of training. The strongest proposals include wrap-around support services or partnerships with organizations that provide them.
Find Workforce Development Grants Across All Sources
Workforce development funding comes from federal agencies, state governments, corporate foundations, and private foundations — and each has different eligibility rules and application windows. FindGrants.io indexes workforce development grants from all these sources and ranks them by fit with your organization profile. Search once to see every relevant opportunity.