Funding Strategies for Sustainable Skills Training
Workforce development programs address critical skill gaps and prepare individuals for in-demand jobs but require substantial funding. This white paper reviews key funding sources—federal, state, and private—that shape workforce training initiatives, enhancing flexibility and ensuring sustainability as these programs expand.
Key Funding Sources
Federal Grants:
The U.S. Department of Labor’s (DOL) Workforce Innovation and Opportunity Act (WIOA) provides over $2 billion to support training for adults, dislocated workers, and youth.
- Perkins V (Strengthening Career and Technical Education for the 21st Century Act) allocates $1.2 billion annually for career and technical education, helping colleges develop programs aligned with labor market demands.
- Reimagine Workforce Preparation Grant aids institutions in shifting from traditional academics to workforce-centered training
State Level Funding:
- California’s Strong Workforce Program offers over $1 billion to community colleges for training in high-demand industries.
- Ohio’s TechCred Program reimburses employers for upskilling employees through short-term credentials from local colleges.
Private and Philanthropic Funding:
- Corporate investments have grown by 35% since 2020, with companies like Amazon and JPMorgan Chase funding training aligned with industry needs.
- The Lumina Foundation and The Bill & Melinda Gates Foundation contribute millions to support underserved students through grants for skill-building and postsecondary credentials.
“Workforce Connect delivered exactly what we needed, providing a centralized platform that has significantly improved transparency and collaboration with our employer partners.”
Julie Beggs
VP of Economic Mobility & Workforce Development
Trends Shaping Workforce Programs
- Public-Private Partnerships: Companies collaborate with colleges to bridge skills gaps, creating programs that equip students with job-ready skills for immediate employment.
- Equity Focused Funding: Many grants prioritize underserved groups, providing essential services like career counseling and financial aid to support workforce diversity and inclusion.
- Expansion of Non-Credit Programs: Flexible funding allows rapid development of non-credit programs that adapt to evolving job market needs.
Future Outlook
Workforce program funding will increasingly prioritize non-credit options, public-private partnerships, and equitable access to ensure colleges can swiftly address labor market shifts and help close skills gaps across the workforce.
