News
January 4, 2026

Labor Department Opens $98M Youth Workforce Training Fund

Construction Owners Editorial Team

The U.S. Department of Labor has announced the availability of $98 million in federal funding to expand education, occupational skills training, and employment services for young people through its YouthBuild Program, with a focus on high-demand industries such as construction, advanced manufacturing, information technology, and healthcare.

Courtesy: Photo by Mark Potterton on Unsplash

The funding will support the development of pre-apprenticeship programs designed to prepare young people ages 16 to 24 for long-term careers, particularly in communities where many youth are disconnected from the labor force. Grants will provide a combination of academic instruction, hands-on occupational training, and job placement services.

“By investing $98 million through our YouthBuild Program, the Labor Department is opening up pathways to success for young Americans by providing them with opportunities to gain hands-on experience in construction and emerging fields,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “The Trump Administration remains committed to building a skilled workforce that will drive our economy into the future.”

Aligning Training With Apprenticeships and Employer Demand

The funding opportunity aligns with the Trump Administration’s America’s Talent Strategy, as well as the federal goal of reaching and surpassing one million apprenticeships nationwide. For the first time, the Department of Labor has established a target for the share of YouthBuild participants who enter a Registered Apprenticeship within one year of completing the program.

Officials say the new requirement is intended to strengthen partnerships between YouthBuild grantees and registered apprenticeship sponsors, ensuring that pre-apprenticeship programs lead directly to high-quality career pathways rather than short-term training alone.

Administered by the Department’s Employment and Training Administration and supported by the Workforce Innovation and Opportunity Act, the YouthBuild program is expected to fund approximately 57 individual grants, each ranging from $1 million to $2 million.

Expanding AI Literacy and Education Innovation

Courtesy: Photo by Mikael on Pexels

In addition to traditional workforce training, the Department of Labor is emphasizing artificial intelligence education as part of this funding round. Applicants are required to incorporate AI literacy skills into the academic portion of the program and are encouraged to integrate those skills into occupational training where appropriate.

The department will also prioritize applications from charter schools and organizations partnering with educational institutions, particularly those aligned with the administration’s efforts to expand educational choice and workforce opportunity for families.

Focus on Opportunity and Workforce Access

YouthBuild grants are targeted toward communities facing persistent barriers to employment, including limited access to education, training, and job placement services. By combining classroom learning, industry-recognized training, and structured pathways into registered apprenticeships, the program aims to improve employment outcomes while addressing workforce shortages in key sectors of the economy.

The Department of Labor says the expanded funding reflects a continued focus on skills-based hiring, employer-driven training models, and measurable outcomes tied to long-term employment.

Additional information on eligibility requirements, application deadlines, and program expectations is available through the YouthBuild Funding Opportunity announcement issued by the Employment and Training Administration.

Originaly reported by U.S. Department Of Labor.

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