Labor Department Opens Apprenticeship Incentive Payments of Up to $6,000 per New Apprentice

Skills & Careers

Employers and other sponsors of Registered Apprenticeship programs can now apply for direct payments of up to $6,000 for each new apprentice they bring on, the U.S. Department of Labor said Monday, Nov. 2. Applications to the Pay-for-Performance Incentive Payments Program are accepted on a rolling basis until all available funds have been obligated.

The department said the opening of applications followed President Trump’s announcement on Friday, Oct. 30, in Daytona Beach, Fla., of a $40 million investment, led by the Florida Department of Commerce, to expand Registered Apprenticeships in shipbuilding and the defense industrial base. The department said that fund is projected to lead to nearly 10,000 new apprentices over the next four years. To date, it said, it has invested nearly $200 million in pay-for-performance incentive funds.

“The Trump Administration is committed to rapidly expanding Registered Apprenticeships as a core strategy to fill jobs in high-growth, high-demand industries,” Labor Secretary Keith Sonderling said in the release. “Delivering direct support to employers and other Registered Apprenticeship program sponsors is the fastest way to help skilled Americans enter the workforce while also strengthening our nation’s economy.” Sonderling marked the launch during a visit to Florida with Rep. Brian Mast, Florida Education Commissioner Henry Mack and Florida Commerce Deputy Secretary of Economic Development Jason Mahon.

How the money is split

The payments do not come from a single federal window. In July, the department awarded nearly $162 million to five organizations to run nationwide funds for priority sectors, and each administrator takes applications through its own portal, according to the program page on Apprenticeship.gov. The terms differ by fund:

The Information Technology Apprenticeship Incentive Fund, a $27 million fund run by the Trustees of Clark University, pays a one-time $6,000 for each eligible new apprentice who remains employed for at least 90 days.

The Shipbuilding and Defense Industrial Base Apprenticeship Incentive Fund, the $40 million Florida Department of Commerce fund, pays a baseline of $2,000 for each new apprentice who remains employed for at least 90 days, and up to $6,000 for apprentices who meet at least one strategic priority area.

The Super Intelligence, Semiconductor, and Nuclear Energy Infrastructure Apprenticeship Incentive Fund, a $40 million fund run by Jobs for the Future, pays up to $6,000 in two installments: $3,750 after 90 days of retention and $2,250 at program completion or after 12 months, whichever comes first.

The Telecommunication Apprenticeship Incentive Fund, a $29.9 million fund run by the Wireless Infrastructure Association, pays up to $6,000 across three milestones: $1,500 after 90 days, $2,500 when the apprentice completes related technical instruction and $2,000 when the apprentice completes the program.

The Transportation Automotive Technician Apprenticeship Incentive Fund, a $25 million fund run by the ASE Education Foundation, pays $3,500 per apprentice: $2,500 at the 90-day retention mark and $1,000 after nine months.

The new program builds on an earlier $35.8 million American Manufacturing Apprenticeship Incentive Fund administered by the Arkansas Department of Commerce, which pays sponsors up to $3,500 per new apprentice in eligible occupations, for up to 200 apprentices per sponsor. Sponsors in that fund must pass at least 90% of each payment on to employers.

What it means for workers and employers

The payments go to program sponsors, not to apprentices, and they are tied to new apprentices in eligible occupations, with most funds paying only after an apprentice has stayed on the job for 90 days. That design rewards employers for hiring and keeping apprentices, and any benefit to job seekers would come through more paid, registered apprenticeship slots in fields such as shipbuilding, information technology, telecommunications, semiconductors and automotive repair.

The release and program page do not set a deadline, and neither says how many sponsors have applied or how many apprentices the full nearly $200 million is expected to support beyond the Florida projection. The funds post their own lists of eligible occupations, and the payment amounts above are maximums that depend on the apprentice reaching each milestone. People looking for an apprenticeship rather than funding would still need to apply to a sponsoring employer or program; the incentive funds do not place apprentices directly.

Sources

Featured photo: A student practices arc welding in a Technical Welding and Applied Repairs course at the Naval Small Craft Instruction and Technical Training School, Stennis Space Center, Mississippi, August 2016. Representative image; not a Registered Apprenticeship program funded by the incentive payments. Photo: Leah Tolbert, U.S. Navy, via Wikimedia Commons (Public domain). Cropped from the original.

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