Most workforce development professionals know about WIOA or maybe Perkins V. Some have heard about state training grants. But very few understand how these funding sources fit together—or that the real ROI comes from layering them strategically rather than relying on a single source.
The apprenticeship funding landscape operates across three distinct tiers. Understanding all three isn't just about maximizing dollars—it's about building programs that are financially sustainable from day one.
Three Funding Tiers You Need to Know
Tier 1: Federal formula funds provide the backbone of apprenticeship and OJT funding, supporting training, supportive services, and education costs through programs like WIOA, Perkins V, and Pell Grants.
Tier 2: Dedicated apprenticeship funds from USDOL grants and state expansion dollars target building, expanding, and modernizing Registered Apprenticeship systems—often supporting program development, partnerships, and equity-focused expansion.
Tier 3: State-specific programs vary widely by location. Some states offer generous employer credits and wage matches, while others focus on tuition-free related instruction, competitive grants, or localized incentives.
Thinking in tiers helps because each typically pays for different pieces of your program. When you match costs to the right tier, you stop fighting the system and start using it.
Tier 1: Federal Formula Funds (The Foundation)
WIOA (Workforce Innovation and Opportunity Act)
- Largest federal workforce funding stream, reaching every state
- Local Workforce Development Boards support eligible participants through training and supportive services
- Employer cost offsets available through OJT wage reimbursement:
- Up to 50% for standard employers
- Up to 75% for small employers and individuals with barriers
- Typical duration: 3–6 months
Perkins V
- Federal education funding for CTE, administered through state education agencies
- Ideal when apprenticeship includes strong classroom or related-instruction components
- Supports:
- CTE program improvement
- Work-based learning expansion
- Instructional equipment
- Curriculum development
Pell Grants
- Needs-based student aid that reduces related instruction costs
- Works best with Pell-eligible postsecondary pathways
- Key Update (July 2025): Congress enabled Pell Grants for short-term programs, expanding apprenticeship-aligned pathways through community colleges and technical courses
Tier 2: Dedicated Apprenticeship Dollars (The Multipliers)
Built for capacity and expansion—the work that's hard to sustain with formula funds alone.
Apprenticeship Building America (ABA)
- Launched by USDOL in 2024 (second round)
- Funding available: $95 million (competitive)
- Typical award range: $1M–$8M
- Supports:
- Curriculum development
- Program design
- Outreach and recruitment
- Partnership coordination
- Expansion into non-traditional industries
- Note: Primarily funds program build and expansion rather than direct wage costs
Tier 3: State-Specific Programs (The Differentiators)
Location matters most—states invest very differently in apprenticeship support.
State Examples:
- Colorado: Employer tax credit up to $12,600 per apprentice per tax year
- New York: Empire State Apprenticeship Tax Credit up to $7,000 per apprentice per year ($7,500 with mentor bonus)
- Florida: Pathways to Career Opportunities Grant (PCOG)—competitive grant approach
- North Carolina: Expansion incentive including 50% wage reimbursement ("salary match") with hourly limits, plus education supports
- Arkansas, Indiana, Pennsylvania: Additional state-specific programs available
Understanding your state's specific programs can dramatically change program economics.
Understanding your state's specific programs can dramatically change program economics.
Where ROI lives: strategic layering (braiding)
Single-source funding leaves gaps—usually across wages, instruction, and wraparound supports. Layering works when each funding stream pays for a distinct piece of the program.
A clean, compliance-friendly approach:
- Use education dollars (Perkins, Pell, tuition waivers/dual enrollment where applicable) for related instruction costs
- Use workforce dollars (WIOA) for supportive services and employment-related costs such as OJT reimbursement
- Use apprenticeship grants/incentives (state or federal) for startup, expansion, and targeted employer offsets
The non-negotiable rule: avoid “double dipping.” If two programs could reimburse wages, allocate clearly (split percentages or cover different time periods) so you’re never reimbursed for more than 100% of the same wage cost.
Make it operational: a simple funding map
If you’re designing a new program, build a one-page “funding map” before your first apprentice starts:
- List your cost categories: wages, RTI tuition/fees, equipment, staffing, supportive services, outreach/recruitment.
- Assign each cost category to a tier (Tier 1/2/3).
- Identify the owner of each funding stream (workforce board, college, employer, state apprenticeship office).
- Define what documentation proves the expense is allowable (enrollment forms, timesheets, invoices, outcomes reporting).
That’s how you move from “we know funding exists” to “we can actually capture it without chaos.”
Navigate the Full Landscape
Understanding the full landscape before designing your program changes everything. Instead of building a program and then searching for funding, you can design around the available funding stack from day one.
Download the full Apprenticeship Funding Guide to access detailed program requirements, application processes, state-by-state breakdowns for seven states, and strategies for braiding multiple funding streams together.
.png)