The National Dislocated Worker Grant (DWG) Program is a funding initiative administered by the U.S. Department of Labor’s Employment and Training Administration (ETA) to provide assistance for dislocated workers and communities facing significant workforce disruptions. These grants are discretionary and awarded by the Secretary of Labor under Section 170 of the Workforce Innovation and Opportunity Act (WIOA). They are designed to address employment-related challenges arising from mass layoffs, plant closures, natural disasters, or other significant economic disruptions.

DWGs support two primary types of grants: disaster recovery and employment recovery. Disaster recovery DWGs provide funding for temporary disaster-relief employment and related workforce training to help communities recover from major disasters or public health emergencies. They are available when the Federal Emergency Management Agency (FEMA) or another federal agency declares an emergency of national significance. Employment recovery DWGs provide funds to assist dislocated workers impacted by significant economic events, such as mass layoffs, plant closures, or military base realignments. These funds support job training, career services, and other reemployment efforts.

The program aims to enhance economic resilience by equipping affected individuals with the skills and resources necessary for reemployment. This includes direct employment support, career counseling, job placement assistance, and workforce training that aligns with local labor market demands. Additionally, DWGs prioritize initiatives that promote equitable workforce development, ensuring that underserved populations receive access to quality employment opportunities.

DWGs are available to a range of eligible applicants, including state workforce agencies, local workforce development boards, tribal organizations, and nonprofit organizations that demonstrate the capability to administer employment and training programs. The funding process involves a competitive application procedure where applicants must outline their proposed services, expected outcomes, and alignment with local economic recovery needs. Applications are accepted on a rolling basis through grants.gov, and award decisions are made based on program priorities and fund availability.

To apply for a DWG, applicants must submit a detailed project plan, including a needs assessment that identifies the impacted workforce and community, proposed services, a budget, and projected participant outcomes. The application process also requires coordination with local workforce agencies and emergency management entities to ensure a comprehensive response to the dislocation event. Performance measures for DWGs include employment rate, median earnings, credential attainment, and measurable skill gains.

The program operates on a funding cycle with a maximum period of performance of 36 months, with potential extensions based on demonstrated need. DWG recipients are required to submit quarterly performance and financial reports to track progress and compliance with program guidelines. Grant funds are typically allocated in full at the time of award, though in certain cases, funding may be released incrementally based on project milestones and expenditure rates.