The U.S. Department of Labor's Employment and Training Administration (ETA) has announced the availability of approximately $85 million in grant funds for the third round of the State Apprenticeship Expansion Formula (SAEF3) grant program. This funding is authorized by the Further Consolidated Appropriations Act, 2024, and aims to expand the National Apprenticeship System by supporting state-led strategies to develop Registered Apprenticeship Programs (RAPs). The program seeks to enhance workforce development and create employment pathways across traditional and emerging industries.

The SAEF3 grant includes two types of funding: Base Formula Funding and Competitive Funding. Of the $85 million available, $50 million will be allocated through Base Formula Funding to eligible states and territories, while approximately $35 million will be distributed through up to 10 Competitive Funding grants, with award amounts ranging from $1 million to $5 million each. The period of performance for all funding under this announcement is 36 months, with an expected start date of July 1, 2025.

The primary objectives of the SAEF3 grant program are to advance Registered Apprenticeship (RA) as a workforce strategy, integrate statewide apprenticeship strategies, and expand opportunities for underrepresented populations. The funding will support a wide range of apprenticeship-related activities, including the creation of new RAPs, expansion of existing programs, development of pre-apprenticeship pathways, and integration with workforce and education systems. The program places an emphasis on priority sectors such as healthcare, cybersecurity, manufacturing, logistics, infrastructure, energy, and public service.

Eligible applicants for this funding are state governments, the District of Columbia, and U.S. territories with at least 100 active apprentices. However, territories with fewer than 100 active apprentices, including the Commonwealth of the Northern Mariana Islands and the U.S. Virgin Islands, may apply for up to $75,000 in base funding but are ineligible for competitive funding. Applications must be submitted by the Governor’s Office or another designated state agency, and states applying for Competitive Funding must also submit an application for Base Formula Funding.

The application process requires states to submit an SF-424 form, a project narrative, a budget narrative, and additional supporting documentation via Grants.gov. The deadline for submission is March 18, 2025, at 11:59 p.m. Eastern Time. A Frequently Asked Questions (FAQs) page will be available on February 3, 2025 on the DOL ETA website. States that received funding under SAEF1 and/or SAEF2 must demonstrate proper fund utilization before applying for SAEF3.

The selection process includes merit-based reviews, considering factors such as the scope of proposed activities, feasibility, past performance, and organizational capacity. Funds will be used to support training, program development, outreach, and data collection, but cannot be used for direct apprentice wages. States may provide incentives to employers to promote participation and implementation of apprenticeship models. The Department of Labor aims to expand the accessibility of apprenticeship programs nationwide and ensure that RAPs remain a viable workforce solution.

For further inquiries, applicants may contact the Grant Officer, Cynthia Thurlow, at SAEF3_FOA-ETA-25-31@dol.gov.