$259M Available: WIOA Dislocated Worker Grants for States Open Through May 2026

Major Federal Funding for Worker Retraining Programs

The Department of Labor's Employment and Training Administration has announced the availability of Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker Program allotments for Program Year 2026. With awards ranging from $727,769 to $259,233,111, this represents one of the largest federal investments in workforce development programs available to states.

State workforce agencies have until May 29, 2026 to submit their applications for these critical funds that help displaced workers transition back into meaningful employment.

Understanding the WIOA Dislocated Worker Program

The WIOA Dislocated Worker Program serves individuals who have lost their jobs through no fault of their own. This includes workers affected by plant closures, mass layoffs, natural disasters, or significant economic shifts in their industries. The program provides essential services including career counseling, skills assessments, job search assistance, and occupational training.

Unlike many competitive grant programs, WIOA Dislocated Worker funds operate as formula-based allotments. Each state receives funding based on factors including unemployment rates, employment decline data, and the number of individuals in long-term unemployment. This ensures that states experiencing the greatest economic disruption receive proportionally more resources.

Eligible Recipients and Requirements

Only state workforce agencies are eligible to receive these allotments directly. However, states typically distribute portions of their allocations to local workforce development boards, which then contract with service providers including:

• Community colleges and vocational schools
• Nonprofit organizations specializing in workforce development
• Private training providers
• One-stop career centers
• Community-based organizations

Organizations interested in providing services should connect with their state workforce agency or local workforce development board to understand subcontracting opportunities.

Program Activities and Services

WIOA Dislocated Worker funds support three tiers of services. Basic career services include labor market information, initial assessments, and job search workshops. These services are available to all eligible dislocated workers without intensive screening.

Individualized career services provide more comprehensive support including detailed assessments, individual employment planning, career counseling, and case management. Workers typically access these services after demonstrating they need additional assistance beyond basic services.

Training services represent the most intensive level of support. These include occupational skills training, on-the-job training, apprenticeships, and skills upgrading programs. Training is generally limited to in-demand occupations in the local labor market and requires careful documentation of need.

Performance Requirements

States must meet specific performance indicators including employment rate in the second quarter after program exit, employment rate in the fourth quarter after exit, median earnings in the second quarter after exit, and credential attainment rate. These metrics ensure programs effectively prepare workers for stable, well-paying jobs.

Application Process and Timeline

The application deadline of May 29, 2026 provides states ample time to prepare comprehensive submissions. However, early preparation is essential given the complexity of state workforce planning requirements.

States must coordinate their applications with local workforce development boards, ensuring alignment with regional economic development strategies and labor market needs. This coordination process often takes several months to complete effectively.

All submission questions should be directed to Sabrina Guerrier, Grants Management Specialist, at WIOA-WP-WIG-ETAGrants@dol.gov. When contacting Ms. Guerrier, reference Funding Opportunity Number ETA-TEGL-10-25-DW and include your contact name, email address, and phone number.

Strategic Considerations for Success

Successful WIOA Dislocated Worker programs focus on serving workers displaced from declining industries while training them for growing sectors. States should analyze labor market data to identify occupations with strong job growth projections and good wages.

Partnerships with employers are crucial for program success. States that develop strong relationships with hiring partners see better employment outcomes for program participants. On-the-job training opportunities, in particular, often lead to permanent employment.

Data collection and reporting systems must be robust from program launch. The performance indicators require detailed tracking of participant outcomes, including employment status and earnings at specific intervals after program completion.

Innovation Opportunities

While WIOA provides a structured framework, states have flexibility to implement innovative approaches. Some successful strategies include sector-based training programs that prepare workers for specific industries, apprenticeship programs that combine classroom learning with paid work experience, and digital literacy training that addresses the growing technology skills gap.

No Cost Sharing Required

One significant advantage of WIOA Dislocated Worker funding is that no cost sharing or matching funds are required. This makes the program particularly attractive for states with limited budgets for workforce development initiatives.

However, states often coordinate WIOA funds with other federal and state resources to create more comprehensive service offerings. Programs frequently blend WIOA funding with Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP) employment and training funds, and state-specific workforce development resources.

Ready to explore this significant funding opportunity for workforce development? Create a free account on GovGrantsUSA today to access detailed application materials, track deadlines, and connect with the resources you need to submit a competitive application for WIOA Dislocated Worker Program funding.