DOL announces H-1B grants.

On May 2, the Department of Labor’s Employment and Training Administration (ETA) announced the availability of $240 million in competitive H-1B Technical Skills Training grants, which will support job training and related activities in occupations and industries for which employers are using H-1B visas to hire foreign workers. Under the new Solicitation for Grant Applications (SGA), the agency expects to award between 75-100 four-year grants, ranging from $1 million to $5 million, to partnerships of public and private sector entities.

The SGA indicates that grants will be used to support two types of training projects. $150 million will be reserved for projects that provide on-the-job training (OJT) to participants, while the remaining funds will be used to support projects that utilize other training strategies, including classroom occupational training, contextualized learning, distance learning, and customized training, including training for incumbent workers.

All training strategies must 1) target skills and competencies in demand by industries and occupations for which H-1B visas are being used (the SGA includes an illustrative list); 2) provide education and training for current job openings; and 3) result in industry-recognized credentials where possible. Grant funds may be used both for training and activities that support training, including recruitment, assessment, and supportive services for participants.

ETA is particularly focusing on projects in the information technology, communication and broadband technology, advanced manufacturing, and health care sectors. At least $45 million of the total funds available under the SGA will be reserved for projects focusing on health care.

Eligible applicants under the SGA will be public-private partnerships comprised of at least two entities from among the following three categories:

1. business-related nonprofit organizations, including trade or industry associations and labor organizations;
2. education and training providers, including community colleges and community-based organizations; and
3. public workforce system entities (including state and local workforce investment boards) and economic development agencies.

Applicants must partner with at least one employer who will be actively engaged in the project, and ETA is particularly encouraging partnerships that include multiple businesses within the targeted industry cluster.

Projects may focus on either employed or unemployed workers, though incumbent workers are not eligible to be served under OJT grants. ETA is interested in projects serving long-term unemployed workers (including underemployed workers) and will reserve $60 million of total funding under the SGA for projects focusing on these individuals. Grants are not intended to support training for entry-level positions, and may not be used to support basic skills education.

Applications will be accepted in two rounds, with closing dates of June 2 and November 17, 2011. Applicants may submit only one proposal for each round, and may receive only one grant under the SGA. ETA will post a pre-recorded webinar about the grants on www.workforce3one.org by Friday, May 6, and will host a live webinar at 11:00 a.m. on Wednesday, May 4 for prospective applicants.