Workforce innovation grants announced.

The U.S. Department of Labor’s Employment and Training Administration (ETA) today announced the availability of $98.5 million in competitive grant funding under the newly created Workforce Innovation Fund (WIF), which may be used to support innovative projects that enhance the delivery of employment and training services or promote systems change within the public workforce system. The department anticipates that it will award between 20 or 30 grants, ranging from $1 million to $12 million, to state workforce agencies, local workforce investment boards (WIBs), tribal organizations eligible to apply for grants under section 166 of the Workforce Investment Act (WIA), or consortiums of such entities .

Under the Solicitation for Grant Applications (SGA), funding will be made available for projects that:

• Deliver services more efficiently and achieve better outcomes, particularly for low-skilled, low-wage workers and dislocated workers, especially those who are long-term unemployed;
• Promote both system reforms and innovations that facilitate cooperation across programs and funding streams in the delivery of client-centered services to jobseekers, youth, and employers;
• Ensure that education, employment, and training services are developed in partnership with specific employers or industry sectors and reflect current and future skill needs; and
• Emphasize building knowledge about effective practices through rigorous evaluation and translating “lessons learned” into improved labor market outcomes, the ability to bring such practices to scale in other geographic locations, and increased cost efficiency in the broader workforce system.

The SGA identifies a range of innovative activities and strategies that could be supported through these grants including career pathways approaches, integrated adult education and occupational training models, sector-based training strategies, and efforts to expand registered apprenticeships or on-the-job training.

Grants will be awarded to support three tiers of projects. "Type A" projects will test new or emerging workforce strategies, with grants of between $1 and $3 million available for up to 36 months. "Type B" projects will test promising ideas—structural or service delivery reforms that have previously been implemented—with grants of between $3 and $6 million available for up to 40 months, plus 12 months for evaluation activities. "Type C" projects will expand on proven ideas through further development of such ideas or by taking such ideas to scale; grants will range between $6 and $12 million, available for up to 40 months, plus 12 months for evaluation activities.      

The SGA indicates that partnerships with institutions of higher education (including community colleges), community-based organizations, economic development entities, the business community, and other stakeholders are strongly encouraged. 

In addition to the $98.5 million under the current grant solicitation, ETA anticipates that it will award up to $20 million under a separate solicitation for “Pay for Success” projects, in which grantees receive funds once certain performance outcomes are achieved. The SGA does not indicate when these funds will be made available.

Grant applications for the Workforce Innovation Fund are due to ETA by March 22, 2012; ETA has posted an FAQ document for potential applicants available at http://www.doleta.gov/workforce_innovation/