DOL Offers $145 Million in Apprenticeship Grants — A New Path Into High-Paying Careers

The U.S. Department of Labor just made one of its biggest bets yet on the American workforce — and it does not involve a college degree. On February 13, 2026, the DOL announced $145 million in new grant funding through its Pay-for-Performance Incentive Payments Program, a sweeping initiative designed to rapidly expand registered apprenticeships in industries desperate for skilled workers. The money targets shipbuilding, defense manufacturing, artificial intelligence, semiconductors, healthcare, and telecommunications — some of the fastest-growing and highest-paying sectors in the country. For job seekers, this is not just a policy headline. It is a direct pipeline to careers paying $60,000, $80,000, even $130,000 or more — without the crushing burden of student loan debt.

What Are the DOL Apprenticeship Grants?

The $145 million in funding comes through the Employment and Training Administration (ETA), the arm of the DOL responsible for workforce development. The program, officially called the Pay-for-Performance Incentive Payments Program (PfP IPP), will award up to five cooperative agreements over a four-year performance period to organizations that can demonstrably expand registered apprenticeship programs across the country.

What makes this program different from typical government grants is the "pay-for-performance" model. Instead of handing out a lump sum and hoping for results, the DOL ties funding directly to measurable outcomes. Organizations that win awards will receive incentive payments based on actual increases in apprentice enrollment, participation, and completion. The more apprentices they successfully recruit and retain, the more funding they unlock.

Individual financial awards range from $10 million to $40 million, according to the DOL's 34-page Notice of Funding Opportunity (NOFO). The funding is split into two categories. Up to four cooperative agreements will focus on rapid expansion of registered apprenticeships in specific targeted industries. A fifth agreement will focus on scaling the registered apprenticeship system in industries or subsectors not covered by the first category — essentially a catch-all for emerging fields.

Applications must be submitted by April 3, 2026. The clock is ticking, and for workforce development organizations, trade associations, community colleges, and industry groups, this represents one of the largest single apprenticeship funding opportunities in recent memory.

Which Industries Benefit From the $145 Million?

The DOL has been explicit about where it wants this money to go. The ETA identified seven priority industries that face critical workforce shortages and align with national security and economic competitiveness goals:

• Shipbuilding and the defense industrial base
• Artificial intelligence
• Semiconductors
• Nuclear energy infrastructure
• Information technology
• Healthcare
• Transportation and telecommunications

The standout priority is shipbuilding and the defense industrial base. The DOL stated it intends to make at least one award specifically focused on shipbuilding and defense occupations, contingent on receiving a qualified application. This is not a surprise. The United States is facing a well-documented shortage of skilled shipyard workers, and rebuilding the defense supply chain has become a bipartisan priority. The Government Accountability Office has repeatedly flagged workforce shortages in naval shipbuilding as a national security risk, and major shipyards like Newport News Shipbuilding and Philly Shipyard have been running apprenticeship programs for years to try to fill the gap.

But the scope goes well beyond shipyards. The inclusion of artificial intelligence and semiconductors reflects the federal government's recognition that the U.S. needs homegrown talent in the industries that will define the next decade. Healthcare, meanwhile, faces a chronic shortage of nurses, technicians, and allied health professionals. Information technology roles — from cybersecurity analysts to cloud engineers — continue to outpace the supply of qualified workers. And transportation and telecommunications are being reshaped by electric vehicles, broadband expansion, and 5G infrastructure, all of which need hands-on skilled labor.

The message from the DOL is clear: these are not entry-level jobs that top out at minimum wage. These are career-track positions in industries where demand is outstripping supply, and the government is willing to pay to close the gap.

How Much Do Apprenticeship Careers Pay?

This is the question that matters most, and the answer might surprise anyone still clinging to the idea that a four-year degree is the only path to a good income. According to data from the Department of Labor, people who completed a registered apprenticeship program earned an average annual salary of approximately $80,000 in fiscal year 2023 — higher than the average for associate's degree holders.

In the industries targeted by this grant, the numbers are even more compelling. Here is what workers in these fields can expect to earn:

Shipbuilding: The average annual pay for shipbuilding roles in the United States is $132,754, according to ZipRecruiter. Entry-level shipyard workers earn around $49,000 per year, but experienced tradespeople in specialized roles — welders, pipefitters, marine electricians — command $84,000 to $188,000 annually. At Newport News Shipbuilding, one of the nation's largest defense shipyards, the average employee salary is $76,555, with top earners reaching $106,000 or more.

Skilled trades (electricians, plumbers, HVAC): According to the Bureau of Labor Statistics, the mean annual wage for electricians is $67,810, with top earners clearing $100,000. Electrician apprentices start between $50,600 and $66,700 per year, earning roughly 40% to 50% of a journeyman's wage in their first year, with steady increases as they advance. Plumbers and pipefitters earn comparable wages, and the BLS projects 4% job growth through 2034, with approximately 44,000 openings per year. Specialized welders can earn anywhere from $75,000 to over $200,000 depending on their certifications and industry.

Defense and manufacturing: Workers in the defense industrial base, including roles in semiconductor fabrication, nuclear energy, and advanced manufacturing, earn salaries that reflect the specialized nature of the work. Semiconductor technicians and AI infrastructure roles are among the fastest-growing and best-compensated positions in the economy, with median salaries often exceeding $90,000 and senior technical roles reaching well into six figures.

Healthcare: Registered apprenticeships in healthcare — including roles like medical assistants, pharmacy technicians, and surgical technologists — offer a faster and more affordable path into a sector that added 82,000 jobs in January 2026 alone. Entry-level healthcare apprentices can expect to earn $35,000 to $50,000, with rapid advancement potential as they gain certifications and experience.

What is particularly notable is that apprentices earn while they learn. Unlike traditional college students who accumulate an average of $30,000 or more in student debt, apprentices are paid from day one. At major shipyard apprenticeship programs like The Apprentice School at Newport News and Philly Shipyard, apprentices are full-time employees from the start. They earn wages, receive benefits, and often earn college credits — all at no cost to them. The employer covers 100% of the related instruction.

There is also a growing trend of signing bonuses. According to industry data, experienced skilled trades workers and even recent trade school graduates are now receiving signing bonuses of $5,000 to $15,000 as employers compete for talent. In an era of rising costs and stagnant wages in many white-collar fields, the skilled trades are offering something increasingly rare: immediate economic opportunity with a clear path upward.

How Do You Apply for an Apprenticeship Program?

If you are a job seeker — whether you are a recent high school graduate, a career changer, or someone looking for a more stable and better-paying path — the apprenticeship landscape has never been more accessible. Here is how to get started:

Start with Apprenticeship.gov. The federal government's official apprenticeship portal, Apprenticeship.gov, maintains a searchable database of thousands of registered apprenticeship programs across every state. You can filter by industry, location, and occupation. Every program listed here has been vetted and approved by the DOL or a recognized State Apprenticeship Agency, which means you are guaranteed a structured training program, a mentor, and a nationally recognized credential upon completion.

Check with local trade unions and industry groups. Many of the strongest apprenticeship programs in the country are run through trade unions — the International Brotherhood of Electrical Workers (IBEW), the United Association of Plumbers and Pipefitters, and the Ironworkers, among others. These unions typically offer four- to five-year apprenticeship programs that combine classroom instruction with on-the-job training, and they often have direct relationships with employers who are hiring.

Look at major employers directly. Companies like Huntington Ingalls Industries (which operates Newport News Shipbuilding), Hanwha Philly Shipyard, and defense contractors throughout the country run their own apprenticeship programs. Many tech companies, healthcare systems, and telecommunications firms are also building apprenticeship pipelines. Indeed and other job boards now list hundreds of apprenticeship openings for 2026.

Connect with community colleges. Community colleges are increasingly serving as the front door to apprenticeships. Many have partnerships with employers and industry groups that allow students to earn college credits while completing their apprenticeship. The DOL's grant program specifically encourages partnerships between apprenticeship sponsors and educational institutions, so expect this pathway to expand even further as the $145 million rolls out.

It is worth noting that registered apprenticeships are open to a wide range of candidates. While some programs have minimum age requirements (typically 18) and may require a high school diploma or GED, many do not require prior experience or a college degree. The entire point of an apprenticeship is to train you from the ground up while paying you to learn.

Why Apprenticeships Are Becoming the New College Degree

The DOL's $145 million investment is not happening in a vacuum. It reflects a seismic shift in how the American economy values skills versus credentials. For decades, the conventional wisdom was simple: go to college, get a degree, get a good job. But that equation has broken down for millions of workers. Student debt has surpassed $1.7 trillion. Underemployment among college graduates is rising. And employers across industries are increasingly saying they care more about what you can do than where you went to school.

The numbers back this up. According to research highlighted by The Birm Group, 47% of skilled trades workers now earn more than the median college graduate. Across construction, HVAC, heavy equipment operation, and commercial projects, skilled workers are out-earning their office-based, degree-holding peers by $10,000 to $20,000 per year. And they are doing it without student loans.

The federal government has taken notice. In April 2025, the Trump Administration set an ambitious target of one million active apprentices, nearly a 50% increase from the approximately 678,000 active apprentices currently in the system, according to data from the Registered Apprenticeship Partners Information Database. The number of registered apprenticeship completions has also surged, growing 143% over the past decade — from about 46,000 completers per year to nearly 112,000.

Employers are responding, too. A growing number of companies — including major defense contractors, tech firms, and healthcare systems — are dropping four-year degree requirements from their job postings. According to industry data, approximately 45% of job postings have removed degree-tier requirements since 2024, signaling a permanent shift toward skills-based hiring. Apprenticeships sit at the center of this trend: they produce workers with verified, hands-on skills and a national credential that employers trust.

The construction industry alone anticipates hiring an additional 499,000 workers by 2026, according to contractor surveys, driven by ongoing labor shortages and a massive pipeline of infrastructure, energy, and housing projects. The defense sector is in a similar position, with the Navy and major shipyards racing to fill thousands of skilled positions to maintain the nation's fleet. The $145 million from the DOL is designed to accelerate the pipeline of workers into exactly these roles.

For job seekers, the calculus is becoming simpler by the day. An apprenticeship offers paid training, no student debt, a nationally recognized credential, a clear career path, and — in many of these industries — a starting salary that rivals or exceeds what a four-year degree would deliver. With the federal government pouring $145 million into expanding these programs, the door is only getting wider.

People Also Asked

Q: What is the DOL Pay-for-Performance Incentive Payments Program?

A: The Pay-for-Performance Incentive Payments Program is a $145 million federal grant initiative run by the U.S. Department of Labor's Employment and Training Administration. It awards cooperative agreements of $10 million to $40 million to organizations that can measurably expand registered apprenticeship programs in high-demand industries like shipbuilding, defense, AI, semiconductors, healthcare, IT, transportation, and telecommunications. Unlike traditional grants, funding is tied directly to results — organizations earn more as they enroll, train, and retain more apprentices. Applications are due by April 3, 2026.

Q: Do you need a college degree to become an apprentice?

A: No. Most registered apprenticeship programs do not require a college degree. The typical requirements are a high school diploma or GED, a minimum age of 18, and a willingness to learn. The entire purpose of an apprenticeship is to provide structured, on-the-job training combined with classroom instruction so you can develop skills from scratch. Many programs, such as those at The Apprentice School at Newport News Shipbuilding, even allow you to earn college credits while you work — at no cost to you. The employer covers all training expenses.

Q: How much do apprentices get paid?

A: Apprentices are paid from day one and earn progressively more as they advance through their program. According to the Department of Labor, the average annual salary for registered apprenticeship completers is approximately $80,000 — higher than the average for associate's degree holders. First-year electrician apprentices earn between $50,600 and $66,700, while shipyard workers at major defense contractors earn an average of $76,555. In specialized trades like welding and pipefitting, experienced workers earn $100,000 to $200,000 or more depending on certifications and industry. Many employers also offer signing bonuses of $5,000 to $15,000 for skilled trades talent.

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