Executive Order Establishes First-in-the-Nation Job Training Program

Today, Governor Josh Shapiro signed an executive order creating the Commonwealth Workforce Transformation Program (CWTP), a “first-in-the-nation job training program” that provides workforce development grants to companies, contractors, unions, and others who are working to build Pennsylvania’s infrastructure.

The program allows organizations doing important infrastructure work funded by the Infrastructure Investment and Jobs Act (IIJA) or the Inflation Reduction Act (IRA) to receive up to $40,000 for each new worker they train. Under the CWTP, the Commonwealth will reserve at least 3% of all funding it receives from the IIJA and IRA to fund workforce development and on-the-job training, meaning that as much as $400 million could be used for workforce training in Pennsylvania over the next five years. This model initiative will be the largest infusion in funding for workforce training in Pennsylvania history and could support as many as 10,000 new jobs.

Presumably eligibility requirements will be stated in future PennDOT advertisements. APC will be working with the Department to clarify procedures and requirements. According to the announcement, the CWTP will provide grants of up to $40,000 for each new employee hired and trained in Pennsylvania for projects in critical industries, and up to a maximum of $400,000 per contract or award under the IRA and IIJA. The grants reimburse employers for the cost of wages and similar compensation, payroll taxes, and/or training costs paid to or on behalf of new employees and can be used for pre-apprenticeship and apprenticeship program costs, costs associated with establishing a training program, and costs incurred for the use of a training facility.

Employers may also be reimbursed for supportive services that help individuals facing systemic barriers to employment to be able to participate in training and employment, including but not limited to housing, child and dependent care, work-related tools and clothing, educational testing, transportation, and more.