$98 Million Federal Funding Opportunity Through YouthBuild

The U.S. Department of Labor (DOL) has announced the availability of $98 million in funding through the department’s YouthBuild program to support communities in developing pre-apprenticeship programs that connect opportunity youth — ages 16 to 24 who are out of school or out of the workforce — to meaningful careers. This investment will increase the number of pre-apprenticeship programs available, while also expanding opportunities for young people who face barriers to success.

Additional details from the funding announcement include the following:

• Targeted Industries: Eligible YouthBuild programs must offer participants construction training and hands-on experiences building affordable housing for their community. Programs may also include a “Construction Plus” component, providing training in additional high-demand industries like advanced manufacturing, healthcare, and information technology. Programs can require all participants to complete the construction training before beginning “Construction Plus”, or they can allow participants to choose between Construction and Construction Plus.
• Award structure: A total of 57 awards are available, ranging from $1 million to $2 million. Fifty percent of awards will go to previously funded YouthBuild programs that have demonstrated success. The remaining awards may support new YouthBuild programs that demonstrate programmatic capacity.
• Cost Sharing: A 25 percent cost-sharing requirement applies and may include cash and/or in-kind contributions. Waivers are available for certain geographic areas and eligible entities.
• Performance period: The performance period is 40 months and is expected to begin on July 1, 2026. It includes up to four months of optional planning, 24 months of active programming, and 12 months of follow-up to track participant outcomes and provide follow-up services.
• Program Structure: During the active period, participants must receive education services and activities for at least 50 percent of the time and work-based learning and skill development activities for at least 40 percent of the time. The remaining 10 percent may be used to further strengthen vocational training or support distinct youth leadership development or community service-learning.
• Pre-Apprenticeship Requirements: Programs must be structured as pre-apprenticeship programs and include each of the elements outlined in the Code of Federal Regulations (CFR), including access to support services such as educational and career counseling – an especially critical component for YouthBuild programs.

YouthBuild is one of the few large-scale program models available to this highly-vulnerable population, underscoring the importance of DOL’s investment. Established in the 1970s, the program serves between 5,000 and 10,000 opportunity youth each year across more than 250 programs in 47 states. However, the program has historically faced criticism for its modest impact on young people at a relatively high cost to taxpayers. In 2024, 84% of participants earned a high school diploma or equivalent while only 43 percent went onto postsecondary education or employment. A 2018 program evaluation suggested that YouthBuild could do more, like enhance partnerships with postsecondary and improve career development services, to increase program outcomes.

This new funding opportunity seems poised to address concerns about impact while making the most of YouthBuild’s strengths. One notable shift is the introduction of a formal performance target for the number of YouthBuild participants entering a Registered Apprenticeship Program within one year of program exit. In addition, all programs funded through this opportunity must partner with one or more Registered Apprenticeship programs to support placement for participants who complete the YouthBuild program. By tying funding to tangible Registered Apprenticeship outcomes, the DOL is signaling a clear expectation that YouthBuild programs be anchored to long-term, high-quality career pathways.