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Arkansas to administer $35.8 million federal apprenticeship incentive fund to expand manufacturing apprenticeships
Summary
The Arkansas Department of Commerce will administer a $35.8 million U.S. Department of Labor cooperative agreement to create a national pay‑for‑performance incentive fund aimed at expanding registered advanced‑manufacturing apprenticeships across roughly 120 occupations; Arkansas will lead administration and outreach.
The Arkansas Department of Commerce will serve as lead grantee and national administrator of a $35.8 million cooperative agreement from the U.S. Department of Labor to establish an American Manufacturing Apprenticeship Incentive Fund, department staff told legislators.
Cody Waits, who described the cooperative agreement, said the fund is designed to expand quality registered apprenticeships in advanced manufacturing across about 120 occupations, including aerospace and defense, automotive, semiconductors, maritime, nuclear and automation. The fund will operate on a pay‑for‑performance model that ties incentive payments to verified outcomes — for example, payments tied to apprentices who are registered and employed for a set verification period (the department described a 90‑day verification window in its pilot model).
Waits said Arkansas will hire staff (funded by the grant) to administer the program and that administrative expenses are expected to be kept under about 8–9% of total funds. He said the fund is national and first‑come, first‑served; application openings and guidance will be posted on the department’s site (arkansasosd.com/mfgfund) and the department plans an outreach campaign to inform Arkansas and national employers. He also said the pilot phase includes caps intended to favor small and medium employers and to prevent a few large firms from claiming the majority of funds.
Lawmakers asked whether Arkansas will receive a guaranteed share; Waits said there is no fixed state allotment and funding distribution will depend on applications that meet eligibility criteria. He said organizations that receive funds must register as state vendors for payment, follow procurement rules and meet the Department of Labor’s eligibility and reporting criteria. The department committed to providing application materials, an interactive apprenticeship map, and district‑level apprenticeship data to legislators.
No formal action was taken on the fund; legislators were invited to help spread the word to employers and local partners.
