U.S. Labor Department opens $98m fund for youth pre-apprenticeships with AI literacy requirement
A new federal funding round places artificial intelligence literacy alongside construction, manufacturing, IT, and healthcare training, signaling a shift in how workforce readiness is being defined for young people outside the labor force.
The U.S. Department of Labor has opened a $98 million funding round to expand pre-apprenticeship programs for young people aged 16 to 24, with a new requirement that applicants embed artificial intelligence literacy into their education models.
Announced through the department’s YouthBuild 2025 program, the funding targets communities where many young people are not currently participating in the labor market, while tying traditional skills training more closely to emerging digital competencies.
In a LinkedIn post, Keith Sonderling, U.S. deputy secretary of labor, shared that the funding will support pre-apprenticeships in construction, advanced manufacturing, information technology, and healthcare, while also advancing AI education for youth.
The funding opportunity requires applicants to incorporate AI literacy into the academic component of their programs and encourages its inclusion in occupational skills training. The move aligns with the federal government’s broader America’s Talent Strategy and its stated goal of reaching more than one million apprenticeships nationwide.
Under YouthBuild, grant recipients are expected to deliver a combination of academic support, occupational training, and employment services, alongside wraparound support such as transportation, childcare, and housing assistance.
Who can apply and how the funding works
The Employment and Training Administration expects to make up to 57 awards, with individual grants ranging from $1 million to $2 million. Eligible applicants include public and private higher education institutions, school districts, nonprofit organizations, tribal governments, and state and local authorities.
Programs must include construction training as a core component, with the option to add “Construction Plus” pathways covering other high-demand sectors. Applications close on March 2, 2026, with submissions required through Grants.gov.
By linking AI literacy to pre-apprenticeship delivery, the program reflects a growing expectation that foundational digital skills should sit alongside hands-on vocational training, rather than being treated as a separate track.
For EdTech companies and workforce-focused education providers, the funding framework points to increasing demand for AI-ready curricula that can operate in community-based, non-traditional learning environments.
The emphasis on measurable skills development, employment outcomes, and integration with existing youth services suggests that future federal workforce programs may continue to blend technical literacy with practical training, particularly for learners furthest from the labor market.
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