The United States construction industry is facing a workforce gap that no single solution can close. The White House identified a shortage of 447,000 construction workers as of 2026—the largest single workforce gap of any U.S. sector, according to analysis by Jobs for the Future. Into this gap, the Department of Labor has launched the most ambitious registered apprenticeship expansion effort in recent history: more than $265 million in new federal investment across three programs, with explicit goals tied to reaching and surpassing one million active apprentices nationwide.

Construction remains the backbone of the apprenticeship system. In 2025, 480,399 apprentices were served in the construction industry—a 28% increase over the past five years—representing the largest occupational cluster in the entire registered apprenticeship system, according to Apprenticeship.gov. Yet even with that growth, the system produces far fewer completers than the industry needs, and active participant counts are growing more slowly than they did before the COVID-19 pandemic.

$85 Million in State Apprenticeship Formula Grants

On April 13, 2026, the Department of Labor announced the availability of approximately $85 million in State Apprenticeship Expansion Formula (SAEF) grants—the fourth round of this program—to help all 50 states and territories expand and modernize their registered apprenticeship systems. According to the DOL press release, the formula rewards states for recent growth in active and new apprentices and encourages strategies that increase employer participation.

To qualify, states must commit to three core requirements: setting statewide apprenticeship expansion goals; reserving a share of funds to directly support employers and apprentices in state-identified priority industries; and demonstrating a commitment to leveraging at least 50% of their formula allocation through other sources such as WIOA Governor's Reserve Funds, Perkins V funds, or state tax credits.

"In order to reach and exceed President Trump's goal of 1 million active apprentices, states are essential partners in achieving this meaningful expansion of the National Apprenticeship System," said Secretary of Labor Lori Chavez-DeRemer. "With this funding opportunity, we are supporting state-driven strategies that strengthen America's workforce and help employers develop the talent they need in critical industries like shipbuilding, artificial intelligence infrastructure, manufacturing, and other high growth sectors."

The SAEF program builds on two companion initiatives: the Pay for Performance Incentive Payments Program and the American Manufacturing Apprenticeship Incentive Fund.

$145 Million for Pay-for-Performance Apprenticeship Growth

On February 13, 2026, the Department of Labor's Employment and Training Administration announced a $145 million Pay-for-Performance Incentive Payments Program—a new model that provides incentive payments to registered apprenticeship program sponsors based on verified apprentice enrollment and growth rather than program inputs. The ETA expects to award up to five cooperative agreements over a four-year period.

Four of the five awards will focus on specific high-demand sectors: shipbuilding and defense; AI, semiconductor, and nuclear energy infrastructure; information technology; healthcare; transportation; and telecommunications. The fifth agreement is intended to encourage apprenticeship growth across all industries, including construction. As the Associated Builders and Contractors noted, the grant's focus on infrastructure buildout—including data centers, semiconductor fabrication sites, and nuclear power—is directly relevant to construction employers and apprenticeship sponsors working on those projects. ABC chapters and member contractors may be eligible as association or employer partners to lead applicants.

The pay-for-performance model is a significant departure from how federal apprenticeship grants have historically worked. Instead of funding programs based on what they propose to do, the model pays based on what they actually deliver—verified new apprentices in the system. This incentive structure is designed to drive real enrollment growth rather than administrative activity.

$98 Million for YouthBuild Pre-Apprenticeships

Alongside the registered apprenticeship expansion, the Department of Labor also announced $98 million through its YouthBuild Program in December 2025 to support pre-apprenticeship programs in high-demand industries, with construction training required of all funded programs. The ABC summary notes that funded projects must provide education, occupational skills training, and employment services to young people ages 16 to 24, and must offer construction training and hands-on experience building affordable housing.

The DOL expects to award approximately 60 grants ranging from $1 million to $2 million. A new requirement adds AI literacy skills training to the educational component—reflecting the industry's increasing need for workers who understand both physical and digital dimensions of construction work. The program also sets an explicit goal for the percentage of participants who enter a registered apprenticeship program within one year of exiting YouthBuild.

The Gap Between Growth and Need

The federal investment is substantial—but the data reveal how large the challenge remains. Analysis from Jobs for the Future found that the registered apprenticeship system grew from 396,000 to 702,000 active apprentices between 2016 and 2025—a 77% increase—but year-over-year growth has slowed to below 6% and is declining. At the current trajectory, the one million apprentice goal is out of reach without deliberate acceleration.

In construction specifically, data from the Independent Electrical Contractors' April 2026 analysis of FY2025 DOL RAPIDS data shows approximately 313,000 to 336,000 active construction apprentices, with non-union (merit shop) programs growing at a significantly faster pace—up more than 60% since 2020—compared to roughly 20% growth for union programs over the same period.

High-demand construction apprenticeship occupations listed on Apprenticeship.gov include electricians, plumbers and pipefitters, carpenters, HVAC technicians, operating engineers, structural iron and steel workers, sheet metal workers, and cement masons—the same trades that are most in demand across the infrastructure, data center, and advanced manufacturing construction cycles currently underway.

Sources

U.S. Department of Labor — DOL Announces $85 Million SAEF Grants (April 13, 2026)
Associated Builders and Contractors — DOL Announces $145 Million Pay-for-Performance Apprenticeship Grants (February 18, 2026)
Associated Builders and Contractors — DOL Announces YouthBuild Funding Opportunity for Pre-Apprenticeship Programs (January 21, 2026)
Apprenticeship.gov — Construction Industry Apprenticeship
Jobs for the Future — Reaching the Goal of One Million Apprenticeships (May 26, 2026)
Independent Electrical Contractors — Merit Shop Apprenticeship Growth Accelerates (April 13, 2026)
Community College Daily — Funding to Expand Registered Apprenticeships (January 6, 2026)