Colorado Department of Labor and Employment Awarded $6.74 Million in Grant to Train Workers in Critical and Emerging Industries
Kassius Andersen, Associate
Launching the Colorado Industry-Driven Skills Training Initiative, the Colorado Department of Labor aims to assist employers with funding and support to upskill current employees and train new hires in high-priority sectors such as aerospace, advanced manufacturing, and emerging technologies.
Grants and Industry
The Colorado Department of Labor and Employment (“CDLE”) announced Wednesday, October 21, 2026, that the U.S. Department of Labor (“DOL”) awarded the agency $6,740,000 through the Industry-Driven Skills Training Fund.[1] According to Governor Jared Polis, the “$6.74 million investment builds on Colorado’s workforce training efforts, helping residents start new careers and advance in existing jobs while lowering training costs for employers.”
The grant will focus on the industries of advanced manufacturing, aerospace, artificial intelligence (AI) infrastructure, information technology (IT), nuclear energy, and domestic mineral production, and is aiming to restore “American manufacturing dominance, especially in critical industries like manufacturing, shipbuilding,[2] and nuclear energy,[3]” according to Keith Sonderling, Acting Secretary of the DOL.
These investments support building a skilled workforce for high-growth and emerging industries such as those previously mentioned, as well as in cybersecurity, infrastructure, building and construction, healthcare, maritime supply chain, and quantum computing.
Incentivizing Employers
This grant provides employers training incentives in certain industries, similar to the Technology Employment in Colorado Partnership (TECP), a statewide program focused on building a skilled and diverse workforce to meet the growing demands in the fields of cybersecurity, aerospace, and advanced manufacturing.[4] The TECP offers employers financial resources to host work-based learning, such as internships or apprenticeships, or candidate training, as well as providing access to potential employees and promotion of job openings.
The grant pays employers back for training their employees to keep up to date with rapidly developing markets and obtaining job skills to match current and developing workforce needs. Through a state-managed digital portal, the CDLE will oversee a “two-milestone employer reimbursement architecture,” which hasn’t yet been provided.
According to the CDLE, the grant “will make a direct impact on Colorado’s economic resilience and competitiveness of our local businesses. Because of this, CDLE will be able to enhance its mission by empowering employers to build a highly skilled workforce, while providing Colorado workers with the training they need to thrive in high-growth, emerging industries.”
Employer Considerations/Key Takeaways
Employers in the above -listed industries that are interested in participating in the Colorado Industry Driven Skills Training Initiative are encouraged to connect with Business Service Representatives at their local workforce center. Details such as eligibility and other services can be found at these workforce centers as the program begins to roll out.
[1] Colorado Department of Labor and Employment, Press Release, (October 21, 2026) https://cdle.colorado.gov/press-releases/press-release-cdle-awarded-674-million-us-department-of-labor-grant-to-upskill
[2] In fact, $30 million of the total $129 million awarded has been designated specifically for the shipbuilding industry.
[3] US Department of Labor, News Release, , (September 30, 2026) https://www.dol.gov/index.php/newsroom/releases/eta/eta20260930
[4] Denver Economic Development & Opportunity, Technology Employment in Colorado Partnership (TECP), https://denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Economic-Development-Opportunity/Jobseekers-Employers/For-Jobseekers/Technology-Employment-in-Colorado-Partnership-TECP