Industry-Driven Skills Training Fund for Employers

Who is Eligible?

For Your Business:

• Location: Must operate within Connecticut.

• Industry Alignment: Must be in a targeted sector (Manufacturing/Advanced Manufacturing, Healthcare, IT/Cybersecurity, Construction/Skilled Trades, Shipbuilding).

• Vetting & Compliance: Must maintain clean standing with Unemployment Insurance (UI) Tax, OSHA standards, and CT Wage & Workplace regulations.

• Commitment: Must agree to co-design training plans and report employee completion and retention outcomes.

For Your Employees:

• Employment Status: The individual must be classified as either a newly hired employee (hired within six months of beginning the training) or an incumbent worker (employed for six months or longer).

• Direct Employment: The participant must be a direct employee of the employer seeking the training reimbursement. Eligible employers cannot act as a "pass-through" entity to claim grant reimbursements for the employees of a subcontractor.

• Age and Education Limitations: Employees must be at least 17 years old. Additionally, they cannot be currently enrolled in a secondary school, such as a high school.

• Residency Flexibility: Training participants are not required to reside in Connecticut. However, their primary work location must be at an eligible employer's facility within the participating state or service area.

• Federal Employees: Grant funds cannot be used to reimburse the training of federal employees in any occupation. However, non-federal employees who work for businesses operating under federal contracts are fully eligible.

What type of Training is Covered?

Eligible training types under the Industry-Driven Skills Training Fund include various employer-driven models designed to address skill gaps and meet workforce demands. The following specific training delivery methods are eligible for reimbursement:

• On-the-Job Training (OJT): A work-based model where participants are hired and trained while engaged in productive work. This must be structured around defined competencies within an approved plan and must be aimed at full job competency and long-term employment.

• Incumbent Worker Training (IWT): Programs designed to upskill current employees to address identified skill gaps, introduce new technologies (such as AI-enabled tools and automation), and support career advancement into higher-skilled or higher-wage positions.

• Registered Apprenticeships and Pre-Apprenticeships: Structured "earn-and-learn" models that combine paid work experience with related educational instruction. These must align with career pathways in targeted industries and lead to industry-recognized credentials.

• Classroom, Cohort-Based, and Technology-Enabled Training: This includes short-term accelerated programs, instructor-led hybrid instruction, simulation-based or virtual reality training, and AI-integrated or adaptive learning models.

• Customized Training: Training programs uniquely identified or designed in collaboration with the grantee to meet specific employer needs, provided the program does not already fall under OJT or a Registered Apprenticeship.

• Occupational Skills Training: Pre-established training programs that the employer independently identifies and selects to meet their workforce needs.

Regardless of the delivery model, all eligible training types must meet the following criteria:

• Training must be directly aligned with industry demand and employer-identified skill gaps.

• Training must result in measurable employment and skill outcomes, or industry-recognized credentials.

• Training must incorporate relevant technical, occupational, and (where appropriate) digital or AI-related skills.

• Training can be delivered directly by the employer, through a third-party vendor or educational institution, or via a combination of both.

• Wages and benefits paid to employees for their time spent participating in the training are explicitly not reimbursable.

How the Reimbursement Works

This grant provides partial reimbursement for allowable training costs:

What Costs Are NOT Covered?

• Employee Wages/Benefits: You cannot claim reimbursement for normal wages/benefits paid to employees during training hours.
• Travel & Per Diem: Mileage, lodging, or food expenses are not reimbursable.

Payment Schedule (Performance-Based)

Reimbursements are issued in two phased payments tied directly to employee progress:

• Milestone 1 (90% Payment): Paid when the employee successfully completes the approved training program and earns any applicable credential.

• Milestone 2 (10% Payment): Paid after the employee achieves 6 months of retained employment with your company post-training.

Important Note: If an employee drops out or fails to demonstrate the required skill competencies, no reimbursement can be issued for that participant.

What Employers Need to Do (Your Requirements)

To receive grant reimbursements, participating businesses must partner with NRWIB on administrative steps:

1. Register Trainees: Register participating workers in CTHires (Connecticut’s workforce reporting system).

2. Track Milestones: Share proof of training start dates, completion certificates, and 6-month retention verification.

3. Provide Documentation: Supply required verification documents (such as training vendor invoices, certificates, and payroll verification).

4. Cooperate with Quality Reviews: Maintain open lines for periodic desk reviews or data checks with NRWIB to keep funding compliant.