Industry-Driven Skills Training Fund for Employers

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Access CTDOL’s Industry-Driven Skills Training Fund with NRWIB. Offset training costs up to 80% for tech, manufacturing, healthcare, and trades.

Guide

Invest in Your Workforce with the Industry-Driven Skills Training Fund!

The Industry-Driven Skills Training Fund (IDS) is a grant program designed to support employer-driven workforce development strategies across critical industries. Funded by the U.S. Department of Labor (DOL) Employment and Training Administration and administered through Workforce Development Boards (WDBs) like NRWIB, this program offers reimbursement for eligible training costs incurred by participating employers

What is the IDSTF Grant?

The Industry-Driven Skills Training Fund (IDSTF) is a federally funded program through the U.S. Department of Labor and CTDOL.

Instead of traditional top-down training, this program is employer-driven. Your business identifies the skill gaps, and we help you fund training to upskill current employees or onboard new hires—including adopting new technologies like AI tools.

  • Funding Model: Cost reimbursement (paid out upon reaching specific milestones).

  • Eligible Training Types: Incumbent Worker Upskilling, Apprenticeships, and Classroom/Cohort-based training.

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, Logistics, 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:

  • Must be at least 17 years old and not currently in high school.

  • Newly Hired Workers: Employed less than 6 months at the start of training.

  • Incumbent Workers: Employed 6 months or longer at the start of training.

How the Reimbursement Works

This grant provides partial reimbursement for allowable training costs:

Employer Size  Reimbursable Percentage Max Per Employee  
Small (<500 employees) Up to 80%
of training costs		 $10,000  
Large (500+ employees) Up to 50%
of training costs		 $10,000  

 

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.

Next Steps & Application

Employers are responsible for completing their own applications and uploading required documentation. NRWIB staff conduct final compliance reviews once submitted.