US DOL $81M Reentry Grants: What You Need to Know

The U.S. Department of Labor just made one of the biggest workforce investments of 2026, and if your organization works with formerly incarcerated individuals, this announcement could be a game changer. On February 25, 2026, the DOL officially announced approximately $81 million in competitive grant funding through a program called RESTART, which stands for Reentry Employment in Skilled Trades, Advanced Manufacturing, Registered Apprenticeships, and Training.

This is not a small or symbolic gesture. It is a serious federal commitment to helping people with criminal records get back on their feet through real job training, industry credentials, and meaningful employment in some of the fastest growing sectors of the American economy. If you are a nonprofit organization, a state government agency, a tribal government, or a national intermediary that serves justice-involved individuals, this guide will walk you through everything you need to know about this funding opportunity.

We will cover what the RESTART grant is, who can apply, what industries are being targeted, how much money is available, the application deadline, and practical tips for putting together a strong proposal.

What Is the DOL RESTART Grant Program?

The RESTART initiative is a federal grant program administered by the U.S. Department of Labor’s Employment and Training Administration, commonly referred to as ETA. The program is specifically designed to connect formerly incarcerated individuals and people with prior criminal justice system involvement to training and employment in skilled trades and other high-demand industries.

The funding opportunity number for this grant is FOA-ETA-26-17. The full name, Reentry Employment in Skilled Trades, Advanced Manufacturing, Registered Apprenticeships, and Training, gives you a clear picture of what the program is focused on. It is not just about getting people jobs in any field. It is about connecting them with specific sectors where there are real labor shortages and where credentials and training can lead to long-term careers that pay well.

The RESTART program builds on a long history of DOL reentry programming. It expands upon the earlier Reentry Employment Opportunities (REO) program, which provided employment-centered grants that incorporated job training, mentoring, and transitional services for justice-involved individuals. In 2026, the focus has shifted toward sector-based pipelines and registered apprenticeships, recognizing that structured career pathways offer people not just a job, but a genuine long-term future.

According to U.S. Deputy Secretary of Labor Keith Sonderling, the goal is straightforward: to help people reentering communities after incarceration gain the experience and skills needed to secure employment in skilled trades and high-demand industries, supporting both their personal economic stability and the broader needs of the American workforce.

Why the Federal Government Is Investing $81 Million in Reentry

You might be wondering why the Department of Labor is putting this level of investment into reentry workforce programs right now. The answer comes down to two intersecting problems that the federal government is trying to address at the same time.

First, there is a significant labor shortage in many skilled trades and manufacturing sectors across the United States. Industries like shipbuilding, advanced manufacturing, nuclear energy, transportation, and information technology are struggling to find enough qualified workers. These are not low-wage jobs. These are careers that can support a family, and employers across the country are reporting that they simply cannot fill open positions fast enough.

Second, there is the challenge of reentry. Every year, hundreds of thousands of people leave prisons and jails across the country and face an extraordinarily difficult path back to stable life. Finding employment is one of the most significant barriers. Many employers are reluctant to hire people with criminal records, and without income, stable housing becomes nearly impossible. Research consistently shows that stable employment is one of the strongest factors associated with reduced recidivism.

The RESTART initiative tries to solve both problems at once. By connecting the reentry population with industries that are actively looking for workers, the DOL is positioning formerly incarcerated individuals as a solution to the workforce crisis rather than as a liability. Secretary of Labor Lori Chavez-DeRemer described the program as part of DOL’s broader workforce development goals, stating that it is designed to offer individuals with criminal backgrounds the opportunity to gain in-demand skills and achieve economic self-sufficiency.

Key Details of the $81 Million DOL Reentry Grant

Before we dive into eligibility and how to apply, here is a breakdown of the most important numbers and details you need to know about the RESTART grant.

The total available funding is approximately $81 million. The Department of Labor expects to fund up to 20 RESTART projects nationwide. Individual award amounts range from a minimum of $1 million to a maximum of approximately $5.1 million per project for intermediary organizations. There is no cost sharing or matching requirement under this funding opportunity, meaning applicants do not need to match the federal dollars with their own funds.

Approximately $30 million of the total funding is specifically reserved for national or regional intermediary organizations that serve youth and young adults. The remaining funds will be distributed to states, territories, and tribal governments to support state-led projects that integrate RESTART activities with the existing public workforce system under the Workforce Innovation and Opportunity Act (WIOA).

The application deadline is April 15, 2026, at 11:59 p.m. Eastern Time. All applications must be submitted electronically through the official federal grants portal. The funding instrument type is a grant, and the opportunity category is discretionary.

Questions about the funding opportunity can be directed by email to Alexander Heron at the DOL’s Employment and Training Administration using the address provided in the official funding announcement.

Who Is Eligible to Apply for the RESTART Grant?

This is one of the most important sections for any organization considering submitting a proposal. Not every type of organization is eligible for RESTART funding, so it is worth reviewing the eligibility requirements carefully before investing time in an application.

According to the official funding opportunity announcement, eligible applicants include state governments and state government agencies, U.S. territories and possessions, federally recognized Native American tribal governments and tribally designated organizations, and national or regional intermediary organizations.

National or regional intermediaries are defined as nonprofit organizations, with or without 501(c)(3) tax-exempt status with the IRS, that have a national or regional scope. To qualify as an intermediary under this announcement, the organization must identify sub-grantees operating across three or more non-contiguous metropolitan areas or rural regions. This is important because it means smaller single-city organizations will need to partner with or work through a larger intermediary to access this funding.

Institutions of higher education are specifically excluded from being considered national or regional intermediaries under this grant. However, higher education institutions can still participate as sub-grantees or partners in a project led by an eligible applicant.

Faith-based organizations are explicitly encouraged to apply. The Department of Labor has stated that selection will not discriminate based on an organization’s religious character, affiliation, religious exercise, or lack of religious affiliation. Any organization that meets the eligibility requirements may receive an award under this opportunity.

Who Does the RESTART Program Serve?

The RESTART program is designed to support three specific population groups, all of whom have prior involvement in the criminal justice system.

The first group is youth, defined as individuals between the ages of 15 and 17. The second group is young adults, defined as individuals between the ages of 18 and 24. The third group is adults aged 25 and older. Programs funded through RESTART are expected to develop tailored services appropriate to the needs and circumstances of each of these groups, recognizing that a 16-year-old returning from juvenile detention has very different needs than a 40-year-old leaving federal prison after a long sentence.

Participants do not need to have been in prison or jail. The program also covers individuals with prior criminal justice system contact more broadly, which could include people who have been on probation, parole, or community supervision. The goal is to reach those who face barriers to employment specifically because of a criminal record or criminal justice involvement.

What Industries Does RESTART Target?

One of the most distinctive aspects of the RESTART initiative is its focus on specific high-demand industries rather than general job readiness. The DOL has been deliberate about which sectors it wants to connect reentry participants with, and the list reflects both current labor market realities and national policy priorities.

Shipbuilding is given the highest priority consideration under this grant. This is consistent with the current administration’s broader focus on domestic shipbuilding, which has been highlighted across multiple recent federal funding actions. The DOL announced a separate $145 million Pay-for-Performance Apprenticeship grant focused on the same sector in February 2026, signaling just how seriously the federal government is taking workforce development in this area. Organizations that can credibly connect formerly incarcerated individuals with shipbuilding training and employment will have a significant advantage in the competitive review process.

Beyond shipbuilding, other targeted industries include advanced manufacturing, artificial intelligence infrastructure, nuclear energy, transportation, domestic mineral production, and information technology including AI-related roles. The inclusion of AI infrastructure and digital literacy training is notable and reflects where the economy is heading. Organizations that can help reentry participants develop technology-adjacent skills alongside traditional trades training may have a real edge in preparing participants for the jobs of the next decade, not just the next year.

Priority consideration is also given to applicants that partner with registered apprenticeship program sponsors. Registered apprenticeships are structured earn-while-you-learn programs recognized by the U.S. Department of Labor, and they are an especially powerful pathway for formerly incarcerated individuals because they provide immediate income, structured supervision, a defined career path, and portable credentials that are recognized by employers across the country.

What Services and Activities Can RESTART Grants Fund?

The RESTART grants are designed to fund a broad range of services that support workforce readiness and employment outcomes for justice-involved individuals. Understanding what is allowable under this funding is important for designing your program model and building your budget narrative.

Work-based learning is one of the core allowable activities. This includes on-the-job training, internships, and other structured experiences that give participants real industry exposure and hands-on skill development before they enter the workforce full time.

Pre-apprenticeship programs are also fundable, particularly those that lead directly into registered apprenticeships with employers in targeted industries. These programs help participants build the foundational knowledge and skills needed to succeed in a formal apprenticeship, which can be a critical bridge for individuals who may have been out of formal education or the labor market for years.

Credential attainment is another key component. Grants can fund training programs that result in industry-recognized credentials such as certifications, licenses, or other qualifications that employers in target sectors require or prefer. These portable credentials give participants something concrete to show employers and help them build on their skills over time.

Paid work experience is explicitly included as a fundable activity. This is significant because it means grant funds can be used to pay participants a wage while they are gaining real work experience, reducing one of the most common early barriers to employment, which is the difficulty of taking an unpaid internship or training slot when you have no income or housing stability.

Artificial intelligence and digital literacy training is specifically mentioned in the funding notice as a service that grant-funded programs may include. This is a forward-thinking element that reflects the reality that even in trades and manufacturing jobs, workers increasingly need to be comfortable with digital tools and technology.

Supportive services can also be funded to the extent they are necessary to help participants succeed in training and employment. This could include transportation assistance, child care support, help navigating housing barriers, and connections to mental health or substance use services that may be needed for some participants.

The overall goal of all funded activities is to advance workforce readiness skills and support the attainment of meaningful, sustainable employment. Programs must be designed to help participants become productive contributors to the U.S. economy, and the funding announcement emphasizes that services should be evidence-based and grounded in research on what actually works for justice-involved populations.

How RESTART Connects to WIOA and the Broader Workforce System

An important feature of the RESTART initiative is that it is designed to work within and strengthen the existing public workforce infrastructure created under the Workforce Innovation and Opportunity Act (WIOA), not to create parallel systems that disappear when the grant ends.

WIOA is the primary federal law governing job training and employment services in the United States. It funds a nationwide network of American Job Centers and connects people with employment services, career counseling, skills training, and employer partnerships. The RESTART grants are expected to integrate with this system so that the programs being funded can be sustained and scaled after the initial grant period ends.

For organizations already working within the WIOA ecosystem, this integration requirement is actually an asset. It means that RESTART-funded participants can potentially access a broader range of services and supports through their state’s workforce system, beyond what the grant funds directly.

It is also worth noting that the Consolidated Appropriations Act, 2026, which was signed on February 3, 2026, rejected a prior administration proposal to consolidate 11 workforce programs including the Reentry Employment Opportunities program into a single block grant called Make America Skilled Again (MASA). Congress chose to maintain separate WIOA program accounts at largely steady funding levels, which means the existing infrastructure that RESTART is designed to leverage remains intact.

How to Apply for the DOL $81M RESTART Reentry Grant

If your organization is eligible and you believe you have a strong program model to propose, here is what you need to know about the application process.

All applications must be submitted electronically through Grants.gov, the official federal government portal for grant applications. The application deadline is April 15, 2026, at 11:59 p.m. Eastern Time. Late applications will not be accepted, so build in time to handle any technical issues with the submission platform.

You can access the full funding opportunity announcement, application forms, and supporting guidance documents through the official application listing. View the RESTART grant opportunity on the official Grants.gov portal and review all attached documents carefully before beginning your application.

You can also subscribe to updates for this specific funding opportunity directly on the Grants.gov platform. The DOL encourages prospective applicants and interested parties to use this subscription option to receive any future updates or amendments to the funding announcement.

For questions about the funding opportunity, you can reach out to Alexander Heron at the DOL Employment and Training Administration. The contact email is listed in the official funding announcement under FOA-ETA-26-17.

You will also want to review the 2026 ETA Application Guide, which provides detailed guidance on all the required components of a DOL grant application, including the project narrative, budget narrative, performance measures, and post-award reporting requirements. This guide is an essential resource for any organization navigating a DOL grant application for the first time.

What Makes a Strong RESTART Grant Application?

Competition for this funding will be significant. With up to 20 projects being funded from a national applicant pool, organizations need to put their best work into the proposal. Here are some practical thoughts on what makes a strong application for reentry workforce grants like RESTART.

The single most important thing is demonstrating that your program model works. Federal grant reviewers are looking for evidence-based approaches that are grounded in research and have a track record of producing outcomes. If your organization has previously run reentry employment programs, use your data. Graduation rates, credential attainment rates, employment placement rates, job retention rates, and wage data are all relevant. If you are newer to this space, cite the research literature on what works for justice-involved populations and explain clearly why your approach aligns with the evidence.

Employer partnerships are critical. RESTART is not a training program in isolation. It is designed to connect people to actual jobs. The strongest proposals will show that you have already built relationships with employers in targeted industries who have committed to hiring program graduates. A letter of commitment from a shipbuilding company or a registered apprenticeship sponsor will carry significant weight with reviewers.

If you are applying as a national or regional intermediary, your sub-grantee network is part of what you are proposing. Be clear about who your sub-grantees are, where they operate, and why they are the right organizations to implement the work in their respective communities. Remember that intermediaries must demonstrate coverage across three or more non-contiguous metropolitan or rural areas.

Your budget narrative needs to be detailed, realistic, and clearly tied to the activities you are proposing. Reviewers will look closely at whether the costs are reasonable and whether the proposed use of funds aligns with the allowable activities under the grant. Avoid padding the budget with vague line items. Be specific about what each dollar will do.

Address equity and wraparound support. The reentry population is diverse, and many individuals face compounding barriers including housing instability, mental health challenges, substance use history, family separation, and limited work history. A strong application will acknowledge these realities and describe how the program will address them, whether through direct supportive services or by connecting participants with community partners who can fill those gaps.

Finally, think carefully about sustainability. The DOL wants to fund programs that will not disappear the day the grant ends. Describe your plan for sustaining the program and its outcomes after the performance period. Whether that means integrating into the WIOA workforce system, diversifying your funding base, or transitioning to employer-funded apprenticeship models, reviewers want to see a credible long-term vision.

How RESTART Connects to Second Chance Hiring

The RESTART initiative does not exist in isolation. It is part of a broader national conversation about second chance hiring and criminal justice reform that has been gaining momentum across both the public and private sectors.

The Second Chance Business Coalition is a national employer network that provides companies with resources to hire and provide career advancement to people with criminal records. Organizations like Manufacturing Renaissance consult with manufacturers specifically on how to hire formerly incarcerated individuals, recognizing that this population can help address persistent workforce shortages in the manufacturing sector.

Second chance hiring has been gaining traction among major manufacturers and other large employers in recent years. Fair chance hiring policies, ban-the-box legislation, and growing awareness of the workforce potential of the reentry population have all contributed to a more favorable hiring environment. RESTART is designed to capitalize on this momentum by ensuring that when a formerly incarcerated person walks into an employer’s office, they are walking in with a real credential and real experience behind them.

For individuals who are currently incarcerated or recently released and reading this article, it is worth knowing that while RESTART funding goes to organizations and programs rather than to individuals directly, the programs funded by RESTART are the ones you will want to find and connect with. Look for workforce development programs in your area that partner with registered apprenticeship sponsors or offer training in skilled trades, advanced manufacturing, or technology sectors. Your local American Job Center, operated under WIOA, is a good starting point for finding services available to you.

What Comes After the Initial Grant Awards?

The initial round of RESTART funding will go to up to 20 national projects. After those awards are made, the remaining grant money will be distributed to states, territories, and tribal governments to support projects that integrate RESTART activities with their local WIOA workforce systems.

This two-phase structure is intentional. By funding national intermediaries and state-level projects in parallel, the DOL is trying to both test large-scale program models and build capacity at the local level. The best practices that emerge from the nationally funded projects are expected to inform state-level implementation over time.

Organizations that do not receive funding in this round are encouraged to stay engaged with the program, subscribe to future updates through Grants.gov, and use the debrief process to understand the weaknesses in their application before reapplying in future funding rounds.

Frequently Asked Questions About the DOL RESTART Reentry Grant

Can individual formerly incarcerated people apply for RESTART grant funds?

No. RESTART grants are awarded to organizations, not to individuals. Individuals can benefit from RESTART by enrolling in programs offered by organizations that receive RESTART funding. If you are recently released or justice-involved, connect with your local American Job Center or reentry-focused nonprofit to find workforce programs in your area.

Is there a cost matching requirement for RESTART grants?

No. The funding announcement specifies that there is no cost sharing or matching requirement under FOA-ETA-26-17. Organizations do not need to provide matching funds to apply or receive an award.

Can a faith-based organization apply for RESTART funding?

Yes. The Department of Labor explicitly encourages faith-based organizations to apply and has stated that selection will not discriminate based on religious character or affiliation. As long as a faith-based organization meets the eligibility requirements, it may apply and receive an award.

Are institutions of higher education eligible to apply?

Institutions of higher education are not eligible to serve as national or regional intermediaries under this grant. However, they can participate as sub-grantees or partners in a project led by an eligible entity such as a nonprofit intermediary, state government, or tribal organization.

What is the deadline to apply for RESTART grants?

The application deadline is April 15, 2026, at 11:59 p.m. Eastern Time. All applications must be submitted electronically through Grants.gov.

How many RESTART projects will be funded?

The Department of Labor expects to fund up to 20 RESTART projects nationally through this funding round.

What happens to organizations that are not selected?

Non-selected applicants will be notified by email and may request a written debriefing from the DOL that explains the significant weaknesses in their application. This feedback is valuable for improving future submissions.

How to Find and Apply for RESTART Funding

If you are ready to take the next step, here is where to go. The full funding opportunity announcement, application instructions, and all required forms are available through the federal grants portal. You can access the RESTART grant listing directly on Grants.gov to download all application materials and begin your submission.

You can also view the listing on the newer Simpler Grants platform at the RESTART opportunity page on Simpler Grants, which provides a user-friendly interface for reviewing opportunity details and tracking application status.

For the latest official news and press releases from the Department of Labor about this initiative, visit the DOL Employment and Training Administration funding opportunities page.

If your organization needs help with the SBIR or STTR application process, or if you want to connect with workforce development resources in your region, your local Small Business Development Center (SBDC) or American Job Center can point you toward technical assistance resources.

Final Thoughts on the DOL $81M RESTART Reentry Grants

The DOL’s $81 million RESTART initiative is one of the most significant federal investments in reentry workforce development in recent memory. It comes at a time when the country is dealing with two very real and very solvable problems at the same time: a shortage of skilled workers in key industries and a population of people leaving incarceration who have the potential to fill those roles if given a genuine opportunity and the right support.

For organizations working in workforce development, criminal justice reform, or community-based employment services, this funding announcement represents a real and time-sensitive opportunity. If your organization serves youth, young adults, or adults with prior criminal justice involvement and you have the infrastructure to deliver job training in targeted industries, you should seriously consider submitting a proposal before the April 15, 2026 deadline.

The process of applying for a federal grant of this scale is not simple, but it is absolutely worth the effort. The organizations that put in the work to build a compelling, evidence-based proposal and demonstrate strong employer partnerships are the ones that will be in a position to change the trajectory of hundreds of people’s lives over the coming years.

This is what second chances look like when they are backed by serious investment. If you are ready to be part of it, the clock is running. Get to Grants.gov, download the application materials, and start building your proposal today.