Workforce Development Capital Grant Program

The Workforce Development Capital Grant Program, administered by the Office of Strategic Workforce Development (OSWD) within Empire State Development (ESD), is a strategic initiative aimed at enhancing New York State's capacity to train and prepare its workforce for in-demand, high-growth industries. Established under the FY 2023 State Budget, OSWD reflects a shift in workforce development policy, emphasizing industry alignment and inclusive economic opportunity. Through collaboration with employers, regional economic development councils, and other state agencies, OSWD leverages $150 million in funding to increase training capacity, promote equitable workforce access, and meet employer needs. This program specifically allocates $35 million for capital grants to modernize and expand training infrastructure, ensuring that training providers can scale quickly to meet emerging industry demands. The grant supports capital investments that allow training providers to offer or expand programs leading to industry-recognized credentials in high-demand fields. Priority sectors include advanced manufacturing, biotech, cleantech, construction, electronics and optics, film and television production, and digital media. Funding can be used for modernizing existing training centers, constructing new facilities, and purchasing machinery or training equipment. Up to 15% of the total project budget may be allocated to soft costs such as architectural or engineering services. However, operating costs, indirect expenses, and public sector capital projects are explicitly excluded. Eligible applicants encompass a wide range of organizations engaged in workforce development, including community-based organizations, nonprofits, chambers of commerce, government entities like BOCES and municipalities, higher education institutions (for non-degree programs), career and technical training providers, organized labor, and for-profit training providers. Applicants must submit their proposal via New York State’s Consolidated Funding Application (CFA) portal and include detailed project descriptions, full budgets, audited financials, organizational charts, training curricula, and letters of commitment from industry and community partners. Applications must also demonstrate proven success in workforce training and a track record of engagement with underrepresented communities. Projects must be developed in collaboration with businesses to ensure alignment with industry needs and facilitate direct job placement. Industry partners are expected to provide letters describing their roles, such as funding, curriculum co-development, internships, or hiring commitments. Preference will be given to applicants offering wraparound services, such as childcare or transportation, and those projecting high completion and placement rates (≥80%). Projects must be ready to begin within six months and be completed within four years, with a two-year completion target preferred for non-construction projects. Awards range from $100,000 to $3,000,000, covering up to 50% of total project costs. Higher leverage from private or employer sources is preferred. Awardees must track and report on performance metrics including enrollment, credentials earned, job placement, earnings changes, and participant demographics. Ten percent of the award will be withheld until six months after project completion to ensure compliance with reporting requirements. Additionally, each awarded project is subject to a $250 application fee, a 1% commitment fee, and public hearing costs. Applications are reviewed competitively against evaluation criteria spanning project readiness, financial need, program impact, and organizational capacity. Interested applicants must submit their proposals through the CFA portal. OSWD accepts two active awards per grant type per applicant. Projects must serve only New York State residents authorized to work in the state, and all funding is issued on a reimbursement basis. Although additional state or federal funds may be used as matching funds, ESD funds from other programs may not count as match. Further information and updates, including future deadlines, will be published on the program's website, and questions can be directed to [email protected].