Pay-for-Performance (PfP) Incentive Payments Program

The Pay-for-Performance Incentive Payments Program, administered by the Employment and Training Administration (ETA) under the U.S. Department of Labor, is a competitive funding opportunity designed to promote improved outcomes in Registered Apprenticeship (RA) programs. Announced on February 13, 2026, the program aims to support the expansion and effectiveness of RA programs by rewarding performance-based achievements. Through this initiative, ETA seeks to strengthen workforce development pathways by encouraging data-driven strategies and ensuring accountability for measurable success in apprenticeship outcomes. This funding opportunity targets lead applicants who will act as administrators of the award. These lead entities are entrusted with the responsibility of providing incentive payments to eligible RA program sponsors based on performance metrics. Importantly, these lead applicants and any organizations directly involved in the administration or decision-making processes related to the award are prohibited from receiving the incentive payments themselves. This condition ensures impartiality and objectivity in the allocation of funds. However, partners of the lead applicant that do not participate in award administration or decision-making may be eligible to receive incentive payments, provided adequate safeguards are implemented. The scope of this program includes a structured post-award implementation period of up to 120 days. During this phase, the Department collaborates with awardees to review and finalize the incentive payment plan. The finalized plan must explicitly delineate how entities will maintain a separation between those receiving incentive payments and those making disbursement decisions. This critical step is intended to prevent conflicts of interest and guarantee fair and equitable incentive distribution. Applications must adhere to the submission requirements outlined in the original Funding Opportunity Announcement (FOA-ETA-26-19) and the amendments described in this document. While the document reviewed is an amendment and does not include specific application steps or evaluation criteria, it does highlight the importance of a transparent and effective incentive payment framework. It also reinforces the Department’s commitment to a collaborative implementation approach in the early post-award period. Although specific eligibility criteria beyond administrative roles are not detailed in the amendment, the document reinforces that recipients of incentive payments must be RA program sponsors and that eligibility is contingent upon the applicant’s role in the administration process. All applications will undergo a review to confirm compliance with structural and operational separation requirements prior to final approval and payment initiation. For further inquiries, applicants are directed to contact the Department of Labor via email at [email protected]. The grant announcement was signed on March 26, 2026, by Aiyana Pucci, Grant Officer for the Employment and Training Administration. The document suggests that additional clarifications and procedural requirements may be found in the original FOA document, emphasizing the need for prospective applicants to consult all relevant materials.