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Washington, DC - Today, Vice President Biden and Department of Labor Secretary Perez announced the release of $150 million in Department of Labor grants for 39 partnerships across the country. With these funds, awardees will launch innovative training and placement models to develop tech talent, as a way to keep and create jobs in local economies. In addition to federal funding, grantees are leveraging nearly $50 million in philanthropic, private and other funding to contribute to their own local partnerships.

A Large and Growing Opportunity for Local Economies

Having a pipeline of tech talent can be an important factor in bringing new jobs to local economies, facilitating business growth, and lifting more local residents into the middle class. These grants will enable more communities to expand their own local tech sectors.

In response to this opportunity, in March 2015, President Obama launched TechHire, a bold multi-sector effort and call to action for cities, states, and rural areas to work with employers to design and implement new approaches like coding bootcamps to train workers for well-paying tech jobs often in just a few months.

Since then, 50 communities with nearly 1,000 employer partners have begun working together to find new ways to recruit and place applicants based on their skills and to create more fast-track tech training opportunities. These range from programs in New York City that connect low-income young people to tech training and internships to a program in rural Eastern Kentucky that teaches former coalminers to code.

The federal government is doing its part to support communities in this work with a specific focus on making sure that access to these innovations is widely shared, supporting best practice sharing amongst communities, and encouraging engagement of the key stakeholders that fuel a TechHire community -- including employers, innovative training providers and local workforce development leadership. As stakeholders help engage more employers and connect more local communities to these opportunities, the TechHire network will continue to grow.

More details on today’s announcements

Today, the Department of Labor is awarding 39 grants—totaling $150 million—for programs in 25 states and Washington, DC to support innovative ways to get workers on the fastest paths to well-paying information technology and high-growth jobs in in-demand sectors like healthcare, advanced manufacturing, and financial services. Of these grants, $126 million will specifically target strategies designed to best support young Americans, ages 17 to 29.

All of the partnerships funded today engage in the following practices:

1)      Expand access to accelerated learning options that provide a quick path to good jobs, such as “bootcamp”-style programs, online options, and competency-based programs.

2)      Use data and innovative hiring practices to expand openness to non-traditional hiring by working with employers to build robust data on where they have the greatest needs, identify what skills they are looking for, and build willingness to hire from both nontraditional and traditional training programs.

3)      Offer specialized training strategies, supportive services, and other participant-focused services that assist targeted populations to overcome barriers, including networking and job search, active job development, transportation, mentoring, and financial counseling.

4)      Emphasize inclusion by leveraging the high demand for tech jobs and new training and hiring approaches to improve access to tech jobs for all citizens, including out-of-school and out-of-work young Americans, people with disabilities, people learning English as a second language, and people with criminal records.

$126 Million in Grants to Create Pathways to Careers for At-Risk and Out-of-School, Out-of-Work Young Americans

Examples of selected communities and programs include:

ATL TechHire will train the City of Atlanta’s youth and young adults with barriers to employment and other unemployed and underemployed for open jobs in tech. Led by the Atlanta Workforce Development Agency, in partnership with Iron Yard and TechSquare Labs, ATL TechHire has developed customizable training tracks to serve differing needs. Participants will be enrolled in TechSquare Labs’ innovative Culture Fit and Career Readiness programs, as well as fast-track training with one of the Iron Yard’s coding bootcamps, to train participants for jobs in front- and back-end engineering, mobile engineering, data science, and design; or with the Atlanta Technical College for degrees that lead to in-demand IT jobs.

Workforce Connection of Central New Mexico (WCCNM) will use grant funds to expand its NMTC consortium in order to build a career pipeline into IT for around 338 young adults and other workers with barriers to training and employment. Serving the city of Albuquerque, as well as Bernalillo, Sandoval, Torrance and Valencia counties, NMTC consists of training and education partner, College of New Mexico, along with six area employers and promises to address gaps in conventional training for H-1B jobs.

Acquiring Credential and Creating Experiential Learning (ACCEL) in Technology will leverage the size and resources of Miami Dade College, along with the expertise of partners including CareerSource South Florida Mount Sinai Medical Center, AHIMA Foundation, and the McKinsey Social Initiative, who will provide guidance on advisory boards, curriculum development, employee mentors, opportunities for paid work experiences, and commitments to hire participants. This program will develop customizable training for the individual. Through this initiative, over 400 young adults with barriers to employment will gain access to training in IT, healthcare, and financial services.

LaGuardia Community College will partner with General Assembly, Udacity, Software Guild and others to offer accelerated tech training to young adults in web development, java, and computer network support. Given that young people often struggle to connect to their first job, TechIMPACT is teaming up with partners to make sure that graduates have connections to internships and job placements when they graduate. IBM, Walmart, and other employer partners are committing to interview and hire qualified candidates, and Uncubed will place graduates with a network of high-growth startup companies.

Jobs for the Future, Inc.’s program will establish and expand accelerated training programs that prepare youth and young adults with barriers to employment for high-wage, high-demand careers in IT in New York City Washington, D.C., Prince George’s County, Anne Arundel County and Howard County, MD.  PTC will have three tracks including a bootcamp-style, immersive web development training, a data analytics training for incumbent workers to upskill to better jobs, and a short-term IT security program for veterans. PTC will build on the national presence of JFF, General Assembly, and Per Scholas to demonstrate multiple strategies to move individuals from entry-level jobs into the middle-class with tech training.

Seattle Central College will work with the LaunchCode Foundation, EnergySavvy, Unloop, Floodgate, Ada Developer Academy and other partners to connect young Americans to jobs in database administration and development, mobile product development, network design and administration, programming, web design, and web development training. To increase opportunities for employers to find high-quality, diverse, entry-level talent, and for students to learn on the job, LaunchCode will connect students at no cost to the student with companies that will offer mentorship and training through a paid apprenticeship program, with the option for employers to hire the student at the end of the 3-6 month apprenticeship. Launchcode has successfully launched and grown this model in 4 U.S. cities, achieving 90 percent placement rates and more than doubling salaries of participants. Seattle is leveraging $4.4 million in philanthropic and private contributions to support this initiative.

$24 Million in Grants to Connect People with Criminal Records, People with Limited English Proficiency and People with Disabilities to In-Demand Jobs

Examples of selected communities and programs include:

Led by the Labor Institute for Training (LIFT), in partnership with Jobs for the Future and Indiana Adult Education, Growing Opportunities in America for Latinos! (GOAL!) will enhance and expand services throughout the state of Indiana. The program will enhance and expand English language and advanced manufacturing technical skills for 400 residents with limited English proficiency. Incumbent workers will also have access to upskill opportunities through the Industrial Manufacturing Technician (IMT) registered apprenticeship, leveraging the American Apprenticeship Initiative grant awarded by the Department of Labor to Jobs for the Future. 

The Exceptional Family Center, the Kern County Hispanic Chamber of Commerce and Bakersfield Adult School will collaborate with local employers and partners to train local individuals with high-functioning Autism Spectrum Disorders for open jobs. Geared towards those with documented barriers to training and employment, the Next Step Job Training and Employment Partnership (Next Step) will offer courses at UCLA Extension and Bakersfield Adult School in computer skills, vocational education, and medical coding. The partnership will also offer a bootcamp training on soft skills to improve employability and job performance—including effective communication, workplace behavior, and independent living.

$36 Million of Total Grants will Support Workers in Rural Communities in Retooling and Retraining for New Jobs

Of the $150 million in grants, $36 million have been awarded to programs that will specifically target rural communities that are serving young people and other disadvantaged populations described in the sections above.

Examples of selected communities and programs include:

Midlands Technical College will offer scholarships to 400 individuals for five accelerated learning boot camps that will train students for networking and programming occupations, such as computer technicians and web development, in six to eight weeks. Along with the wide range of technical training programs offered, Midlands TechHire will provide exam preparation for certifications, as well as classes and workshops in soft skills and job readiness. Graduates of these accelerated training programs will qualify for sponsorship of exam fees and paid three-month internships in IT occupations. With assistance from 24 grant partners, Midlands TechHire will be able to provide a comprehensive assessment of barriers and customized support services for each student.

With its West Virginia Technology Transformation Initiative (WVTTI), Bridge Valley Community and Technical College is helping transform this once coal-dependent regional economy into a technology-based one. WVTTI is specifically focused on helping the young adult population find jobs as software developers, mechanical engineers, and machinists, among other opportunities. By leveraging this grant and facilitating relationships among local training providers, workforce organizations, and employers such as the Appalachian Power Company, the WVTTI will expand efforts to help young West Virginians upgrade their skills and gain the credentials needed to obtain middle- and high-skill jobs.

Building on Progress: President Obama’s Job-Driven Training Agenda

The TechHire Partnership grants build on progress already underway. Since the President and Vice President released their Job-Driven Training review in July 2014, Federal agencies have taken actions to make programs serving approximately 20 million Americans every year more employer-driven. And over the past 7 years, we have taken a number of steps to support the American workforce and prepare it for the 21st century, including:

Training Americans for jobs of the future. Through TechHire and Computer Science for All, the Administration is connecting Americans with the tech skills that employers are increasingly seeking, across many industries and roles.

Making sure all Americans have a fair shot. The President has taken steps to expand and improve efforts to connect workers who have been displaced by economic change to the workforce system and into good jobs. Building on models of what works, these efforts have helped not only those affected by trade and globalization, but also by the aftermath of the Great Recession, by long-term changes in the energy industry, by the rapid rate of technological change and the adoption of new methods, and in communities that suffer from economic isolation and decline.

Scaling Up What Works. The Administration has implemented a job-driven checklist that reorients job training grants to align with the elements that matter most to getting Americans into better jobs.

Doubling Down on Proven Strategies. The Administration is using evidence-based practices to direct limited Federal resources into results-driven models. For example, a recent study found participants in Registered Apprenticeship programs earned $300,000 more over their lifetimes than a comparison group.