Like all programs, there is a cost associated with establishing a registered apprenticeship program.. While specific costs associated with registered apprenticeship programming is covered in a previous section of this toolkit, how a college and partners can address these costs requires additional detail.
External funding, such as grants from public or private sources, is often used for starting new registered apprenticeship initiatives, and employer partners identified at the onset may also be willing to contribute. Your college may also be prepared to cover some costs out of the operating budget. Frequently, colleges draw on multiple sources of funding, which can be braided or blended.
Selecting the Right Funding Approach: Blended vs. Braided Funding for Apprenticeships
Establishing a registered apprenticeship program requires careful financial planning to ensure long-term sustainability. Costs may be incurred by colleges, employer partners, and community stakeholders, making it essential to explore multiple funding sources. While external funding is often used to launch new apprenticeship initiatives, the strategy for managing these funds depends on whether a blended or braided funding approach is used.
Understanding Blended vs. Braided Funding
When using multiple funding streams to support a program, colleges must decide whether to blend or braid funding:
- Blended Funding – Combines funds from different sources into one account, tracked and reported as a single funding stream. This approach simplifies administration but may limit the ability to meet specific reporting requirements tied to individual funders.
- Braided Funding – Aligns multiple funding sources while maintaining separate tracking, reporting, and compliance with each funder’s requirements. This approach maximizes financial resources, expands program impact, and demonstrates broader support from multiple stakeholders.
While blended funding reduces administrative complexity, braided funding is more commonly used when colleges must report financial expenses and outcomes to multiple funders (e.g., a federal grant, state funding, and private philanthropy).
Key Steps to Consider When Choosing a Funding Approach
- Define the Program’s Financial Needs
- Identify direct costs (instruction, equipment, facilities, apprentice wages) and indirect costs (program administration, outreach, student support services).
- Determine if the program will require ongoing funding beyond initial startup costs.
- Assess Funding Sources and Requirements
- Identify potential funding streams (federal/state grants, employer contributions, workforce development funds).
- Determine reporting and compliance requirements for each funding source.
- Consider whether funding restrictions limit how funds can be used (e.g., some grants may cover tuition but not instructional costs).
- Decide Whether to Blend or Braid Funding
- Choose blended funding if:
- Reporting requirements allow for combined financial tracking.
- Funds can be used interchangeably to meet program needs.
- Administrative capacity is limited, and simplified tracking is preferred.
- Choose braided funding if:
- Funds come from multiple sources with separate reporting requirements.
- The program seeks long-term sustainability through diversified funding.
- Employer partners, government agencies, and non-profits contribute funding that must be tracked individually.
- Develop a Funding Plan
- Break down program needs, impact, and costs.
- Identify which costs the college will cover and determine funding sources.
- Identify which costs partners will cover and align funding to those expenses.
- Establish a process for tracking and managing funds in compliance with funder requirements.
- Ensure Transparency and Sustainability
- Set clear expectations with funding partners regarding financial reporting and accountability.
- Establish regular financial reviews to assess spending and ensure alignment with funder guidelines.
- Develop a sustainability strategy to secure future funding and reduce reliance on one-time grants.
To engage multiple separate streams of funds to cover program costs, a budget should be designed to account for each funding stream and amount and how these funds will be utilized to meet the shared goals and strategies. While your college can braid many funding sources internally, you can also engage external partners to utilize funding streams specific to their organization’s abilities and priorities.
A general process for this activity could look like this:
- Break down project by need, impact, and costs.
- Identify which costs the college will cover and brainstorm sources for these funds.
- Identify which costs the other partners involved will cover and brainstorm sources for these funds.
- Create a plan to secure funding from each source and manage the flow of money to the program.
Braided funding can benefit all partners, but not always financially. Braided funding works best if you have a specific goal or use in mind, and it is clear to all partners. Some organizations are better positioned to receive certain types of funding, and some organizations are better suited to contribute certain types of funding. Setting clear expectations on sustainability of the funding sources is critical to ensuring long-term success.
While sources of funding will vary, some common sources used in registered apprenticeship programming, and the origin of those funds include:
Employers:
- Skilled Trades Funds
- Tax Incentives
- Employer Tuition Contribution
- Registered Apprenticeship Scholarships
Workforce Investment Opportunity Act (WIOA) funds, such as:
- Title I: Adult and Dislocated Worker/Youth
- Title II: Adult Education and Family Literacy Act (AEFLA)
- Title III: Employment Services (Wagner-Peyser Act)
- Title IV: Vocational Rehabilitation Services
Department of Education funding, such as:
- Carl D. Perkins Career and Technical Education
- Pell Grants
- TRIO Student Support Services
U.S. Department of Labor ETA appropriated and/or H1B grant funding, such as:
- Apprenticeship Building America
- Building Pathways to Infrastructure Jobs
- State Apprenticeship Expansion Formula Grants
Other federal funds, such as:
- Reemployment Eligibility Assessment and Services
- Veterans Employment and Training and GI Bill
State Funding:
- Tax incentives
- Workforce and Economic Development funding
- Scholarships
- Economic Development grants
- Foundations or other philanthropic entities
- Private Grants from individual donors or organizations
- Employer/Industry Contributions
Other Partnership Funding Opportunities:
- Labor Organizations
- Community Based Organization
- Faith Based Organizations
- Local Non-Profits
Building a Sustainable Apprenticeship Program: A Scalable Model for Workforce Development
A well-structured apprenticeship program can serve as a long-term investment in workforce development while remaining financially self-sustaining. Organizations can achieve this by aligning apprenticeship pricing with traditional tuition and fees, supplemented by a modest administrative overhead charge to cover program management. This approach ensures cost recovery while keeping the program accessible to both apprentices and employers.
To drive sustainability and scalability organizations should leverage grant funding strategically. State and federal workforce development grants, such as those available through US DOL, US DOE, WIOA, Perkins V, and registered apprenticeship expansion initiatives, can offset administrative costs, support instructional capacity, and invest in essential infrastructure. Additionally, industry partnerships can provide sponsorship opportunities, further reducing the financial burden on apprentices and institutions.
By balancing direct cost recovery with external funding, apprenticeship programs can maintain affordability, expand institutional capacity, and create a long-term pipeline of skilled workers tailored to industry needs. This model not only ensures financial sustainability but also enables continuous growth and adaptability in response to evolving workforce demands.
Other Resources
- Braided Funds to Support Registered Apprenticeships.opens PDF file Marcia Black-Watson, Michigan Talent Investment Agency.