The USDOL distributed $100 million to states through State Apprenticeship Expansion Formula (SAEF) Round 2. Each state received between $1-3 million in formula funding. This money goes to state apprenticeship agencies, who then distribute it locally through sub-grants and subsidized instruction programs. Training providers and sponsors can access these dollars—here's how.
What SAEF Funding Is
State Apprenticeship Expansion Formula grants replaced the earlier State Apprenticeship Expansion, Equity and Innovation (SAEEI) competitive grants. SAEEI distributed approximately $3-4 million per state in 2022 through a competitive application process. SAEF switched to formula distribution, meaning every state receives funding automatically based on predetermined allocation formulas rather than competing for awards.
SAEF3 continues in 2025 with the same structure, providing states with predictable, consistent funding for apprenticeship expansion. The total Round 2 funding reached $100 million distributed across all states.
Where the Money Goes
State apprenticeship offices manage these SAEF dollars and spend them on three primary categories:
Apprenticeship navigators: States hire dedicated staff who help employers and sponsors develop apprenticeship programs. These navigators provide free technical assistance for program design, registration processes, and compliance requirements. Training providers benefit from this infrastructure through reduced administrative burden and expert guidance on program development.
Program development: Funding supports the creation of new apprenticeships in high-demand sectors. States prioritize occupations with workforce shortages and programs that serve underrepresented populations. This investment helps sponsors offset startup costs for curriculum development, employer partnerships, and sector expansion.
Apprentice support: States provide direct payments to apprentices through incentive payments or tuition subsidies. These dollars reduce cost barriers to apprenticeship participation, making programs more attractive to potential apprentices. For training providers, apprentice subsidies lower recruitment costs and reduce the financial burden on employer partners.
This state-level infrastructure creates opportunities that training providers can leverage. Navigator support means access to free technical assistance. Apprentice subsidies mean easier recruitment and lower costs for your employer partners.
How Training Providers Access SAEF Money
Training providers and apprenticeship sponsors have two pathways to access SAEF dollars distributed by their state apprenticeship agencies:
State mini-grants to sponsors: Apply directly to your state apprenticeship agency for funding awards. These grants support program development, expansion, or apprentice support activities. Typical uses include curriculum development, training equipment purchases, and wraparound services for apprentices. Mini-grant sizes and application processes vary by state.
Subsidized instruction costs: States pay a portion of your training delivery costs under reimbursement agreements. You deliver the instruction, and the state reimburses based on the agreement terms. This arrangement reduces the tuition burden on both employers and apprentices, making your programs more accessible.
How to apply: Contact your state apprenticeship agency directly. Ask two specific questions: "What SAEF sub-grant opportunities are currently available?" and "Do you offer subsidized instruction reimbursement programs?" Understanding application timelines and requirements upfront helps you plan your funding strategy.
SAEF3's continuation in 2025 means these opportunities will remain available. Timing your outreach for upcoming funding cycles maximizes your chances of securing awards.
Managing Grant Requirements
SAEF funding comes from federal dollars passed through state agencies. You'll report to the state, and the state reports to USDOL. This pass-through structure means federal compliance standards apply even though you receive the grant from your state.
Required tracking includes apprentice demographics, program outcomes, and detailed expense documentation. Standard federal compliance applies: eligibility documentation, financial record-keeping, and outcome reporting. When managing multiple funding streams simultaneously—such as WIOA dollars combined with state SAEF grants—reporting complexity increases significantly.
Many organizations create funding matrices for each apprentice or cost category to track which source covers specific expenses. During audits, you must demonstrate that no duplicate billing occurred and that each dollar was spent on allowable purposes under the specific funding source.
Craft Education, a free apprenticeship data management platform, centralizes tracking for multiple funding streams. The platform provides AI assistance for Form 671 completion when registering state-funded apprentices, ensuring compliance with federal apprentice registration requirements. Automated reporting capabilities reduce the administrative burden of managing state grant deliverables alongside other funding source requirements.
Conclusion
Your state received $1-3 million in SAEF funding specifically for apprenticeship expansion. Access requires knowing these dollars exist and contacting your state apprenticeship agency to learn about available opportunities. Navigator support, mini-grants, and subsidized instruction programs all provide pathways to reduce your program costs.
Start by identifying your state apprenticeship agency contact. For more comprehensive guidance on accessing SAEF funds alongside other federal and state funding sources, download The Definitive Guide to Apprenticeship Funding.
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