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SD 4002

Workforce Training Fund Program FY25 Annual Report

194th Legislature (2025-2026)

The Workforce Training Fund Program FY25 provides substantial upskilling grants to Massachusetts employers, training over 21,000 workers across sectors, and driving net job growth

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Bill Summary · SD 4002

Overview

  • Bill: SD 4002, Session 194th, Massachusetts
  • Title: Workforce Training Fund Program FY25 Annual Report
  • Purpose: Present the FY25 annual results, outcomes, and program changes for Massachusetts’ Workforce Training Fund Program (WTFP), including grants awarded, impact analyses, success stories, and funding contributions.

Main Purpose and Intent

  • To provide a comprehensive annual report on the Workforce Training Fund Program (WTFP) for FY25, detailing grants awarded, expenditures, trainee impacts, and program policy changes.
  • To document how WTFP supports upskilling of incumbent workers across Massachusetts, with emphasis on workforce development outcomes, regional engagement, diversity, equity, and inclusion (DEI), English for Speakers of Other Languages (ESOL), and climate-related training.
  • To outline strategic adjustments to program parameters in response to demand and fundingavailability.

Key Provisions and Changes

  • Funding Structure and Grant Programs

    • General Program: Open to Massachusetts-based businesses of any size; consortium applications allowed. FY25 cap reduced to up to $125,000 over two years (previously up to $200,000) beginning October 2024 due to higher demand and finite funding.
    • Express Program: For Massachusetts-based businesses with 100 or fewer employees; grants cover training from a registered course database. FY25 cap reduced to up to $15,000 per calendar year (previously up to $20,000) beginning November 2024 due to higher demand and finite funding.
    • Both programs require a dollar-for-dollar match (cash or in-kind, including wages during training).

  • Scale of FY25 Grants

    • General Program: 112 grants awarded to 133 employers, totaling $9,465,999; 7,324 workers trained.
    • Express Program: 2,399 grants awarded to 1,484 employers, totaling $14,605,797; 13,740 trainees.
    • Combined: 2,511 grant applications totaling over $24 million; 21,064 trainees across 1,617 employers.

  • Impacts and Outcomes

    • Job Growth: 116 General Program grants completed in FY25 added 2,259 net new Massachusetts jobs over the two-year grant period; average net growth ~19 new jobs per grant.
    • Regional and Sector Distribution: Detailed breakdown by industry and by Workforce Board region (e.g., Manufacturing, Healthcare, Professional Services; regions such as Metro North, Boston, Central MA, etc.).

  • Highlights and Priority Initiatives

    • Workplace ESOL: 26 grants totaling $1,267,285 to train 758 workers in ESOL across 28 organizations.
    • Workplace DEI Training: 80 applications approved (from 78 employers) across topics including implicit bias and related DEI training.
    • Climate-Related Training: 88 applications approved (from 70 businesses) focusing on climate-related workforce skills.
    • Gateway Cities: 392 grants involving 257 employers in Gateway Cities, totaling $4.4 million, training more than 3,580 workers.
    • Diverse Businesses: Grants involving 475 diverse businesses across 150 cities/towns, totaling $5.9 million to train over 4,871 employees.

  • Success Stories (Selected)

    • Umami Riot Experience (Hojoko): English language training integrated into work schedules to improve communication and retention.
    • BioLabs: Team-development training (e.g., feedback and collaboration) funded via Express; improved cross-department collaboration.
    • AIS (Affordable Interior Systems, Inc.): Leadership development with bilingual training; improved retention and internal promotion.
    • Bake'N Joy: Leadership development with cross-functional teams; enhanced retention and productivity.

  • Express Program Success Story

    • Gary BenDavid Builders (Martha’s Vineyard): In-house energy efficiency expertise through HERS rater training; increased efficiency and reduced outsourcing.

  • Annual Contributions and Fiscal Details

    • Calendar year 2024: WTFP contributions totaled $26,274,391.71 from 242,316 contributing employers, representing 3,334,755 workers (note: counts include duplicates for workers employed by multiple contributing employers in the year).
    • Contribution rate: 0.056% of the unemployment insurance taxable wage base; maximum annual contribution per employee: $8.40.

Who is Affected

  • Massachusetts employers across industries, especially small and mid-sized firms under the Express Program cap.
  • Incumbent workers receiving upskilling through General or Express grants.
  • Diverse, gateway-city, ESOL, DEI, and climate-focused workforces benefiting from targeted training.
  • Training providers and intermediaries coordinating consortium-based General Program grants.

Procedural and Timeline Aspects

  • FY25 Coverage: Grants awarded July 1, 2024 – June 30, 2025.
  • Reporting Schedule: Annual WTFP report to the Joint Committee on Labor and Workforce Development and the House and Senate Ways and Means Committees; includes quarterly collection data, employer counts, and contribution rates (calendar year data for 2024 provided).
  • Policy Adjustments: In response to demand, caps for both General and Express programs were reduced starting in late 2024 to allow broader participation within limited funding.

Overall Assessment

  • The FY25 annual report demonstrates continued expansion and diversification of WTFP, with substantial training investments across manufacturing, healthcare, professional services, and other sectors.
  • The program emphasizes workforce readiness, leadership development, ESOL, DEI, and climate-related skills, alongside strong regional and gateway-city engagement.
  • Despite funding level constraints, the program delivered training to tens of thousands of Massachusetts workers and generated measurable job growth among completing grantees.

Compiled from official sources — confirm details with the bill’s official record.

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