HELENA, Mont. — Montana contractors may soon be able to get the state to cover part of what they spend training their crews. On Oct. 15, Gov. Greg Gianforte and the Montana Department of Labor and Industry (DLI) announced a $4.8 million federal grant to launch the Montana Skills Fund. The program will reimburse employers for training both new hires and existing workers for in-demand jobs.
Construction trades are one of the first sectors the fund will target, along with advanced manufacturing and computing. The fund is not open yet. DLI says eligibility rules, the application process and timelines will be announced in early 2027.
How the fund will work
The Montana Skills Fund pays employers back for approved training after it delivers results. DLI laid out the basics:
- Training can start on day one. Employers do not have to wait out a probation period before training a new hire.
- Employers pick the training. It can come from an outside provider or be an employer-led program run in-house.
- Credentials pay more. Advanced training that leads to an industry credential gets a higher reimbursement rate.
- Payment comes in two parts. The fund pays 80% of approved costs once the worker finishes training. It pays the remaining 20% after that worker has stayed on the job for six months.
- Less paperwork. DLI will check employment outcomes against existing unemployment insurance wage records instead of asking employers to prove them.
The 80/20 split ties most of the money to finishing the training and the rest to keeping the worker. For contractors who lose newly trained hands to competitors or out-of-state jobs, that six-month mark matters.
Where the money comes from
The grant comes from the U.S. Department of Labor's Industry-Driven Skills Training Fund, which sends money to state workforce agencies to reimburse employers for training. The department announced the awards on Sept. 30, 2026. This is the program's second round.
Seven states split $43 million in this round:
State | Award |
|---|---|
Oregon | $6,740,517 |
Colorado | $6,740,000 |
Indiana | $6,740,000 |
Pennsylvania | $6,740,000 |
Washington | $6,740,000 |
Montana | $4,837,533 |
Nebraska | $4,633,750 |
The first round, in September 2025, sent more than $86 million to 14 states. Across both rounds, the program has awarded more than $129 million to 21 states. This round put special emphasis on shipbuilding, advanced manufacturing and nuclear energy. The program's broader list of focus areas includes building and construction, infrastructure, aerospace, healthcare and information technology.
Why construction made the list
Montana chose its first target sectors through 406 JOBS, the state's employer-led workforce initiative. Construction trades made the cut alongside advanced manufacturing and computing.
The Montana Contractors Association is one of the fund's named partners. So are the Montana Manufacturing Extension Center, the Montana Photonics and Quantum Alliance, DLI's Business and Education Engagement Bureau, and the regional employer sector partnerships set up through 406 JOBS.
David Smith, executive director of the Montana Contractors Association, said in the release that "Montana contractors are ready to train the next generation of skilled workers." He pointed to training costs as one of the biggest barriers contractors face, and said the fund should help members grow apprenticeships and other training paths.
Gianforte framed the program around employer choice, saying businesses know best what skills their workers need. DLI Commissioner Sarah Swanson said the grant is meant to remove the barriers that keep employers from using training resources.
Key dates
Date | Milestone |
|---|---|
Sept. 30, 2026 | U.S. Department of Labor announces $43 million for seven states |
Oct. 15, 2026 | Montana announces its $4.8 million award and the Montana Skills Fund |
Early 2027 | DLI announces eligibility, application process and timelines |
Six months after training | Final 20% reimbursement, if the worker is still employed |
Before applications open, DLI will work through a planning process with industry partners and the federal Department of Labor.
What contractors can do now
Nothing can be submitted yet, but contractors can get ready:
- Map your training needs for 2027. List the positions you plan to hire for and the skills current crew members need.
- Note credential-bearing options. Training that ends in an industry credential is set to earn a higher reimbursement.
- Track who stays. The final 20% depends on workers staying six months, so retention plans matter.
- Stay close to the Montana Contractors Association. As a named partner, it is likely to be an early source of details once DLI releases the rules.
What is still unknown: how much of the $4.8 million goes to construction, the reimbursement rates, any caps per employer or per worker, and the application deadlines. Hello Contractor News will report the rules when DLI releases them.