Work Opportunity Tax Credit Initial Funding Allotments for Fiscal Year 2026
Can you apply?
This grant is for state workforce agencies and administering agencies that manage the Work Opportunity Tax Credit (WOTC) program on behalf of their states. Eligible recipients are typically state governments and designated state workforce agencies that have established WOTC programs to help employers hire individuals from target groups facing barriers to employment. The grant provides initial funding allocations for fiscal year 2026 to support program administration, staff, and outreach activities. Geographic scope covers all 50 states, DC, and U.S. territories that operate WOTC programs. Funds support activities including program administration, employer outreach, applicant processing, certification of eligible workers, and program monitoring to ensure compliance with federal requirements.
Program description
This TEGL announces the availability of WOTC FY 2026 state allotments to conduct WOTC activities and grant award application requirements for grantees to receive funding allocations. In addition, it provides general administrative policies and procedural guidance set forth by ETA and requirements outlined in the WOTC Statement of Work. Questions regarding this funding opportunity may be emailed to Charlene Wright (wright.charlene@dol.gov).
Who can apply
Eligible applicants
How to apply
Application links
Required documents
- SF-424 (Application for Federal Assistance)
- SF-424 Supplement (if required by agency)
- Narrative describing the state's WOTC program structure and administration
- Documentation of official designation as state WOTC administering agency
- Detailed budget and budget narrative for proposed use of funds
- Evidence of administrative capacity and staffing plan
- Historical program performance data and metrics
- Compliance certification and audit reports (if required)
- Employer outreach and recruitment strategy
Program contact
- 👤 Employment and Training Administration
- 📧 Wright.Charlene@dol.gov
- 📞 202-693-2606
Funding track record
Recent awards under CFDA 17.271 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$2,744,196
-
$2,423,147
-
$2,338,208
-
$2,330,506
-
$1,679,023
-
$1,507,945
-
$1,440,358
-
$1,310,072
-
$1,291,783
-
$1,222,663
Top States by Funding
- CA 4 awards $9.8M
- TX 5 awards $7.2M
- NY 5 awards $5.5M
- OH 5 awards $4.3M
- FL 4 awards $3.7M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 17.271). How funding has trended year over year.
| 2024 | $20,985,000 | |
| 2025 | $20,985,000 | |
| 2026 est. | $13,485,000 |
FAQ
Who is eligible to apply for this grant?
State workforce agencies and state agencies designated to administer the Work Opportunity Tax Credit program are the primary eligible applicants. Each state typically has one administering agency that applies for the funding allotment.
When is the deadline for submitting applications?
The application deadline is May 28, 2026, with applications opening on April 28, 2026. This provides a one-month application period.
What activities can WOTC grant funding support?
Funds support program administration costs, staff salaries, employer outreach and recruitment, applicant screening and certification, data entry and management systems, training for agency personnel, and activities to increase participation among target population groups.
How competitive is this grant?
WOTC funding is relatively less competitive than many federal grants because allocations are typically distributed to states based on a statutory formula rather than competitive scoring. However, applications must still demonstrate adequate administrative capacity and compliance history.
What is the typical funding range for state WOTC allocations?
State allocations vary significantly based on the formula calculation, which typically considers factors like state population, unemployment rates, and historical participation. Awards generally range from several hundred thousand dollars to several million dollars per state annually.
💡 Tips for applicants
- Ensure your application demonstrates your state's administrative infrastructure and capacity to effectively manage the WOTC program, including staff expertise, systems, and monitoring procedures.
- Highlight your state's track record with WOTC, including historical performance metrics such as certifications processed, employer participation rates, and target group placements, to demonstrate compliance and effectiveness.
- Provide clear documentation of your state's designated WOTC administering agency and confirm that the applicant organization is the officially designated entity, as this is fundamental to eligibility.
- Include a detailed budget narrative explaining how WOTC funds will be allocated across administration, outreach, staffing, and program support, with clear justification for proposed expenditures.
- Emphasize your state's strategies for expanding employer participation and reaching target populations facing barriers to employment, such as veterans, ex-offenders, long-term unemployed individuals, and disadvantaged youth.
⚠️ Common mistakes
Applications are often rejected or face delays due to failure to clearly establish that the applying entity is the state's officially designated WOTC administering agency. Weak or missing documentation of administrative capacity and staff qualifications can also result in funding reductions. Additionally, applications that lack specific metrics on historical program performance, certifications processed, or employer engagement may not adequately demonstrate the readiness to effectively utilize the funds.
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