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Rural Postsecondary and Economic Development Grant Program

This program provides funding to colleges, nonprofits, and public agencies to improve education and job training in rural areas, helping students gain skills for high-demand careers.

$2,500,000
Active
Nationwide
Grant Description

The Rural Postsecondary and Economic Development Grant Program is administered by the U.S. Department of Labor’s Employment and Training Administration on behalf of the U.S. Department of Education. This program is designed to strengthen postsecondary education outcomes in rural communities by increasing enrollment, persistence, and completion rates among rural students. It supports the development of career pathways that align with high-skill, high-wage, and in-demand industry sectors. The initiative reflects a broader federal strategy to reindustrialize the United States workforce, expand apprenticeship opportunities, and improve economic mobility in underserved rural regions. The program provides discretionary grant funding to eligible institutions and organizations to design and implement workforce-aligned education and training models. Funded projects are expected to build partnerships between postsecondary institutions, employers, and community stakeholders to create sustainable talent pipelines. These pipelines should emphasize flexible pathways such as short-term credentials, registered apprenticeships, and other alternatives to traditional four-year degrees. Additionally, projects are encouraged to incorporate emerging technologies, including artificial intelligence, both as a field of study and as a tool to enhance learning and workforce readiness. Funding under this program is substantial, with an estimated total allocation of 45 million dollars and individual awards ranging from 1.5 million to 2.5 million dollars over a project period of up to 48 months. The program does not require cost sharing or matching funds, and there are no program-specific caps on administrative expenses beyond standard federal cost principles. Grantees are permitted to issue subawards to partner organizations to carry out project activities, provided those partners are identified in the application. Eligibility for the program includes public and private nonprofit institutions of higher education, as well as public agencies and nonprofit organizations. Applicants must demonstrate alignment with at least one of the program’s absolute priorities, which include serving rural communities, providing work-based learning opportunities, and advancing career pathways aligned with workforce needs. Projects may also receive additional consideration under a competitive preference priority if endorsed by a state authority, and an invitational priority encourages the integration of artificial intelligence literacy into programming. Applications must be submitted through Grants.gov, and applicants are required to maintain active registrations in both SAM.gov and Grants.gov systems. The application process includes submission of standard federal forms, a detailed project narrative, a budget narrative, and supporting documentation such as letters of support and proof of nonprofit status where applicable. Applications are evaluated based on criteria including need for the project, quality of design, adequacy of resources, management plan, and evaluation strategy. Peer reviewers assess applications and assign scores that determine funding recommendations. The application window opens on May 21, 2026, and closes on June 23, 2026. Intergovernmental review deadlines follow later in August. Applicants are advised to submit early to avoid technical issues with Grants.gov processing. If awarded, grantees must comply with federal regulations and reporting requirements, including performance measures related to student participation, enrollment, credential attainment, and engagement in work-based learning experiences. Program oversight includes strict adherence to federal civil rights laws and administrative regulations. Grantees must ensure that funds are used only for allowable activities and may be subject to audits and performance reporting throughout the project period. This program represents a significant federal investment in rural education and workforce development, aiming to modernize training systems and expand economic opportunity in communities that have historically faced barriers to postsecondary success.

Funding Details

Award Range

$1,500,000 - $2,500,000

Total Program Funding

$45,000,000

Number of Awards

20

Matching Requirement

No

Additional Details

Estimated awards range from 1500000 to 2500000 over a project period of up to 48 months; average award approximately 2250000; subgrants allowed

Eligibility

Eligible Applicants

Public and State controlled institutions of higher education
Private institutions of higher education
Nonprofits
State governments

Additional Requirements

Eligible applicants include public and private nonprofit institutions of higher education as well as public agencies and nonprofit organizations; nonprofits must provide proof of status such as IRS 501(c)(3) documentation or equivalent state certification; projects must align with rural education and workforce priorities

Geographic Eligibility

All

Expert Tips

Align proposal to absolute priorities; demonstrate strong employer partnerships; provide measurable outcomes and clear evaluation plan; emphasize rural impact and workforce alignment

Key Dates

Application Opens

May 21, 2026

Application Closes

June 23, 2026

Contact Information

Grantor

Jymece Seward

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Categories
Education
Workforce Development
Employment Labor and Training

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