Defense and Manufacturing Training Fund

The Defense and Manufacturing Training Fund is a State of Maine workforce development initiative administered through the Maine State Workforce Development Board in partnership with the Maine Department of Labor. The program was established using $7.9 million in federal funding secured from the U.S. Department of Labor through the Industry-Driven Skills Training Fund. The initiative is designed to strengthen Maine’s defense shipbuilding and advanced manufacturing workforce by reimbursing employers for qualified workforce training investments. The fund supports both incumbent worker upskilling and training for newly hired employees and seeks to increase the availability of skilled labor in manufacturing trades, engineering, production operations, digital technology, and defense-related occupations. Program goals include expanding workforce capacity, increasing adoption of digital and AI-related skills, supporting apprenticeship growth, and improving employer access to workforce development resources. Eligible employers must operate in Maine and participate in either the defense shipbuilding sector, including supply chain companies and contractors, or in advanced manufacturing industries. Employers must comply with state and federal labor laws, maintain current unemployment insurance and Paid Family Medical Leave contributions, and become registered State of Maine vendors. Participating employers must maintain a Maine JobLink account, post jobs to the system, and coordinate with workforce development partners. Additional participation requirements include defining workforce training needs, reporting wage and employment outcomes, maintaining reimbursement documentation for six years, and cooperating with audits. Employers receiving at least $50,000 in reimbursement funding must also participate in approved workforce or workplace training initiatives and provide at least one success story after training completion. Eligible workers must be W-2 employees who are at least 17 years old, not enrolled in high school, and performing work in Maine for an eligible employer. Funds cannot be used for pre-hire training or federal employee training. The program reimburses employers for approved training costs tied to industry-recognized credentials that are portable and valued across the manufacturing industry. Eligible training can include registered apprenticeships, classroom instruction, online training, internal training, and other workforce development activities that align with approved manufacturing occupations or digital skill priorities. Training must begin only after approval and execution of the training agreement, must be completed in fewer than two years, and must supplement rather than replace existing employer-provided training. Priority occupations include engineers, machinists, welders, production supervisors, quality assurance specialists, maintenance personnel, drafters, and industrial technicians. Priority digital skills include additive manufacturing, robotics, automation, cybersecurity, machine learning and AI, cloud computing, IoT systems, enterprise resource planning systems, and advanced data analytics. Employers may also submit training proposals for occupations or skills not currently listed for review and consideration. Funding is provided on a reimbursement basis rather than upfront payment. The program offers up to $8,000 per employee, with employers eligible for as much as $250,000 annually and no more than $1 million over the life of the program between May 2026 and July 2029. Employers may receive reimbursement rates ranging from 40 percent to 80 percent of approved training costs. The base reimbursement rate is 40 percent, with additional percentage increases available for registered apprenticeship participation, wage increases following training completion, and small business status. Training costs above $10,000 are not considered for reimbursement calculations. Reimbursable expenses include tuition, training provider fees, exam and certification costs, curriculum development, supplies, materials, and certain apprenticeship wage supports. Employers are required to pay costs upfront and submit reimbursement requests after training completion and employee retention milestones are met. Reimbursements are issued in two equal installments, with one payment made after successful training completion and the second payment issued after the employee remains employed for six months following completion. The application process follows a four-step structure. Employers must first submit a training request before training begins. The request includes company information, employee details, training descriptions, costs, estimated timelines, occupations, credentials, and supporting documentation such as training budgets. Applications are reviewed on a first-come, first-served basis, and employers can generally expect a response within two weeks. If approved, the employer signs a formal training agreement with the State of Maine outlining reimbursement requirements and reporting obligations. After training completion, employers submit the first reimbursement request along with documentation such as invoices, completion records, confirmed dates, and training outcomes. Six months later, employers submit a second reimbursement request confirming employee retention and wage outcomes where applicable. Applications for reimbursement must be submitted no later than May 1, 2029. The program also encourages employers to combine Training Fund support with other state and federal workforce development incentives. Examples include the Dirigo Business Incentives Program tax credits, Maine Apprenticeship Program funding, the Harold Alfond Center workforce training reimbursements, and the American Manufacturing Apprenticeship Incentive Fund. The Training Fund is intended to support at least 30 employers and approximately 900 workers statewide. Employers with questions are encouraged to review the program manual and contact program staff directly at trainingfund.dol@maine.gov or 207-530-1959. Applications begin review starting June 1, 2026, and employers may begin the process through the Work Source Maine Training Fund portal.

Prioritize trainings tied to industry-recognized credentials and approved manufacturing occupations or digital skills. Employers may improve reimbursement rates through apprenticeship participation, documented wage increases, and small business qualification. Prepare Maine JobLink registration, workforce reporting documentation, and detailed training budgets before submission.