President Donald Trump signed an executive order in June to increase apprenticeship funding from $90 million to $200 million. This Executive Order also gives the private sector more control over designing apprenticeship programs. Prior to this Executive Order, the U.S. Department of Labor (DOL) had strict guidelines on apprenticeships. Now, businesses can design programs that fit their needs and meaningful metrics to gauge the results. Although the metrics will have to be approved and reported to the DOL, much of the red tape and government oversight will be eliminated. 

Apprentice programs combine on-the-job training with classroom instruction. Only 500,000 apprenticeships were available in 2016 (DOL) with nearly 50% in the construction industry. 

The Associated Press touted that the unofficial goal of this initiative is to create five million apprenticeships in the next five years.  

Although Trump’s proposed 2018 budget cuts DOL training and employment services by 21%, funding for this initiative will come from the DOL. The 2018 budget also cuts $1 million in women's training programs which the Trump Administration claims will be made up for with this program.

Feel free to contact me at 610.828.1900 or Marty.McCarthy@MCC-CPAs.com if you have questions. I am always happy to help.