States Take Steps to Expand & Improve Apprenticeship

By

Taylor White

and

Dan Hinderliter

States play a significant role in supporting the expansion of Registered Apprenticeship. Often, states' role is overshadowed by the significant role the U.S. Department of Labor plays in overseeing the nation's apprenticeship system and funding its growth. But over the past two years, at least 28 states have taken legislative action to expand and strengthen apprenticeship, shaping state implementation of the model in significant ways. A scan of 46 tracked policies enacted in 2023 and 2024 reveals a number of shared priorities across these states, including employer incentives, streamlined governance structures, alignment between apprenticeship and both K-12 and higher education systems, and efforts to make apprenticeship more accessible. .

Below, we provide a brief summary of these priorities and highlight recent state actions to advance them.

Employer Incentives: While employers who hire apprentices report high-levels of satisfaction with the model and a positive return on investment, recruiting employers to launch apprenticeship programs can be a challenge. To entice employers to apprenticeship, both Colorado and Missouri established new tax credit opportunities in 2023. Under H.B. 1439, employers in Colorado can receive up to $12,600 per apprentice annually, up to ten apprentices per employer, per year. The law also provides $2 million through the ''Scale Up Grant Program'' designed to start new registered apprenticeship programs or expand apprenticeship to new regions or populations in industries designated as high priority, high-demand in the state. Missouri's Intern and Apprentice Recruitment Act (H.B. 1038) similarly offers employers tax credits of $1,500 per apprentice or intern hired, with a cap of $9,000 annually per employer. Florida and Kansas also implemented new tax incentives over the past two legislative sessions.

But tax credits are not the only strategy states use to provide incentives to employers: in Georgia, 2024 legislation (S.B. 497) renamed an existing employer incentive program as the ''High Demand Apprenticeship Program'' and increased the total number of apprentices for which employers can claim the grant from 5 to 10, beginning in 2025. (However, the law also reduced the maximum award employers can claim for hiring apprentices from $10,000 to $5,000 per apprentice.) Under the new legislation, employers can receive $2,500 when an apprentice begins the apprenticeship, and an additional $2,500 when the apprentice is retained for one calendar year.

Governance & Intermediary Capacity: States also took steps to establish or reform governance structures that support state apprenticeship activity, and invested in capacity to implement apprenticeship programs. Iowa, for example, established the Iowa Office of Apprenticeship within its Department of Workforce Development (S.F. 318, 2023). Likewise, in Vermont, new legislation (H.B. 452, 2023) created the Vermont Registered Apprenticeship Program within the state's Department of Labor. Legislation in Virginia created a new agency, the Department of Workforce Development and Advancement, to consolidate and administer workforce development programs, including apprenticeship (H.B. 2195 and S.B. 1470, 2023). Utah also established a state-level apprenticeship intermediary function within Talent Ready Utah (H.B. 555, 2023).

Colorado (H.B 1439, 2024) and Missouri (H.B. 2003, 2024) were unique in providing funding for intermediary organizations that support the growth of apprenticeship at the local or industry-level, liaising between employers, apprentices, and other system actors. (Note: Indiana also established Intermediary Capacity Building grants in 2023, but these were not exclusively designed to support apprenticeship intermediaries, though several did.)

Aligning Apprenticeship & Education Systems: Though state leaders expressed concern about the U.S. Department of Labor's proposed CTE Apprenticeship model, recent legislation suggests states see value in building stronger connections between public education systems and apprenticeship. For example, 2024 legislation in West Virginia (H.B. 5162) created a ''Youth Apprenticeship Program'' to allow 11th or 12th grade students to enroll in apprenticeship programs that ''[c]reate a structural linkage between secondary and postsecondary components of the program leading to the school awarding a high school diploma and postsecondary certification.'' Colorado (S.B. 104) also took steps to align the state's high school career and technical education (CTE) system with registered apprenticeship for programs related to infrastructure, advanced manufacturing, healthcare, and education, specifically.

Likewise, Utah (S.B. 122, 2024) and Louisiana (SCR 20, 2024) passed legislation to encourage the development of youth-serving apprenticeship programs that start in high school. Utah's new law explicitly names ''CTE, concurrent enrollment, and stackable credentials'' as features to prioritize in future programs. Maryland's Apprenticeship 2030 Commission, created by legislation passed in 2023 (S.B. 104), will also make recommendations about how the state can reach its ambitious target for participation in apprenticeships that begin in high school, among other priorities.

Beyond youth-focused legislation, states also took steps to strengthen linkages between postsecondary institutions and apprenticeship. In Rhode Island, the ambitious ''Apprenticeship Pathways to Earning a Bachelor's Degree Act'' requires the state's public higher education institutions to create pathways to bachelor's degrees that include credits earned by completing registered apprenticeships. On the other coast in Washington, new legislation (H.B. 1013, 2023) created a regional pilot program to earn postsecondary credits or industry credentials and preferred or direct entry into a state registered apprenticeship program. The law also established a ''work-integrated learning advisory committee'' to be convened by the state superintendent of public instruction in consultation with the Employment Security Department, and the Workforce Training and Education Coordinating Board. New legislation in West Virginia (H.B. 3435, 2024) also established the Skilled Trades Apprenticeship Nontraditional Degree (STAND), which will cover the cost of tuition and fees for registered apprentices and journeyworkers in skilled trades to earn associate's degrees.

Data Collection & Transparency: Several states passed legislation to improve data collection, sharing, and transparency related to apprenticeship in 2023 and 2024. Legislation in Texas (H.B. 4451) will require the Texas Workforce Commission to report annually on all state apprenticeship programs. In Virginia, the Department of Workforce Development and Advancement will produce a similar report on all workforce programs, including apprenticeship, on a biennial basis (S.B. 1470, 2023). Three states--Alabama, Maryland, and Wyoming--passed legislation to require high schools to more proactively share information about postsecondary opportunities, including apprenticeship, to high school students.

Expanding Access to Underrepresented Groups: Expanding access to populations of learners and workers that are underrepresented in the Registered Apprenticeship system remains a priority in several states. A 2024 law in Washington (H.B. 2019) established the Native American Apprentice Assistance program to provide support and financial resources to Native Americans pursuing apprenticeship. New legislation in California (S.B 467, 2023) will prohibit learners from being denied admission to community college-connected apprenticeships or internships because they use an individual tax identification number. And new legislation in Indiana (H.B. 1280, 2024) will allow school districts to use state and local funds to transport students to apprenticeship programs and other CTE and work-based learning programs, reducing a common barrier to participation for many young adults.

States are eager to use apprenticeships to address workforce shortages, improve educational outcomes, and support economic mobility. Through legislation, they are working to shape a national system to their unique priorities and needs. As federal leadership changes in the nation's capital., state policy will remain a critically important tool to promote quality, access, and expansion of apprenticeship in industries that matter to states' economic health.

New America would like to thank Advance CTE for leading the research on which this blog is based, and for its ongoing partnership through the Partnership to Advance Youth Apprenticeship.

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