VET Act Authorizes $60M Annually for Energy Companies to Hire Veterans and Spouses

The Veterans Energy Transition Act of 2025, or the VET Act, is setting up a new grant program designed to smooth the landing for military personnel transitioning to civilian life—specifically into the energy sector. Starting in fiscal year 2026, the Secretary of Labor is authorized to spend $60 million annually until 2031 to incentivize energy companies to hire veterans, active-duty members who are separating, and their spouses.

The $10,000 Military Hiring Bonus

This isn't a direct payment to veterans; it’s a subsidy for the companies that hire them. The grant money goes to organizations involved in generating, moving, storing, or manufacturing equipment for the energy industry. The goal is to reimburse these employers for the costs associated with bringing on a new hire with a military background, covering things like necessary job training, certification, licensing, recruitment fees, and even relocation expenses. There’s a hard cap: a company can receive no more than $10,000 per person hired under this program, and the total payout to any single organization is capped at $500,000 per year.

For example, if you’re a veteran with excellent mechanical skills but need a specific certification to work on a new solar farm’s battery storage system, this grant covers the cost of that training for the company hiring you. The bill is essentially lowering the financial risk for employers to invest in military talent.

Who Gets Priority Access?

The VET Act isn't a blanket program; it prioritizes help for those who need it most. The bill explicitly gives preference to veterans facing tough employment barriers, such as those with service-connected disabilities, homeless veterans, or those being involuntarily separated from the military. It also favors candidates who already have relevant skills in energy production or logistics.

Furthermore, the program is designed to drive investment into specific areas by giving preference to companies that operate in a “qualified opportunity zone”—low-income areas designated for investment under existing tax laws. This means a veteran living in a community targeted for economic revitalization might find more job opportunities through this program than one who doesn’t, linking workforce development directly to community investment.

Accountability and Coordination

If an energy company takes this grant money, they have to agree to some serious oversight. They must provide annual reports to the Department of Labor detailing how the money was spent, the salary and benefits paid to the hired veteran, and crucial metrics like employee retention and satisfaction rates. They must also consent to audits by the Inspector General. If they misuse the funds, they have to pay them back. This level of reporting aims to ensure the taxpayer money—$60 million authorized annually—is actually resulting in quality, long-term employment, not just short-term hires.

Finally, the Department of Labor must coordinate closely with the Departments of Defense and Veterans Affairs. This is a smart move to prevent duplication with existing programs like the Transition Assistance Program (TAP) or Skillbridge. No one wants to see three different government agencies trying to fund the same job training course. The Secretary of Labor must submit a coordination plan to Congress within 180 days of the bill becoming law, ensuring that this new program complements, rather than competes with, existing veteran support systems.