STEM RESTART Act Authorizes $250M for 'Returnships' to Bring Skilled Mid-Career Workers Back to Tech

The new STEM RESTART Act is setting up a major, multi-year grant program designed to pull experienced, mid-career workers back into high-demand Science, Technology, Engineering, and Math (STEM) fields. This isn’t about entry-level jobs; the goal is to fund paid, above-entry-level training opportunities—dubbed “Returnships”—that must lead directly to full-time employment with competitive pay and benefits. Congress has authorized $50 million annually for this effort from 2026 through 2030, a total of $250 million, to be administered through the Department of Labor.

The Returnship Revolution: Not Your Kid’s Internship

If you’re one of the many skilled workers who took a career break, were laid off during a downturn, or are simply underemployed—especially if you live in a rural area—this bill is specifically targeting you. The new grant program, inserted into the Workforce Innovation and Opportunity Act (WIOA), defines a Returnship as a re-entry opportunity, apprenticeship, or direct hiring support that places workers in above-entry-level STEM roles. Think of it as a paid, structured pathway back to a high-earning career, not just a temporary gig. For example, a former engineer who stepped away to raise a family could use a Returnship to get up-to-speed on new software platforms while earning a salary comparable to their experience level, leading to a permanent spot on the team.

Incentivizing Small and Mid-Sized Employers

Who gets the money? The RESTART grants are competitive and aimed squarely at small and medium-sized businesses: those employing between 50 and 9,999 people. Small businesses (50-499 employees) can receive up to $1 million annually, while medium businesses (500-9,999 employees) or consortia can receive up to $5 million. This structure is designed to incentivize companies that might not have the budget for large-scale, in-house re-training programs. To qualify, companies must operate in a high-demand STEM field, and their applications must detail how the program will specifically lead to jobs for unemployed workers, particularly those in rural areas, and prove that they are adding new full-time staff—not just replacing existing employees with subsidized trainees.

Practical Details: Pay, Benefits, and Mentorship

If a company gets a grant, the Returnship program must last at least ten weeks and provide participants with salary, stipends, and benefits comparable to what full-time employees with similar experience receive. The grant funds are flexible and can cover the participant’s costs, including equipment, travel, housing, and career counseling. There’s a catch, though: while the grant can pay for the participant, it can only supplement the pay of the existing employees who mentor the returnees, and that supplemental pay is capped at 20% of the total grant. This is a smart check to ensure companies use the money primarily for the returnee and the program infrastructure, not just to subsidize their current payroll.

Accountability and Best Practices

The bill includes strong reporting requirements, which is good news for transparency. Grant recipients must submit annual reports detailing participant demographics (sex, race, ethnicity) and, crucially, the conversion rate from the Returnship into full-time employment. The Secretary of Labor then has 180 days to compile this data into a public report outlining the best practices for successful re-entry programs. This means the programs that work will be identified and shared, helping future companies avoid reinventing the wheel. The focus on conversion rates ensures the program delivers on its promise: permanent, high-quality jobs, not just temporary training slots.