New Digital Skills Grant Program Targets Workers with Low Tech Literacy, Funds Start in FY 2026

The Digital Skills for Today’s Workforce Act is here to tackle a problem many of us already know: the digital skills gap. This legislation doesn't just talk about the problem; it amends the existing Workforce Innovation and Opportunity Act (WIOA) to create a new funding stream—the Digital Skills at Work Grant Program—designed to get people trained for 21st-century jobs and make them “digitally resilient.” The goal is twofold: build the digital skills needed for high-demand industries and ensure our workforce and education systems can adapt to constant tech changes (Sec. 2).

Why We Need a Digital Skills Upgrade

This bill starts with some sobering facts. According to Congress’s findings (Sec. 3), 92% of jobs require digital skills, yet 13% of workers lack the basic foundation. That’s not just a personal problem; businesses are losing their competitive edge because they can’t find workers with the right tech chops. Even more critical, the data shows this gap disproportionately hits workers of color. For instance, while Black workers make up 12% of the workforce, they account for 21% of those with limited digital skills. This bill aims squarely at fixing that inequity by prioritizing assistance to these groups.

How the Money Moves: Formula vs. Competitive Grants

The program uses two funding pathways (Sec. 4). First, there are Formula Grants to States. The Department of Labor will award money to states that apply, calculating the amount based on three factors: the state’s total population (50% weight), its working-age population (25% weight), and its population of residents with indicators of low digital literacy (25% weight). This last factor is key, targeting those with a high school diploma or less, low earnings, or limited English proficiency.

States don’t keep this money; they must use it to award subgrants to eligible entities—like community colleges, non-profits, or industry partnerships—to run the actual training programs. They are required to prioritize entities focusing on individuals with barriers to employment and ensure geographic diversity, which means training should reach rural areas, not just city centers.

Second, the Secretary of Labor will award Competitive Grants directly to eligible entities. These grants are designed to foster digital equity and prepare individuals for the labor market through customized training, apprenticeships, and supportive services. If you’re a training provider, you’ll need to show exactly how your curriculum connects to an in-demand occupation and how you’ll engage small and medium-sized employers.

What Training Looks Like

For the average worker, this means access to high-quality, targeted training. The bill defines “digital workplace skills” as both foundational and specialized skills needed to be an effective user or creator of technology on the job. Training providers receiving funds must use “accelerated learning program models,” such as integrated education and work-based learning, to help adults gain skills quickly. Think less classroom theory and more practical, fast-track programs that lead directly to a recognized credential or measurable skill gain.

Crucially, the bill also makes a conforming amendment to WIOA (Sec. 4), explicitly allowing existing WIOA funds to be used for “training in digital and information literacy skills.” This ensures that digital training isn't just an add-on, but a core part of the nation’s workforce development strategy.

The Accountability Check

This isn't a blank check. Both states and competitive grant recipients face strict reporting requirements. States must submit a detailed report to the Secretary of Labor within two years, summarizing all activities and outcomes, and the Secretary must make these reports publicly available. Competitive grant recipients must report performance levels, disaggregated by race, age, and other factors, showing the impact on those with barriers to employment. This level of transparency means we should be able to see exactly who is getting trained and whether the program is actually closing the digital skills gap. The funding is authorized to begin in Fiscal Year 2026, meaning the real-world impact is still a few budgets away.