JTED Notice of Funding Opportunity 2025

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Overview
DCEO Logo​​The Illinois Department of Commerce and Economic Opportunity (DCEO) has released its 2025 Notice of Funding Opportunity (NOFO) for the Job Training and Economic Development (JTED) program, offering $10 million in grants to support workforce development across the state.

This funding targets services that address the economic challenges faced by underemployed, unemployed, and underrepresented individuals—especially those facing barriers to employment. The program aims to provide career pathway opportunities and essential support services to help participants successfully re-enter or advance in the workforce.

Read the press release about this funding opportunity.
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Program Design

The Job Training and Economic Development (JTED) program offers innovative, employer-driven training solutions that combine education, occupational skills, and work-based learning to support local and regional economic growth. A key feature of the program is flexible funding through Barrier Reduction services, which helps individuals cover emergency costs for basic needs.

Through JTED, the Illinois Department of Commerce and Economic Opportunity (DCEO) connects unemployed, underemployed, and underrepresented individuals with employers seeking skilled workers. The program also supports upskilling for existing employees by funding accessible, equity-focused services in disadvantaged communities.​

Who Can Apply for Funding:
First-time applicants and entities represented in underserved communities are strongly encouraged to apply. Eligible entities must demonstrate expertise and effectiveness in administering workforce development programs. These include:
  • Employers
  • ​Private nonprofit organizations (which may consist of a faith-based organization)
  • Federal Workforce Innovation and Opportunity Act (WIOA) administrative entities
  • Community Action Agencies
  • Industry associations
  • Public or private educational institutions
Note: Local governments that are not WIOA administrative entities are not eligible to apply.   ​

Who Will the Funding Serve: 
JTED program regulations require that services be provided to the "target population," described as unemployed, under-employed, or under-represented individuals, including youth. Below are the definitions of the target populations.
  • "Unemployed individual" means an individual who is without a job and who wants and is available for work. The determination of whether an individual is without a job, for purposes of this definition, shall be made in accordance with the criteria used by the Bureau of Labor Statistics of the U.S. Department of Labor. “Unemployed individual" must include:
    • an individual who meets the definition of "unemployed individual" set forth above and is a low-income individual or moderate-income individual; or
    • an individual who is currently employed but received a notice of termination or lay-off from the current employment and will no longer be employed within ninety days, and is a low-income individual or moderate-income individual. 
  • "Under-employed individual" means an individual who is a low-income individual or a moderate-income individual and meets one of the following:
    • working part-time but desires full-time employment; or
    • working in employment not commensurate with the individual's demonstrated level of educational and/or skill achievement; or
    • working in employment but would like to increase their skills to obtain a higher wage or promotion.  
  • "Under-represented individuals with a barrier to employment" or "Under-represented individuals" means low-income individuals or moderate-income individuals:
    • who reside in or receive services in a qualified census tract or disproportionately impacted area as defined below; or
    • have experienced one or more barriers to employment that are considered risk factors.  
What Target Industries Are the Priority?

“Target Industries" must be in-demand industries identified in the Department's 5-year Economic Plan, the State's WIOA Unified Plan, and any relevant local or regional-level plans.  See https://www.illinoisworknet.com/WIOA/RegPlanning/Pages/Plans_MOUs_Dashboard.aspx.

The sectors identified in the Governor's Economic Growth Plan include, but are not limited to, the industries listed below. See: https://dceo.illinois.gov/econplan2024.html 

  • Transportation, Distribution, and Logistics
  • Advanced Manufacturing
  • Next Generation Agriculture, Ag Tech, and Food Processing
  • Life Sciences
  • Clean Energy Production and Manufacturing
  • Quantum Computing, AI, and Microelectronics
What Is the Service Delivery Model?
Two categories will guide service delivery under the JTED Program. The approach used must be based on what best serves the employers' and industry sectors' needs and provides equity-driven services to the target population. Additionally, programs must consider the experience of people identified in the priority population, as well as how it will increase access, enrollment, and completion. Entities can apply for ONLY ONE program category, either adult or youth.
  • Category 1 - Adult Focus
    • Programs supporting unemployed individuals should include occupational training along with work-based learning in targeted industries that result in self-sustaining employment. Career pathways that include essential employability skills, digital and financial literacy, and career readiness services will be incorporated into the program design.
    • Programs supporting under-employed individuals must include plans for training that builds new skills or improves existing ones. They may also work with local employers to train current workers and help fill labor gaps. Employers must specify which skills are needed for entry-level roles or career advancement. Programs should outline current training or explain how customized training will boost employee skills and productivity. Training plans should include both short-term certifications for entry-level jobs and long-term career development options.
    • Training strategies must be based on the individual's assessment and be part of a career pathway for demand occupations in the targeted industries and result in participants earning measurable skill gains, stackable certification, or credentials.
    • Eligible adult participants for the JTED program are individuals 18 years or older (or who will turn 18 years old within the first six months of enrollment) who live in Illinois and are eligible to work. This includes those who are unemployed, under-employed or under-represented.
  • Category 2 - Youth
    • Offers career development opportunities and work-based learning (e.g., pre-apprentice and apprenticeship) and includes one or a combination of industry-recognized credentials for youth ages 16-24 with one or more barriers to education, training, and employment.
    • Involve educators and business leaders to develop a mix of academic, employability (including digital skills and digital financial literacy), and technical skills through contextualized instruction.
    • Eligible youth participants for the JTED program are young people ages 16 to 24 who live in Illinois and are eligible to work. These include youth who are unemployed, under-employed, or under-represented—whether they're currently in school or out of school.

Barrier reduction services are strongly recommended to be incorporated in the service delivery module to increase family stability and job retention by covering accumulated emergency costs for basic needs.


Submission Details
Application Deadline: The application due date for this round of funding is December 19, 2025 by 11:59PM (Central Time). Failure to meet the application deadline or failure to submit all required materials may result in the Department returning the application without review or may preclude the Department from making the award.

Application Submission Requirements: Application materials must be submitted to the Department via the SmartSheet. The link to the SmartSheet is in the NOFO. The Department will not accept applications submitted by mail, overnight mail, diskette, or by fax machine. Electronic submissions including links to documents stored in Google Docs or other cloud-based servers are not allowed. The Department is under no obligation to review applications that do not comply with the above requirements. 

An informational webinar will be held on Date at Time. Information about how to access the webinar is available under the Informational Sessions header below.


Funding Information
​This Notice of Funding Opportunity (NOFO​) is provided under the Illinois Job Training and Economic Development Grant Program (JTED) 20 ILCS 605/605-415 (JTED Act) and the rules adopted in support of the JTED Act, 56 Ill. Admin. Code Part 2660 (JTED Rules).

It is anticipated that the Department will provide funding of $ to $ to address the needs of businesses and individuals in the aftermath of the pandemic. Please note that the Department may exceed the funding range based on the proposed project outcomes.
  • Total Funds Available:$10,000,000
  • Anticipated Number of Grants: #25
  • Funding Range: $250,000 - $750,000
  • Anticipated Grant Term/Performance Period: Dates
Based on successful performance and if funds are available, the Department may determine that grant extensions and additions of funds to current grantees will be permitted.

Appendices
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Informational Sessions
​Info​rm​ational Sessions will be held within the first two weeks of NOFO development to ensure that all applicants have the skills needed to submit a competitive application regardless of familiarity with Department funding opportunities.

​​Topic
​Date/Time
​Description
​Recording/Materials
​TBA
​TBA
​TBA
​TBA
​TBA
TBA​TBA​TBA​
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NOFO Technical Assistance Office Hours
Applicants are invited to sign up for Technical Assistance Office Hours (via Zoom) to receive one-on-one assistance to prepare their proposals. These Office Hours provide an opportunity to ask questions related to the intent of the JTED NOFO. Office Hours will be held from Time on Date.​