President Obama on Friday expanded the apprenticeship program he started in 2014 by doling out $50.5 million to 36 states to expand their local initiatives.
The White House boasts that 91 percent of program participants get hired afterward with starting salaries of $60,000 or more.
“The return on investment for employers is also impressive — international studies suggest that for every dollar spent on apprenticeship, employers may get an average of $1.47 back in increased productivity and greater front-line innovation,” the White House statement announcing the grants stated.
The apprenticeships are in numerous industries, including healthcare, manufacturing and information technology. The program has funded 125,000 apprenticeships so far.
The Labor Department runs the program, and said it is using money from its fiscal year 2016 appropriation to fund the expansion. But the White House warned that if Congress does not fund the program again in this year’s annual spending bill, the apprenticeships funded by Friday’s grants wouldn’t be able to continue.
“Similarly, the 14 organizations who were awarded $20.4 million in contracts to expand apprenticeship to new industries and reach historically under-represented populations will see their funding dry up after one year,” the White House stated. “This would deprive thousands of Americans of the chance to participate in this life-changing training model.”
