Funding Priorities & Limitations

The eight member Employment Training Panel annually establishes funding priorities for the fiscal year, based on the demand of employers for trained workers and changes in the state economy and labor markets.

FY21/22: ETP’s funding priorities for FY21/22 will follow the below Priority Industries; Funding Allocations; Funding Limitations; Projects

Funding Industries

Priority Industries

The Panel has designated the following industry sectors as “Priority Industry” for purposes of a higher fixed fee reimbursement rate than the standard rate.

More information on specific priority NAICS for specific classifications identified within a sector.


Industry sectors:

Note: “Priority Industry” sector designations may not apply to the entire sector.

  • Agriculture
  • Allied Healthcare
  • Biotechnology and Life Sciences
  • Construction
  • Green/Clean Technology
  • Goods Movement and Transportation Logistics
  • Information Technology Services
  • Manufacturing/Food Production
  • Multimedia/Entertainment
  • Technical Services

More information on ETP’s Pilots and Guidelines

Funding Allocations

Contract CategoryAllocations FY 2020-21Allocations FY 2021-22
Single Employer$30,000,000 $16,875,000
Small Business$5,000,000 $2,812,500
Critical Proposals$5,000,000 $2,812,500
Multiple Employer Contracts (MEC)$20,000,000 $11,250,000
Apprenticeship (including non-traditional)$20,000,000 $11,250,000
COVID Pilot$30,000,000*N/A

*COVID Pilot will be limited to utilizing half of the allocations set for SEs,SBs, CPs, and MECs.

Funding Limitations:

The Panel has placed a funding moratorium on the following industries and occupations for the fiscal year 2021/2022:

Moratorium for Core Funds:

  • Adult Entertainment – This includes the design, manufacture, distribution, servicing, management or sale of products or services in the adult entertainment.
  • Commission Sales Occupations in Retail Trade
  • Gambling
  • Mortgage Banking – This includes financial and collections institutes.
  • Multi-Level Marketing
  • Training for Employees of Training Agencies
  • Truck Driving Schools
  • Partners & Principals in Professional Firms – This includes legal, architectural, engineering, accounting, and tax advising firms.
  • Car Dealerships – Limited to training mechanics Only for Core Funding
  • Non-Priority Industry – Non-Priority Industry Single Employers (including Small Business), as designated by EDD assigned NAICS code.
  • Revision Requests to Increase Funding


Other Limitations

Amendment Limitations:

  • Single Employers:
    • There may be a maximum of two amendments adding funding to any contract.
    • This additional funding may not bring the project above its relevant project cap.
    • Amendments may only be requested once a contractor has earned 70% on their contract. Earned = final payment has been approved by fiscal.
    • Amendments may be for Phase II funding only; and,
    • Panel may reduce the requested Amendment amount.

Repeat Contractor Limitations:

  • Multiple Employer Contractors (MEC):
    • All MECs are limited to 1 contract per Fiscal Year
  • Single Employers:
    • Repeat Contractor Rule:
    • Contractors must wait until 18 months have passed in their current contract before submitting a Preliminary Application for a second contract.
    • If the current/active contract does not meet 75% completion rate, as determined using the potential earned amount, then the second contract will be right-sized accordingly.

Project Caps

Contract Type2020/21 Caps*Proposed FY 21/22 Caps
Single Employers (Includes Small Business)$500 K$500 K
Critical Proposals$600 K$600 K
Multiple Employer (MEC) (Includes Apprenticeships)$600 K$600 K
COVID Pilot$200 KN/A
Delegation Orders$75 K$75 K
Consent Calendar$200 K$200 K
* Caps apply per contractor per FY