Overview of the H-1B Technical Skills Training Grant Program

In response to demands from industries that were experiencing skill shortages in areas such as information technology, Congress amended the Immigration and Nationality Act.  This act, implemented in 1992, established the H-1B visa category for non-immigrants who sought to work in high skill or specialty occupations, and set annual limits of 65,000 on the number of H-1B visas granted.  In a subsequent effort to help employers access skilled foreign workers and compete internationally, Congress enacted the American Competitiveness and Workforce Improvement Act of 1998 (ACWIA 1998) Pub. L. 105-277 in October 1998.  The provisions of ACWIA 1998 created technical skills training grants under the Department of Labor’s Employment and Training Administration. 

ACWIA 1998 increased the annual limit on H-1B visas temporarily to 115,000 in fiscal years 1999 and 2000, and to 107,500 in 2001.  In addition, a $500 user fee was imposed on employers for each H-1B application.  ACWIA 1998 authorized the use of 56.3% of the fee to finance the H-1B Technical Skills Training Grant Program.  Grants funded under ACWIA 1998 had the long-term goal of raising the technical skill levels of American workers in order to fill specialty occupations presently being filled by temporary workers admitted to the United States under the provisions of the H-1B visa.  Eligible grant applicants were local Private Industry Councils (PICs) and Workforce Investment Boards (local boards) established under Section 117 of the Workforce Investment Act (WIA) or a consortium of local boards.  

ACWIA 1998 was amended by the American Competitiveness in the Twenty-first Century Act of 2000 (ACWIA 2000) Pub.L. 106-313, enacted on October 17, 2000.  This law increased the temporary cap of H-1B visas to 195,000 annually until the end of fiscal year 2003.  Separate legislation raised the employer H-1B application fee from $500 to $1,000.  ACWIA 2000 authorized the use of 55% of the funds generated by H-1B visa fees to continue the Department of Labor's H-1B Technical Skills Training Grant Program through September 30, 2003. 

ACWIA 2000 also created a two-part eligibility and funding system for the new program.  Local boards are eligible to receive 75% of total funds awarded.  These grants provide funds to partnerships consisting of one or more local boards, at least one business or business related non-profit (such as a trade association) and one community-based organization (which may be faith-based), higher education institution or labor union.  The remaining 25% of funds are made available through grants to eligible partnerships that consist of at least two businesses or a business-related nonprofit organization that represents more than one business.  Partnerships may include any educational, labor, community organization, or local board, but funds may be used only to carry out a strategy that would otherwise not be eligible for funds under the 75% provision.

The 75 percent funding stream requires a 50 percent match in cash or in kind; the 25 percent funding stream requires a 100 percent match in cash or in kind.  The matching requirement applies to the entire Federal grant funding level.  Partners cooperating in the proposed project may divide the responsibility for the match among themselves in any way they choose to do so, provided that at least 50 percent of the match comes from the business partners.  ACWIA 2000 also specifies that consideration be given to applicants that provide a specific commitment from other public or private sources, or both, to demonstrate the long-term sustainability of the training program or project after grant funds have been exhausted.

Eighty percent of the grants are to be awarded to projects that train workers in high technology, information technology, and biotechnology skills. For example, this includes skills needed for software and communications services, telecommunications, systems installation and integration, computers and communications hardware, advanced manufacturing, health care technology, biotechnology and biomedical research and manufacturing, and innovation services.  No more than 20 percent may be awarded to projects that train for skills related to any single specialty occupation.  Specialty occupations require a theoretical and practical application of a body of highly specialized knowledge and sometimes may even require full state licensure to practice in the occupation. These occupations require at least a bachelor's degree or higher and/or experience in the specific specialty.  They also may require recognition of expertise in the specialty through progressively responsible positions relative to the specialty occupation.

The technical skills training portion of the law is designed to help both employed and unemployed American workers acquire the requisite technical capabilities in high skill occupations that have shortages.  Training generally is aimed at occupations at the H-1B skill levels, which are defined as a bachelor's degree or comparable experience.

For further information about the H-1B Technical Skills Training Grant Program, explore the rest of the H-1B website where you can read the program’s authorizing legislation, summaries of existing grantees, current solicitations for grant applications, reports and publications about or related to the program, and find links to related government websites.