Seizing Federal Investments to Build a Workforce for the Future: Bridging K-12 and Workforce Development
The historic investments of the Inflation Reduction Act (IRA), Infrastructure Investment and Jobs Act (IIJA), and CHIPS and Science Act (CHIPS) present a unique opportunity to transform the U.S. workforce. These federal funding streams, while focused on near-term needs in infrastructure, the green economy, and technological innovation, have the potential to do much more—particularly in addressing a challenge that will persist long after the initial wave of projects: developing resilient and sustainable local talent pipelines that empower individuals and employers for shared success in the industries of the future.
As we investigated in our recent report, Maximizing Federal Funding Impact on Workforce Development in Washington State, the majority of funding from the landmark federal investments is directed to building physical infrastructure to transform the American economy in sectors critical to our future global competitiveness, with portions of those funds designated to train and prepare the skilled workers needed to construct and operate these investments–from bridges and railways to semiconductor fabrication plants and electric battery manufacturing sites. Policymakers and industry leaders, however, often have little capacity or incentive to ensure that while they plan for and deliver these projects, they are doing so in a way that will strengthen the education and workforce ecosystem and ensure strategic alignment with K -12 education systems. Business leaders, policymakers, philanthropic and community-based organization leaders can play a critical role in bridging this gap and driving lasting impact at the state and local levels.
The Challenge: Short-Term Outcomes vs. Long-Term Strategy
Many of the programs funded by IIJA and CHIPS, in particular, allow for training and credential attainment designed to fill immediate labor shortages in sectors like construction and the skilled trades, clean energy, and advanced manufacturing. While this approach is necessary given the urgency of skilled labor needs, it risks sidelining the next generation of workers—those currently in K-12 and higher education systems—who will be critical in sustaining the growth of these industries over the long term.
This presents a real challenge for states and communities as they try to build comprehensive, long-term talent pipelines. Federal funding allows for some investment in youth apprenticeships, career and technical education, and career-connected learning opportunities, yet these are often peripheral to the more significant funding initiatives, which remain centered on adults.
Without stronger connections between federal investments and K-12 education systems, the opportunity to create sustainable pipelines that nurture talent from an early age may slip through our fingers. Labor shortages aren’t a problem that can be solved overnight, and training adults alone won’t fill the longer-term gaps.
The Opportunity: Investing in Regional Coordination and Strategic Partnerships
What we uncovered in the report is that deliberate steps must be taken now to bridge workforce and education and ensure that K-12 systems and partners are engaged in these efforts, even as most funding and program development is driven by industry and higher education.
Many communities are taking action to facilitate this bridge, from deploying workforce development and education technical expertise across agencies that might not have as much familiarity with these systems, to supporting regional and state-level convening and capacity-building to ensure strong partnerships exist to develop and implement projects grounded in existing cross-sector collaboration.
Powerful examples include Colorado’s Opportunity Now program which supports the development of new education and training partnerships, California’s Community and Place-Based Solutions Team, and Alabama’s Office of Education and Workforce Transformation. While it is essential to support the technical efforts to help communities develop and apply for near-term IIJA, IRA, and CHIPS funding, communities will win when they invest in strong talent ecosystems that will endure beyond the next three to five years.
Conclusion: Seizing the Moment
The IRA, IIJA, and CHIPS Acts offer a once-in-a-generation opportunity to transform the U.S. workforce. However, to fully realize the potential of these investments, we must ensure that K-12 education is not sidelined in favor of short-term solutions. By aligning workforce development with long-term education strategies, fostering regional collaboration, and promoting equity, we can create lasting, transformative change that benefits both individuals and businesses. The time to act is now—if we invest in the workforce of tomorrow, we can ensure a brighter, more equitable future for all.
