The Talent Strategy Playbook: 5 Priorities for Workforce Boards

The Federal Talent Strategy entitled “Building the Workforce for the Golden Age” was released on August 12 as a joint strategy by the Departments of Labor, Commerce, and Education. It lays out a blueprint to make the U.S. workforce system more employer-driven and accountable. It rests on five pillars: industry-led strategies, worker mobility, integrated systems, performance accountability, and flexibility/innovation. Together, these priorities aim to align training with business demand, expand access to high-quality jobs, and prepare workers for rapid changes driven by technology and national economic needs.

While much of the plan still awaits Congressional funding, some elements—like short-term Pell and the apprenticeship expansion goal—are already real. Workforce boards don’t need to wait for the dust to settle. Here are five priorities to prepare for now. Do these resonate? Please share your thoughts and feedback at the bottom. 

While much of the plan still awaits Congressional funding, some elements—like short-term Pell and the apprenticeship expansion goal—are already real. Workforce boards don’t need to wait for the dust to settle. Here are the top five priorities that workforce boards can act on now in order to be ready for the future:

1️⃣  Industry-led training: Employers set the agenda, and reindustrialization sectors are prioritized including manufacturing, semiconductors, aerospace, shipbuilding, biopharma, data centers, and energy.

2️⃣ Tougher accountability: Training providers must show results; expect more use of outcomes-based contracts and performance dashboards.

3️⃣ Apprenticeships and AI: Both are top federal priorities and will attract funding and pilot opportunities.

4️⃣ Evolving populations: Focus on incumbent workers, working-age men, veterans, and justice-involved individuals, with co-enrollment and referrals to meet full needs.

5️⃣ Integration and co-enrollment: Short-term Pell is in play; boards should braid Pell, WIOA, and human services funding while pushing for unified intake systems.

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1. Industry Leads the Way

The Strategy is crystal clear: “The needs of employers must drive how the workforce system educates, trains, and prepares the American workforce.” It specifically channels focus toward manufacturing and adjacent industries (like semiconductors, aerospace, shipbuilding, biopharmaceuticals, data centers, and energy), These industries are deemed vital for U.S. economic and national security.

Board Takeaway: Deepen alignment with your local chamber and economic development partners. Make sure employers in those priority sectors are ready to validate training, sign off on curriculum, and back job pipelines. Confirm that they are ready to sign letters of support for upcoming grant opportunities.

2. Accountability Will Get Tougher

The Strategy proposes a “Credentials of Value” scorecard and stricter oversight of training providers. Providers who can't demonstrate real outcomes (like wage gains and employer validation) are at risk of being removed from eligibility.

Board Takeaway: Audit your ETPL now. Be ready to collect wage outcomes and employer feedback. Pilot outcomes-based contracting and pay-for-performance. The Strategy makes clear that it will reward entities who can tie funding to results. Ensure your data and finance systems can track ROI, performance pay, and post-program earnings, not just measurable skills gain and placements.

3. Apprenticeships and AI Are the Big Bets

The federal goal: more than 1 million active apprenticeships, with AI literacy and reskilling pilots as funding priorities. Boards positioning themselves with early action in these areas will be in a strong place for future funding.

Board Takeaway: Accelerate your apprenticeship pipeline. Think pre-apprenticeships, dual-enrollment, and intermediaries. Launch at least one AI-focused training pilot with employers. Even small cohorts show readiness and raise your grant appeal. Look for ways to co-enroll apprentices with WIOA.

4. Priority Populations Are Evolving

The Strategy highlights a renewed focus on incumbent workers, working-age men (25–54), veterans, and justice-involved individuals. The goal is not only to help people enter the labor market but also to move them into better careers that respond to industry demand.

Board Takeaway: Workforce boards cannot meet all needs with WIOA alone. Build multiple intake pathways and strengthen referral partnerships. For incumbent worker training, strengthen relationships with employers and sector groups to co-invest in advancement. Partner with veteran services, reentry programs, emergency support nonprofits, and human services agencies to provide the wraparound supports many low-income participants need to succeed.

5. Integration Is Non-Negotiable

Workforce Pell is now law and fully part of this strategy. The expectation is Pell pays first, everything else second. The plan also calls for unified intake, shared eligibility, and data systems capturing information once for reuse across programs.

Board Takeaway: Map Pell‑eligible short-term programs in your region and bake them into navigation scripts. Train staff to use Pell first, then layer on WIOA. Co‑enroll with human services (SNAP E&T, TANF) and standardize data-sharing so clients don’t repeatedly prove eligibility. If your state system isn't API-ready, advocate for it! Future funding rounds will reward boards with unified intake and employer-facing dashboards.

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Reality Check and Closing

Some elements of the talent strategy are still more vision than reality. MASA, the proposal to consolidate workforce programs into a single grant, remains only a proposal. Eliminating legacy programs like Job Corps and SCSEP is still aspirational and faces strong opposition in Congress. Efforts to create seamless data sharing are ongoing, but wage record systems continue to report with a lag of six months or more, which will remain a challenge for boards trying to show timely results.

Still – there’s lots that workforce boards can do now and not wait on federal spending. Deepen employer ties, demand outcomes from training providers, pilot AI and apprenticeship programs, serve evolving priority populations, and make Pell the first source of funding.

External Resources

• Overview of Short-term Pell LINK

• Overview of the impact on workforce development programs from the recently passed “Big Beautiful Bill” LINK

• Pay for performance in practice - What the 2021 guidance tells us about how it can be done (LINK)

• A field guide for how states can finance integrated data systems (LINK)