Apprenticeship in America: Shared Costs, Shared Success

Earlier this year, President Trump issued an Executive Order directing federal departments to work together towards a goal of one million active apprentices, including expansion into new industries and occupations. Ambitious goals are important, but as the saying goes, “no deposit, no return.” 

If the U.S. is serious about reaching one million apprentices – a target that is both achievable and necessary – we must first invest in the apprenticeship infrastructure. Registered Apprenticeship programs consistently deliver a strong return on investment. According to the U.S. Department of Labor, apprentice graduates earn on average $300,000 more over their lifetimes than their peers. The payoff is significantly higher in most STEM fields. Those of us working in this space have seen how this structured training model benefits both employers and career seekers. Now we need to scale its impact to reach more Americans.

A National Call-to-Action

In a recent paper published with the SHRM Foundation, The Workforce We Need: A National Call to Action for Scaling Registered Apprenticeship, we outlined several recommendations to strengthen the nation’s apprenticeship infrastructure. Central to those recommendations is the need for a predictable funding model to support the ongoing costs of Registered Apprenticeship programs—particularly the related technical instruction (RTI) that complements on-the-job learning. 

A stable RTI funding stream would send a clear signal to employers that Registered Apprenticeship is a proven, high-value workforce strategy. More importantly, it would lower the barrier for employers, especially small and mid-sized companies, to experiment with apprenticeship as a talent development pathway. Whether hiring one person or one hundred, the average cost to develop someone into a new role from acquisition to training is typically less than $15,000 in most industries; with improved wages, the ROI is under 14 months for government investment, and costs employers roughly 20% less than poaching. 

Employers already invest heavily in apprenticeships through salaries, on-the-job mentorship, and administrative support. But there is a legitimate and necessary role for public funding and private philanthropy to share in the cost, especially for RTI. Apprenticeship is unique among training models because it integrates classroom learning with practical, paid experience. The RTI component provides the apprentice with a theoretical and technical foundation, and the skills and competencies gained from the RTI will move with the individual throughout their career.

Shared Costs: Shared Success

It is also a core belief of mine that apprenticeship should remain accessible to all, and that apprentices should not bear responsibility of paying for their RTI. At Apprenti, we’ve been able to cover 100% of RTI costs through a blend of employer contributions and public funding. But there are growing discussions about shifting these costs onto apprentices—a move that would undermine equity and limit participation.

We don’t have to reinvent the wheel to find a better approach. Other nations with higher apprenticeship participation rates have already built predictable RTI funding mechanisms that span all sectors, not only building trades:

• Germany, Austria, Switzerland: government funds vocational schools for RTI, while employers fund the work-based portion.
• United Kingdom: RTI is delivered by colleges/training providers, funded largely by an Apprenticeship Levy.
• Australia: RTI (often called “off-the-job training”) is provided by registered Training Organisations or through tertiary education, with funding support from states/territories.

The lesson is clear: Apprenticeship scales when RTI funding is consistent, shared, and predictable.

Advocating for Expansion

I will continue to advocate for a public-private partner model that supports a pay-per-apprentice funding mechanism that covers the cost of the Registered Apprenticeship program’s RTI. This type of predictable funding stream would encourage hundreds, if not thousands, of new employers to join the system—expanding opportunity, driving economic mobility, and meeting the workforce demands of the future.

At Apprenti, we remain committed to exploring innovative funding models that strengthen collaboration across public and private partners. Together, we can build a system where every willing employer can host an apprentice, every apprentice can access high-quality training without financial burden, and the nation can fully realize the promise of apprenticeship.