A rare alignment of federal CTE and workforce funding streams gives state and local directors a narrow window to act.
Congress passed a full-year FY2026 appropriations bill in late April, locking in funding for the Carl D. Perkins Career and Technical Education Act (Perkins V) state grant program — and the Office of Career, Technical, and Adult Education (OCTAE) wasted no time issuing updated program guidance that states need to comply with for the coming grant cycle.
Simultaneously, the U.S. Department of Labor released updated Workforce Innovation and Opportunity Act (WIOA) state planning guidance and opened the application portal for the American Manufacturing Apprenticeship Incentive Fund. The convergence of these three federal actions creates a brief but significant opportunity for CTE programs to align their planning across Perkins, WIOA, and new apprenticeship funding — if they move quickly enough to take advantage of it.
What the FY26 Appropriations Mean for Perkins
The full-year appropriation avoids the continuing resolution limbo that has frustrated state budget planning in recent cycles. Perkins V basic state grants are intact, and OCTAE’s Program Memorandum 26-2, issued in February, lays out the submission requirements for states to receive their FY2026 awards.
The memo gives states two paths:
- Option 1: Submit a State Determined Performance Level (SDPL) update and a budget for the upcoming fiscal year — a lighter lift for states not making substantive plan changes.
- Option 2: Submit a revised Perkins State Plan that includes updated SDPLs, a full budget, and any other revisions the state deems necessary under Section 122(a)(1) of Perkins V.
This two-track approach is deliberate. States that need to adjust their Comprehensive Local Needs Assessments (CLNAs) or realign programs with shifting labor market data can use Option 2 to do so. States whose plans are still current can proceed with the streamlined Option 1. The key deadline pressure falls on state CTE directors, who must determine which path applies and get submissions in before the FY2026 award cycle closes.
OCTAE Memo 26-2: What’s New
The February 2026 memo doesn’t rewrite the Perkins V playbook, but it does clarify several submission processes that had become ambiguous across multiple guidance updates. Notably:
- CLNA refresh requirements are now tied more explicitly to the state plan revision timeline, meaning local recipients updating their needs assessments should coordinate with their state directors’ submission schedule.
- Budget narrative expectations have been sharpened, with clearer guidance on how to document alignment between proposed expenditures and the state’s approved programs of study.
- OMB approval for the Perkins V state plan guide (Approval No. 1830-0029, expiring January 31, 2028) remains current, so states don’t face a form revision this cycle.
For local CTE directors, the practical takeaway is straightforward: confirm with your state office which submission track applies, and make sure your CLNA data is current if your state is filing under Option 2.
The WIOA Alignment Opportunity
What makes this cycle different from routine annual guidance is the concurrent WIOA state plan update from DOL and the Department of Education. In January, the two departments jointly released updated WIOA state planning guidance designed to bring WIOA and Perkins V planning into closer alignment — part of a broader federal push toward what OCTAE’s Program Memo 26-3 calls a “unified talent development system.”
This is not just bureaucratic coordination. The memo outlines practical strategies for states to connect secondary CTE, postsecondary education, workforce training, and employment under a single planning framework. For CTE programs, this means:
- Shared data pipelines between WIOA performance reporting and Perkins accountability indicators are becoming feasible, reducing duplicate reporting for programs that serve both systems.
- Stackable credential pathways that count toward both Perkins programs of study and WIOA career pathways can now be designed with federal encouragement rather than despite federal silos.
- Waiver and flexibility options published by DOL make it easier for states to blend Perkins and WIOA activities at the local level — something that was technically possible before but practically difficult.
State directors who treat these as three separate compliance exercises will miss the chance to build something more coherent. The window for aligned planning is open now; it will close as each deadline passes independently.
The Apprenticeship Fund
DOL’s American Manufacturing Apprenticeship Incentive Fund adds a third dimension. The application portal is open, and DOL has announced events across states and territories to showcase employer and educator engagement in apprenticeships — targeting sectors from skilled trades to advanced manufacturing and technology.
For CTE programs with existing industry partnerships, this fund represents a direct pipeline to expand work-based learning. For programs still building those partnerships, the DOL-sponsored events offer a structured entry point.
What CTE Directors Should Do Now
- Confirm your state’s Perkins submission track. If your state is filing a full revision (Option 2), make sure your CLNA reflects current labor market data and enrollment trends — not last year’s.
- Coordinate with your WIOA partners. The joint state plan guidance makes alignment easier than it has been. Don’t let the Perkins and WIOA processes run on parallel tracks that never meet.
- Evaluate the apprenticeship fund. If your program serves manufacturing, technology, or skilled trades pathways, the incentive fund application is worth a serious look — especially if you can tie it to an existing Perkins-funded program of study.
- Brief your consortium. For secondary CTE programs operating through regional consortia, the budget narrative changes in Memo 26-2 affect how you document allowable costs and match requirements. Get ahead of it before the submission deadline.
This alignment of Perkins, WIOA, and apprenticeship funding won’t last. The next appropriations cycle could disrupt it. State directors and local program leaders who move now will be positioned to lock in multi-year coherence. Those who wait will be back to navigating disconnected federal streams.
Sources
- Advance CTE, “Congress Passes Full-Year FY26 Funding” — <https://careertech.org/blog/congress-passes-full-year-fy26-funding/>
- OCTAE Program Memorandum 26-2, “Requirements and Instructions for the Submission of Perkins V State Plan Revisions and Budgets for FY2026” — <https://www.ed.gov/media/document/octae-program-memo-26-2-requirements-and-instructions-submission-of-perkins-v-state-plan-revisions-and-budgets-fiscal-year-2026-grant-awards-113351.pdf>
- U.S. Departments of Labor and Education, “Guidance for State Plans to Align Education and Workforce Development Systems” — <https://www.dol.gov/newsroom/releases/eta/eta20260126>
- OCTAE Program Memorandum 26-3, “Aligning Activities Under WIOA and Perkins V to Support a Unified Talent Development System” — <https://www.ed.gov/media/document/octae-program-memo-26-3-aligning-activities-under-workforce-innovation-and-opportunity-act-wioa-and-carl-d-perkins-career-and-technical-education-act-of-2006>
- FederalGrants.com, “FY2026 State Allocations under Perkins V” — <https://www.federalgrants.com/Fiscal-Year-2026-State-Allocations-under-the-Carl-D-Perkins-Career-and-Technical-Education-Act-of-2006-Perkins-V-105552.html>
