Title
Rapid Reskill Employment Recovery National Dislocated Worker Grants (Ordinance S-53251) - Citywide
Description
Request authorization for the City Manager, or the City Manager's designee, for retroactive approval to apply for this grant and to enter into a regional consortium with Pinal County and Maricopa County and execute an Intergovernmental Agreement (IGA) with Pinal County and Maricopa County to participate in the Rapid Reskill Employment Recovery National Dislocated Worker Grant. Also, request an exception to Phoenix City Code Section 42-18 to authorize inclusion of indemnification and assumption of liability provisions in the agreement that would otherwise be prohibited and to allow for mutual indemnification pursuant to Phoenix City Code Section 42-20 for public entities. In addition, request authorization to accept up to $7.9 million in federal funding to support rapid reskilling and reemployment services for dislocated workers in Phoenix, and to enter into agreements with Phoenix employers, contractors, and educational partners to implement the associated programming and training, and for the City Controller to disburse funds related to this request, should the consortium be approved for the grant. Further, authorize the City Treasurer to accept funds related to this item.
Report
Summary
In late June 2026, the U.S. Department of Labor (DOL) announced available funding through the Rapid Reskill Employment Recovery National Dislocated Worker Grants. These grants support rapid reskilling and reemployment of dislocated workers and target high-wage, high-growth occupations tied to domestic manufacturing, aerospace, energy production, construction, and other sectors critical to the nation's reindustrialization agenda. The application was due August 3, 2026, and DOL will award grants by September 30, 2026; this is a three-year award.
In July 2026, after the State of Arizona announced it would not pursue the Rapid Reskill Employment Recovery National Dislocated Worker Grant, the City of Phoenix, Pinal County, and Maricopa County agreed to apply as a regional consortium. Pinal County assumed the role of lead applicant and grant administrator, responsible for federal reporting, fiscal management, compliance, and reimbursements. Together, the partners developed ReTool Arizona, a coordinated regional program designed to accelerate reskilling and reemployment, align employer-validated training pathways, and strengthen workforce services across both urban and rural communities.
ReTool Arizona establishes a coordinated rapid reskilling and reemployment model designed to move dislocated workers quickly into high-growth, high-demand occupations connected to Arizona's reindustrialization economy. The central innovation of the project is a regional talent mobility system that aligns rapid response, eligibility, skills translation, employer engagement, short-term intensive training, paid work-based learning, supportive services, and performance tracking across three workforce development areas operating within a single labor market.
The project will reduce the time between dislocation and reemployment through rapid engagement, a common participant flow, employer informed pathway development, technology supported career navigation, and short-term intensive training when needed. Participants will be connected directly to employment, on-the-job training, registered apprenticeships, rapid reemployment opportunities, or other paid-structure work-based learning aligned with regional hiring needs.
Employment outcomes will be tied to the region's targeted sectors, with employer partnerships ensuring that training aligns with real-time hiring demand. The consortium's model is structured to meet all required federal performance reporting, fiscal accountability, and evaluation requirements for Dislocated Worker Grants, including placement, wage recovery, credential attainment, and retention.
Financial Impact
No impact to the General Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Community and Economic Development Department.