Practically overnight, producing positive outcomes with limited resources has become the norm in workforce development. Demand is increasing while budgets remain flat or shrink, and growing expectations for measurable results, compliance, and equity aren’t going anywhere. As a result, workforce agencies and development boards are sharpening their focus.
At the top of the list for leadership is a clear understanding of how workforce development grants work. Next, is a desire to make their dollars stretch further by using braided funding strategies and more intentional procurement planning.
We’ve put together this guide to help you plan a stronger, more sustainable path forward. We’ll walk through key terms, common hurdles, and practical tips to get you through this new funding climate successfully.
Braided Funding: What It Is and Why It Works
One-time, competitive Department of Labor grants offer a short-term funding boost, but they aren’t a sustainable funding stream on their own. And though your clients won’t be aware of funding lapses, they will notice inconsistencies in services. Any service interruption can interfere with the internal program milestones that lead to positive outcomes.
Braided funding is a practical way to keep casework steady and services flowing continuously for clients. It makes use of multiple workforce development funding streams like WIOA, Perkins, and private foundations, while maintaining separate tracking and compliance demands for each.
(The separate fund identities and accountability requirements are what differentiate braided funding from blended, where everything goes into the same pot.)
Several states have braided funding in their toolkits already. For example, Indiana, New Hampshire, and Michigan braid WIOA, SNAP E&T and TANF/State funds.
Important note: SNAP E&T uses a reimbursement funding model, so you can’t rely on it for upfront program costs. SNAP is also undergoing some cuts and eligibility changes as of 2025. But don’t count it out! When paired with other funding options (or “braided into” your funding streams), it can be a good source of supplemental funding.
Braided Funding Examples
- Goal: Apprenticeship program expansion
- Challenge: Apprenticeships are equal parts work and training. They require a healthy amount of planning and coordination, which can make financing these programs complicated.
- Solution: A community college braids WIOA funds and Perkins V grant money.
- Goal: Wraparound services to increase participation
You can explore other use cases at the Jobs for the Future (JFF) website and the American Association of Community Colleges (AACC) website.
The Value of Braided Funding for Workforce Boards
Braided funding reduces reliance on single funding streams that might suddenly dry up, and it ensures program continuity across fiscal years. But it also does something else: It helps create a stronger ROI case for funders and policymakers.
Because the funding is coming from multiple sources in a coordinated effort, you can draw straight lines between participant progress, like job placement, retention, or credential attainment, and specific funding streams. This clarity makes it easier to report on measurable impact and cost-effectiveness.
How to Stretch Workforce Development Grants Further
Get your house in order:
✓ Appoint a fiscal or planning lead to own your braided funding strategy
✓ Map out your program’s top priorities (which will be mapped to funding sources)
✓ Partner with finance and compliance departments early to ensure you’re aligned on the challenges
✓ Use a system that supports multiple funding streams and audit-ready documentation without too much manual effort
Align your needs with available grants, funds, and partners:
✓ Use your state’s Combined WIOA Plan as a road map for alignment
✓ Maintain active partnerships with human services and economic development agencies
✓ Pilot co-enrollment models and apply for DOL grants that allow use of multiple funding streams (e.g., Pathway Home, Good Jobs Challenge)
But even the best braided funding strategy can stall if the tools, training, or partnerships to support it get stuck in the procurement process. Be on the lookout for common barriers and have a plan for navigating them.
Common Procurement Barriers and Solutions
Procurement Can Be Slow and Complex
A 3- or 4-month request for proposal (RFP) delay can prevent your organization from adopting new technology. Your procurement approach matters. For example, approved vendor lists like Carahsoft, NASPO, and GSA offer shared contracts that can save you time and simplify procurement. Partnering with vendors familiar with public-sector compliance further reduces risks and streamlines onboarding. (Confirm that the technology vendor is pre-approved on these lists.)
Sole Source Justification
Most states allow for sole source justification, enabling agencies to innovate quickly in response to shifts in regulation and the economy. Virginia, North Carolina, Washington, and Oklahoma have stricter rules, but well-supported cases can be made using urgency, advanced approvals, and documentation showing a solution’s unique characteristics, like proprietary design or compatibility with your existing systems, that other vendors can’t match.
Cooperative Purchasing and Inter-Agency Agreements
You might also wonder if you can piggyback off another agency’s procurement or reference cooperative agreements or public bids. Creating inter-agency agreements to co-purchase or co-administer tools is a practical way to share costs, leverage buying power, and reduce procurement complexity.
WIOA Favors Solutions That Are Phased or Tied to Outcomes
WIOA discourages large upfront purchases. That means you should be ready to either phase solutions in or tie them directly to outcomes. During Competitive Solicitation and Proposal Evaluation, ask vendors for case studies or reporting within their system that can tie back to outcomes and compliance.
Rigid Procurement Models for Modern Tools
Many grants are issued annually or biennially, but tech vendors often offer multi-year contracts. Legacy RFPs built around physical purchases don’t align with the speed of change inside or outside your organization. Look for vendors who offer more flexibility to match your current and future needs, including:
- Subscription models
- Phased implementation
- Ongoing support
- Service-level agreements (SLAs)
Standardizing documentation and approval processes using procurement templates and frameworks designed for digital tools can help offset delays and avoid compliance issues.
Braided Funding Can Create Complexity
Careful tracking of expenses by funding sources adds complexity, especially if your team is working manually or lacks in-house procurement expertise. Using shared contracts, partnering with experienced vendors, and standardizing processes can offset delays and reduce audit risks.
How SaraWorks Workforce Development Software Can Help
SaraWorks workforce development software is a lightweight, flexible tool that makes procurement, compliance documentation, and proving your impact significantly easier.
Strategic Impact
SaraWorks helps you focus your limited resources where they make the most impact and demonstrate those results to funders.
How:
- It automates routine tasks like client follow-ups, appointment reminders, and eligibility verifications, so staff can spend more time with clients.
- It improves service delivery coordination across programs (WIOA, Youth, Dislocated Worker, etc.) within one unified platform.
- It helps you identify what’s working through up-to-date dashboards that show which programs or partners are moving the needle on employment outcomes.
- It helps you build and maintain bridges between clients, employers, and other agencies.
Funding Security
SaraWorks helps you stay eligible for existing funds and strengthens your position to secure new funding opportunities.
How:
- Participant program eligibility can trigger co-enrollment options to broaden the pool of participants eligible for reimbursement.
- Our reporting matches funder requirements (WIOA, SNAP E&T, TANF, etc.), reducing time spent on paperwork and lowering the risk of clawbacks (repayment of grant funds).
- Our clear tracking and automated documentation features make it easier to demonstrate alignment with funding priorities when you apply for new grants.
Performance Metrics
SaraWorks helps you increase client engagement, meet WIOA performance measures, and achieve faster reporting cycles.
How:
- It shares automated reminders with clients and lets them share updates and documents right from their cell phones.
- It tracks client progress across training, employment, and follow-up milestones.
- Generates outcome reports automatically for internal use or required submissions
- Flags individuals at risk of non-completion or missed targets, so staff can intervene earlier
A Straightforward Procurement Process
Sara is proud to be a NASPO ValuePoint vendor, helping clients save time and effort in the procurement process. ValuePoint is a cooperative purchasing program that allows states (and eligible local governments) to buy software and IT services through competitively bid, pre-approved contracts.
Since SaraWorks offers several features not offered elsewhere on the market, we are also able to offer a sole source route to partnership.
Conclusion & Next Steps
Today’s challenges call for agencies and boards to adapt their strategies and stretch workforce development grants further. Funding constraints and procurement red tape don’t need to stall innovation: Strategies like braided funding and smarter procurement can help you build more resilient programs.
Partnering with the right technology vendors can make the process even easier, from procurement approaches to gathering data for your next grant proposal.
Next Step: Evaluate how your current system aligns with your funding strategy and learn how a partner like SaraWorks can support your goals.
Ready to explore how you can stretch funding and navigate procurement with ease? Contact us for a personalized demo.
