Niche News

US Department of Labor awards over $550K to help workers affected by layoffs at northern Massachusetts tool manufacturer

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Key takeaways

  • The Department of Labor awarded $551,195 to Massachusetts to assist workers affected by layoffs at The L.S. Starrett Co.
  • On June 30, 2025, The L.S. Starrett Co. laid off 78 manufacturing workers at its Athol facility.
  • The grant is a National Dislocated Worker Grant administered by the Employment and Training Administration (ETA).
  • Funds will go to the Massachusetts Executive Office of Labor and Workforce Development for retraining and skills development.
  • Services funded by the grant will target dislocated workers in Franklin and Worcester counties.
  • The grant is supported by the Workforce Innovation and Opportunity Act of 2014 and is for areas facing major economic dislocation beyond available resources.

Follow Up Questions

What is a National Dislocated Worker Grant and how does it differ from other workforce grants?Expand

A National Dislocated Worker Grant (NDWG) is a special, short‑term pot of federal money that the U.S. Department of Labor can award when a community is hit by a major layoff, plant closure, or disaster and local job‑training funds aren’t enough. These grants are: • Discretionary and event‑driven – awarded by the Secretary of Labor in response to specific economic or disaster events, not automatically every year. • Time‑limited and supplemental – they add to regular Workforce Innovation and Opportunity Act (WIOA) formula funds when those normal funds are overwhelmed. There are two types: Disaster Recovery NDWGs (after declared disasters) and Employment Recovery NDWGs (after big layoffs or other economic shocks). Regular workforce grants (like WIOA Adult/Dislocated Worker formula funds) are allocated each year by formula across states and local areas and are meant for ongoing employment and training services, rather than targeted responses to particular events.

Who is eligible to receive services funded by this grant?Expand

For this grant, services are aimed at “dislocated workers” in Franklin and Worcester counties who were affected by the L.S. Starrett layoffs and similar economic disruptions. Under WIOA and DOL guidance, eligible participants for Employment Recovery NDWGs generally include: • Dislocated workers as defined in WIOA (for example, people laid off or with layoff notices, or who lost jobs due to plant closures or mass layoffs). • Other eligible groups defined in the specific grant (often including long‑term unemployed or certain military‑related dislocated workers), if the state includes them. The news release specifies that the Massachusetts Executive Office of Labor and Workforce Development will use this NDWG to provide retraining and skills development services for dislocated workers seeking assistance in Franklin and Worcester counties.

How can affected workers in Athol, Franklin, and Worcester counties apply for retraining or assistance?Expand

Affected workers in Athol, Franklin, and Worcester counties generally access NDWG‑funded help through their local MassHire Career Centers rather than applying directly to the federal government. Practical steps: • Contact or visit a local MassHire Career Center (such as MassHire Franklin Hampshire Career Center, which serves Franklin County and the North Quabbin/Athol area, or MassHire North Central and Central Career Centers that serve parts of Worcester County). • Tell staff you were laid off (for example, from L.S. Starrett) and ask about dislocated worker and retraining services; staff determine eligibility and enroll you in WIOA/NDWG services if you qualify. • Workers can find locations and contact info for MassHire Career Centers on the state’s website and are usually asked to call or go online to schedule an appointment before visiting.

What specific training and reemployment services will the Massachusetts Executive Office of Labor and Workforce Development provide with the $551,195?Expand

The release does not list a detailed menu of services for this specific $551,195 grant, but under WIOA and NDWG rules, the Massachusetts Executive Office of Labor and Workforce Development can use Employment Recovery NDWG funds to provide: • Career services (e.g., assessment, career counseling, job‑search and placement help). • Training services (e.g., occupational skills training, on‑the‑job training, apprenticeships, or other courses that lead to in‑demand jobs). • Supportive services that help people participate in training or job search (such as help with transportation or child care), when allowed under the project. These are the standard allowable activities for Employment Recovery National Dislocated Worker Grants nationally, and the grant notice says Massachusetts will provide “retraining and skills development services for dislocated workers” in Franklin and Worcester counties.

What is the role of the Employment and Training Administration (ETA) in administering this grant?Expand

The Employment and Training Administration (ETA), a division of the U.S. Department of Labor, administers this grant by: • Managing the National Dislocated Worker Grant program under Section 170 of WIOA and determining whether Massachusetts’ application met the criteria for an Employment Recovery NDWG. • Awarding and overseeing the funds, including setting rules on who can be served, what services are allowed, and how performance is measured. • Providing technical assistance and guidance to the state as it operates the grant. The news release states that the grant is “administered by the department’s Employment and Training Administration,” and ETA’s NDWG program pages describe its role in funding and overseeing these grants.

How long will the grant-funded programs be available to dislocated workers, and roughly how many workers can the funding serve?Expand

The specific project length and number of participants for this Massachusetts grant are not provided in the news release, and no separate detailed project document is publicly linked. National guidance says National Dislocated Worker Grants are time‑limited and used for a defined project period (often around 18–24 months), but the exact end date and target enrollment for this $551,195 grant are not stated in available public sources, so the precise duration and number of workers it can serve cannot be determined from current information.

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