Does Unemployment Pay for CDL Training?

Unemployment benefits do not directly cover the cost of Commercial Driver’s License (CDL) training. Instead, these benefits can facilitate access to government programs designed for career retraining. These programs offer grants or funding to cover training expenses, enabling eligible individuals to pursue in-demand occupations like truck driving. This support helps individuals gain new skills and re-enter the workforce.

Understanding Training Opportunities Through Unemployment

Federal programs support training for unemployed individuals, with the Workforce Innovation and Opportunity Act (WIOA) as a key resource. WIOA provides grants for career training, particularly targeting in-demand industries like transportation. Eligibility often includes being unemployed, underemployed, a dislocated worker, or a low-income earner. Veterans and military spouses receive priority. These grants can cover a significant portion, or even the entire cost, of CDL training, and do not require repayment.

The Trade Adjustment Assistance (TAA) program aids workers who lost jobs or experienced reduced hours due to foreign trade impacts. TAA provides financial assistance, training, and support services to help these workers find new employment. To qualify, individuals must have lost their job due to foreign trade and enroll in an approved training program within a certain timeframe, such as 26 weeks of job loss. Both WIOA and TAA provide direct funding for educational expenses, supporting CDL training.

Steps to Access Training Funds

To access training funds, individuals should contact their local American Job Center (AJC), also known as a One-Stop Career Center. These centers offer services including training referrals, career counseling, and job listings. Attending a mandatory orientation session at an AJC is the first step, providing an overview of available programs and requirements.

Following orientation, individuals meet with a career counselor to discuss goals and develop an Individual Employment Plan (IEP). The IEP is a personalized strategy identifying employment goals, outlining necessary training, and documenting needed services. A key step involves identifying and securing approval for an eligible CDL training program, which must be listed on the state’s Eligible Training Provider List (ETPL). The ETPL ensures the chosen program meets state and local requirements for in-demand occupations and leads to a recognized credential.

Financial Aspects of Training and Benefits

Training programs supported by WIOA or TAA cover educational costs such as tuition, books, and supplies. They may also include fees for testing, certifications, and necessary equipment or tools. While these grants address training expenses, they do not cover living expenses like housing or daily necessities.

Participation in an approved training program impacts ongoing unemployment insurance (UI) benefits. Many states waive usual work search requirements for individuals enrolled in such programs, allowing them to focus on studies without jeopardizing weekly benefits. This waiver ensures continued income support during the training period. Individuals receiving UI benefits while in training must still meet specific reporting obligations, such as certifying enrollment and attendance in the approved program.

Unemployment benefits are taxable income at the federal level and must be reported on federal income tax returns. Some states also tax unemployment benefits. Individuals can choose to have federal income tax withheld from payments to avoid a large tax bill. Grants received for training, such as from WIOA or TAA, are not considered taxable income if used for qualified educational expenses. Consult tax guidance for specific situations.