U.S. Department of Education Announces Connecting Talent to Opportunity Challenge Semifinalists

 Today, the U.S. Department of Education (the Department) announced the 10 states selected as semifinalists for the Connecting Talent to Opportunity (CTO) Challenge, a national call to action designed to strengthen the connections between learners and earners by accelerating the development of integrated, state-wide Talent Marketplaces. 

The semifinalists are Alabama, Arizona, Arkansas, Georgia, Hawaii, Massachusetts, Montana, South Carolina, Tennessee, and West Virginia. 

“The CTO Challenge is accelerating the development of Talent Marketplaces that better connect workers with education, training, and employment opportunities,” said Acting Assistant Secretary for Career, Technical, and Adult Education Dr. Casey Sacks. “These semifinalists are modernizing how talent connects with opportunity. Their work will help make skills more visible, credentials more transparent, and career pathways more accessible for learners, workers, and employers.” 

“The Connecting Talent to Opportunity Challenge represents a bold leap forward in breaking down education and employment silos,” said Assistant Secretary of Labor Dr. Henry Mack. “America’s Talent Strategy hinges on making skills visible, verifiable, and portable—so every American can access opportunity, not just credentials. This isn’t just about funding innovation, it is about delivering on the President’s vision for a dynamic, skills-first workforce that powers the Golden Age of America.” 

Semifinalists will participate in a six-month incubation period, during which they will receive targeted technical assistance, expert guidance, and resources to refine and operationalize their plans. Finalists will implement and scale Talent Marketplace systems, contributing to a national model for connecting skills, credentials, and employment opportunities. 

During the Challenge, states will build or scale Talent Marketplaces that include credential registries and use learning and employment records to help workers translate their learning and experience into machine-readable, industry-recognized competency statements that can connect them to skills-based job opportunities. The challenge aims to strengthen alignment among workforce, education, and economic development systems and reduce barriers to employment. 

The Department launched the CTO Challenge in December 2025. The Challenge is a $15 million prize competition to strengthen the connections between learners, education and training providers, and employers by fostering the development of integrated Talent Marketplaces. 

The Department invited state Governors, in collaboration with their Perkins, adult education, and workforce partners, to build or scale Talent Marketplaces that include a Credential Registry, Learning and Employment Records, and Skills-Based Job Description Generators to better match talent to opportunity. In doing so, states will expand access to high-quality career pathways, increase labor force participation, and support skills-based hiring.