US Department of Labor awards $2M to Kentucky to help workers affected by layoffs in Bluegrass Area Development District

WASHINGTON – The U.S. Department of Labor today awarded $2 million to Bluegrass Area Development District Inc. in Kentucky to support employment and training services for people affected by layoffs at the Bluegrass Chemical Agent Destruction Pilot Plant and Yokohama Industries Americas Inc.  

In March 2025, Bluegrass Chemical Agent Destruction Pilot Plant layoffs began and are expected to continue into 2026. The total number of individuals impacted by the closure is estimated to be 1,500. In addition, Yokohama announced a closure that will impact 250 workers and begin at the end of May 2025. Layoffs at suppliers and other local businesses are also anticipated because of these closures. 

Administered by the department’s Employment and Training Administration, this National Dislocated Worker Grant will allow the Bluegrass Area Development District – one of 15 development districts in Kentucky – to provide retraining and skills development services for dislocated workers seeking assistance in Anderson, Bourbon, Boyle, Clark, Estill, Fayette, Franklin, Garrard, Harrison, Jessamine, Lincoln, Madison, Mercer, Nicholas, Powell, Scott, and Woodford counties. 

Supported by the Workforce Innovation and Opportunity Act of 2014, National Dislocated Worker Grants provide a state or local board with funding for direct services and assistance in areas experiencing a major economic dislocation event that leads to workforce needs exceeding available resources.