Labor Awards $1.6M for Nebraska Plant Closure Workers
Summary
The U.S. Department of Labor awarded over $1.6 million to the Nebraska Department of Labor to assist workers affected by the closure of a Tyson Foods plant. The grant will fund employment and training services for approximately 3,200 laid-off workers in seven Nebraska counties.
What changed
The U.S. Department of Labor, through its Employment and Training Administration, has awarded a National Dislocated Worker Grant of $1,671,239 to the Nebraska Department of Labor. This funding is intended to provide employment and training services to workers impacted by the closure of the Tyson Foods Inc. beef processing plant in Lexington, Nebraska, which resulted in the layoff of 3,200 employees on January 20, 2026. The grant, administered under the Workforce Innovation and Opportunity Act, will support dislocated workers in seven specified Nebraska counties.
This action provides critical resources for a significant economic dislocation event affecting a substantial portion of the Lexington community. While the grant itself is an award to a state agency, affected employers and potentially local workforce development boards should be aware of the services being made available to dislocated workers. Compliance officers should note the scale of the layoffs and the proactive governmental response, which may set precedents for future economic disruption events. No specific compliance actions are mandated for employers by this notice, but awareness of available worker support is beneficial.
What to do next
- Review the scope of services provided by the Nebraska Department of Labor under this grant.
- Assess potential impact on workforce availability and recruitment in affected Nebraska counties.
- Monitor similar dislocated worker grant awards in other regions as a potential indicator of economic trends.
Source document (simplified)
News Release
US Department of Labor awards more than $1.6 million to assist workers affected by closure of Nebraska beef processing plant
WASHINGTON – The U.S. Department of Labor today awarded $1,671,239 to the Nebraska Department of Labor to support employment and training services for eligible individuals in communities affected by the closure of the Tyson Foods Inc. beef processing plant in Lexington.
On Jan. 20, 2026, Tyson Foods closed its beef processing plant in Lexington, resulting in the layoff of 3,200 workers. This is an unprecedented event for the Lexington community, affecting one-third of approximately 10,500 residents.
Administered by the department’s Employment and Training Administration, this National Dislocated Worker Grant will allow the Nebraska Department of Labor to provide training and skills development services for dislocated workers seeking assistance in Buffalo, Custer, Dawson, Frontier, Gosper, Lincoln, and Phelps 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.
Agency Employment and Training Administration Date March 12, 2026 Release Number 26-270-NAT Media Contact: Christine Feroli Phone Number 202-693-4664 Email feroli.christine.e@dol.gov Media Contact: Lorynn Holloway Phone Number (202) 693-4652 Email holloway.lorynn.n@dol.gov Share This
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