To improve our nation’s economy, we need to create more coherent and effective education and workforce development systems, especially targeting disadvantaged youth and adults. This paper proposes new federal competitive grants to states that fund training partnerships between education institutions, employers from key industry sectors, workforce agencies, and other intermediaries at the state level, as well as fund support and services. The author discusses predicted costs and benefits of the grants and purports that over time, these activities will create more effective education and workforce systems, and that these investments will help reduce the nation’s unemployment rate.