From a cursory read of the full announcement, it appears that colleges are eligible for these grants. A relationship with the local Workforce Investment Board is highly recommended.

The U.S. Department of Labor (DOL), Employment and Training Administration (ETA) announced the availability of approximately $10 million in funds for Older Worker Demonstration Grants. Grants are intended to address the workforce challenges facing older individuals by developing models for talent development in regional economies that recognize older workers as a valuable labor pool and include employment and training strategies to retain and/or connect older workers to jobs in high growth, high demand industries critical to the regional economy. The DOL and ETA anticipate awarding 10 to 13 grants of between $750,000 and $1,000,000 each. Applications are due February 19, 2009. For the full announcement, see http://www.doleta.gov/grants/pdf/SGA-DFA-PY-08-06.pdf.