More than 700 people will be skilled up for jobs in the growing construction and new energy technology sectors.
Victorian Minister for Training and Skills Steve Herbert announced the grant during a visit to Swinburne University.
Mr Herbert said the initiative focuses on supporting retrenched workers and unemployed people (including newly arrived migrants) to have a smooth transition from pre-apprenticeships to the workforce through a partnership with the Sarina Russo Job Access.
The Fund will support projects that allow TAFE institutes to provide training which leads to jobs by working in partnership with local industries.
Mr Herbert said the training also supports employers who plan to hire staff as part of the Government’s Back to Work scheme, by creating more job-ready skilled workers.
The Back to Work scheme provides financial assistance to businesses if they hire unemployed young people, retrenched workers or the long-term unemployed.
“TAFEs mean skills and skills mean jobs, which is why it is essential to the future of the region that Swinburne University delivers more training which gives locals the opportunity to develop the skills they need to get that job,” Mr Herbert said.