ADVOCACY & POLICY UPDATE - April 6, 2026

President Trump's FY27 Budget Proposes Cuts to Departments of Labor, Education

Washington Update​

President’s FY27 Budget Request/Appropriations

On Friday, April 3, President Trump released his Fiscal Year 2027 (FY27) budget request, which reduces nondefense spending by $73 billion, 10 percent, while increasing defense spending to $1.5 trillion, a 44 percent increase.

Department of Labor

The President’s FY27 budget requests $9.9 billion in discretionary spending for the U.S. Department of Labor (DOL), a $3.5 billion or 25.9 percent decrease from the FY26 enacted level.

Below are key Eliminations (-) / Reductions (-) / Increases (+)

• Cuts Department of Labor funding by nearly 26 percent from the FY26 level. -$13.3 Billion to $9.9 Billion 

• Consolidates other workforce development funding into Make America Skilled Again block grants, to “give states and localities the flexibility to spend Federal workforce dollars to best support their workers and economies.” States will also be required to spend at least 10 percent of their MASA grant on apprenticeship programs.

• Increases funding for the Employment and Training Administration by $1.4 billion to fund Career and Technical Education at the Department of Labor as part of the President’s plan to dismantle the Department of Education. +1.4 billion

• Funds the Bureau of Labor Statistics at $668 million, a cut of $40 million below FY26, and transfers it to the Commerce Department. -$40 million 

• Eliminates the Job Corps Program. -$1.6 Billion

• Eliminates the Senior Community Service Employment Program (SCSEP). -$405 Million 

• Eliminates the Women’s Bureau. -$23 Million 

Department of Education

The budget requests $76.5 billion in discretionary spending for the U.S. Department of Education (ED), a $2.3 billion or 2.9 percent decrease from the FY26 enacted level.

Below are key Eliminations (-) / Reductions (-) / Increases (+)

• Requests $76.5 billion for the agency, a $2.3 billion or 2.9 percent cut from FY26 levels. -$2.3 Billion

• Maintains FY26 levels for Title I programs and provides $2 billion for a new MEGA grant program — additional funding to pursue locally driven improvements in math and reading. +2 Billion

• Provides $16 billion for Individuals with Disabilities Education Act (IDEA) programs, with a $489 million increase to IDEA State Grants and $50 million increase to IDEA Grants for Infants and Families. +539 million

• Increases Federal Pell Grants by $10.5 billion to address the funding shortfall while maintaining the discretionary maximum award of $6,335. 

• Eliminates the Teacher Quality Partnership. -$70 Million

• Cuts funding for migrant education by $428 million and reduces other services to immigrant students learning English by $890 million. -$1.3 Billion 

• Eliminates $2.7 billion in higher education programs, including minority serving institutions programs, the Fund for the Improvement of Postsecondary Education (FIPSE), and International and Foreign Language Education. -$2.7 Billion

• Invests $500 million to expand charter schools. +$500 Million

  
  

Click here to access the President’s FY27 budget request.

Former Education Secretary To Lead CT Workforce Commission

On Thursday, April 2, Connecticut Governor Ned Lamont signed an executive order establishing a commission to modernize career pathways in his state and announced that former U.S. Secretary of Education Miguel Cardona will lead it. 

The new Pathways Commission will focus on strengthening coordination between schools and employers to ensure students can access programs to meet both their academic needs and career goals. The commission follows the recent “Connecticut Workforce & Education Strategy Blueprint” report, which found that  the state needs more standards for job-training programs and classes offered by local schools. It also noted that employers sometimes struggle to connect with students through job fairs and other outreach efforts.

Governor Lamont has not yet announced the full list of commission members but said the group will begin work quickly and issue a report of recommendations by the end of the year.   

Unemployment Rate

On Friday, April 3, the U.S. Department of Labor (DOL)Bureau of Labor Statistics (BLS) released the March jobs report, showing payrolls increased by 178,000. The unemployment rate fell slightly to 4.3%, largely due to a significant decline in the labor force participation, with 396,000 people exiting the workforce. The stronger-than-expected job growth suggests continued labor market resilience; however, risks are mounting amid the ongoing war with Iran, which has no clear end in sight. Economists note that March data likely does not yet reflect the conflict’s economic impact, with effects expected to become more apparent in the April report.

Click here to access the full March jobs report.

Click here to access Labor Secretary Chavez-DeRemer’s statement on the February jobs report.