ADVOCACY & POLICY UPDATE - August 4, 2025

Senate Appropriators Level Fund DOL; Congress Adjourns for August Recess

Washington Update

August Recess

The House and Senate are both in August recess with both chambers reconvening on September 2, 2025.

Appropriations

On Thursday, July 31, the Senate Appropriations Committee voted 26-3 to maintain current funding levels for the U.S. Department of Labor (DOL), rejecting proposed budget cuts from the White House. Funding was also held steady for several labor-related agencies, including the Occupational Safety and Health Administration (OSHA), Office of Labor-Management Standards, Wage and Hour Division, Employee Benefits Security Administration, and Mine Safety and Health Administration. The White House had proposed eliminating Job Corps and other workforce programs, closing the Women’s Bureau and the Office of Federal Contract Compliance Programs, and transferring the Bureau of Labor Statistics to the Department of Commerce. Lawmakers from both parties opposed these efforts, and courts have already blocked attempts to close Job Corps. The House has not acted on the White House proposals, delaying its Labor-HHS-Education funding bill until after the August recess.

Most Workforce Innovation and Opportunity Act (WIOA) programs would be level funded in the bill, but it includes $10 million reductions each for Title I Adult formula grants, the Reentry Employment Opportunities (REO) program, and the Senior Community Service Employment Program (SCSEP). Job Corps would remain funded at current levels. Unlike previous House proposals, the Senate bill does not call for eliminating any major workforce programs.

The Senate bill also provides a $400 million increase for the National Institutes of Health (NIH), rejecting proposed cuts and limiting efforts to shorten NIH grant timelines. Education funding would be set at $79 billion, with provisions to block some administration efforts to dismantle the Department of Education.

Finally, the measure includes new oversight provisions aimed at ensuring executive accountability. These include restrictions on delaying or withholding federal funds, requirements for sufficient departmental staffing to meet legal obligations, and limits on transferring major responsibilities between agencies without Congressional approval.

On Friday, August 1, the Senate passed its first three spending bills — a two-bill package with a bipartisan vote of 87-9 that included funding for the Department of Veterans Affairs (VA), Military Construction, and the Department of Agriculture, along with the Food and Drug Administration (FDA), and separately passed the Legislative Branch funding bill by an 81–15 vote. The package provides almost $154 billion for military construction and veterans programs and more than $27 billion for the USDA and FDA — both represent a roughly 2 percent boost over current levels. The Legislative Branch bill will be combined with the two-bill package and sent to the House as a bundle under the bipartisan agreement laid out by Senate Appropriations Chair Susan Collins (ME) earlier that day. On Thursday, Senator Chris Van Hollen (MD) blocked the ability to bring up a four-bill package that would have incorporated funding for the Justice and Commerce departments as well as other agencies because of a stalemate with the administration on the FBI headquarters move to Maryland. The Senate punted the Justice-Commerce bill until after August recess.

With the September 30 funding deadline approaching and both chambers now on August recess, Congress is set to resume appropriations negotiations when they return amid growing partisan tensions. So far, the House has passed two of the 12 annual appropriations bills, mostly along party lines. Congress will ultimately have to consider a continuing resolution (CR) to avoid a shutdown.

Click here to access the Labor-HHS-Education Senate bill.

Click here to access the local workforce coalition FY26 workforce funding chart.

Department of Labor

On Friday, July 25, a second federal judge blocked the U.S. Department of Labor’s (DOL’s) attempt to suspend operations at Job Corps centers nationwide. U.S. District Judge Dabney Friedrich ruled that DOL’s plan violated both the Administrative Procedure Act (APA) and the Workforce Innovation and Opportunity Act. This decision comes after a separate judge in Manhattan issued a more limited injunction last week, adjusting the scope of his ruling to comply with a recent Supreme Court decision that restricts nationwide injunctions. Friedrich’s ruling avoids that limitation by basing the decision on the APA, a legal approach not accepted in the earlier case. DOL has not publicly responded to the latest ruling.

Senate Nominations Confirmations

Last week, while the House was in recess, the Senate concentrated on confirming executive branch nominees. Senate Majority Leader John Thune (SD) criticized delays in the process and said the chamber would stay in session as needed to complete confirmations. However, senators left for the August recess without reaching a deal to approve dozens of pending nominations. Republicans said they will pursue rule changes in September, which will enable them to speed up the process but the dispute arose around the approach to confirming lower-level appointees like assistant secretaries. This year, Democrats required roll call votes for nearly all nominees, the first time a minority party has blocked fast-tracking confirmations entirely. This contributed to a broader trend of slower confirmations — averaging 192 days under the Biden administration, compared to 69 days during the Reagan era. An earlier attempt to expedite confirmations in exchange for restoring funding for foreign aid and science research collapsed. Before adjourning, the Senate was able to confirm several nominees, including Jeanine Pirro for U.S. Attorney for D.C.

Short-Term Pell

On Friday, August 1, in an armchair discussion with Colorado Governor Jared Polis at the National Governors Association’s (NGA) summer meeting, U.S. Secretary of Education Linda McMahon told governors that communication lapses around federal education funding reviews may continue, citing transitional challenges. Polis raised concerns about the short notice given to recipients — just one day before the typical funding release — and asked McMahon how future disruptions could be avoided. McMahon said the Office of Management and Budget (OMB) had taken additional time to review title funding but expects that process improvements would help prevent similar issues in the future. 

McMahon also discussed the expansion of Pell Grants for short-term workforce development programs — noting that the Departments of Education and Labor had signed a memorandum of understanding to coordinate efforts, with Education providing most of the funding. Negotiated rulemaking to implement the broader legislation that includes the Pell expansion is set to begin August 7.

Unemployment Report

On Friday, August 1, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the July unemployment report, which showed nonfarm payrolls increased by only 75,000, while previous estimates for May and June were revised down significantly by a combined 258,000 jobs. May’s growth was adjusted to 19,000 from 144,000, and June’s to 14,000 from 147,000. The three-month average now stands at 106,000, the weakest since late 2010 outside of the pandemic period. The unemployment rate inched up to 4.2% from 4.1%. The report indicates a sharp slowdown in labor market momentum, raising the likelihood of a Federal Reserve interest rate cut in September. The drop in job growth may be partially linked to reduced labor supply, potentially driven by stricter immigration enforcement. The data represents a notable shift in the economic outlook, casting doubt on the previously perceived strength of the labor market. It comes amid escalating trade tensions, as the administration expands tariffs globally - an approach some economists argue could further strain the economy.

Click here to access the full report.

Click here to read Labor Secretary Lori Chavez-DeRemer’s statement on the report.