Senate Appropriators Advance Labor-HHS Funding Bill
Washington Update
Appropriations
On Thursday, August 1, Senate appropriators voted 25-3 in favor of the Labor-HHS-Education funding bill, which would increase the Department Labor’s budget to $13.8 billion and set the Department of Education’s funding at $80 billion for FY25. Both funding levels are in-line with the White House budget request and are far above the House Republicans’ proposed funding of $10.5 billion for DOL and $72 billion for the Department of Education.
The Senate appropriations bill includes $2.9 billion for Workforce Innovation and Opportunity Act (WIOA) formula grants, protecting essential investments made in recent years. It provides $290 million for Registered Apprenticeships and $110 million for YouthBuild, and sustains funding for other programs, such as Reentry Employment Opportunities.
It also calls for $18.687 billion for schools serving students from low-income families, a $280 million increase over FY24. Title I grant funding is likely to be a contentious area of debate between the House and Senate, as it was in the last spending cycle. The House has proposed a 25 percent cut to grant funds for high-need schools. The Senate has also proposed $895 million for English language learning, a program that was eliminated in the lower chamber’s proposal. Grant funding for students with disabilities would get a $295 million increase under the Senate's proposal. It also increases Head Start funding by a $700 million increase and the Child Care and Development Block Grant would be funded at $1.6 billion.
It would provide an additional $100 million to administer federal student aid programs, with the committee citing the boost in funds to support the Education Department’s implementation of the new federal student aid form that has been fraught with technical difficulties. The proposal is short of the $625 million increase the White House has sought for student aid administration. Additionally, the maximum Pell Grant award would see a slight increase — to $7,495, up from the current $7,395 maximum.
Congress is currently in recess until Monday, September 9. It is widely expected that lawmakers will advance a continuing resolution to keep the government funded past October 1, with a budget deal not expected to be finalized until after the November elections.
Click here to access Chairwoman Murray’s press release on the Labor-HHS-Education FY25 Appropriations bill.
Click here to access the FY25 Labor-HHS Appropriations bill text.
Click here to access the FY25 Labor-HHS Appropriations bill Senate report.
Click here to access a video of the committee markup.
Child Care Bills
On Wednesday, July 31, Senators Tim Kaine (VA) and Katie Britt (AL) unveiled two bipartisan child care bills — the Child Care Availability and Affordability Act and the Child Care Workforce Act — that add tax credits for families and businesses paying for child care and provide a financial boost for child care workers. The senators are hoping to move the bills through a tax package Congress could potentially pass next year.
The Child Care Availability and Affordability Act would make the Child and Dependent Care Tax Credit refundable and expand the expenses taxpayers can claim to $5,000 for families with one child and $8,000 for families with two or more children — making the maximum credits taxpayers can receive $2,500 and $4,000, respectively. Currently, families can claim up to $3,000 in expenses for one child and $6,000 for two or more children. Additionally, it would boost the Employer-Provided Child Care Tax Credit, increasing the maximum credit from $150,000 to $500,000 for businesses that provide child care services to their employees. Small businesses would get a larger incentive, with a maximum credit of $600,000.
The Child Care Workforce Act looks to help retain child care workers with a federal pilot grant program that would fund wage supplements. The pilot would mirror existing programs in states like Virginia, Nebraska, Oklahoma, Maine and Washington, D.C., where early childhood educators received incentive payments.
Click here to read the press release.
Generation Now Workforce Representation Act of 2024
On Thursday, August 1, Senators Tim Kaine (VA) and Laphonza Butler (CA) introduced the Generation Now Workforce Representation Act of 2024 (GeNWRA), which aims to improve youth representation on state workforce development boards. The bill would amend the Workforce Innovation and Opportunity Act (WIOA) to give young people a voice in shaping career development initiatives across the nation. The legislation would mandate that each state workforce development board include at least one opportunity youth representative — young individuals aged 16-24 who are not in school or employed; require state workforce development boards to include representation from youth-serving nonprofit organizations; and establish youth workforce committees within each state board to provide ongoing recommendations on youth-focused workforce investment activities.
Click here to read the full press release.
Unemployment Rate
On Friday, August 2, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the July unemployment report, which showed nonfarm payrolls increased by 114,000 — much less than expected, which fueled fears of a broader economic slowdown. The unemployment rate rose to 4.3%, its highest since October 2021. The sharp downturn shook financial markets with the Dow Jones Industrial Average dropping 610 points, or 1.5% and the S&P dropping 1.8%. Last week, the Federal Reserve said it needed to see more evidence inflation is moving toward its 2% target before it cuts rates. Chair Jerome Powell characterized the American job market as healthy despite calls for the central bank to begin lowering its benchmark rate, which stands at a 23-year high. Hourly wages rose just 3.6% from July 2023, the smallest year-over-year gain since May 2021, and another sign that inflation could be heading closer to the Fed’s target.
Click here to access the report.
Click here to read Acting Secretary of Labor Su’s statement on the July jobs report.
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