ADVOCACY & POLICY UPDATE - December 8, 2025

ED and Labor Advance Workforce Partnership​

Washington Update

Appropriations

On Monday, December 1, lawmakers returned to Capitol Hill for the final legislative stretch before the holidays. In addition to resolving expiring health insurance subsidies by year’s end, Congress faces a January 30 government funding deadline. Senate leaders are working to assemble another minibus package, while House and Senate appropriators continue behind-the-scenes negotiations on a separate set of bills. Congress still must enact nine of the twelve FY26 appropriations bills. Three bills that remain the most contentious are Defense, Labor-HHS-Education, and Energy-Water while legislation for Transportation-HUD, Commerce-Justice-Science, and Interior-Environment are the most likely to move forward soon. The Homeland Security and State-Foreign Operations bills may require full-year stopgap funding if broader agreement isn’t reached.

House Appropriations Chair Tom Cole (OK) and Senate Appropriations Chair Susan Collins (ME) have agreed on overall funding levels for five bills — Commerce-Justice-Science, Financial Services, Homeland Security, Interior-Environment, State-Foreign Operations, and Transportation-HUD — and are close on a sixth. These agreements exclude the three largest bills — Defense, Labor-HHS-Education, or Energy-Water. Cole supports advancing smaller packages first, while many senators want to start with the major measures.

Bipartisan support will still be required to advance additional funding bills before the next shutdown deadline. Cole notes potential tensions in negotiations, including disagreements over spending priorities, decisions related to health insurance subsidies, and lingering divisions from the recent 43-day government shutdown.

On Tuesday, December 2, Senate Majority Leader John Thune (SD) said a handful of holds continue to delay movement on a minibus package, citing disagreements over spending levels. Thune indicated that even with unanimous consent to begin debate, final passage may not occur before the holiday recess, though he hopes to have legislation ready for consideration in January.

Cole and Collins are continuing discussions about the feasibility of advancing a limited package in December, with Cole suggesting three or four bills could potentially move. He notes that the largest measures — Defense and Labor-HHS-Education — represent nearly two-thirds of discretionary spending and may need to be addressed separately. Final decisions will depend on leadership in both chambers.

Departments of Labor & Education Workforce Partnership

On Friday, December 5, the U.S. Departments of Education (ED) and Labor (DOL) provided an update on efforts to integrate the federal workforce development portfolio. The departments have transitioned the Workforce Innovation and Opportunity Act (WIOA) state plan portal to DOL to streamline program administration, allowing ED and DOL to jointly manage core WIOA programs, including adult education and family literacy. Future efforts will integrate the Perkins state plan portal so states with combined WIOA plans can submit information through a single system.

Since October 1, the agencies have processed nearly 800 payment requests from 43 states and territories and onboarded all grantees to DOL’s GrantSolutions and Payment Management System, which is widely used across federal agencies. ED and DOL are aligning timelines for submitting 2026 WIOA state plan modifications and will provide joint feedback. On November 25, DOL issued guidance to governors and workforce boards, in collaboration with ED, on WIOA waiver and flexibility options and on further integrating Perkins career and technical education (CTE) programs into the public workforce system.

The workforce partnership builds on initiatives in several states that have aligned and coordinated state education and workforce agencies to reduce duplication and increase efficiency.

On Wednesday, December 3, Senate Appropriations Vice Chair Patty Murray (WA) sent a letter to Education Secretary Linda McMahon urging the department to stop transferring its funds to other federal agencies. Murray argued that appropriations law does not permit such transfers without explicit authorization. The letter was signed by 36 senators.

Click here to access the Department of Labor press release on the partnership.

Click here to access the Department of Education press release on the partnership.

Click here to access Senator Murray’s letter.

Department of Labor Nominees

Senate Majority Leader John Thune (SD) is preparing to bring forward a group of 88 nominees from President Trump for floor consideration later this month. The slate includes several key Department of Labor positions: Henry Mack for the Employment and Training Administration; former Congressman Anthony D’Esposito (NY) for Inspector General; Rosario Palmieri for Assistant Secretary of Labor for Policy; Jeremiah Workman for Assistant Secretary of Labor for the Veterans’ Employment and Training Service; National Labor Relations Board (NLRB) member James Murphy; and NLRB general counsel Crystal Carey.

Any nominees not confirmed by year’s end will need to be resubmitted in January, which could delay the confirmation process.

Department of Education/Workforce Pell

On Monday, December 8, the Department of Education (ED) will convene officials and higher education stakeholders as part of the Accountability in Education and Access through Demand-driven Workforce Pell (AHEAD) negotiated rulemaking process to finalize details of the Workforce Pell Grant program. On Thursday, December 4, ED released meeting materials, including the agenda, list of negotiators, and draft regulations. The Department aims to complete work on Workforce Pell during this first session, reserving a new accountability framework for degree programs for a second session in early January.

The Workforce Pell Grant program will allow short-term training programs of 150 to 599 clock hours (or credit equivalent) over eight to 14 weeks to qualify for Pell Grants. Only accredited institutions eligible for federal financial aid may participate. Most non-credit programs are eligible, except for remedial coursework embedded in for-credit programs. Students with a baccalaureate degree are eligible, but Workforce Pell cannot be received concurrently with a regular Pell Grant.

The draft regulations outline a multi-step approval process beginning at the state level. Governors must determine that programs meet high-skill, high-wage, or in-demand occupation standards; award stackable and portable credentials; and prepare students for subsequent certificates or degrees. States must implement written policies and procedures that ensure employer engagement and alignment with workforce needs. Completion and job placement data will be collected and reported to ED, which will oversee federal compliance.

The regulations implement accountability measures requiring that program tuition and fees be lower than the program’s “value-added earnings” — the median earnings of completers three years after finishing, minus 150% of the federal poverty line. ED may review up to four years of complete data with a minimum of 30 students. Programs for which value-added earnings cannot be calculated may still qualify if other requirements are met.

Some statutory timelines are adjusted in the draft rule. The one-year program existence requirement begins at the time of state approval rather than at program launch, which may delay eligibility. Placement rates must initially meet the statutory 70% threshold; over time, placement must be in the program’s specific target occupation or a comparable role. Federal oversight may be used to determine completion and placement rates.

Concerns have been raised about states’ ability to develop the necessary data infrastructure in time. With final regulations not expected until spring, states may have only a few months to review programs before the anticipated July 1, 2026 implementation date. Additional concerns relate to program cost — in January, the Congressional Budget Office (CBO) projected a nearly $10 billion Pell shortfall, which Congress addressed by adding $10.5 billion for FY26. Updated CBO Pell projections are expected in February.

Click here to access the AHEAD Committee information.

H-1B Visas

On Monday, December 1, the Justice Department asked a federal judge in Washington to dismiss a lawsuit brought by the U.S. Chamber of Commerce and a coalition of research universities seeking to overturn a $100,000 fee for bringing immigrant workers to the United States on H-1B visas. The Justice Department argued that the September proclamation establishing the fee is nonrenewable under the president’s authority in the Immigration and Nationality Act and that the policy does not violate federal procedural requirements.

The employer groups argue that the Administration is exceeding its authority and contradicting congressional intent by effectively creating a travel restriction linked to a six-figure payment. Demand for H-1B visas consistently exceeds supply, with tens of thousands issued annually for up to three years, with the option to renew. Visas are allocated through a lottery system the Administration is seeking to revise to limit applications from lower-paid or less-experienced workers. H-1B workers are used across sectors such as health care, technology, and higher education, while critics contend the program can disadvantage U.S. workers.

Judge Beryl Howell has given the plaintiffs until Wednesday, December 10, to respond to the administration’s arguments.

DOL Bureau of Labor Statistics

On Thursday, December 4, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) updated release dates for several reports as it continues to recover from the recent government shutdown, with delays expected to carry into early next year. The productivity and costs report for the third quarter of 2025, originally scheduled for November 6, will now be released on January 8. The employment cost index for the fourth quarter of 2025 has been moved from January 30 to February 10.

Also on Thursday, BLS published delayed third-quarter earnings data, showing that full-time workers earned an average of $1,214 per week, a 4.2 percent increase from the same period in 2024, with earnings growth outpacing inflation.

Click here to access the Weekly Earnings Summary.

Click here to access the revised news releases dates.

Digital Skills for Today’s Workforce Act

On Wednesday, December 2, Senator Tim Kaine (VA), along with Congressmen Eugene Vindman (VA) and David Valadao (CA) introduced the bipartisan, bicameral Digital Skills for Today’s Workforce Act, which aims to expand access to digital skills training for American job seekers. More than 90 percent of today’s jobs require digital skills, yet over one-third of workers lack these foundational skills, and current Workforce Innovation and Opportunity Act (WIOA) programs cannot use federal funds for digital training, leaving one-stop workforce development career centers without such opportunities.

The Digital Skills for Today’s Workforce Act would amend WIOA to establish a “Digital Skills at Work” grant program to expand digital skills training within postsecondary education, adult education, and workforce development systems. The legislation would provide targeted support for job seekers, workers seeking upskilling, and individuals with barriers to employment.

The bill would create formula funding grants for states based on population, working-age residents, and levels of low digital literacy, and competitive grants for localities and organizations focused on underserved populations. Recipients of the grants would be required to report publicly on performance outcomes. This legislation has received broad support from education, workforce, and community organizations.

Click here to access the full press release on the bill.

Expanding Cybersecurity Workforce Act

On Thursday, December 4, Congresswomen Shontel Brown and Haley Stevens introduced the Expanding Cybersecurity Workforce Act to broaden access to cybersecurity careers, particularly for underrepresented and disadvantaged communities. The bill establishes a new diversity program at the Cybersecurity and Infrastructure Security Agency (CISA) to expand outreach, education, and career awareness. CISA would promote cybersecurity opportunities to a wide range of populations, including racial and ethnic minorities, women, older individuals, veterans, people with disabilities, individuals from nontraditional education paths, and others. The bill authorizes $20 million annually through 2030 for the new CISA program and requires annual reporting to Congress on its effectiveness. 

Click here to access the full press release.