ADVOCACY & POLICY UPDATE - January 20, 2026

House Releases FY26 Labor-HHS Funding Minibus​

Washington Update

Appropriations

On Tuesday, January 20, the House Appropriations Committee released the final four FY26 funding measures: Labor-HHS-Education, Transportation-HUD, Homeland Security, and Defense, totaling $1.2 trillion in spending. 

The FY26 Labor-HHS-Education and Related Agencies bill includes $224 billion, which is more than $50 billion above President Trump’s budget request and $23.4 billion above the GOP House bill. It includes $13.7 billion for the Department of Labor (DOL), an increase of $4.1 billion above the Republican House bill. This includes:

• $10.4 billion for the Employment and Training Administration (ETA), an increase of $3.7 billion above the Republican House bill. Within this amount, the bill includes:

• $2.9 billion for Workforce Innovation and Opportunity Act State Grants, an increase of $1.8 billion above the Republican House bill. 

• $110 million for the Reintegration of Ex-Offenders, which was eliminated in the Republican House bill. 

• $285 million for Registered Apprenticeships, equal to the 2025 level. 

• $65 million for Strengthening Community College Training Grants, equal to the 2025 level. 

• $1.8 billion for Job Corps, an increase of $880 million above the Republican House bill. 

• $395 million for the Senior Community Service Employment for Older Americans Program, which was eliminated in the Republican House bill. 

It also includes $116 million for the Bureau of International Labor Affairs (ILAB) and $23 billion for the Women’s Bureau,  both of which were eliminated in the Republican House bill. 

For the Department of Education, the bill includes a total of $79 billion, an increase of $12.3 billion above the GOP House bill. In this total, the bill includes:

• K-12 Education, including Individuals with Disabilities Education Act programs — The bill includes $44.7 billion, an increase of $9.3 billion above the House Republican bill. Within this amount, the bill includes:

  • $18.4 billion for Title I Grants to Local Educational Agencies, an increase of $4.7 billion above the Republican House bill. 

  • $2.2 billion for Title II-A (Supporting Effective Instruction State Grants), which was eliminated in the Republican House bill.

  • $15.5 billion for Special Education, an increase of $23 million above the 2025 level.

  • $1.3 billion for Nita M. Lowey 21st Century Community Learning Centers, equal to the 2025 level.

The bill includes $2.2 billion for Career, Technical and Adult Education, an increase of $706 million above the Republican House bill. Within this amount, the bill includes $1.5 billion for Career and Technical Education, equal to the 2025 level and $729 million for Adult Education, which was eliminated in the Republican House bill. 

It also includes $24.6 billion for Federal student aid programs, an increase of $1.4 billion above the Republican House bill. Within this amount, the bill includes $22.5 billion for the Pell Grant program, equal to the 2025 level, and $7,395 for the maximum Pell Grant award, equal to the 2025 level. It also includes $910 million for the Federal Supplemental Educational Opportunity Grant program, which was eliminated in the Republican House bill. 

It includes $3.3 billion for higher education programs, an increase of $552 million above the Republican House bill. Within this amount, the bill includes: 

• $1 billion, an increase of $2 million above the 2025 level, to assist Historically Black Colleges and Universities (HBCUs) and Minority Serving Institutions (MSIs) in the Aid for Institutional Development account 

• $1.2 billion for Federal TRIO programs, equal to the 2025 level. 

• $388 million for GEAR UP, equal to the 2025 level. 

• $70 million for Teacher Quality Partnerships, which were eliminated in the Republican House bill. 

• $75 million for Child Care Access Means Parents in School, which was eliminated in the Republican House bill. 

• $81 million for International Education and Foreign Language, which was eliminated in the Republican House bill.

The Homeland Security bill is expected to be the most contentious and reduces funding for ICE enforcement and removal operations by $115 million, cuts ICE detention beds by 5,500, and reduces Border Patrol funding by $1.8 billion, while maintaining the agency’s overall budget. 

With the House set to recess next week, lawmakers must pass the bills this week to avoid a partial government shutdown ahead of the January 30 deadline.

Click here to access the full press release and more information on the bills.

Click here to access the full bill text.

Departments of Labor & Education

On Thursday, January 15, the U.S. Departments of Labor (DOL) and Education (ED) announced new steps to better coordinate postsecondary education and workforce development programs. While this move is part of a broader effort by the Trump Administration to show that federal education programs can operate without a standalone Department of Education, coordination between the two agencies — especially on workforce-related education programs — has been discussed under multiple administrations.

DOL already co-administers adult education and family literacy programs with ED’s Office of Career, Technical, and Adult Education (OCTAE). Current and former officials note that aligning workforce education programs with DOL has long been considered a way to improve outcomes for learners and employers, though prior efforts mostly took the form of cross-agency work groups rather than formal integration. The current interagency agreements represent the most extensive step toward alignment to date. Supporters argue the effort could improve coordination and program effectiveness if implemented carefully, while acknowledging uncertainty about its long-term durability across future administrations.

As part of this effort, ED announced that beginning in late January 2026, staff from its Higher Education Programs Division will be detailed to DOL to help transition federally funded postsecondary programs to DOL’s grant management and payment systems — following a process previously used for certain career and technical education programs. Once the transition is complete, grantees will use DOL's Grant Solutions and Payment Management System to align administrative functions across postsecondary and workforce programs.

The partnership is being carried out through interagency agreements, a standard way for federal agencies to share resources and manage programs. Under the agreements, DOL will assist with grant management, technical assistance, and integration of postsecondary education programs with existing workforce initiatives, consistent with federal statutory authority. Both agencies say they will provide guidance to grantees as implementation proceeds.

These changes come amid broader debates over the future of the Department of Education and have become a point of contention in congressional appropriations negotiations. Some lawmakers are seeking to restrict the transfer of departmental responsibilities to other agencies through funding legislation, highlighting the political uncertainty surrounding the long-term direction of the interagency integration effort.

Click here to read the full press release.

House Education and Workforce Committee Hearing

On Wednesday, January 14, the House Education and Workforce Committee held the hearing “Building an AI-Ready America” to discuss ways artificial intelligence (AI) is impacting the workforce, job training, and education. The hearing, the first in a series on AI, examined ways AI can expand opportunity, productivity, and skills training while setting clear expectations for safety, privacy, and accountability. Witnesses included OpenAI Head of Certifications and Jobs Platform Chaya Nayak, MagicSchool AI Founder & CEO Adeel Khan, Center for Democracy & Technology President & CEO Alexandra Reeve Givens, and University of Texas Law School AI Innovation & Law Fellow Kevin Frazier. 

Click here to access a video recording and witness testimony.

Flexibility for Workers Education Act

On Tuesday, January 13, the House failed to pass the Flexibility for Workers Education Act (HR 2262) with lawmakers voting 215-209 against the measure. The legislation would have allowed employers to hold voluntary job-related training outside normal work hours without compensating employees, a change supporters said would encourage skills development. Despite last-minute lobbying by GOP leaders, including Speaker of the House Mike Johnson (LA) and Majority Leader Steve Scalise (LA), six Republican members joined House Democrats in opposing it over concerns the law could allow employers to avoid paying workers for training, potentially leading to abuse. Critics warned the bill posed risks to workers. 

The defeat is a setback for Congressman Tim Walberg (MI), who spearheaded the legislation, and prompted House leaders to scrap votes on two other labor bills later that day: the Tipped Employee Protection Act and the Empowering Employer Child and Elder Care Solutions Act.