ADVOCACY & POLICY UPDATE - June 10, 2026

House Committee Advances Spending Bill with Deep Cuts to WIOA

Washington Update​

Appropriations

On Tuesday, June 9, the House Appropriations Committee advanced the FY27 Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS-Education) appropriations bill on a vote of 34-28. The legislation proposes $9.8 billion for the U.S. Department of Labor (DOL), a reduction of $3.7 billion (27 percent) below current funding levels, and $70.7 billion for the U.S. Department of Education, an $8 billion cut and approximately 10 percent below FY26 enacted levels.

The proposal slashes Workforce Innovation and Opportunity Act (WIOA) workforce development programs WIOA Title I formula grants by approximately 62 percent, including the proposed elimination of the Youth program and a significant reduction to the Adult program through a planned rescission of funding. The Dislocated Worker program would remain largely intact. Overall funding for DOL's Employment and Training Administration (ETA) would decrease by $3.3 billion, or 32 percent. The bill also proposes cuts to Job Corps, and would eliminate funding for the Bureau of International Labor Affairs and the Office of Federal Contract Compliance Programs.

The committee passed a bipartisan amendment to the proposal requiring the Labor secretary to notify Congress before pausing or stopping Job Corps operations at a campus. While the Trump administration has tried several times to shut down Job Corps centers citing the program’s safety issues and costs, lawmakers on both sides of the aisle have sought to maintain the program. The House Appropriations Committee budget does not eliminate Jobs Corps as per the White House’s suggestion, but would slash its funding by half. 

Additionally, a Republican en-bloc amendment, which passed the committee, would stop DOL funding from going toward setting new prevailing wage rates for agricultural and seasonal migrant workers with H-2A workers. 

For Department of Education programs, the bill would reduce funding for Title I grants serving low-income schools by $1.9 billion, eliminate funding for English language learner programs, teacher training grants, and Adult Education programs. Funding for career and technical education programs would remain level at approximately $1.5 billion, while support for students with disabilities, after-school programs, Head Start, and TRIO programs would be maintained or modestly increased. 

The proposal provides $22.7 billion for Pell Grants, along with a $50 increase to the maximum Pell Grant award, bringing it to $7,445. It also includes language prohibiting the Education Department from changing the “fundamental purpose” of the federal TRIO program, an initiative that helps disadvantaged students prepare for college, after the agency issued the Talent Search Program and Educational Opportunity Centers (EOC) grant competitions that would direct funding toward workforce development. 

The funding bill, which is unlikely to become law in its present form given opposition in the Senate, must still advance through the House, Senate, and conference negotiations before any final funding levels are enacted. The Senate is expected to develop its own FY27 funding proposal in the coming months.

The proposed cuts to federal workforce programs underscore the importance of proactive local advocacy. USCM WDC members MUST engage their mayors, employers, chambers of commerce, industry associations, economic development partners, and other business stakeholders to communicate the value of local workforce development investments. Business leaders can play a particularly influential role in demonstrating how these programs help meet local workforce needs, strengthen talent pipelines, and support regional economic development. As the FY27 appropriations process continues, it is CRITICAL that policymakers hear directly from you, your mayors, employers, and community partners about the impact these investments have on local economies.

Click here to access a video of the full committee markup and more information on the bill.

Click here to access a funding chart outlining the potential reductions.

Click here to access the bipartisan amendment on Job Corps funding.

Click here to access the en-block amendment on H-2A visa worker wage rates.

House Education and Workforce Subcommittee Hearing

On Tuesday, June 3, the House Education and Workforce Subcommittee on Higher Education and Workforce Development held the hearing “Building an AI-Ready America: Higher Education in the Age of AI” to discuss the impact of artificial intelligence (AI) on higher education and its implications for workforce preparation. The hearing was the seventh in a series examining AI-related issues. Witnesses for the hearing included Florida State University Chief Information Officer Jonathan Frozard, McGraw Hill Chief Product Officer for Higher Education Dr. Dave Duke, University Innovation Alliance CEO Dr. Bridget Burns, and Harvard Graduate School of Education Author & Adjunct Professor Michael B. Horn. 

Lawmakers and witnesses discussed how AI is reshaping teaching, learning, and workforce readiness. Testimony highlighted AI's potential to personalize instruction, improve student support, reduce administrative burdens, and help align academic programs with evolving labor market needs. Witnesses also emphasized the importance of integrating AI literacy and related skills into higher education curricula while ensuring students continue to develop critical thinking, problem-solving, and analytical abilities. Discussion focused on the need for clear policies and responsible implementation to support learning outcomes and prevent overreliance on AI tools.

The hearing underscored the growing role of AI in the economy and the importance of preparing students for emerging occupations and changing workforce demands. Participants highlighted higher education's role in equipping learners with the skills needed to adapt to technological change while fostering innovation and responsible AI use.

Click here to access more information on the hearing.

Department of Labor Secretary 

Congressman Riley Moore (WV) is reportedly under consideration as a potential nominee to lead the U.S. Department of Labor (DOL). Deputy Secretary of Labor Keith Sonderling has served as Acting Secretary since former Labor Secretary Lori Chavez-DeRemer’s resignation in April. While Moore has also reportedly expressed interest in the position, the White House has not indicated when a permanent nominee will be announced.

The prospect of Moore's nomination has drawn attention because it could further narrow the Republican majority in the House, where vacancies and member absences have already reduced the party’s margin. Some supporters have suggested that any transition could be timed to minimize its impact on House operations.

A first-term congressman and former welder, Moore has developed a profile focused on workforce and labor issues. He has supported bipartisan worker-related legislation and, at times, broken with Republican leadership on labor matters, including opposition to proposals affecting overtime calculations for voluntary training hours.

Some administration officials have expressed support for Acting Labor Secretary Keith Sonderling remaining in the role. Any permanent nominee would require Senate confirmation through the Senate Committee on Health, Education, Labor, and Pensions (HELP) before advancing to a full Senate vote.

Unemployment Rate

On Friday, June 5, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the May unemployment report, which showed nonfarm payrolls increased by 172,000 jobs — exceeding forecasts and marking a strong three-month streak. The unemployment rate remained at 4.3% last month, driven mainly by hiring in the leisure, hospitality, and healthcare sectors. The labor force participation rate was unchanged at a 4-½ year low of 61.8%, however, and the labor force is down by about 1.4 million since December.

Click here to access the full report.

Click here to access Acting Labor Secretary Keith Sonderling’s statement on the jobs report.