ADVOCACY & POLICY UPDATE - June 2, 2025

President's FY26 Budget Consolidates/Cuts Workforce and Education Programs

Washington Update

Appropriations

Department of Labor

On Friday, May 30, President Trump released his full FY 2026 budget request, which includes $8.6 billion in discretionary budget authority for the Department of Labor (DOL), representing a significant decrease compared to FY 2025 enacted levels.

The budget consolidates 11 existing workforce development programs into a single, flexible Make America Skilled Again (MASA) grant program, calling for approximately $1.3 billion in reductions from all 11 for a final allocation of approximately $3 billion ($4.3 B to $2.965B). MASA would provide funding directly to states and localities to create a “unified workforce development system.” The grant requires that at least 10 percent of grantee expenditures be dedicated to Registered Apprenticeship activities.

To support the MASA consolidation, the budget eliminates discrete funding streams for the following programs: WIOA Adult; WIOA Dislocated Worker; WIOA Youth; Employment Service State Grants; Dislocated Worker National Reserve, including Strengthening Community Colleges, Workforce Opportunity for Rural Communities, and other set-asides; Apprenticeship; YouthBuild; National Farmworker Jobs Program; Indian and Native American Programs; Reentry Employment Opportunities; and the Workforce Data Quality Initiative.

The President’s Budget provides $134.9 million for the Employment and Training Administration’s (ETA) Program Administration, a reduction of $37.9 million from the FY25 enacted level. Meanwhile, it eliminates funding for the DOL Women’s Bureau, Job Corps, and the Community Service Employment for Older Americans (CSEOA) program. The budget also includes a proposal to reorganize the Bureau of Labor Statistics (BLS), Census Bureau, and Bureau of Economic Analysis under the U.S. Department of Commerce, reporting to the Under Secretary for Economic Affairs — a structural change that has raised concerns among some observers about potential impacts on the BLS’s perceived independence and the confidence of stakeholders who rely on its data. To manage resources effectively, BLS plans to prioritize its core mission by focusing on programs that produce Principal Federal Economic Indicators (PFEIs), are required by law, or are currently referenced in legislation.

The budget proposal outlines a significant reduction in staffing at DOL, with a target workforce of approximately 10,800 — down over 25% from the nearly 14,800 employees at the end of the Biden administration. Approximately 2,700 employees have accepted voluntary exit incentives, and plans to lay off additional staff at the Office of Federal Contract Compliance Programs (OFCCP) are currently on hold due to ongoing litigation. The Bureau of International Labor Affairs would see a nearly 38% reduction, while the Wage and Hour Division (WHD) and the Mine Safety and Health Administration would each face cuts of about 10%. These reductions come amid concerns from some stakeholders that enforcement capacity is already limited; for example, WHD currently employs just over 600 investigators nationwide — the lowest number in over 50 years. The Office of Labor-Management Standards, which oversees reporting requirements for labor unions and employers using anti-union consultants, would retain its $49 million budget and is not subject to proposed cuts.

The budget also includes funding for state grants to administer Unemployment Insurance (UI), with an increase for UI National Activities to combat fraud. It proposes a $79 million increase for the Reemployment Services and Eligibility Assessments budget activity, and a $25 million increase for UI National Activities to sustain the national identity verification system launched by the Department. 

Finally, the budget also includes smaller reductions for the National Labor Relations Board (NLRB) and the Equal Employment Opportunity Commission (EEOC), with the NLRB facing a 4.7% cut and the EEOC a $20 million decrease from its $455 million budget. 

Department of Education

The President’s FY 2026 budget request for the U.S. Department of Education is $66.7 billion — a $12 billion, or 15.3 percent, reduction from the FY 2025 enacted level. The request includes $1.4 billion for Career and Technical Education (CTE) State Grants under the Perkins Act, maintaining level funding with FY 2024. An additional $10.2 million is requested for CTE National Programs to support Perkins Innovation and Modernization Grants. These funds aim to strengthen partnerships between education systems and registered apprenticeships, particularly in high-growth and emerging industries. They will also support coordination among cross-sector consortiums, the development of shared metrics, resource sharing, and continuous improvement strategies to better align education and workforce pathways.

The budget also proposes $22.5 billion in discretionary funding for the Pell Grant program, consistent with FY 2024 levels. Combined with $7.7 billion in mandatory funding, total Pell Grant funding for FY 2026 would reach $30.2 billion. However, due to funding constraints, the maximum Pell award for the 2026–2027 award year is projected to decline to $5,710 — a reduction of $1,685, or approximately 23 percent, from the current award year.

Senate Appropriations Committee Ranking Member Patty Murray (WA) and House Appropriations Committee Ranking Member Rosa DeLauro (CT) are raising concerns over the White House’s failure to submit legally required, detailed spending plans for funds already approved by Congress, warning it could impact the FY26 budget process, and criticizing the Office of Management and Budget (OMB) for not complying with spending plan requirements in the full-year continuing resolution for FY25. They cited the U.S. Department of Education as a key example, noting that its initial plan omitted numerous programs and left nearly $13 billion unallocated. A revised version reduced that figure but still lacked detail on several programs with only months remaining in the fiscal year. 

The House Appropriations Committee is set to begin marking up spending bills this week, although the Labor-HHS-Education bill is not expected until late July. U.S. Secretary of Education Linda McMahon is scheduled to testify on her department’s budget before Senate and House committees this week.

It is critical that you take the following actions ASAP:

• Contact your Members of the House and Senate to express what this consolidation and cuts to workforce programs would mean to your community/residents.

• Speak out across all forms of media regarding the drastic nature of this proposed consolidation/cuts.

• Provide specific examples of the kinds of services that would be impacted if this budget is adopted, and help "put a face" on this proposed consolidation/reductions by sharing the stories of the people, families, businesses and other organizations who will be critically impacted.

  
  

Click here to access the Department of Labor FY26 proposed budget information.

Click here to access the Department of Education FY26 proposed budget information.

Click here to access President Trump’s full FY26 proposed budget.

Department of Labor

The U.S. Department of Labor plans to shutter all 99 Job Corps centers operated by outside contractors and suspend operations by June 30, sending current enrollees home — a decision that does not affect the roughly two dozen centers operated by the U.S. Forest Service. The Trump Administration cites high operational costs and concerns about student safety as key reasons for the closures. The White House's budget proposal also calls for eliminating the Job Corps program entirely, a move that faces resistance from Senate Appropriations Chair Susan Collins (ME) and other lawmakers. The abrupt suspension is expected to intensify ongoing tensions between the administration and Congress.

Senate HELP Committee Hearing

On Thursday, June 5, the Senate Health, Education, Labor, and Pensions (HELP) Committee will hold a hearing to consider two U.S. Department of Education nominees: Penny Schwinn for Deputy Secretary and Kimberly Richey for Assistant Secretary for Civil Rights. Schwinn, who would oversee K-12 programs if confirmed, previously served as Tennessee’s Education Commissioner and held several positions at the Texas Education Agency. Richey has served as a senior chancellor at the Florida Department of Education and was the acting head of the Office for Civil Rights during the first Trump administration.

Click here to access the hearing.

House Education and Workforce Committee Hearings

On Wednesday, June 4, and Thursday, June 5, the House Education and Workforce Committee will hold two full committee hearings to review the policies and priorities of the Department of Education and the Department of Labor. The committee will receive testimony from U.S. Secretary of Education Linda McMahon on June 4 and U.S. Secretary of Labor Lori DeRember-Chavez on June 5, focusing on each department’s budget and strategic objectives.

Click here to access the Department of Education hearing.

Click here to access the Department of Labor hearing.

Letter to Secretary of Labor

On Wednesday, May 28, House Education and Workforce Committee Ranking Member Bobby Scott (VA) and House Appropriations Ranking Member Rosa DeLauro (CT) sent a letter to U.S. Secretary of Labor (DOL) Lori DeRemer-Chavez requesting an explanation for her agency’s decision to cancel dozens of Women in Apprenticeship and Nontraditional Occupations (WANTO) grants. These grants, specifically appropriated by Congress, aim to increase the participation of women in skilled trades and other nontraditional apprenticeship programs where women remain underrepresented. 

In the letter, Scott and DeLauro expressed concern that canceling the grants undermines efforts to address persistent gender disparities in registered apprenticeship programs and noted that women make up about half of the U.S. labor force but only a small percentage of participants in these programs. On May 6, 2025, DOL notified grantees that the funding was being withdrawn, citing misalignment with current departmental priorities. Lawmakers criticized the move as an overreach, arguing that the department does not have the authority to disregard programs authorized and funded by Congress.

Click here to access the letter.

House Committee on Small Business Subcommittee Hearing

On Tuesday, June 10, at 2:00 pm ET, the House Committee on Small Business’s Subcommittee on Innovation, Entrepreneurship, and Workforce Development will hold the hearing “Beyond the Ballpark: The Role of Minor League Baseball in Economic Growth.” Witnesses for the subcommittee hearing have not yet been announced.

Click here to learn more about the hearing.

GAO Report on Apprenticeships

On Wednesday, May 28, the Government Accountability Office (GAO) released a report titled “Apprenticeship: Earn-and-Learn Opportunities Can Benefit Workers and Employers,” which reviewed federal support for programs like Registered Apprenticeship Programs (RAPs). The report identified 26 programs across five federal agencies that promote earn-and-learn opportunities, noting benefits such as higher wages for participants and improved retention for employers. It also highlighted barriers to expansion, including limited awareness, societal preference for college degrees, employer costs, and administrative burdens.

In response to the report, House Education and Workforce Committee Chair Tim Walberg (R-MI) released a statement emphasizing the importance of removing federal obstacles to broaden employer participation in apprenticeship programs and reaffirmed committee Republicans’ focus on expanding workforce training aligned with economic needs.

Click here to access the full report.

Click here to read Chairman Walberg’s statement on the report.

Department of Labor RIF

On Thursday, May 22, 2025, U.S. District Judge Susan Illston issued a preliminary injunction blocking planned reductions-in-force (RIF) at several federal agencies, including the Department of Labor (DOL). The injunction followed a lawsuit filed by labor unions, nonprofit organizations, and local governments, which argued that the Trump administration lacked congressional approval for the extensive layoffs. Judge Illston ruled that such large-scale reorganizations require legislative collaboration, emphasizing that the executive branch cannot unilaterally implement significant workforce reductions without congressional authorization. The administration has appealed the decision to the Ninth Circuit Court of Appeals.