ADVOCACY & POLICY UPDATE - March 23, 2026

Democratic Lawmakers Urge DOL to Reverse WIOA Waiver Guidance

Washington Update​

Appropriations

While House Republican appropriators want to begin markup of FY27 funding bills as soon as next month, they await President Trump’s FY27 budget request before moving forward. The White House had indicated the request would be released at the end of this month, but it may be delayed. House Appropriations Chairman Tom Cole (OK) is aiming for a “very aggressive” markup schedule and hopes to approve all 12 FY27 bills before the July 4 recess.

House Transportation-HUD Appropriations Subcommittee Chairman Steve Womack (AR) indicated that top House GOP leadership is considering whether to proceed with FY27 markups rather than wait for the White House's budget request. House Budget Chair Jodey Arrington (TX) is also expected to move forward with a budget framework that would set topline discretionary funding totals.

House Letter on DOL Guidance

On Tuesday, March 17, House Education and Workforce Committee Ranking Member Bobby Scott (VA) and Higher Education and Workforce Development Subcommittee Ranking Member Alma Adams (NC) sent a letter to U.S. Department of Labor (DOL) Secretary Lori Chavez-DeRemer raising concerns about guidance DOL issued in November of last year. The Training and Employment Guidance Letter (TEGL No. 05-25) encourages states to request waivers under the Workforce Innovation and Opportunity Act (WIOA) to modify certain statutory and regulatory requirements tied to federal workforce funding. In the letter, they indicate that the guidance could allow states to scale back efforts to serve populations facing barriers to employment, including individuals with disabilities, older workers, and those experiencing homelessness. They also note that DOL’s use of WIOA waiver authority to advance broader workforce policy priorities represents a departure from past practice, where waivers were typically granted to address specific implementation challenges. The letter urges DOL to rescind the guidance and instead work with Congress on legislative efforts to reauthorize WIOA.

Separately, on Wednesday, March 18, USCM, in partnership with the National Association of Counties (NACO) and the National Association of Workforce Boards (NAWB), issued a joint policy guidance memo on the TEGL to help mayors, local workforce leaders, other elected officials, and community partners respond to proposals being considered by states and DOL to force the consolidation of local workforce areas. The guidance, Workforce System Consolidation: What Local Stakeholders Need to Know, clarifies statutory and regulatory requirements under WIOA and outlines the practical implications of restructuring efforts, and includes a toolkit to support local leaders as they navigate these issues.

Click here to access the full WIOA TEGL opposition letter.

Click here to access the Workforce System Consolidation: What Local Stakeholders Need to Know policy guidance memo.

Talent Search Program

On Tuesday, March 17, the U.S. Departments of Labor (DOL) and Education (ED) announced the FY26 competition for the Talent Search Program, a federal TRIO grant supporting students in pursuing postsecondary education or training, including Registered Apprenticeships. Under an interagency agreement, DOL will manage applications and issue awards through its grants platform.

The grant program will provide approximately $175 million in funding, with individual awards of up to $10 million available to institutions of higher education, state governments, and other eligible organizations to support students from disadvantaged backgrounds in completing high school and pursuing postsecondary education. 

The effort reflects ongoing coordination between ED and DOL to align postsecondary and workforce programs, with DOL taking a larger role in grant administration while ED retains responsibility for program policy and oversight. It builds on the interagency agreement, which was announced in November 2025, aimed at shifting administration of certain ED programs to DOL.

Click here to access the press release on the announcement.

Federal Student Assistance Partnership

On Thursday, March 19, the U.S. Departments of Education (ED) and Treasury announced the Federal Student Assistance Partnership, an interagency agreement under which Treasury will take over management of borrowers in default and support ED in returning them to repayment. Treasury will initially focus on borrowers who have not made payments in several months, rather than the full $1.6 trillion student loan portfolio. In later phases, Treasury may provide operational support to no-defaulted loans and other Federal Student Aid functions, as allowed by law.

The agreement builds on prior interagency agreements that transferred certain ED responsibilities to other agencies, including ED staff detailed to Treasury to assist with loan collection. The partnership reflects ongoing efforts by the Administration to restructure federal student aid programs, with ED and Treasury coordinating communication with students, borrowers, institutions, and other stakeholders as the agreement is implemented.

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

Pell Shortfall

On Thursday, March 19, more than 60 education organizations, led by The Institute for College Access & Success, sent a letter to House and Senate leaders urging them to address projected funding shortfalls for the Pell Grant program — which supports more than 6 million low- and middle-income students. The program is projected to face a $5.4 billion funding gap for FY26, which will increase to $11.5 billion for FY27. The letter calls for additional funding to fully cover the shortfalls and avoid reductions in student eligibility or aid levels.

Click here to access the letter.

White House National AI Legislative Framework

On Friday, March 20, the White House released President Trump’s National AI Legislative Framework, which outlines its priorities for federal regulation of artificial intelligence (AI) and aims for Congress to establish a national standard. It emphasizes a limited regulatory approach that seeks to support innovation while introducing targeted safeguards, particularly for children and teens online. 

A central component of the proposal is federal preemption of many state AI laws, based on concerns that inconsistent state rules hinder development. It calls on Congress to override state regulations on AI model development and company liability for third-party use, while preserving certain state-level child protection laws. It also recommends age-based access controls, parental oversight tools, workforce training, data collection on job impacts, and requiring companies to cover data center energy costs, while avoiding new federal AI regulatory agencies.

House GOP leaders have signaled support for bipartisan work on a national framework focused on competitiveness and family protections. On Friday, March 20, the Guaranteeing and Upholding Americans’ Right to Decide Responsible AI Laws and Standards (GUARDRAILS) Act was introduced by several House Democrats to repeal Trump’s December executive order “Ensuring a National Policy Framework for Artificial Intelligence,” which aims to establish a moratorium on state-level AI policies. Companion legislation is expected in the Senate.

Click here to access the full National AI Legislative Framework.

Click here to access the press release on the GUARDRAILS Act.

Congressional Committee Moves

On Wednesday, March 18, Congressman Kevin Kiley (CA) resigned from the House Republican Conference and vacated his committee assignments, including his seat on the House Education and Workforce Committee. Kiley, who previously chaired the Early Childhood, Elementary, and Secondary Education Subcommittee, recently changed his party affiliation to independent and indicated he plans to seek reassignment to committees. His decision comes as he prepares to run for reelection in a Democratic-leaning district following California’s congressional redistricting.

Additionally, on Sunday, March 22, the Senate voted 54-37 to advance Senator Markwayne Mullin’s (OK) nomination to lead the U.S. Department of Homeland Security (DHS) — putting him on track to be confirmed this week to replace Kristi Noem as DHS Secretary. 

If confirmed by the full Senate, his departure creates a vacancy on the Senate Health, Education, Labor, and Pensions (HELP) Committee.