ADVOCACY & POLICY UPDATE - March 9, 2026

DOL Issues Proposed Rule on Worker Classification​

Washington Update​

Appropriations

On Thursday, March 5, House Appropriations Chairman Tom Cole (OK) said he expects President Trump’s FY27 budget request to be released at the end of March. Cole stated that he isn’t sure if an emergency funding request for the U.S.-Israel war with Iran would come in tandem with the request. 

U.S. Department of Education Notice of Proposed Rulemaking

On Friday, March 6, the U.S. Department of Education issued a Notice of Proposed Rulemaking (NPRM) to implement the Workforce Pell Grant program, a provision of the Working Families Tax Cuts Act (the Act). The proposal would allow students to use Pell Grant funding to enroll in short-term workforce training programs aimed at preparing participants for high-skill, high-wage, or in-demand occupations. 

Under the NPRM, beginning in July 2026 students could apply Pell Grants to workforce programs lasting at least eight weeks and consisting of 150 to 599 clock hours of instruction (programs historically had to last at least 15 weeks to qualify for Pell Grants). Eligible programs would need to meet several requirements, including approval by a governor after consultation with the state workforce board and accountability standards related to completion rates, job placement outcomes, and earnings measures. 

The NPRM is the second of three rules being released by the Department of Education to implement changes to federal postsecondary education policy included in the Act. The proposal will be open for public comment for 30 days, with comments due by Wednesday, April 8, through the federal rulemaking portal.  

At the same time, the Pell Grant program faces projected funding challenges. The Congressional Budget Office (CBO) estimates indicate a funding gap of approximately $5.4 billion for FY26, which could grow to about $11.5 billion in FY27. Expanded eligibility resulting from the FAFSA Simplification Act of 2021 is a major factor contributing to the projected deficit. Some higher education advocates have urged Congress to address the projected shortfall and maintain the current maximum award level of $7,395 for the 2026-27 academic year.

Click here to access the full press release.

House Education and Workforce Subcommittee Hearing

On Wednesday, March 4, the House Education and Workforce Subcommittee on Higher Education held the hearing “Building an AI-Ready America: Strengthening Employer-Led Training” to examine how the federal workforce development system can better respond to the challenges of a rapidly evolving technological landscape. During the hearing, lawmakers and witnesses discussed how artificial intelligence (AI) is reshaping the labor market, and the need to update workforce programs to better prepare workers for evolving job requirements. 

Discussion focused on reauthorization of the Workforce Innovation and Opportunity Act (WIOA). Members of both parties indicated WIOA should be modernized, emphasizing the need to integrate AI-related training and strengthen connections among workforce programs, apprenticeships, and postsecondary education. Some lawmakers pointed to ongoing labor shortages and argued that workforce training should better align with employer needs and emerging technologies.

Witnesses for the hearing included Wireless Infrastructure Association Executive Vice President & Chief Operating Officer Tim House, Wake Technical Community College President Dr. Scott Ralls, CareerWise President Brent Parton, and Accenture Transformation America Managing Director of Talent & Organization Mary Kate Morley Ryan.

During her testimony, Ryan said that AI serves as a critical tool for expanding skills-based education and workforce training. The discussion highlighted a shift in modernization efforts, suggesting a priority be placed on hands-on training and specialized credentials designed to meet current employer needs. Dr. Ralls described how workforce development efforts under WIOA must align with national AI priorities and emphasized community colleges being key to this. Witness Tim House cautioned that regulatory barriers could slow innovation and workforce development in emerging technology sectors.

Witnesses also encouraged Congress to reauthorize WIOA and support strong partnerships between employers and education providers, arguing that clearer policy direction and longer-term planning would help workforce systems respond more effectively to rapid technological change. Concerns were raised that the attempted shift of certain federal education responsibilities from the Department of Education to the Department of Labor could affect negotiations over WIOA reauthorization.

Click here to access more information about the hearing.

H-1B Visas

On Wednesday, March 4, the U.S. Citizenship and Immigration Services (USCIS) opened the FY27 H-1B visa electronic registration period with the registration window closing at noon ET on March 19. For the first time, the FY27 cycle will have the Trump Administration's $100,000 fee and use a ‘weighted selection process,’ which is a four-tier structure that prioritizes higher-skilled and higher-paid workers during the H-1B visa selection process. This new setup has many immigration experts anticipating a drop-off in interest, but there still should be enough applications to surpass the 85,000 visa cap set out in statute. Many Texas and Florida Republicans feel this isn’t going far enough on H-1Bs and want the Administration to discontinue use of the program within their public sector.

Congressman Owens Not Seeking Reelection

On Wednesday, March 4, House Education and Workforce Subcommittee on Higher Education Chairman Burgess Owens (UT) announced he will not seek reelection. In his statement, Congressman Owens said he plans to serve out the remainder of his term before stepping away from elected office. Owens, a former NFL player, played a role in pushing for the first-ever federal scholarship tax credit to support school choice and became a leading GOP critic of diversity, equity, and inclusion programs and initiatives at the nation’s schools and colleges. His announcement also comes as a new congressional map in Utah could lead to a potential member-on-member Republican primary.

Unemployment Rate

On Friday, March 6, the U.S. Department of Labor (DOL) Employment and Training Administration (ETA) released the February unemployment report, which shows an unexpected drop last month as employers shed an estimated 92,000 jobs. The unemployment rate rose to 4.4% from 4.3%. Despite the severe weather and a strike at a major health care provider, economists were still expecting a net gain of about 60,000. This potentially hints at deteriorating labor market conditions that could  put the Federal Reserve in a difficult position amid rising oil prices.

Click here to access the full February jobs report.

Click here to access Labor Secretary Chavez-DeRemer’s statement on the February job report.