ADVOCACY & POLICY UPDATE - May 12, 2025

USCM Advances WIOA Advocacy; GOP Medicaid Proposal Adds Work/Eligibility Requirements

Washington Update

Appropriations

House Appropriations Chair Tom Cole (OK) said he is engaged in ongoing discussions with the White House over President Donald Trump’s proposed $9.3 billion rescissions request, which would cancel previously allocated funding for the State Department, public broadcasting, and foreign assistance. Cole described the talks as a “give and take” focused on identifying specific programs to meet the targeted savings, noting that the timeline for action will be determined by the administration.

On Friday, May 9, House Ways and Means Chair Jason Smith (MO) unveiled part of the GOP’s tax plan, which would cost nearly $5 trillion and would boost popular tax breaks — such as the child credit — and permanently extend the 2017 lower income tax rates. More controversial provisions will be negotiated at a later date. The first half of the text is included below and the second is expected later today. 

Medicaid 

On Sunday, May 11, House Republicans unveiled a bill that would cut at least $880 billion in Medicaid spending, aiming to pass it in the House by Memorial Day as part of a broader tax and spending package. The proposal includes work requirements and stricter eligibility checks but avoids deeper structural changes, such as capping per-person federal spending or altering the federal share of Medicaid funding for states. The plan would require most able-bodied adults under age 65 without dependents to work, volunteer, or attend school for 80 hours a month, with exceptions for pregnant women and people with substance-use disorders. While Republicans frame the changes as a way to slow unsustainable growth — projected to exceed $1 trillion annually within the next decade — Democrats, hospitals, and advocacy groups have voiced strong opposition, warning of harmful consequences for vulnerable populations and state healthcare systems.

House Energy and Commerce Committee Chair Brett Guthrie (KY) said the bill reflects a compromise among Republicans, balancing the concerns of moderates and fiscal conservatives. More aggressive proposals, such as cutting Medicaid funding to wealthier states or implementing federal spending caps, were excluded to build broader support within the party. In addition to healthcare-related provisions, the bill seeks to recover unspent clean-energy funds from the Inflation Reduction Act and generate new revenue by auctioning off wireless spectrum. It also proposes blocking federal Medicaid funds for abortion providers such as Planned Parenthood — a measure some centrist Republicans have opposed. 

The legislation is part of a larger reconciliation package intended to advance former President Trump’s policy priorities without requiring Senate filibuster-proof support. While Trump has publicly opposed cutting Medicaid benefits, his stance on specific provisions remains unclear. Guthrie acknowledged that a recent attempt to discuss the plan with Trump was cut short but said the process would continue in the weeks ahead. The House Energy and Commerce Committee is scheduled to meet Tuesday, May 13, at 2:00 pm to debate and advance the bill.

Labor-HHS

Senator Richard Blumenthal is leading a bipartisan appropriations letter in support of federal workforce development funding, with the sign-on period for Senate offices now officially open with the deadline to sign being May 22nd. This letter urges strong investments in workforce programs and serves as a critical advocacy tool during the FY26 appropriations process. USCM WDC members are encouraged to urge their senators to sign on to the letter to build momentum and broaden support for workforce funding.

Click here to access the budget reconciliation text for markup.

Click here to access a memorandum outlining a section-by-section overview of Tuesday’s markup.

Click here to access the text of the first half of the House Ways and Means bill.

Click here to access the FY26 Labor-HHS WIOA Letter.

USCM/Local Coalition WIOA Reauthorization Letter

On Monday, May 5, the U.S. Conference of Mayors (USCM) sent the Local Coalition WIOA reauthorization letter to the Chairs and Ranking Members of the U.S. House Committee on Education and Workforce and the U.S. Senate Committee on Health, Education, Labor, and Pensions (HELP), along with key authorizing staff. 

Additionally, on Thursday, May 8, an updated and final version of The U.S. Conference of Mayors (USCM) Workforce Development Council (WDC) Workforce Innovation and Opportunity Act (WIOA) Reauthorization Key Priorities, as amended by the USCM WDC Advocacy/Policy Committee at the recent WDC Board Meeting in Charlotte, was sent to all WDC members. The committee has also developed a WDC Strategic Goals outline and a report on the Estimated Economic Impact of the WIOA Adult Program. 

Please use these documents and recommendations as key tools in your advocacy for WIOA reauthorization and DOL appropriations. It is critical that we present a unified voice in championing the local workforce system. Your continued engagement is essential to demonstrating the value and impact of WIOA programs in communities across the country.

Click here to access the Local Coalition WIOA Reauthorization Letter.

Click here to access the USCM WDC WIOA Reauthorization Key Priorities.

Click here to access the WDC Strategic Goals paper.

Click here to access the Estimated Economic Impact of the WIOA Adult Program.

Senate HELP Hearing

On Thursday, May 15, the Senate Health, Education, Labor, and Pensions (HELP) Committee will hold a hearing to consider President Donald Trump’s nominee, Janet Dhillon, to lead the Pension Benefit Guaranty Corporation, which has been without a permanent director since April 2024. Dhillon previously chaired the Equal Employment Opportunity Commission during Trump’s first term and served on the presidential transition team. Alice Maroni has been serving as acting director following the retirement of Ann Orr in March.

Additional labor-related nominations are pending, including leaders for the Employment and Training Administration (ETA), Occupational Safety and Health Administration (OSHA), Mine Safety and Health Administration, though hearing dates have not been set. 

This week, Trump also nominated federal prosecutor Brittany Panuccio for a vacant EEOC seat and Jeremiah Workman, a former Ohio lieutenant governor candidate, to head the Department of Labor’s veterans employment office. Labor Secretary Lori Chavez-DeRemer and Deputy Secretary Keith Sonderling were confirmed without significant opposition, and no major challenges have emerged so far for these nominees.

House Education and Workforce Committee

On Thursday, May 8, House Education and Workforce Democrats, led by Committee Ranking Member Bobby Scott (VA), sent a letter Thursday to U.S. Secretary of Labor Lori Chavez-DeRemer, criticizing her Department for failing to respond to multiple congressional oversight requests, including four previous inquiries on the Office of Disability Employment Policy (ODEP) and other issues. The letter also requests details on any planned department reorganization and its potential impact on enforcing federal workplace laws, expressing concern about actions that could weaken the agency’s ability to protect workers.

Separately, Education and Workforce Committee Chairman Tim Walberg (MI) sent letters Thursday to six labor unions — the United Auto Workers, Service Employees International Union, Communications Workers of America, National Education Association, American Federation of Teachers, and United Electrical, Radio and Machine Workers of America — seeking information on their data security policies following breaches that may have exposed members’ personal information. The letters ask unions to explain their safeguards, responses to breaches, and whether they have faced additional cyberattacks.

Click here to read the letter to Secretary Chavez-DeRemer.

Click here to read the letter from Chairman Tim Walberg.

Secretary of Labor

U.S. Secretary of Labor Lori Chavez-DeRemer is undertaking a national “America at Work” listening tour, aiming to visit all 50 states by the end of 2025. She views this initiative as a core responsibility of her role, serving as a liaison between the workforce and the White House by gathering firsthand input from workers, employers, and community leaders. Since taking office, Chavez-DeRemer has visited at least six states, including Nevada, Florida, Colorado, and Arizona, and plans to travel to Ohio next. Her visits have included a Teamsters conference in Las Vegas, the Port of Miami, a carpenters union-run apprenticeship center in Denver, and a workforce development program at an Arizona community college. The tour reflects a broader effort to ensure federal labor policy is grounded in real-world experience and modern workforce needs. The Department of Labor (DOL) describes the initiative as a way to shape policy that supports long-term economic growth and better reflects local labor conditions.

While extensive travel is not uncommon for Cabinet officials, Chavez-DeRemer’s goal to complete all 50 states within a single year sets an ambitious pace. Her predecessor, Marty Walsh, visited over 40 states during his tenure, while acting Secretary Julie Su increased travel later in her term. Chavez-DeRemer’s visits involve significant planning, especially when Congress is out of session and local leaders seek to highlight community programs. The Department did confirm the Secretary flies commercially while traveling to engage directly with local leaders at each stop. Staff emphasized that the “America at Work” listening tour is intended to bring local experiences directly into policy conversations in Washington, enhancing the relevance and impact of federal labor initiatives.

Spotlight Forum

On Wednesday, May 7, Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (MA) announced she will host a spotlight forum entitled “Stealing the American Dream: How Trump and Republicans Are Raising Education Costs for Families,” to take place Wednesday, May 14, at 2:30 pm (ET). Warren has invited U.S. Secretary of Education Linda McMahon to testify at the hearing but neither Warren’s office nor the Education Department confirmed whether McMahon will attend. Scheduled witnesses include former student loan ombudsman at the Education Department Bonnie Latreille, law professor and associate dean at UC Berkeley School of Law Jonathan Glater, truck driver at Prime Inc. Gilberto Gonzalez, and personal finance content creator Tiffany Aliche.

Click here to read the full press release on the forum.

Aviation Workforce Development Act

On Monday, May 5, Senators Tim Scott (SC) and Maria Cantwell (WA) reintroduced the bipartisan Aviation Workforce Development Act, which would allow 529 plan funds to cover education expenses at FAA-certified flight and aviation maintenance programs. By amending the Internal Revenue Code, the bill enables students pursuing careers as pilots or aviation maintenance technicians to use tax-advantaged savings for tuition and related costs at these programs. Congressman Mike Collins (GA) introduced companion legislation in the House. The bill aims to address the growing demand for aviation professionals, with Boeing projecting the need for 602,000 new pilots and 610,000 new maintenance technicians over the next 20 years; training costs exceed $96,000 for new pilots and $75,000 for those with a private pilot certificate, while median annual wages in 2021 were $99,640 for commercial pilots and $65,380 for aircraft mechanics. Currently, 529 plans can only be used at “eligible educational institutions,” excluding many aviation programs. This bill would expand eligibility to help meet workforce needs.

Click here to read the full press release on the bill.

Farmwork Modernization Act

On Wednesday, May 7, a bipartisan group of House lawmakers reintroduced the Farm Workforce Modernization Act (FWMA), which aims to provide a path to legal status for undocumented farmworkers and expand the H-2A visa program to include year-round industries like dairy. The bill addresses labor shortages in agriculture by offering a more reliable workforce and reforming the H-2A program to improve flexibility for employers while maintaining worker protections. It creates a process for agricultural workers to earn legal status through continued employment and expands the visa program to industries with year-round labor needs. Though previous efforts stalled in the Senate, lawmakers are hopeful that renewed interest in H-2A reform will improve its chances.

The reintroduction of the bill aligns with ongoing discussions within the administration, with Agriculture Secretary Brooke Rollins and Labor Secretary Lori Chavez-DeRemer working on a short-term solution. Congressman John Moolenaar (MI) has introduced a bill to freeze the adverse effect wage rate for H-2A workers, also included in FWMA. Other lawmakers, including Congressman Derrick Van Orden (WI), are pursuing additional H-2A reforms. Despite President Trump’s recent comments supporting a pathway to legal status for farmworkers, progress on immigration reform remains uncertain due to internal GOP divisions and competing priorities, such as border security.

Click here to read the full press release on the bill.

Department of Labor

The U.S. Department of Labor (DOL) plans to begin layoffs at the Office of Federal Contract Compliance Programs (OFCCP) on June 6, following a January executive order by President Trump that reduced the agency's authority to enforce laws against discrimination based on veterans' and disability status. The layoffs, which affect hundreds of employees, are not related to performance, and the department expressed appreciation for their service. Labor unions have raised concerns about insufficient notice and violations of collective bargaining agreements, though the department asserts compliance with requirements.

Additionally, the administration has canceled most grants from the Bureau of International Labor Affairs and the Women’s Bureau, including programs supporting women in apprenticeships and immigrant workers. The department aims to shift priorities away from diversity, equity, and inclusion (DEI) initiatives, focusing instead on helping women secure good-paying jobs based on merit. The Women’s Bureau, which has a budget of approximately $26 million, has experienced low morale, with several employees resigning or retiring. Rebecca Wright was recently appointed to lead the bureau. 

The proposed fiscal 2026 budget includes a one-third reduction to the Labor Department's funding, with over $1.6 billion in grants potentially cut, though the specific programs affected have not been identified.