ADVOCACY & POLICY UPDATE - May 26, 2026

GOP Budget Reconciliation Work Continues; DOL & ED Announce Workforce Readiness Funding

Washington Update​

Appropriations

On Thursday, May 21, House Budget Chair Jodey Arrington (TX) said House Republicans aim to advance a FY27 budget resolution in June as GOP leaders explore a third budget reconciliation package that could move by the end of July. The proposal would use the reconciliation process to advance a narrower, party-line policy package focused on six or seven House committees, making it more limited in scope than last year’s tax and spending package but broader than the current immigration-focused bill.

Last week, Speaker of the House Mike Johnson (LA) hosted a meeting with House Majority Leader Steve Scalise, committee leaders, and other Republican members to discuss the framework and priorities for the legislation. Discussion reportedly included potential measures aimed at reducing fraud and addressing affordability concerns for everyday goods. 

Republican leaders indicated they are continuing to refine policy proposals and build support within the conference. A planned vote on a separate immigration reconciliation package was postponed until after the Memorial Day recess, though Arrington said the delay is not expected to affect the timeline for developing the broader reconciliation bill.

Departments of Labor and Education

On Thursday, May 21, the U.S. Departments of Labor (DOL) and Education (ED) announced a one-time investment through FY26 Strengthening Institutions Program grant competition to support workforce readiness initiatives, responsible use of artificial intelligence (AI), and development of short-term educational programs ahead of the implementation of the Workforce Pell Grant program.

DOL and ED said the funding will support colleges and universities in expanding programs aligned with labor market needs and workforce development priorities. According to the press release, the investment will be funded through discretionary resources previously allocated to the Minority-Serving Institutions grant program. The initiative is part of the Administration’s broader efforts between the two agencies to better coordinate federal postsecondary education and workforce programs.

Click here to access the full press release.

Senate Subcommittee Hearing

On Tuesday, May 19, the Senate Appropriations Committee’s Subcommittee on Labor, Health and Human Services, Education, and Related Agencies held the hearing “A Review of the President’s Fiscal Year 2027 Budget Request for the Department of Labor.” During the hearing, subcommittee members heard from Acting Secretary of Labor Keith Sonderling on the Administration’s proposed FY27 budget priorities for his agency, including workforce development, apprenticeship expansion, unemployment insurance modernization, worker protections, and efforts to support employers facing ongoing workforce shortages.

Sonderling highlighted the Administration’s signature workforce proposal — the Make America Skilled Again (MASA) block grant — as the foundation of his department’s FY27 funding request. According to the Acting Secretary, MASA would provide states with maximum flexibility to spend workforce funding and consolidate multiple WIOA Title I programs; expand registered apprenticeships with a required 10% set-aside; and accelerate skills training by reducing administrative costs. 

Lawmakers responded by questioning how reductions in overall discretionary spending could lead to increases in worker training, and criticizing the proposed funding levels for workforce and training programs authorized under the Workforce Innovation and Opportunity Act (WIOA) as unresponsive to increasing employer demand for skilled workers. There was also significant pushback on the future of Job Corps, with Committee Chair Susan Collins (ME) touting the strong performance of centers in her home state. Senators from both parties praised Job Corps’ impact in providing critical pathways for disconnected youth.

Throughout the hearing, senators questioned the increasing coordination between the Departments of Labor and Education and DOL’s  shifting to co-manage programs with other agencies through recent interagency agreements. They argued that moving ED programs across agencies has resulted in difficulties administering these programs while creating new challenges for DOL in administering its own programs. Meanwhile, there was broad support for apprenticeship programs across the aisle as Sonderling reiterated the Administration’s goal of expanding apprenticeship programs and aligning federal investments with labor market needs. 

Click here to access a recording of the hearing.

Senate HELP Committee Chair

Senate Health, Education, Labor, and Pensions (HELP) Committee Chair Bill Cassidy (LA) lost his bid for re-election after failing to advance to a runoff in Louisiana’s Republican Senate primary, creating uncertainty around the future leadership of the HELP Committee. Cassidy’s loss follows years of political tension within the Republican Party after his vote to convict President Donald Trump during the 2021 impeachment trial related to the January 6 attack on the U.S. Capitol.

Attention is now shifting to potential successors to lead the HELP Committee in the next Congress. Senators Susan Collins (ME), Lisa Murkowski (AK), and Roger Marshall (KS) have been discussed as possible candidates, though Collins and Murkowski currently chair or lead other committees and subcommittees. Marshall has reportedly expressed interest in the position. Cassidy is expected to continue leading the committee through the remainder of his term.

Gateway to Careers Act

On Wednesday, May 20, Senators Susan Collins (ME), Maggie Hassan (NH), Todd Young (IN), and Tim Kaine (VA) reintroduced the bipartisan Gateway to Careers Act, which aims to expand access to workforce training programs and strengthen pathways to employment in industries facing worker shortages.

The bill would provide grants to partnerships between community or technical colleges and workforce development organizations, including workforce boards, industry associations, and community-based organizations. The partnerships would support unemployed and underemployed individuals through job training, credential attainment, and services intended to reduce barriers to employment, including child care, transportation, housing assistance, career counseling, health coverage support, mental health and substance use treatment, and assistance in accessing SNAP benefits.

Click here to access a press release on the bill.

Restoring Overtime Pay Act of 2026

On Monday, May 18, Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Bernie Sanders (VT) and Senator Mark Takano (CA) reintroduced the “Restoring Overtime Pay Act of 2026,” legislation that would expand overtime pay eligibility by gradually increasing the salary threshold for exempt employees. The bill would raise the current threshold of $35,568 annually over several years, potentially reaching approximately $98,000 per year by 2030. Supporters of the legislation estimate the change would extend overtime protections to nearly 30 million workers.

The bill follows a 2024 federal court decision that invalidated a Department of Labor (DOL) rule issued during the Biden administration that would have increased the overtime exemption threshold from approximately $36,000 to nearly $59,000 annually. Last week, DOL issued a technical amendment formally removing the rule. Previous versions of the bill introduced in prior Congresses did not advance out of committee.

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

Click here to access the DOL press release on the technical amendment.

Job Corps and Skilled Defense Workforce Act

Last week, Congressman Joe Courtney (CT) introduced the Job Corps and Skilled Defense Workforce Act, which aims to strengthen workforce development pathways connected to the defense and maritime industrial base. It would increase coordination between Armed Services, defense industry employers, and the Job Corps program to prepare workers for careers supporting national defense and shipbuilding needs. It would also expand Job Corps eligibility for certain shipbuilding workforce development incentives and allow Job Corps centers to receive grants to support training programs and curriculum development.

Additional provisions would require the Department of Defense to provide information about Job Corps opportunities to individuals ineligible for military enlistment and streamline enrollment pathways for transitioning servicemembers. The bill also includes measures intended to give Job Corps centers greater flexibility in staffing, professional development, and partnerships with local organizations and employers. 

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

Federal Biotechnology Workforce Assessment Act

On Thursday, May 21, Congressmen Ro Khanna (CA) and Rich McCormick (GA) introduced the bipartisan Federal Biotechnology Workforce Assessment Act that would direct the federal government to assess current and future biotechnology workforce needs across federal agencies. The bill would require the Office of Personnel Management to coordinate with agencies to define the federal biotechnology workforce and evaluate demands for employees with biotechnology expertise.

The bill follows recommendations from the National Security Commission on Emerging Biotechnology, which concluded that strengthening the federal biotechnology workforce is important for U.S. competitiveness in emerging technologies, including biotechnology, artificial intelligence, and quantum technologies. 

Click here to access a press release on the bill.