ADVOCACY & POLICY UPDATE - May 5, 2025

Trump Budget Cuts Impact Workforce & Education Programs

Washington Update

President’s FY26 Budget

On Friday, April 2, President Donald Trump released a partial budget proposal for FY26, calling for $163 billion in cuts to federal spending — targeting healthcare, education, and various government programs — while increasing defense and homeland security spending by over $1 trillion. The “skinny budget” blueprint seeks to reduce nondefense discretionary spending, excluding the Pentagon, Social Security, Medicare, and Medicaid, with cuts affecting child care, education, climate assistance, and research funding.

Department of Labor

The President’s proposal for the Department of Labor (DOL) slashes nearly 35 percent of the agency’s funding, primarily through reductions in its grantmaking and eliminating Job Corps, and reduces funding from $13.3 billion to $8.6 billion. 

It consolidates workforce grants, cutting $1.64 billion from FY25 levels, and introduces the Make America Skilled Again (MASA) initiative. The remaining grants, rebranded as MASA, would give states and localities more flexibility in using federal workforce funds while requiring at least 10 percent to be allocated to apprenticeships as alternatives to college. The blueprint did not provide details on which existing grants would be consolidated under the MASA initiative and which would be eliminated. 

Another $1.6 billion in cuts would come from the elimination of Job Corps, which provides training and education to tens of thousands of young people at more than 120 centers nationwide. The White House says the program has high costs, safety concerns, and poor graduate outcomes. DOL has already halted enrollment at two Job Corps centers in Maine.

The proposal also eliminates the Senior Community Service Employment Program (SCSEP), cutting $405 million and arguing the program fails to transition seniors into unsubsidized jobs and duplicates other efforts. According to the White House, these changes aim to streamline workforce development, reduce duplicative spending, and increase state and local control.

Department of Education

The President’s FY26 proposed budget reduces funding for the Department of Education (ED) by $12 billion, or 15%, and emphasizes streamlining K–12 funding, reducing federal oversight, and expanding parental choice. The most significant reduction, approximately $4.5 billion or 25%, would come from the K-12 and Title I programs, which help low-achieving students, especially in high-poverty schools. It consolidates 18 grant programs into the $2 billion K–12 Simplified Funding Program and merges seven IDEA programs into the Special Education Simplified Funding Program, 

It proposes eliminating funding for the Adult Education program, cutting $729 million, signaling a significant shift in federal education priorities. The Administration aims to transfer greater responsibility to states and localities, asserting that state-led improvements in K–12 education will reduce the need for adult education. The proposal also redirects funding toward initiatives that more directly prepare individuals for the workforce, such as apprenticeships and career-aligned training programs.

Additionally, it makes cuts of $1.58 billion to TRIO and GEAR UP, shifting responsibility for K–12 engagement to higher education institutions without federal subsidies. The Child Care Access Means Parents in School (CCAMPIS) program is eliminated, with its funding reallocated to the Child Care Development Block Grant. 

Other significant cuts come from slashing nearly $1 billion from federal work-study programs; $910 million from a program for college students with exceptional financial need; $890 million from services to help immigrant students become proficient English speakers; and $315 million from preschool development grants. The budget proposal also would cut $64 million in funding for Howard University, the nation’s only federally chartered historically Black college and university.

The proposal increases funding for charter schools by $60 million, or about 8.3%, bringing total funding to $500 million. According to the Administration, this funding is intended to help expand the number of charter schools and increase educational options for families, which President Trump has made a priority.

Head Start

In Trump’s FY26 proposal, the Department of Health and Human Services faces the elimination of the Head Start program, resulting in a proposed funding cut of $12.3 billion. This would dismantle the long-standing federal initiative that provides early childhood education, health, and nutrition services to low-income children and families. 

The proposed budget is traditionally seen as a presidential ‘wish list’, and it remains unclear whether Congress will embrace cuts of this magnitude. While Republicans, who control both chambers, have generally supported efforts to shrink the size of government, some have expressed reservations about specific proposals. Critics warn that the sweeping reductions would harm vulnerable populations, calling the blueprint more extreme than previous Trump administration requests. The plan also raises legal questions about the president’s authority to unilaterally cancel or redirect federal spending, potentially setting the stage for a Supreme Court challenge.

On the day the budget was released, Conference of Mayors President Columbus, OH Mayor Andrew J. Ginther released this statement. 

In response to the Department of Labor cuts, and other total eliminations or drastic reductions in the President’s budget proposal that impact cities directly or indirectly, President Ginther is requesting that mayors take the following actions ASAP:

1. Contact their Members of the House and Senate to express what these cuts would mean to their community and shared constituents.

2. Speak out in all forms of media regarding the drastic nature of these proposed cuts.

3. Provide specific examples of the kinds of services that would be impacted if this budget is adopted, and help “put a face” on these proposed eliminations/reductions.

URGENT: It is critical that you ensure your mayor is aware of the devastating impact the DOL cuts would have on residents in your community.

Click here to access the FY26 partial budget proposal and resources.

House Education and Workforce Committee

On Tuesday, April 29, the House Education and Workforce Committee, on a party-line vote of 21-14, advanced a major higher education reform package aimed at achieving more than $350 billion in federal savings, as part of a broader plan to support the domestic agenda of President Donald Trump. The measure seeks to overhaul student loan programs and federal student aid while addressing fiscal concerns tied to tax cuts, border security, and defense spending. Chairman Tim Walberg (MI) emphasized that the plan is designed to bring accountability to higher education institutions by holding them financially responsible when students accumulate unsustainable debt.

The bill includes significant reforms to the Higher Education Act (HEA) of 1965, including ending existing income-contingent student loan repayment plans in July 2026 and replacing them with two simplified options — a change the Congressional Budget Office (CBO) estimates will save $295 billion. It also expands Pell Grant eligibility to short-term job training programs, adjusts eligibility rules, addresses the $2.7 billion Pell shortfall, introduces a risk-sharing system requiring schools to repay a portion of unpaid student loan balances, and caps federal student loans at $50,000 for undergraduates, $100,000 for graduate students, and $150,000 for professional programs. Overall, the CBO estimates the plan will generate over $350 billion in savings, surpassing the $330 billion in cuts the committee was tasked to achieve, and aligning with broader Republican efforts to reshape federal spending priorities.

Democratic committee members voiced strong opposition, arguing that the proposed reforms would increase the cost of college for students and families, limit access to federal aid, and expose students to predatory or low-quality institutions by rolling back existing protections. They offered over 30 amendments, all rejected by the Republican majority, which they said were aimed at helping students afford college, complete their degrees, and access high-quality education. The rejected amendments sought to prevent cuts to the Pell Grant program, protect funding for Historically Black Colleges and Universities (HBCUs), stop for-profit colleges from misleading veterans and misusing GI Bill benefits, streamline loan repayment options for public servants such as teachers and firefighters, and safeguard students’ access to contraception, abortion services, and Medicaid, particularly for students with disabilities. Other proposals sought to prevent wage garnishment for student borrowers and protect sensitive borrower data from commercial exploitation.

Supporters of the bill argue it takes necessary steps to rein in unsustainable federal spending and to hold educational institutions accountable for student outcomes, while critics warn it will make college less affordable, limit protections, and create new burdens for students and families.

Click here to access a video of the hearing. 

Unemployment Rate

On Friday, May 2, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the April unemployment report, which showed nonfarm payrolls increased by 177,000, surpassing expectations and signaling continued labor market strength despite the economy shrinking slightly in the first quarter of 2025 due to lower government spending and businesses stockpiling imports ahead of expected tariffs. The unemployment rate held steady at 4.2% with notable job gains in healthcare, transportation, and financial activities, though federal government employment declined. Average hourly earnings rose 0.2% to $36.06, up 3.8% over the year, while the average workweek remained unchanged at 34.4 hours. While hiring remains strong, there are worries about how trade tensions and federal cutbacks might affect future growth.

Click here to read the full report.

Click here to read Secretary Chavez-DeRemer’s statement on the April jobs report.