ADVOCACY & POLICY UPDATE - September 3, 2025

House Slashes DOL Funding

Washington Update

​​​​​Appropriations

This week, Congress returned to Washington with only four weeks left to pass spending legislation before government funding expires on September 30. Most leaders expect a short-term continuing resolution (CR) will be needed, though divisions within and between the parties complicate the path forward.

​On Tuesday, September 2, the House Appropriators advanced the FY26 Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS-Education) funding bill out of subcommittee along party lines. The bill provides the Department of Labor (DOL) with a total of $9.6 billion, which is $4 billion or nearly 30% below the FY25 enacted level — and significantly lower than the nearly $13.7 billion that the Senate advanced in their funding bill in July. 

Department of Labor

The legislation provides $6.6 billion for the Employment and Training Administration, a decrease of $3.6 billion, or 35 percent, from the FY25 level. Within that amount, funding for Workforce Innovation and Opportunity Act (WIOA) State Grants is set at $1.1 billion, a reduction of $1.8 billion, or 63 percent. It eliminates funding for both WIOA Adult Job Training (a cut of $886 million) and WIOA Youth Job Training (a cut of $948 million). It also eliminates the Reintegration of Ex-Offenders program (a cut of $115 million) and the Senior Community Service Employment Program for older Americans (a cut of $405 million).

Some programs remain level-funded, including Registered Apprenticeships at $285 million and Strengthening Community College Training Grants at $65 million. Funding for Job Corps is set at $880 million, a reduction of $880 million compared to FY25, effectively eliminating the program.

​There is $1.6 billion for Worker Protection Agencies, a reduction or $259 million below FY25 enacted levels. This includes $235 million for the Wage and Hour Division (a cut of $25 million), $582 million for Occupational Safety and Health Administration (OHSA) (a cut of $50 million), $348 million for the Mine Safety and Health Administration (a cut of $40 million), and the elimination of funding for the Office of Federal Contract Compliance Programs.  Funding for the Bureau of International Labor Affairs and the Women’s Bureau would also be eliminated.

It proposes renaming AmeriCorps to America First Corps, prioritizes America250 activities and projects through the National Days of Service program and libraries across the country, and prohibits the implementation of the Biden Administration’s independent contractor rule.

Department of Education

The bill provides $67 billion in discretionary funding for the Department of Education — a $12 billion or 15 percent reduction from FY25 levels and consistent with the Trump administration’s request. It also includes a provision to rename Workforce Pell Grants, created under the GOP’s One Big Beautiful Bill Act, as “Trump Grants.” 

​For K-12 education, including Individuals with Disabilities Education Act (IDEA) programs, the bill provides $35.5 billion, a decrease of $9.2 billion. Within that amount, Title I Grants to Local Educational Agencies are set at $13.7 billion, a reduction of $4.7 billion. Funding for English Language Acquisition, Title II-A Supporting Effective Instruction State Grants, and Full-Service Community Schools is eliminated. Special Education receives $15.5 billion, an increase of $26 million, Student Support and Academic Enrichment State Grants receive $1.4 billion, up $5 million, Impact Aid increased by $5 million to $1.6 billion, and Nita M. Lowey 21st Century Community Learning Centers remain level-funded at $1.3 billion. 

For Career, Technical, and Adult Education, the bill provides $1.5 billion, a decrease of $706 million from FY25 levels. Within this total, Career and Technical Education receives $1.5 billion, an increase of $23 million, while funding for Adult Education is eliminated — a cut of $729 million.

​It allocates $23.3 billion for Federal student aid programs, a decrease of $1.4 billion. The Pell Grant program remains level-funded at $22.5 billion, with a maximum award of $7,395, equal to FY25. Funding for the Federal Supplemental Educational Opportunity Grant program is eliminated (a cut of $910 million) and Federal Work Study is reduced by $451 million to $779 million.

​Higher education programs receive $2.7 billion, a decrease of $367 million. Within this total, Aid for Institutional Development for HBCUs and Minority Serving Institutions increases by $7 million to $1 billion, Federal TRIO programs remain at $1.2 billion, and GEAR UP stays at $388 million. Funding for Teacher Quality Partnerships is eliminated (a cut of $70 million), Child Care Access Means Parents in School is cut by $75 million, and International Education and Foreign Language funding is cut by $86 million.

​Related agencies would see cuts or eliminations: no funding is provided for the Corporation for Public Broadcasting, National Public Radio (NPR), or Public Broadcasting Service (PBS); funding for the Institute of Museum and Library Services is reduced by $3 million or 1 percent, with a small increase of $400,000 for library grants.

​On Tuesday, September 9, the full committee is tentatively scheduled to mark up the Labor-HHS-Education bill. The House plan proposes a 30% cut to DOL’s budget, aligning more closely with the White House request, while the Senate supports only minimal reductions. The Senate Appropriations Committee, which advanced its bill before the August recess, likely holds the upper hand in funding negotiations, with its proposal reflecting less drastic cuts to secure Democratic support for floor passage. The sharp divide between chambers sets the stage for a likely showdown over funding before the September 30 deadline. Floor action in the Senate has not yet been scheduled.

Broader spending negotiations remain uncertain. GOP leaders will need Democratic support to advance any agreement in the Senate, but Democrats remain divided after months of GOP-driven policymaking and recent administration actions to withhold or rescind congressionally approved funds. Republicans are also split, with some lawmakers demanding full-year funding bills or extensions covering the entire government — an approach Democrats argue amounts to a cut in real terms. Tensions have been heightened by the Administration’s recent decision to rescind nearly $5 billion in foreign aid and withhold additional funds, drawing bipartisan criticism. Disputes persist over the GOP tax law’s Medicaid restrictions, cuts to public media, and foreign aid. Democrats are considering leveraging their votes for policy concessions, including an extension of Affordable Care Act subsidies set to expire at year’s end, while Republicans remain divided over earmarks and overall spending levels.

With limited time before the deadline, government funding negotiations are expected to take center stage in September as lawmakers weigh the scope and duration of a CR against the risk of a shutdown. House Republicans are considering a short-term stopgap measure, though many rank-and-file members oppose CRs. GOP leaders have little room to maneuver, as they can lose only a handful of votes without relying on Democrats. Speaker Mike Johnson (LA) has indicated Republicans will not agree to roll back spending cuts included in their larger appropriations package. He has also spoken recently with House Minority Leader Hakeem Jeffries (NY), who has made clear Democrats will not support partisan funding bills. The divide leaves both chambers facing difficult negotiations in the weeks ahead.

It is critical that members of Congress hear from mayors and business leaders about how crucial the public workforce system is to the economic health and growth of their communities. Now is the time to showcase how important these federal investments are by elevating and sharing their local impact. 

Click here to access the full text of the bill.

Click here to access a GOP summary of the bill.

Click here to access the GOP press release.

Click here to access the Democratic summary of the bill.

Click here to access the Democratic press release.

Click here to access the recording of the Labor-HHS-Education Subcommittee markup.

Presidential AI Action Plan/Challenge

​On Tuesday, August 26, the U.S. Department of Labor (DOL) issued guidance urging states to use Workforce Innovation and Opportunity Act (WIOA) grants to expand artificial intelligence (AI) literacy and training through state and local workforce development systems. DOL also encouraged states to leverage governors’ reserve funds to integrate AI learning opportunities into workforce programs. The guidance aligns with the Administration’s workforce priorities outlined in an April 2025 executive order focused on advancing AI education and a broader policy plan announced earlier this month that emphasizes AI skills development, rapid retraining, and alternatives to traditional four-year college pathways.

​Also on Tuesday, August 26, First Lady Melania Trump announced the launch of the Presidential Artificial Intelligence Challenge, a nationwide initiative inviting K-12 students and educators to participate. Students will design projects applying AI methods or tools to address community challenges, while educators will develop innovative approaches to teaching or incorporating AI technologies in classrooms. A guidebook for the challenge has been released to support participants.

Click here to access the DOL press release and guidance.

Click here to access the White House AI Challenge press release.

Click here to access the White House AI Challenge guidebook.

Department of Labor

House Education and Workforce Committee Ranking Member Bobby Scott (VA) and Congresswoman Ilhan Omar (MN) have raised concerns about the Department of Labor’s (DOL’s) recent deregulatory efforts. On Tuesday, September 2, Scott sent letters to DOL opposing rules that would rescind affirmative action requirements for Registered Apprenticeship programs, alter protections for disabled workers under federal contracting, modify state labor exchange hiring under the Wagner-Peyser Act, and affect an executive order on federal employment and contracting discrimination. On Tuesday, Omar and Scott sent a letter to DOL that noted the potential impact of the agency’s proposal to withdraw the Biden-era H-2A visa rule, which established labor protections for seasonal farmworkers. DOL has extended the comment period for these rules to September 17.

Click here to access the full letter from Ranking Member Scott.

Click here to access the full letter from Ranking Member Scott and Congresswoman Omar.

BEAD Nondeployment Funds Letter

​On Monday, August 25, ten House Democrats sent a letter to Commerce Secretary Howard Lutnick and National Telecommunications and Information Administration (NTIA) Administrator Arielle Roth seeking clarification on how states can use “nondeployment” funds in the Broadband Equity, Access and Deployment (BEAD) program. The lawmakers noted that updated BEAD rules issued in June require states to detail only deployment-related projects, such as fiber or wireless buildout, while leaving unclear whether funds may also support activities like workforce development, telehealth, cybersecurity, and digital literacy. They pointed out that previous approvals for such uses were rescinded without replacement guidance, even as states face a September 4 deadline to submit final proposals.

Most states have already released draft BEAD plans for public comment, with approaches ranging from fiber to fixed wireless and satellite. Large states such as California and Texas received extensions until October. The lawmakers urged the NTIA to issue specific guidance on nondeployment funding by September 2, arguing that these activities are critical to ensuring long-term success and adoption of broadband infrastructure.

Click here to access the full letter.