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NAWB recently conducted a survey on the impacts of the federal government shutdown and ongoing funding uncertainty on workforce boards across the country. The survey results are presented in a new report, A System Under Strain: How Funding Uncertainty Harms Workforce Programs, and paint a candid picture of the challenges our system is facing.

While many workforce boards were forced to cut costs during the federal government shutdown, the ongoing funding uncertainty of workforce programs is having an even greater impact on operations.

Among the key findings:

• Cost-cutting measures affect programs, staff, and planning. 64% of respondents reduced costs due to funding uncertainty, with actions including staff layoffs, site closures, reduced programs, hiring freezes, delayed payments, and cuts to travel or training.
• Workforce boards saw an increase in customer demand. 40% of respondents reported changes in customer interaction due to the shutdown. They reported seeing increasing numbers of customers experiencing unemployment and food insecurity and noted that many expressed confusion or stress related to shifting government policies.
• Workforce boards are raising their voices. More than 60% of respondents reached out to federal elected officials to share details of how the shutdown was impacting local communities.

These findings make one thing clear: the current funding environment is unsustainable. Workforce boards are being asked to do more with less, while navigating complex workforce trends and funding shortfalls.

The message to policymakers is urgent and direct. To ensure workforce boards can continue to deliver results, Congress must enact timely appropriations to avoid service disruptions; increase funding for Titles I and II of the Workforce Innovation and Opportunity Act (WIOA); reauthorize WIOA with strengthened local flexibility; and recognize workforce boards as essential infrastructure for economic resilience.

NAWB will continue to provide advocacy tools and templates and timely, actionable information on what’s happening in Washington, DC, while we advocate across the federal government for stronger workforce investments.