Yesterday, congressional leaders announced a bipartisan agreement on the FY 2026 Labor, Health and Human Services, and Education appropriations bill. For the public workforce system, the most important takeaway is a welcome one: WIOA Title I funding will remain very close to FY 2025 levels.
After a year marked by uncertainty, that stability matters.
Over the past several months, workforce boards across the country have been doing their level best to plan against the backdrop of an unusually volatile environment. We have navigated a President’s budget that proposed deep reductions to workforce investments, alongside House proposals that raised serious concerns about the future of core formula programs. Our system was not waiting to react to the potential for funding cuts as we noted in our November 2025 report A System Under Strain: New Survey Reveals the Impact of Funding Uncertainty on Workforce Boards, indeed boards were making sometimes difficult cuts proactively and finding efficiencies wherever possible. Against that backdrop, the decision to adopt the Senate’s funding levels provides much-needed certainty and preserves the foundation of the public workforce system.
At the national level, WIOA formula funding will be approximately $10 million lower than FY 2025. That modest reduction is limited to the Adult program, while Youth and Dislocated Worker funding remain level. While no reduction is ideal, particularly at a time when local systems are facing rising costs and growing demand, this outcome avoids far more disruptive cuts and maintains the core structure that our communities rely on.
In practical terms:
-Adult Activities will see a small decrease
-Youth Activities will remain flat-funded
-Dislocated Worker programs will remain flat-funded
This level of stability allows workforce boards to continue serving employers, supporting jobseekers, responding to rapidly changing labor market conditions and adapting to a technological environment that changes by the day. It preserves capacity at a moment when flexibility and responsiveness are essential.
It is also important to remember that national funding levels do not automatically translate into local allocations. Once the bill is enacted, the Department of Labor will apply statutory formulas using updated economic data to determine state allotments, followed by local allocations within each state. Because those formulas are driven by relative unemployment and disadvantaged population data, local impacts will vary.
That reality underscores why NAWB continues to emphasize two core principles: flexibility and local control.
Workforce boards operate closest to their communities. They understand local labor markets, regional employers, and the unique barriers facing jobseekers in their areas. Preserving flexibility in how funds are used, and ensuring decisions remain locally driven, is what allows the workforce system to deliver the most meaningful results.
We are grateful for the bipartisan agreement that provides stability after a challenging year, and we view this outcome as a solid foundation as conversations continue around FY 2027 funding and broader workforce policy. At the same time, NAWB will continue to advocate on behalf of our members for policies that strengthen, rather than constrain, the public workforce system.
Stability is not the finish line… but it is a necessary starting point.
As the bill continues to progress through the final steps of enactment, we will continue to monitor and keep you informed.
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