A System Under Strain: New Survey Reveals the Impact of Funding Uncertainty on Workforce Boards

Posted on by Stacy

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.

Block Grants Won’t Solve America’s Workforce Challenges—Local Expertise Will 

Posted on by Stacy

As I sat in the Rayburn hearing room on Capitol Hill yesterday as the House Education and Workforce Committee heard testimony from Secretary of Labor Lori Chavez-DeRemer, I was struck by a deep sense of irony. 

At a time when the Administration is promising to reshore manufacturing jobs, modernize our infrastructure, strengthen supply chains, and boost labor force participation, the president’s budget proposal for fiscal year 2026 cuts funding and dismantles proven programs that are essential for developing the talent pipelines needed to achieve these critical national goals. 

Secretary Chavez-DeRemer highlighted the Administration’s proposed budget as giving states the flexibility to spend workforce dollars “in the way that makes the most sense for them.” She describes consolidating all federal workforce development programs into a single Make America Skilled Again grant, with DOL funding reduced by 35%. Some would call it a block grant. I would call it risky.  

How can we be sure that governors will spend the money according to WIOA law to serve all communities and reach the most vulnerable populations? How can we be sure that the needs of local businesses continue to be prioritized, as they currently are by local workforce boards?  

In short, we can’t. 

The proposal to consolidate federal programs and shift to states would undermine a proven nationwide network of Job Centers, neglect local businesses’ insights crucial for workforce planning, and upend public-private partnerships.  

We already know that the current 15% governors’ set-aside under WIOA would benefit from clearer accountability and transparency measures to ensure it fully addresses statewide workforce needs. Expanding governors’ authority over 100% of workforce funding without clear guidelines risks weakening the locally driven services and partnerships that have proven essential for meeting workforce needs in communities throughout the country. 

Businesses in America today are struggling to fill over seven million jobs. They need economic stability, access to skilled jobseekers, and multiple training opportunities including apprenticeships, on-the-job training, and work study to ensure a strong and successful talent pipeline.  

Federal investments in workforce development already yield immense dividends, including $66 billion in annual wages earned by newly employed workers, reduced reliance on public assistance, business growth and productivity, and increased U.S. competitiveness.   

Congress should indeed provide pathways to help Americans become skilled and employed. Dissolving the very system that already gets the job done is not the way.