Trump Administration Releases Initial FY27 Budget Request

Posted on by Grace Moster

Topline Overview

The Trump Administration released its initial Fiscal Year 2027 (FY27) budget request on April 3rd, proposing significant shifts in federal spending priorities. The budget includes $1.5 trillion for national defense—a 44 percent increase over the FY26 enacted level—while cutting non-defense discretionary spending by 10 percent compared to current funding. For workforce development stakeholders, the U.S. Department of Labor (DOL) would see its discretionary budget reduced by $3.5 billion, or nearly 26 percent, from FY26 if enacted.

The release represents the Administration’s top-level “skinny” budget. Additional details, including Congressional Budget Justifications, are expected in the coming weeks and will provide greater specificity on program-level funding for workforce development and related investments. NAWB will continue to analyze these materials as they become available.

U.S. Department of Labor

The budget requests $9.9 billion in discretionary funding for DOL in FY 2027, down from $13.3 billion in FY 2026. The Administration frames this reduction as a streamlining of the federal workforce system, with DOL positioned as the lead agency for several programs proposed for transfer from other agencies—including Career and Technical Education programs currently housed at the U.S. Department of Education (ED).

The central workforce proposal remains the “Make America Skilled Again” (MASA) grant, which would consolidate multiple WIOA Title I formula and competitive programs into a single block grant to states and localities. The budget does not specify a funding level for MASA in this version of the request but describes it as key to expanding Registered Apprenticeship Programs (RAPs) to help meet the Administration’s goal of one million active apprentices. A related factsheet indicates that 10 percent of MASA funds would be reserved for RAPs. The budget also cites Workforce Pell, enacted last year, as a complementary tool for workforce training.

The budget proposes the following specific cuts and eliminations at DOL:

  • Job Corps — eliminated (–$1.6 billion): The budget again proposes fully eliminating Job Corps, following the Administration’s 2025 closure attempt that was blocked by a federal court injunction. The justification cites high per‑graduate costs and poor employment outcomes.
  • Senior Community Service Employment Program (SCSEP) — eliminated (–$395 million): The budget proposes eliminating SCSEP, which provides subsidized employment and training for low‑income adults aged 55+, citing duplication with other federal programs, including MASA.
  • Office of Career, Technical, and Adult Education (OCTAE) (–$1.5 billion): The Budget prioritizes the partnership between ED and DOL and transfers career and technical education to DOL while also eliminating Adult Education.

Next Steps

It is important to note that this budget request is a proposal—Congress must still act on annual appropriations bill and lawmakers are unlikely to adopt these cuts in full. When faced with similar proposals in the FY26 appropriations process, Congress rejected the administration’s workforce consolidation plan and maintained separate WIOA program funding.

NAWB will continue to monitor developments as additional budget details are released and appropriations work begins and will continue to advocate for strengthened investment in workforce development initiatives.

Your advocacy is important, too. Contact your members of Congress and let them know how such drastic cuts to the Department of Labor could jeopardize the work you do.

LERs Gain Bipartisan Traction in Congress: Key Takeaways from the Talent Marketplace Hearing

Posted on by Grace Moster

Learning & Employment Records (LERs) arrived this week at the Subcommittee on Higher Education and Workforce Development for a formal hearing entitled Building a Talent Marketplace: How LERs Empower Workers and Expand Opportunity. The hearing demonstrated significant bipartisan interest and potential support for LER adoption.

A distinguished panel addressed the committee emphasizing the importance of skills data measurement and collection. Alex Kaplan, American Association of College Registrars and Admission Officers, concisely stated the current situation, “I can’t overemphasize the importance of arriving at a set of standards and protocols that allow for the interoperability to occur—this will reduce the cost for everybody, and it will accelerate the adoption of them [LERs].” Providing a specific example, Scott Pulsipher, President, Western Governors University, spoke of WGU’s prototype that evolved into the Indiana Achievement Wallet, “Now available to nearly 2.5 million students, alumni, and employees, our LER platform is designed to be student-centric, skills-rich, and provide pathfinding and career exploration from day one!”

For 43 million Americans with some college, Greg DiDonato, EBSCO Information Services, shared the potential impact “…with effective LERs, these individuals can demonstrate the skills they already have, even without completing a degree. Workers in declining industries can identify transferable skills that may allow them to enter a growing sector.”

Scott Cheney, Credential Engine, summed up his view on LinkedIn following the hearing, “This is a very bi-partisan issue, and I’m excited to see whatever legislation will be introduced as a result.” Scott thanked Chairman Owens for holding the hearing and being a visionary champion on this issue. He specifically acknowledged Chairman Owens for championing the issue, as well as the participation of full committee Chairman Walberg and Ranking Member Scott.

Where are Workforce Boards in this conversation? NAWB has been on this journey for several years, sharing resources with our members. We appreciate the contributions of our funder, community of practice, skills advisory group, and contractors. We hope this momentum will enhance coordination and progress. Most importantly, we urge workforce boards to embrace LERs and actively join this critical national dialogue!

Full written testimonies can be found on the committee website.  https://edworkforce.house.gov/calendar/eventsingle.aspx?EventID=412861

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

Posted on by Grace Moster

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.