Acting DOL Secretary Sonderling Defends President’s FY27 Workforce Budget Before Senate Appropriators

Acting Secretary of Labor Keith Sonderling appeared on Tuesday before the Senate Appropriations Subcommittee on Labor–HHS–Education to justify the Administration’s FY27 budget request and outline its vision for the nation’s workforce system.

MASA Block Grant Takes Center Stage

Sonderling highlighted the Administration’s signature workforce proposal, the Make America Skilled Again (MASA) block grant, as the cornerstone of its FY27 request. He described MASA as a streamlined, state‑driven funding model intended to:

• Provide states with maximum flexibility
• Consolidate multiple WIOA Title I programs
• Expand Registered Apprenticeships, with a required 10% set‑aside
• Reduce administrative burden and accelerate skills training

Subcommittee Democrats expressed skepticism about the overall effectiveness of the MASA block grant proposal and questioned whether it would lead to more people in training. There was additional criticism concerning the funding cut to workforce development programs given the increasing employer and industry demand for skilled workers. Whether it was Job Corps or WIOA programs, there was a bipartisan sentiment that the Administration mischaracterized the performance and impact of workforce development programs.

Bipartisan Pushback on Job Corps Elimination

Committee Chair Susan Collins (R-ME) underscored the Administration’s proposal to eliminate Job Corps, citing the strong performance and community value of centers in her home state of Maine. While DOL defended the proposal by pointing to cost and performance challenges, senators from both parties expressed skepticism and emphasized Job Corps’ unique role in providing residential training, wraparound supports, and pathways for disconnected youth.

Broad Support for Apprenticeships—With Questions About Implementation

Subcommittee Ranking Member Tammy Baldwin (D-WI) noted that “expanding apprenticeships is one area where we can all agree.” Sonderling reiterated the Administration’s goal of accelerating apprenticeship expansion and aligning federal investments with employer demand.

Additional Issues Raised

Senators also questioned DOL on several cross‑cutting issues, including the proposal to move the Bureau of Labor Statistics to the Department of Commerce, OSHA enforcement and workplace safety, inflation and job creation trends, mine safety, and temporary work visas, particularly for the agricultural industry.

What This Means for Workforce Boards

While the FY27 budget request reflects the Administration’s priorities, Congress will ultimately determine funding levels and program structure. NAWB will continue to analyze the implications of MASA, the proposed elimination of Job Corps, and other major structural changes as appropriations and authorizing discussions advance.

NAWB will keep members informed as additional details emerge and will continue advocating for strong, stable federal investments in the public workforce system.

The U.S. Department of Education announced on Monday that it will publish the final rule implementing the new Workforce Pell Grant program in the Federal Register tomorrow, May 19, 2026. The program, authorized under the One Big Beautiful Bill Act enacted last summer, extends Pell Grant eligibility to shorter-term, high‑quality workforce training programs beginning July 1, 2026.

Under the final rule, federal Pell Grants will be available to students enrolled in programs 8–15 weeks in length and 150–599 clock hours in duration. To qualify, programs must be aligned with high‑skill, high‑wage, or in‑demand occupations or sectors, and must be delivered by an accredited postsecondary institution eligible for Title IV federal student aid.

Importantly, eligible programs must also meet several new quality and accountability requirements, including:

• A minimum 70 percent completion and job placement rate
• Compliance with a new value‑added earnings measure, which compares graduates’ earnings to the cost of the program
• Alignment with state‑identified in‑demand industries and occupations

These guardrails are intended to ensure that Workforce Pell supports programs that deliver strong labor‑market outcomes and represent a sound investment for students.

Are You Ready?

The final rule places substantial responsibility on states and Governors to establish approval processes, identify eligible industries, and operationalize the program. Much of the implementation work will occur at the state level, with state workforce boards playing a central role in determining which programs ultimately qualify for Workforce Pell funds.

Workforce Boards have an important role to play, and should begin by assessing their readiness for implementation:

1. Are you ready?
2. Does your state have a policy or guidance?
3. Does your board have policy or guidance?
4. Does your AJC team have direction to advise jobseekers or employers?
5. Does your AJC team have direction and processes to capture data about this program?

State workforce boards will be responsible for:

• Identifying high‑skill, high‑wage, and in‑demand occupations
• Reviewing and validating program alignment with state workforce priorities
• Coordinating with institutions and employers to ensure program relevance

Given these responsibilities, NAWB has been encouraging workforce boards to engage early with their state governments to prepare for implementation and ensure that local and regional workforce needs are reflected in state decision‑making.

Rulemaking Timeline

This final rule follows a negotiated rulemaking process that concluded in December 2025, followed by a public comment period earlier this spring. The rule will be formally published on May 19, 2026, and institutions may opt into early implementation beginning July 1, 2026.

Learn more by reviewing the Rule or the Fact Sheet.

Senate Health, Education, Labor, and Pensions (HELP) Committee Chairman Bill Cassidy (R-LA) introduced two related bills aimed at strengthening Registered Apprenticeship Programs (RAPs) this week. The introduction of this legislation coincides with the start of National Apprenticeship Week (NAW), which continues through May 2.

• The first bill, the Apprenticeship Data Value Improvements to Create Employment (ADVICE) Act, co-authored by Sen. Tommy Tuberville (R-AL), would establish a federal advisory committee to recommend improvements for how states and sponsors collect and analyze apprenticeship outcomes such as pay, retention, and program completion. The task force would provide recommendations to the U.S. Department of Labor (DOL) to implement future reforms on these topics.

 

• The second bill, the Streamlining Timely Apprenticeship Registration and Transparency (START) Act, co-authored by Sen. Jim Banks (R-KS), seeks to accelerate and improve the underlying registration process for establishing and implementing RAPs. The START Act would also codify a number of preexisting regulatory definitions and related processes for RAPs in statute, establish decision timelines for the DOL and State Apprenticeship Agencies (SAAs), and create a new $150 million annual formula grant program for states. Specifically, the START ACT would require that registration decisions be made within 90 days for complete program standards and within 30 days for feedback on incomplete submissions, with DOL required to publicly report average response times each month. The new state grant program would allocate funds based on state population and apprentice counts, with a $1 million per-state floor and a 50 percent state match. Allowable uses would include technical assistance to sponsors, training costs, outreach, defraying the costs of apprentice wages, and employer incentives such as pay-for-performance models. States that miss registration deadlines or related timeline requirements would see proportional reductions in the following year’s award. Additional provisions of the START Act would codify existing limits on State Apprenticeship Council authority and require public posting of state reciprocity and standards processes.

Contact Congress

NAWB is tracking both bills closely and welcomes member feedback on any aspect of the proposals. You can also share information with Congress about the Apprenticeships your board supports. Use Our Template Letter on Apprenticeship.

Our Takeaways

For the public workforce system, the most consequential elements are the proposed federal investment in apprenticeship expansion, the explicit allowance for apprentice wage subsidies, and the performance-based registration incentives. The bills largely envision states administering these dollars through their State Apprenticeship Agencies, which may raise practical questions in states where the federal Office of Apprenticeship serves these functions.

Studying Barriers to Apprenticeship

Cassidy is also requesting the U.S. Government Accountability Office (GAO) to conduct a study on removing barriers to create new apprenticeship programs. We invite NAWB members to share with us insights on this topic.

On Tuesday, the House Education and the Workforce Committee approved H.R. 8210, A Stronger Workforce for America Act of 2026 (ASWA 2026) by a party line vote of 19-14. As we have previously reported, the bill would reauthorize the Workforce Innovation and Opportunity Act (WIOA) and reflects many provisions included in earlier versions of the bill considered in 2024. During the markup, several amendments were offered by Democrats: Ranking Member Bobby Scott offered a substitute amendment to replace the text of HR 8210 with the 2024 committee-passed version of the bill. This amendment was defeated by a vote of 14-18. Ranking Member Scott also offered an amendment that would require a competitive bidding process for registered apprenticeship grants. This amendment was defeated by a vote of 14-19. Rep. Alma Adams offered an amendment to keep Title II Adult Education programs at the Department of Education, using language from the 2024 committee-passed bill. This amendment was defeated by a vote of 14-19. Rep. Suzanne Bonamici offered an amendment to prohibit the use of Interagency Agreements (IAAs), such as ones that have been issued by the Administration moving parts of the Department of Education to other federal agencies, including the Department of Labor. This amendment was defeated by a vote of 14-19. Rep. John Mannion offered an amendment to reduce the number of states that can seek waivers to consolidate – from 10 states, as stated in HR 8210, to a pilot of 5 states, as the 2024 bill called for. This amendment was defeated by a vote of 14-19. While NAWB supports a thoughtful, modernized WIOA reauthorization, we—along with our national partners—have significant concerns with the current bill. As stated in the joint letter submitted by NACo, NAWB, NLC, USCM, and USWA, WIOA is “a critical tool that empowers local governments, workforce boards and other vital local stakeholders to connect individuals with in‑demand skills training and education needed by employers,” and any reauthorization must “balance the needs of workers, learners, employers and their communities.” The letter also warns that the bill’s proposed funding levels “would undermine the public workforce system’s ability to respond to significant changes in the economy and labor markets precipitated by Artificial Intelligence (AI).” Read Letter

NAWB CEO Andrew Bercich underscored this point, noting: “Local workforce boards are on the front lines of helping workers and employers adapt to rapid economic change. Any WIOA reauthorization must strengthen—not weaken—the resources and flexibility needed to serve communities effectively.” For a deeper look at the implications of ASWA 2026 and how stakeholders can engage, we encourage you to read Gail Ravnitzky Silberglied’s blog post, “Why the A Stronger Workforce for America Act of 2026 Falls Short—and Why Your Voice Matters Now“ NAWB will continue to work with Committee members, staff, and partners as the bill moves to the House floor and will provide updates as the legislative process continues.

Last week, House Education and Workforce Committee Chair Tim Walberg (R-MI) introduced “A Stronger Workforce for America Act of 2026 (ASWA 2026)”—legislation that seeks to reauthorize the Workforce Innovation and Opportunity Act (WIOA). Chair Walberg has repeatedly indicated throughout the last year that WIOA Reauthorization is a key priority for the Committee. The text of ASWA 2026 hews closely to the version of ASWA that was nearly enacted by Congress in late 2024.

However, unlike the previous iterations of ASWA, this new, updated bill is not bipartisan. One significant difference between the two bills, representing the political divide, is that ASWA 2026 would codify the proposed transfer of WIOA Title II Adult Education and Family Literacy Act funding and programming from the Department of Education (ED) to the Department of Labor (DOL). This remains a critical point of contention for Democrats over the past year as the Trump Administration has advanced ten different interagency agreements (IAAs) to transfer various programs and initiatives from ED to DOL alongside other federal agencies.

Three concerning policy proposals remain in ASWA 2026 including:

• 50% training requirement for Adult and Dislocated Worker funds (allowing for up to 10% for supportive services and/or individual career services related to the provision of training services)
• Additional 10% Governors Reserve funding for Critical Industry Skills Fund (essentially allowing states to reserve up to 25% of all WIOA Title I funding, up from 15% in current law)
• Single State Board Redesignation authority for states with a population of less than 5.1 million people or fewer than 5 local areas (would require State Legislature approval)

Additionally, NAWB strongly supports increased federal investment in workforce development programs. Unfortunately, ASWA 2026 would authorize federal funding for Title I Adult and Youth programs at current enacted levels for six years and cut Dislocated Worker funding levels by 4.5% over those six years. There are no funding increases envisioned as part of this proposed reauthorization effort.

ASWA 2026 also has a more elaborate ‘Performance Accountability’ section with greater data and reporting requirements for local workforce boards and eligible training providers. NAWB is continuing to review this section carefully for implications for workforce development board operations.

Process Update

This is only the first step in the wider legislative process. Following introduction, we expect that the House Education and Workforce Committee will schedule a markup of the legislation in the coming weeks, providing Committee members with a chance to amend and vote on the bill. If the bill is approved by the Committee, it would then be eligible for House floor consideration.

Given the historically slim majorities in the House and Senate, a partisan WIOA proposal will have a difficult time advancing given the current institutional constraints within Congress.

NAWB remains engaged with key Committee Members and staff throughout consideration.

Next Steps

As we continue to review the ASWA 2026 text, we will keep NAWB members updated on impacts to the workforce development delivery system.