Member PortalFebruary 26, 2025 — This morning, the House Education and Workforce (E&W) Committee held a hearing focused on ways to strengthen the economy through various federal policies. The hearing began with Chairman Tim Walberg (R-MI) laying out his view that federal regulations imposed on employers have harmed the economy and that deregulation is a key strategy to strengthen it in the future. He also strongly endorsed President Trump’s and Congressional Republicans’ plans to extend the 2017 Tax Cuts and Jobs Act as an additional way to spur economic growth. In his opening remarks, Ranking member Bobby Scott (D-VA) noted that the House’s recently approved budget resolution—a key procedural step in the wider budget reconciliation process that was passed along party lines late last night—calls for at least $330 billion in funding reductions from the E&W Committee, and that these potential cuts will harm the American workforce.
Several recurrent themes emerged during the hearing, including persistent workforce shortages in key sectors of the economy, the impact of ongoing inflation, and the role immigration, including guest worker programs, have in supporting economic growth.
Witnesses included Rosanna Maietta from the American Hotel and Lodging Association who noted that the hotel industry has roughly 200,000 job openings to fill. Dr. William Beach, senior fellow in economics at the Economic Policy Innovation Center and former director of the Bureau of Labor Statistics, suggested that regulatory relief and tax relief would lead to increased productivity, as would addressing the federal budget deficit. Dr. Heidi Shierholz, president of the Economic Policy Institute and former chief economist at the U.S. Department of Labor, expressed grave concerns about how pending budget cuts would affect workers. Elizabeth Milito from the National Federation of Independent Business’s Small Business Center highlighted that small businesses have faced many challenges including COVID, supply chain interruptions, and regulatory burdens (at a cost of $1.8 trillion to small businesses, she noted). She advocated for policies to broadly provide more certainty for the business community.
Rep. Lucy McBath (D-GA) noted several steps that would unleash the workforce, including providing access to needed skills, reauthorizing WIOA, and updating federal job training programs. Rep. Virginia Foxx (R-NC), the former committee chair, expressed that regulations could be even more impactful than tax cuts, and Dr. Beach agreed. Foxx also emphasized her view that a lighter federal regulatory burden would affect worker upskilling and education. Rep. Ryan Mackenzie (R-PA) expressed significant concern about high prices, inflation, and barriers to employment. As chairman of the Workforce Protections Subcommittee, he said he is eager to focus on workforce issues, including how to create a skilled workforce, emphasizing that there are many pathways toward family-sustaining employment. Rep. Summer Lee (D-PA) shared her concerns about the House’s recent budget resolution that would likely cut programs like Medicaid, SNAP, and Head Start.
Rep. Glenn Grothman (R-WI) discussed the importance of workers having multiple pathways to workforce. He voiced concern over government assistance programs creating disincentives for participation in the labor force. Rep. Jahana Hayes (D-CT) noted that low wages lead many Americans to rely on public assistance and that cutting these programs would be counterproductive. She voiced support for an increase in the federal minimum wage. Rep. Suzanne Bonamici (D-OR) raised significant concerns over treatment of the federal workforce and whether Americans’ private data is still secure amid ongoing activities spearheaded by Elon Musk and the Department of Government Efficiency. Rep. Alma Adams (D-NC) expressed her concerns about firings at wage and hour offices around the country. Shierholz responded that a lot of sensitive personal info has been compromised, and that unemployment claims and OSHA cases are at risk due to these disruptions.
Rep. Burgess Owens (R-UT) focused his remarks on the importance of supporting business franchising, the growing role of independent contractors, and the need to teach the power of entrepreneurship. Owens also defended efforts to “rightsize” the federal government, as is often done in the private sector. Rep. Mark DeSaulnier (D-CA) expressed concerns about recent events concerning the National Labor Relations Board and that the agency’s independence has been compromised with recent executive actions taken by President Trump. DeSaulnier also expressed concern about workforce development tools for disabled people and the Individuals with Disabilities Education Act if the U.S. Department of Education were to be eliminated. Rep. Michael Rulli (R-OH) raised the issue of tax-free tips and asked if this policy change would help with employee retention.
Rep. Donald Norcross (D-NJ) raised concerns about a bill to eliminate OSHA and how heartbreaking it has been to lose workers on the job (which he noted has happened twice in his career). Rep. Mark Messmer (R-IN) noted the vital nature of the Sec. 199(a) small business deduction, and urged its renewal. Rep. Robert Onder (R-MO) expressed strong support for the H2B guestworker visa as essential. Rep. Joe Courtney (D-CT) highlighted concerns about tariffs, noting that the price of steel has already increased since the November elections. He also noted that Farm Bureau and National Association of Home Builders are both sounding the alarm about tariffs and rising costs due to these policies. Rep. Mark Takano (D-CA) highlighted that veterans are disproportionately employed by the federal government and noted that an estimated 6,000 veterans have been terminated in recent weeks as part of aforementioned efforts to reduce the size of the federal workforce.
Chairman Walberg closed the hearing by noting that the Committee is committed to “considering legislative solutions to improve the standard of living for American workers, reduce the burdens on business, and strengthen the economy, and that includes WIOA reauthorization and Workforce Pell.”
Shortly after the hearing concluded the E&W Committee announced a new hearing, specifically focused on WIOA, has been scheduled for Wednesday, March 5. NAWB will continue to share more information about these efforts as they become available. In the meantime, we urge you to continue making the case for WIOA funding to federal policymakers, especially if your member of Congress serves on the House E&W Committee and the vital role workforce development boards play in WIOA implementation.