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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.