Proposal would cut funding to U.S. Department of Labor Employment and Training programs by $1B

Last week, the U.S. House of Representatives’ Subcommittee for Labor/Health and Human Services/Education (Labor-HHS) released draft funding levels for FY 2018 that propose to reduce or eliminate critical workforce programs.  Proposed program eliminations and reductions would total nearly $1B less than current year funding levels. Funding for Workforce Innovation and Opportunity Act (WIOA) Title I state formula grants would be cut by approximately $86 million overall.

Some of the critical cuts include:

  • Elimination of funding for apprenticeship programs (a $90M reduction);
  • Elimination of Wagner-Peyser Employment Service Grants (a $671M reduction);
  • Reducing adult allocations by $38.8M;
  • Reducing dislocated worker allocations by $5.3M;
  • Reducing youth allocations by $41.5M;
  • Reducing job corps by $16M;

Proposed Title I funding levels represent approximately a 3% reduction from current levels. However, the proposal completely eliminates Title III Wagner-Peyser Employment Services grants ($671M), which have devastating impacts on local, state and national one-stop centers from providing services to the nearly 13 million individuals that use these programs.

The House Subcommittee voted to pass their recommendations to the full Appropriations Committee for action, which is expected next week. The Senate Appropriations Subcommittee will undertake a similar process as the House, likely after the August recess.