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6-10-2016 Updated to include Perkins and Adult Education state grant funding levels
On June 9th, the Senate Appropriations Committee voted 29-1 to approve the bipartisan Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS) spending bill for Fiscal Year (FY) 2017. The bill sets overall Labor-HHS funding at $161.9 billion, $270 million below FY2016 levels. Because of a $2 billion increase of National Institute of Health funding, however, workforce and education programs bear an even greater amount of cuts than that difference in funding might suggest.
Fiscal year 2017 begins October 1, 2016, so Congress must pass legislation to fund the government by September 30. The House’s Labor-HHS appropriations bill will be heard later this month, before members leave for their August recess and National Conventions, beginning the third week of July. While a full appropriations package before September 30th is unlikely, we anticipate a Continuing Resolution to fund the government until after the Presidential election on November 8.
Department of Labor
The bill would reduce funding for Department of Labor programs by $134 million below FY2016, to $12.04 billion. The bill would reduce funding for the Workforce Innovation and Opportunity Act (WIOA) stat formula by $73.8 million, about 3%, at a critical time in WIOA’s implementation. The largest of these cuts were to Adult and Youth programming under WIOA Title I. The bill would maintain the 15 percent state set-aside for WIOA formula grants authorized under the law.
The bill would maintain a $6 million investment in Workforce Data Quality Initiative Grants and maintain FY2016 funding levels for Migrant and Seasonal Farmworkers and Ex-offenders activities.
The bill also increases funding for apprenticeships to $100 million for FY2017, including an emphasis on expanding access to apprenticeship for underrepresented populations.
Department of Education
The appropriations bill reduces funding for the Department of Education by $220 million from FY2016 levels to $67.8 billion.
Overall, funding for Perkins Career and Technical Education state grant and Adult Education and Family Literacy State Grants is consistent with FY2016 funding levels.
The Subcommittee’s bill does include an expansion of Pell funding to reinvest in “year-round” Pell, meaning students could qualify for Pell for summer courses. Year-round Pell is estimated to impact 1 million students who will be able to continue courses in the summer under the Pell program. The bill increases the maximum Pell award for the 2017-2018 school year at $5,935, with year-round Pell recipients capped at 150% of that max.
The subcommittee also spent $1.2 billion in surplus of Pell funds on programs that are outside of the scope of the Pell program.
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Training and Employment Services |
FY 2016 – Current Funding Levels |
FY 2017 – Authorized Levels |
FY 2017 – Senate Labor –HHS Bill |
FY 2017 – President’s Budget Request |
|
Department of Labor |
|
|
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Workforce Innovation and Opportunity Act Title I – State Formula Grants[1] |
$2,709,832,000 |
$3,078,720,000 |
$2,636,000,000 |
$2,847,861,000 |
|
WIOA Adult |
$815,556,000 |
$842,376,000 |
$782,000,000 |
$842,376,000 |
|
WIOA Dislocated Worker[2] |
$1,241,719,000 |
$1,334,205,000 |
$1,236,859,000 |
$1,334,205,000 |
|
WIOA Youth |
$873,416,000 |
$902,139,000 |
$838,000,000 |
$902,139,000 |
|
Wagner-Peyser/Employment Service Grants |
$680,000,000 |
NA
|
$671,413,000 |
$680,000,000
|
|
Workforce Data Quality Initiative grants |
$6,000,000 |
NA |
$6,000,000 |
$40,000,000 |
|
Apprenticeship Grants |
$90,000,000 |
NA |
$100,000,000 |
$90,000,000 |
|
Native American Programs |
$50,000,000 |
$50,671,000 |
$48,500,000 |
$52,000,000 |
|
Ex-Offender Activities |
$88,078,000 |
NA |
$88,078,000 |
$95,078,000 |
|
Migrant and Seasonal Farmworkers |
$81,896,000 |
$90,052,000 |
$81,896,000 |
$81,896,000 |
|
Youth Build |
$84,534,000 |
$85,256,000 |
$84,534,000 |
$84,534,000 |
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Department of Education |
|
|
||
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Career and Technical Education State Grants |
$1,117,598,000 |
NA |
$1,117,598,000 |
$1,117,598,000 |
|
American Technical Training Fund |
N/A |
NA |
NA |
$75,000,000 |
|
Adult Education and Family Literacy State Grants |
$581,955,000 |
$635,198,000 |
$581,955,000 |
$581,955,000 |
[1] Sum of WIOA Adult, Dislocated Worker, and Youth grants
[2] Includes Dislocated Worker National Reserve
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