TL; DR: The Senate’s FY26 appropriations bill averts the worst proposed cuts to workforce programs but leaves critical gaps that could undermine the nation’s ability to train workers and meet employer demands.
The Senate Appropriations Committee recently approved, with broad bipartisan support, its fiscal year 2026 bill to fund the Departments of Labor, Health and Human Services, and Education. This bill preserves funding for critical workforce development programs such as those authorized under the Workforce Innovation and Opportunity Act (WIOA). But it still fails to provide the robust investments that our workforce system needs to keep pace with the needs of workers, employers, and our economy.
The Senate bill largely maintains the funding levels established in FY24. While this is less harmful than the cuts proposed in the President’s budget request or what we anticipate from the House Appropriations Committee after they return from August recess, it still amounts to a funding decrease due to inflation and largely falls short of the investments that more than 200 organizations urged Congress to make.
Although we do not yet have a full picture of the House proposal, we know the proposed allocation for the Labor-HHS bill is $43 billion lower than FY24. That gap suggests some of the programs the Senate preserved may face cuts in the House version.
| Program | FY24 Enacted | FY25 CR | President FY26 | Senate FY26 |
| Department of Labor | ||||
| Make America Skilled Again Consolidated Grants | — | — | $2,965,905,000 | |
| WIOA Title I — State Formula Grants | ||||
| WIOA Adult | $885,649,000 | $885,649,000 | $0 | $875,649,000 |
| WIOA Dislocated Worker | $1,095,553,000 | $1,095,553,000 | $0 | $1,095,553,000 |
| WIOA Youth | $948,130,000 | $948,130,000 | $0 | $948,130,000 |
| Wagner-Peyser / Employment Service Grants | $675,052,000 | $675,052,000 | $0 | $653,639,000 |
| Workforce Data Quality Initiative Grants | $6,000,000 | $6,000,000 | $0 | $6,000,000 |
| Apprenticeship Grants | $285,000,000 | $285,000,000 | $0 | $285,000,000 |
| Dislocated Worker National Reserve | $300,859,000 | $300,859,000 | $0 | $300,859,000 |
| Native American Programs | $60,000,000 | $60,000,000 | $0 | $60,000,000 |
| Reentry Employment Opportunities | $115,000,000 | $115,000,000 | $0 | $110,000,000 |
| Migrant and Seasonal Farmworkers | $97,396,000 | $97,396,000 | $0 | $97,396,000 |
| Strengthening Community College Training Grants | $65,000,000 | $0 | $65,000,000 | |
| YouthBuild | $105,000,000 | $105,000,000 | $0 | $105,000,000 |
| Senior Community Service Employment Programs | $405,000,000 | $405,000,000 | $0 | $395,000,000 |
| JobCorps | $1,760,155,000 | $1,760,155,000 | $176,370,000 | $1,760,155,000 |
| Trade Adjustment Assistance | $30,700,000 | $33,900,000 | $50,300,000 | $50,300,000 |
| RESEA | $382,000,000 | $388,000,000 | $467,000,000 | $467,000,000 |
| Department of Education | ||||
| Adult Education State Grants | $715,455,000 | $715,455,000 | $0 | $729,167,000 |
| Career and Technical Education State Grants | $1,439,848,000 | $1,439,848,000 | $1,440,000,000 | $1,452,269,000 |
| Pell Grant maximum award | $7,395 | $7,395 | $5,710 | $7,395 |
| Department of Agriculture
|
||||
| Women, Infants Children | $7,030,000,000 | 7,597,000,000 | $7,306,000,000 | $8,200,000,000 |
| SNAP Employment & Training | 663,465,000 | 679,595,000 | $696,266,000 | $696,266,000 |
| Department of Commerce | ||||
| Manufacturing Extension Partnership | $175,000,000 | $175,000,000 | $0 | $175,000,000 |
| Workforce Training Grants (Authorized in 2024 WRDA) | N/A | N/A | N/A | $10,000,000 |
| Regional Technology and Innovation Hub (EDA) | $41,000,000 | $41,000,000 | $0 | $60,000,000 |
One of the major concerns from our network regarding the President’s Budget Request was the Make America Skilled Again proposal to consolidate 11 workforce programs (WIOA Adult Training and Employment Services, WIOA Youth Training and Employment Services, WIOA Dislocated Worker Training and Employment Services, Dislocated Worker National Reserve, Reentry Employment Opportunities, Apprenticeship, Workforce Data Quality Initiative, YouthBuild, National Farmworker Jobs Program, Wagner-Peyser Employment Service, and Native American Programs) into a single fund and reduce overall funding for those programs.
The Senate bill rejects this consolidation and maintains these programs as distinct allocations. Most receive level funding, though a few take modest cuts:
The Senate also takes steps to preserve the Women’s Bureau by providing $23 million with at least $5 million designated to Women in Apprenticeship and Nontraditional Occupations Act (WANTO) grants. The Women’s Bureau and WANTO grants were also targets for elimination under the Trump Administration calling the Women’s Bureau “an ineffective policy office that is no longer necessary.” NSC’s network has long supported the Women’s Bureau as a key agency for helping women access careers in traditionally male dominated fields.
Senate appropriators also preserve the Job Corps program at current funding levels. This stands in contrast to the administration’s plan to slash the program to 10% to wind it down. While court orders have delayed parts of that plan, the Senate’s continued support for Job Corps is critical. The program provides job training and education for young adults, many of whom face barriers to employment.
In addition to maintaining core programs, the Senate bill includes $93.5 million for congressionally directed spending (earmarks) under the Department of Labor. This is notable because the continuing resolution that provided funding for FY25 eliminated this type of spending for DOL projects. These earmarks were eliminated from the FY25 continuing resolution but are important for funding local and state initiatives relating to training, wraparound services, stipends and subsidies, and this funding supports many NSC network partners.
While it is encouraging that the Senate does not move to dismantle the workforce system, continued underinvestment in these programs, especially given inflation and growing demand for training is still a concern for NSC’s network.
In a departure from previous spending bills, the committee listed separate allocations for Adult Education and Career and Technical Education, with modest increases of $13.7 million and $12.4 million, respectively. These programs are traditionally funded as a single combined amount in legislative text. The change may reflect Seante appropriators desire to clarify funding intentions, especially after delays in Adult Education allocations and the administration’s proposal to eliminate that funding entirely. Explicitly separating these funding streams helps to ensure preservation of adult education funding.
The reconciliation bill that was enacted into law last month will expand Pell grants to students enrolled in eligible programs between 150–600 clock hours and 8–15 weeks of study at a prorated amount beginning in 2026. The Senate appropriations bill proposes maintaining the maximum Pell grant at $7,395. The Senate bill maintains the maximum Pell Grant at $7,395. While this is better than the proposed cut to $5,710 in the President’s budget, keeping the amount flat erodes the Pell Grant’s buying power, especially as more students become eligible.
As technology and our economy shifts, access to training and education throughout one’s career will continue to grow in importance. When paired with newly enacted changes that will limit student borrowing, level Pell awards will reduce the ability of students and workers to pursue lifelong learning.
The Trump administration has also taken steps to delay or eliminate Congress-approved spending. Most recently, funding for programs that support K-12 and Adult Education were delayed. While that money has since been released, the Senate appears to be trying to reign in these types of actions from the administration by including report language that instructs the administration to make timely distribution of funds.
Although NSC most closely focused on the Labor-HHS-Education bill, the Senate also released FY26 funding proposals for the Departments of Agriculture and Commerce. Several workforce-relevant provisions are worth highlighting:
Republican policymakers in Congress and the Administration continue to tout the importance of workforce development that supports employers and workers alike. We see this in proposals focused on automation and artificial intelligence as well as those promoting the expansion of registered apprenticeships. However, funding proposals lags far behind the rhetoric – and what workers and employers actually need. The reconciliation law included cuts to critical supports like SNAP and Medicaid. The President’s Budget Request proposed consolidation and elimination of key workforce training programs. Even the Senate’s appropriations legislation, which is better than the President’s Budget request and what we expect to see from the House, does not meet the levels required.
If Congress and the Administration are serious about supporting workforce training and education, they cannot undermine or dismantle the programs that support these efforts. Instead, they advance proposals that increase funding to both training that is aligned with employers’ needs and supportive services that help workers succeed.
When Congress returns from August recess, it will have less than a month to pass a full year spending bill, reach agreement on a continuing resolution, or let the government shut down when the new fiscal year begins on October 1st.
NSC will continue to follow the appropriations process closely as the House releases their version of appropriations legislation which is expected to include significant cuts. As always, our team will keep the network informed on any important updates and opportunities to get involved.
