White House Previews FY 2017 Workforce Budget Proposals

By Katie Spiker, February 04, 2016

This morning, the White House released a fact sheet detailing proposals to be featured in the Administration’s Fiscal Year (FY) 2017 budget request, which will be released on February 9. The proposals include those targeting expanded career pathways, sector partnerships, job opportunities and workforce data collection, with a particular focus on youth.

The President’s FY 2017 Budget request will include the following job training priorities:

  • The $5.5 billion First Job Fund would target job and skill training opportunities for youth, including $3.5 billion in formula funding for partnerships with employers and communities to support up to one million summer job opportunities and 150,000 year-round work experiences for out-of-school youth; and a $2 billion competitive grant program for communities that would be administered jointly by the Departments of Labor and Education and would focus on dropout recovery strategies.
  • A $3 billion America’s Job Compact, intended to build talent pipelines and attract overseas jobs returning to the US. Relying on sector partnerships dubbed “Talent Hotspots,” this competitive grant funding would require employers, training providers, and economic development agencies to partner in expanding access to training for in-demand industries within their local areas.
  • A $500 million Workforce Data Science and Innovation Fund would invest in tracking and updating data on workforce needs and trends. The system would be based on Health and Human Services Open Health Data Initiative and include partnership with Department of Commerce to share data collected. The President’s budget request will also feature proposals for $40 million in Workforce Data Quality Grants and both a $2.5 million expansion of O*NET and a $2.5 million expansion of data collection in American Jobs Centers.
  • The President will repeat his 2016 request for a $2 billion Apprenticeship Training Fund to expand apprenticeship, consistent with the Administration’s goal of doubling the number of apprentices nationally by 2019. This fund would include a new $200 million proposal targeting youth apprenticeship and pre-apprenticeship, requiring elements of both classroom and on-the-job training.
  • Finally, the President’s budget request will feature a proposal for a $1.5 billion investment in Career Navigators targeting at-risk workers.

Also today, Department of Labor will release an application for a $20 million Summer Jobs and Beyond grants. These grants will fund up to 10 partnerships across the country to expand career pathways for youth and are intended to expand Youth Demonstration grants currently operating in 7 cities.

While most of these proposals are not expected to be funded in the 2017 appropriations process, the President’s budget request provides insight into the Administration’s priorities during their final year. It is evident from today’s preview of the request that the Administration is making calls for ambitious investments in key job-training and skills priorities.

National Skills Coalition will host a webinar at 2:30 on Wednesday, February 17th to unpack the President’s budget proposals and provide a preview of federal skills policy in 2016.