TL; DR: The President’s 2026 budget proposal claims to streamline the workforce system under a new “Make America Skilled Again” grant – but the reality is the budget makes deep cuts, risky consolidations, and rollbacks to critical supports that workers and businesses rely on. While apprenticeships receive modest attention, key investments in training, education, broadband, childcare, and equity are either eliminated or severely reduced. Unfortunately, we can’t cut our way to prosperity. A competitive economy demands more investment in skills training and supportive services, not less. That’s why our coalition is urging lawmakers to reject the continuation of two decades of cuts that hurt workers, businesses, and our economy.
Click here for a fact sheet to use in your advocacy.
Each year, the President offers Congress his blueprint of how to fund the federal government. This year, the administration is releasing the budget in stages, which is common during a President’s first year in office. They released an outline in early May and, at the end of May, released more details for many agencies with workforce jurisdiction.
Congress will use this request as a guide to craft their appropriations bills. Because Republicans control both the White House and Congress, the bills are more likely to follow the President’s request than in recent years.
President Trump is calling for more than $160 billion in cuts to nondefense discretionary spending — amounting to about 22 percent — while requesting a boost to defense dollars. These cuts include divesting from the workforce system, rolling back tax incentives that support small businesses, and eliminating programs like affordable housing that support people’s ability to train for good jobs. If enacted, this budget proposal would make it harder for historically underserved populations to access affordable training and good jobs.
The proposal: A Single Grant Called “Make America Skilled Again”
The President’s Budget proposes to consolidate 11 different national workforce programs – Workforce Innovation and Opportunity Act (WIOA) Adult Training and Employment Services, WIOA Youth Training and Employment Services, WIOA Dislocated Worker Training and Employment Services, Dislocated Worker National Reserve (which includes Strengthening Community Colleges, Workforce Opportunities for Rural Communities, Dislocated Worker Grants), Reentry Employment Opportunities, Apprenticeship, Workforce Data Quality Initiative, Youthbuild, National Farmworker Jobs Program, Wagner Peyser Employment Service, and Native American Programs – into one workforce development funding stream called the Make America Skilled Again grant program.
These programs weren’t created in a vacuum – they each serve distinct populations. Merging them into one block grant risks losing those tailored supports, making it harder for people to access training that fits their lives and needs.
The Justification: Efficiency – but at What Cost?
The budget justification for consolidating these 11 workforce programs into a single funding stream rests on the claim that the current mix of federal training programs is inefficient, creating administrative burdens and duplication for states and localities, which hinders their ability to effectively address local workforce needs.
National Skills Coalition shares the goal, and has long championed, greater alignment across federal and state agencies to enact promising workforce development practices. In fact, many states are leading the way for modeling strong alignment of workforce programs. For example, stakeholders in the workforce development, adult education, and vocational rehabilitation systems in the Rural Capital region of Texas have been collaborating since 2016 with rapid employment results for participating adults, especially those with disabilities.
The Impact: Funding Cuts and Loss of Accountability
But from a budgetary perspective, when we see consolidation of programs, that means a decrease in funding for workforce programs, based on historical precedent. For example, the 1982 Job Training Partnership Act (JTPA) replaced the Comprehensive Employment and Training Act (CETA), leading to reduced overall funding and narrower eligibility. Later, the Workforce Investment Act (WIA) also consolidated programs and gradually lost real-dollar funding value, ultimately reducing services. There is strong concern that MASA could follow a similar trajectory.
In practice, this could mean fewer services for mid-career workers looking to reskill, or for local businesses that rely on industry partnerships. When federal funding disappears, so do locally developed solutions that help communities build pathways to prosperity.
We also see that what funds remain are not distributed equitably – areas that serve workers who are low income, rural communities, and those with barriers to employment, do not see as many dollars. Though neither the budget request, nor accompanying documents, describe the formula for how state level MASA dollars would be allocated – there is concern for those in rural areas or areas with high barriers to employment.
Further, under a singular funding stream, dedicated support for specific populations—such as people returning from incarceration—or innovative efforts, like partnerships between community colleges and local businesses, may be subsumed under broader state-level priorities.
Singular grant block funding can also make it difficult to meet the administration’s other main workforce goal: improving data and performance outcomes. By combining multiple workforce programs into a single grant, it becomes significantly harder to track program outcomes, monitor equity, and assess whether specific populations—such as veterans, youth, people with disabilities, or formerly incarcerated people—are being effectively served. Without distinct reporting requirements and performance metrics tied to each target group, policymakers and advocates lose visibility into who is benefiting from the funding, where gaps exist, and whether disparities in access or outcomes are widening across regions or demographic lines
Finally, existing programs have well-developed partnerships and delivery systems with local employers, educational institutions, and community organizations. Eliminating or folding them into a single program can disrupt these networks, particularly where local infrastructure has been built around specific funding streams. For example, YouthBuild and Job Corps have tailored approaches and wraparound services that can’t be replicated under a generic funding structure
While the administration highlights apprenticeship as a priority, the modest investment doesn’t offset the broader cuts and restructuring that threaten training overall. Ten percent of these MASA grants must be spent on apprenticeships, with emphasis on alignment to industry needs and outcomes. Much of the language the administration uses is explicitly focused on registered apprenticeship. This aligns with the Trump Administration’s Executive Order on Preparing Americans for Skilled Trade Jobs of the Future, released in May. That order directed the Departments of Commerce, Labor, and Education to develop a plan to grow the number of active apprentices to 1 million — particularly in the technology sector—and emphasized reducing regulatory barriers.
While not identical to the Trump Administration’s earlier proposal for Industry-Recognized Apprenticeship Programs (IRAPs), this reflects a similar shift toward less-regulated, industry-led training models.
Even with the 10 percent requirement set aside for apprenticeship, roughly $296.6 million of the proposed MASA budget, that’s only an $11 million increase from current levels while $1.6 billion is cut from other workforce programs. The result: a modest bump in apprenticeship funding, but a much larger drop in overall training access.
These cuts include eliminating the Community Service Employment for Older Americans (CSEOA) and Job Corps. Eliminating these programs entirely risks leaving opportunity youth and vulnerable older Americans with fewer viable training and housing options, though a federal judge has paused the Trump administration suspension of JobCorps – after wide scale advocacy from impacted youth.
These budget proposals to consolidate, streamline, and cut our workforce system mirror the Executive Order’s push to reorganize workforce programs across federal agencies. While efficiency is important, consolidation alone is not a silver bullet. It risks oversimplifying the complex needs of workers and communities.
Our network is holding listening sessions with agency leaders charged with implementing this order and we are committed to ensuring it strengthens equity, preserves program integrity, and responds to the diverse needs of workers and employers across the country.
Overall, President Trump’s budget emphasizes alignment with AI jobs, tech readiness, and economic competitiveness – but those goals require bold investments not cuts and consolidation. Streamlining can be useful, but not at the expense of local industry’s ability to access and shape training programs. What we need instead: investments that match global competitors, support for industry-led training partnerships, and strong workforce data systems.
TLDR: a small bump in apprenticeship funding doesn’t offset $1.6 billion in cuts – and it won’t deliver the skilled workforce we need for long-term prosperity. Workers can’t get into apprenticeships if career navigation, adult education, and local partnerships are gone.
The budget proposes reducing the overall U.S. Department of Education’s budget by $12 billion. For workforce advocates, the most consequential changes lie in Perkins Career and Technical Education, adult education, Pell Grants, and student financial aid.
Adult Education
The administration is proposing to eliminate the entire $729 million allocation for the Adult Education and Family Literacy Act, also known as Title II of WIOA. The rationale for this change as expressed in the skinny budget is “K-12 outcomes will improve as education returns to the States, which would make remedial education for adults less necessary.” This argument ignores the everyday realities of people who are already adults and won’t benefit from improved K-12 systems.
Rigorous test results released just last December showed that fully 23% of working-age US adults need to build their math, reading, or other foundational skills. Even when fully funded, AEFLA can serve only a subset of these people. But adult education boosts long-term earnings for participants and provides a pathway to higher education, apprenticeship, and good jobs. It is economically counterproductive to abandon these working adults.
Millions of people did not get a fair chance at a K-12 education when they were children. This includes foster youth who had “interrupted schooling” and were bounced from school to school; children with undiagnosed learning disabilities such as dyslexia; children whose parents were dealing with untreated mental health or substance abuse problems and had to miss school to care for younger siblings; and children caught up in the justice system. Building their literacy and numeracy skills as adults has positive effects on their earnings and on our economy.
Adult education is also a key source of digital skill building. Title II is the only place in WIOA where digital literacy is explicitly called out as an allowable activity, and adult education programs have been helping people build digital skills for years. Given the administration’s priorities around AI and cybersecurity, it makes no sense to defund the very programs that serve as an on-ramp to these in-demand careers.
Perkins Career and Technical Education
The budget proposes level funding of $1.4B for Perkins Career and Technical Education grants but proposes an important restructuring for how the funds can be used. Now, the state funds must be solely used to engage middle and high school students in CTE pathways, leaving out key partners like community colleges and technical schools. This type of change can not be made without amendments to Perkins. The budget’s stated goal, as described by Advance CTE, for this restructuring is to expose young people to technical careers, so they can consider the full range of career options.
While we know further exposure to education for young people and early integration is critical, this proposed restructuring misses the mark. Adult learners and workers seeking reskilling or upskilling — particularly those already in the labor market or navigating transitions — would lose access to CTE-supported education. And it sidelines community colleges and technical schools, which have long served as critical engines for workforce development, economic mobility, and small business growth.
At the same time, the budget proposal continues the administration’s effort to align CTE more closely with apprenticeship. The request includes funds for Perkins Innovation and Modernization grants with an eye toward integrating CTE systems with the Registered Apprenticeship system and public workforce infrastructure – however, the budget provides $2.3 million less than FY24.
This is particularly concerning because no other workforce programs fund CTE exclusively. There would be nothing to replace these dollars and loss of funding, leaving those pursuing non-4-year degree fields to be left behind.
Pell / student aid
The Trump administration restated their commitment to working with Congress on expanding Pell Grant eligibility to training programs that are 150 – 600 clock hours in length, with quality guardrails. This proposal has gained broad, bipartisan support thanks to years of persistent advocacy by our network who have championed expanding Pell to high-quality, short-term training programs that lead to good jobs.
At the same time, the administration proposes decreasing the funding for the federal Pell Grant program by nearly $5 billion. The proposed maximum Pell Grant award is decreased to $5,710 – a nearly $2,000 decrease from the current Pell maximum. This would make college less affordable for low-income students, forcing them to take on more debt or delay post-secondary education.
The proposed changes come at a time when sweeping changes to student financial aid are also underway, such as those outlined in the House Education and Workforce reconciliation bill. Combined, they would make it significantly harder for low-income students to access and complete education and training programs essential to a globally competitive workforce. By reducing financial support and tightening eligibility, these proposals could limit students’ ability to afford tuition, cover basic needs, or attend school full-time—leading to lower enrollment, slower completion rates, and higher dropout risk.
The budget cuts don’t stop at training – they ripple across every system that workers rely on. From broadband access to economic development grants, the proposal rolls back critical infrastructure that supports an inclusive economy.
Broadband / Digital Equity
The most significant blow to digital equity efforts is the administration’s decision to freeze all Digital Equity Act funding to states, deeming the program “unconstitutional” on social media. As a result, $1.44 billion in formula funding and $1.25 billion in competitive grants—intended to support broadband adoption, digital skills training, and technology access in underserved communities—are on hold. Grantees have already been notified that awards are being terminated, stalling efforts to build digital literacy, help small businesses get online, and connect students to remote learning.
The budget reflects this decision by canceling the fifth year of Digital Equity Grants, eliminating an additional $550 million that would have supported local initiatives advancing digital inclusion. Meanwhile, the Digital Equity Administration, which provides states with technical assistance and oversight, faces a $10 million cut, further weakening the infrastructure needed to close the digital divide.
Without these investments, jobseekers won’t be able to complete online training or apply for remote jobs. Small businesses in rural communities will struggle to compete in a digital economy. The budget does continue to support the Broadband Equity, Access, and Deployment (BEAD) program, but implementation remains stalled. Not a single state has been authorized to begin spending its BEAD funds, despite several being shovel-ready and bipartisan pressure from state and federal lawmakers calling for immediate action. The lack of clarity from the Department of Commerce on when BEAD dollars will flow, paired with concern that more funding will be directed toward commercial satellite providers like Starlink, raises serious questions about the administration’s long-term commitment to digital infrastructure and workforce connectivity.
Funding for broadband programs is cut from $21M to $14M, and the Tribal Broadband Connectivity Program is cut from $988M to $24M. These programs support expanding high-speed internet access to underserved and Tribal communities—critical for accessing online education, skills training, remote work opportunities, and modern business operations.
Together, these decisions stall progress on closing the digital divide – limiting workers’ access to training for in-demand jobs and restricting businesses’ ability to grow and compete in a connected economy.
Economic development/industry partnerships
The Presidential budget proposal calls for the elimination of funding for the Economic Development Administration (EDA), which includes funding for key programs like the Good Jobs Challenge grant, Assisting Coal Communities grant, the Recompete Pilot Program, and other initiatives that the NSC network has utilized. These are programs that support regional job creation, industry-driven training, and inclusive economic growth. EDA grants are often used to build partnerships between local governments, workforce providers, and employers, particularly to serve workers facing barriers to employment. Many small and mid-sized business leaders in our Business Leaders United network have relied on this support to grow talent pipelines and strengthen local economies.
This proposal also includes the elimination of the Good Jobs Challenge – one of the few federal programs dedicated to industry partnerships. This would be a major setback. NSC and our network advocated strongly for this initiative, which helps businesses collaborate with training providers, design industry-responsive programs, and upskill workers for in-demand roles. Without it, federal support for employer engagement in training would be severely weakened.
Workforce data
The budget proposes to reorganize and consolidate the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Census Bureau at the Department of Commerce. These agencies produce the core datasets that inform business decisions, workforce development strategies, and economic policymaking across the country. While framed as an efficiency measure, this restructuring raises serious concerns about the quality of federal data collection. This could mean less accurate or timely data on job openings, industry demand, wage trends, and labor force participation—critical information that guides program design, hiring decisions, and public investment.
Manufacturing & Infrastructure
The budget proposes a striking cut to CHIPS and Science Act implementation funding – slashing it from $25 million to $2.5 million. This threatens the momentum of recent federal investment in domestic semiconductor manufacturing, a key industry for high-quality jobs that do not require a 4-year degree to enter, across the country.
It also proposes eliminating funding for the Manufacturing Extension Partnership (MEP), a critical program that supports small and mid-sized manufacturers in modernizing their operations and strengthening their workforce.
Taken together, these cuts run counter to the administration’s stated goals of boosting American economic competitiveness and reshoring critical industries.
Energy
Reflecting the Trump Administration’s stated opposition to the previous administration’s clean energy investments, the FY 2026 President’s Budget Request proposes rolling back funding authorized under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. Together, the investments generated by these laws are projected to generate 2.65 million jobs annually.
The President’s budget request prioritizes investments in nuclear energy and fossil fuels and aligns with ongoing Congressional reconciliation efforts to dismantle programs supporting clean energy generation and technologies, low-emission vehicles, and energy-efficient buildings, as outlined in more detail in our recent blog on reconciliation. As part of this broader shift in priorities, the budget proposes to significantly scale back or eliminate offices and programs, including:
These cuts will reduce job creation and undermine workforce training that prepares people for these jobs.
Without intentional investment in energy and infrastructure and the training system that supports these projects, workers and communities will lose pathways to good, family-sustaining jobs.
The proposed budget includes sweeping cuts to programs that provide essential support to help people enter and stay in the workforce. Specifically, it proposes a 26% reduction to the Department of Health and Human Services, including the elimination of programs that meet the basic needs of working families, such as the Low-Income Home Energy Assistance Program (LIHEAP) and the Community Services Block Grant (CSBG)—both of which help low-income people remain housed, healthy, and financially stable.
Workforce advocates are particularly alarmed by the elimination of child care and education access supports, such as Child Care Access Means Parents in School (CCAMPIS)— which helps low-income student parents afford child care—as well as GEAR UP and TRIO, which provide academic and social supports to low-income students from high school through college completion. While core childcare programs like the Child Care Development Block Grant and Head Start are level-funded, the budget ignores urgent calls from the field for increased investments to meet growing need.
Combined with cuts to affordable housing programs like the Community Development Block Grant (CDBG), HOME, and Pathways to Removing Obstacles to Housing, the budget significantly rolls back many of the essential supports and services that make it possible for people to access training, work, and long-term economic opportunity.
Cutting these supports pulls the rug out from under working families trying to get ahead. When they don’t have access to affordable childcare or stable housing, they can’t complete training programs or stay in new jobs.
The President’s budget makes big promises about streamlining – but delivers deep cuts to the very programs workers and businesses rely on. As Congress begins the appropriations process, they have a clear choice: double down on two decades of disinvestment or invest in skills at a level that moves us closer to a more competitive inclusive economy where everyone can prosper.
At National Skills Coalition, we’ll be tracking every step of this process and advocating for real, robust, inclusive investment in skills training and education and supportive services – not empty slogans
We encourage you to contact your members of Congress and tell them we can’t cut our way to prosperity. Use this fact sheet in your outreach. It’s time to protect and expand funding for critical workforce programs like WIOA, Perkins CTE, and Pell Grants – investments that support workers, small businesses, and communities in every state.
