SKILLS BLOG

Responding to Federal Cuts: The Role of State Advocates

By Yasmin Fallahkhair, August 20, 2025

TLDR: Congress just passed a sweeping reconciliation bill that cuts support for workforce training, education, and basic needs. Now, state leaders must decide how (and whether) to soften the blow. NSC’s SkillSPAN network is already mobilizing to protect workers, preserve critical programs, and push for smarter state-level solutions. State workforce advocates can join these efforts to turn collective advocacy into action.

Earlier this summer, Congress passed their “One Bill” reconciliation package – a sweeping measure that drastically cuts federal support for basic needs and limits some access to education programs. Every worker, employer, community, or state will feel the impact of this law. However, the magnitude of this impact and the harm it causes workers and families will depend on how states choose to respond to the reconciliation bill. In other words, the work is now landing in states – and the hands of state workforce advocates.

Over the last two decades, NSC has established itself as the only national organization mobilizing practitioners, local businesses, students, and workers to collectively advance workforce and safety net policies in Congress and in states. This is in part due to the dedication and leadership of our SkillSPAN network, the first and only national network of multi-stakeholder state-based coalitions that develop and promote skills policies.

Since its inception, SkillSPAN coalitions have successfully advocated for state policies and investments that help people access quality training and employment, businesses find skilled workers, and states build strong, inclusive economies. All this in the face of shifting political climates, budgets, and elected officials. These strengths position NSC’s SkillSPAN network to drive state advocacy that minimizes the harm of reconciliation, increases investments in workforce systems, and advances policies that generate economic prosperity for states, despite federal level threats.

SkillSPAN’s Unique Power in a Critical Moment

For over five years, NSC’s SkillSPAN network has actively protected workforce investments, organized responses to funding threats, and made the case for policymakers to deliver on their commitments to support workers, families, and businesses. This year is no different. Despite changes to the playing field, SkillSPAN coalitions from coast-to-coast continue to advance strategies that meet the moment.

After the new administration took office in January, SkillSPAN partners doubled down on their efforts by pushing for and defending workforce policies at the state level while also reminding state leaders to defend the federal funds Congress had already allocated to states in support of workforce.

One example is a campaign led by United Way of New York State, which mobilized over 200 organizations from the state’s workforce and safety net systems. Partners highlighted the local impacts of federal funding disruptions and collectively advocated state leaders to preserve training pipelines and wraparound supports, while pushing for the release of withheld funds. Under SkillSPAN leadership, the group deployed strategic messaging tactics, educated state and Congressional leaders, and engaged reporters to elevate community stories. After the reconciliation bill passed, the SkillSPAN coalition quickly pivoted to address its harmful effects for New Yorkers and is now preparing advocacy efforts to protect residents and expand access to training and support services.

In California, the Edge Coalition focused on equipping SkillSPAN partners with the information needed to respond to potential federal and state budget cuts. Drawing on shared insights, the coalition launched an advocacy campaign urging state leaders to protect and strengthen workforce development, postsecondary education, and safety net programs. This included a sign-on letter, developed in partnership with key state allies, that called on Governor Gavin Newsom, Senate Chair Scott Wiener, and Assembly Chair Jesse Gabriel to uphold their responsibility to constituents. These state-level efforts complemented federal advocacy, including engagement with Congressional leaders during NSC’s Skills Summit in May.

SkillSPAN coalitions are no strangers to tough times, and their record of strong advocacy equips our network with the expertise and leadership needed to respond to moment at hand.

At Stake for States

The potential impact of the reconciliation bill cannot be overstated – millions of individuals will lose or have limited access to education and training, healthcare coverage, and food assistance. The law will cost states billions in economic impact and force policymakers to make hard decisions as they try to balance state budgets in response to federal cuts while also facing an increased risk of recession and upcoming midterm elections. At the same time, local partners are facing their own existential concerns. Ongoing federal funding disruptions are making it harder for communities to meet the needs of workers and families.

With so many variables at play, state advocates must act quickly and strategically to advance both offensive and defensive tactics in service of short-term wins and long-term visions for the workforce system. This will require an in-depth understanding of state policy and meaningful organizing of new voices across sectors. The goal is to ensure nothing is left on the table and that states leverage every tool available to minimize the harm of reconciliation on workers and families. The work advocates must advance to meet this goal will vary based on how each state responds to the law.

NSC anticipates that states will respond in one of three general ways:

  1. Active policymaking and investments to ensure federal funding cuts and work requirements tied to basic needs have minimal impact on residents. These states will most earnestly look to raise revenues through targeted taxes and fees and to meet their responsibilities in filling budget gaps for programs that bolster economic opportunity.
  2. Hard debates on tradeoffs and priorities with an approach that aims to fill gaps in the budget by reallocating state investments and making cuts. Many states will fall under this group with a more moderate, politically mixed or divided leadership interested in freeing up existing funds rather than looking to revenue-raising strategies.
  3. Support for the law’s cuts and restrictions and intentional implementation decisions that double down on these provisions. These states are most at risk of closing the door to safety net programs entirely, imposing harsher work requirements, and building on the momentum of reconciliation to make additional cuts to state investments in the name of efficiency.

Coming Up

Regardless of the response states will take, workforce advocates have a critical role in making the case for investments and policies that reduce the harm of reconciliation, help employers meet talent needs, strengthen the outcomes of workers, and families, and communities. Several states are considering or have already called for special sessions to directly respond to the reconciliation bill. NSC is actively working with SkillSPAN coalitions to develop advocacy agendas for special sessions and 2026 legislative session and will share more information on the network’s plans and progress in the coming months.

While much remains uncertain, the success of our network has always rested on the pillars this moment demands: organizing, educating, making the case, and telling powerful stories. At NSC, we know our network was made for moments like this, and we are grateful to support the leadership of our SkillSPAN coalitions.

Partners interested in contributing to or joining SkillSPAN efforts in their state can reach out to the lead organization of their coalition or to NSC. Together, we can mobilize coordinated action and turn disappointment and outrage into action that builds a more equitable, resilient workforce system.