Workforce Development
Last Updated: April 7, 2025
21% proposed cut to Department of Labor affects WIOA grants.
National Farmworker Jobs Program and Senior Community Service Employment Program marked for elimination.
Community college partnership and apprenticeship grants reduced or paused.
Green economy job training grants halted.
Grants being cut or changed
The Trump administration’s 2025 budget proposal includes a 21% cut to the Department of Labor, which would largely affect workforce development grants. Programs under the Workforce Innovation and Opportunity Act (WIOA)—including youth training, adult reentry programs, and dislocated worker support—are at risk. Specific programs like the National Farmworker Jobs Program and the Senior Community Service Employment Program have been marked for elimination. Some grants that fund job training partnerships with community colleges and apprenticeships have already been reduced or paused.
Policy shifts
The administration is shifting emphasis away from federally registered apprenticeships in favor of “industry-recognized” programs led by employers. This could redirect funding from community-based job training providers. There is also a broader move to consolidate or eliminate job programs tied to the green economy, including clean energy workforce grants supported by the Inflation Reduction Act.
On hold or court challenges
Some workforce grants were temporarily frozen in January 2025 under the broad grant pause. That freeze has since been lifted, but no lawsuits have yet been filed specific to workforce development cuts. However, governors and state workforce boards in several states have publicly opposed the changes and are lobbying Congress to restore funding.
Timeline
If Congress adopts the proposed budget, most workforce grant cuts would take effect in October 2025. However, planning and contracting for many WIOA programs begin during the summer, meaning that reductions could be felt as early as July. Some apprenticeship and green jobs training funds were halted mid-year and may not resume.
State-level impact
Kentucky, West Virginia, and Ohio heavily rely on federal WIOA funding to train workers transitioning from coal and manufacturing jobs. North Carolina and South Carolina use apprenticeship grants to build pipelines into skilled trades, which could slow dramatically if funding is diverted or reduced. Pennsylvania’s workforce boards have warned that youth training and adult retraining programs could be canceled if Congress approves the cuts. Tennessee also stands to lose millions in support for rural job placement and reentry programs.
Sources
U.S. Department of Labor. (2025, March 10). Fiscal Year 2026 Congressional Budget Justification. https://www.dol.gov/sites/dolgov/files/general/budget/2026/CBJ.pdf
NPR. (2025, February 20). Workforce training programs under review in Trump labor cuts. https://www.npr.org/2025/02/20/workforce-programs-review
Reuters. (2025, March 12). Labor Department confirms cuts to apprenticeship programs. https://www.reuters.com/business/labor/trump-budget-cuts-apprenticeships-2025-03-12
National Skills Coalition. (2025, March 25). Statement on proposed federal workforce funding cuts. https://nationalskillscoalition.org/news/trump-budget-2025-workforce/
