Congress Seeks 2026 Funding Amid Looming Shutdown

by Mitch Coppes, Federal Government Affairs Manager, Goodwill Industries International

The White House and congressional leaders have reached a tentative agreement to fund government programs and activities for the remainder of Fiscal Year (FY) 2026, though it may not be enough to avoid another government shutdown. Since November, the federal government has operated under a temporary continuing resolution set to expire on Friday, January 30. Even with Senate approval for the funding agreement, the House of Representatives will not be able to vote on the measure until Monday. The lapse in funding will result in a partial shutdown of government operations extending at least into early next week.

The agreement, if approved, will set funding levels in FY26 for the federal programs that help support Goodwill employment and training services, including:

• $2.9 billion for Workforce Innovation and Opportunity Act (WIOA) youth, adult and dislocated worker state grants, a reduction of $10 million below the FY25 level for WIOA adult employment and training activities.
• $395 million for the Senior Community Service Employment Program (SCSEP), a decrease of $10 million below the FY25 level.
• $110 million for the Reentry Employment Opportunities grant program, a reduction of $5 million.
• $285 million for Registered Apprenticeships, equal to the FY25 level.
• $105 million for YouthBuild, equal to the current level.
• $65 million for the Homeless Veterans Reintegration Program, the same as the FY25 level.
• $4.5 billion for Vocational Rehabilitation State Grants, an increase of $250 million.
• $715 million for Adult Education State Grants, the same as the current level.
• Maximum Pell Grant award at $7,395 for the 2026-27 award year.

Lawmakers rejected the Trump Administration’s proposal to eliminate funding for SCSEP, as well as its plan to consolidate most workforce training funds into a single state grant. However, President Trump will have an opportunity to outline his FY27 spending priorities when he unveils his annual budget request to Congress in the coming months.