By Laura Walling, Senior Director of Government Relations, Goodwill Industries International
The administration recently submitted its FY23 budget proposal to Congress, outlining three core values: “fiscal responsibility, safety and security at home and abroad, and a commitment to building a better America.” The $5.8 trillion proposal budget details for the President’s “Unity Agenda” announced at the State of the Union in February, which aims to tackle the opioid crisis, bolster the mental health system, and fund research for his Cancer Moonshot program. However, the administration declined to outline the costs of elements from the president’s signature Build Back Better (BBB) bill as negotiations may continue. Instead, the proposal includes a placeholder for further action in the form of a “deficit-neutral reserve fund” to pay for key components of what was in the BBB, without providing specifics on the costs of such proposals – such as restarting the Child Tax Credit, Universal Pre-K, or fighting climate change.
The proposal contains several recommended increases to programs of importance to Goodwill and the people we serve. That said, there is a long way to go before FY23 funding is approved. The president’s proposal is just a proposal and Congress can ignore it as they create their spending bills with the goal of getting something passed before October 1. Recent reports note the House Appropriations Committee is tentatively planning to take up its fiscal 2023 spending bills in June. Subcommittees would mark up their 12 annual bills from June 13 to June 22. The full committee would hold its markups from June 22 through June 30, teeing up floor votes in July.
Below is a summary of the key workforce and postsecondary education components in the budget request.
Dislocated Worker – the department is requesting $1,682,664,000 to provide dislocated workers with employment and training services and disaster-affected communities with needed resources. Of the amount, $527,386,000 is proposed for the National Reserve to help states and localities facing mass layoffs and natural disasters. This includes $100,000,000 for the Strengthening Community Colleges program, $100,000,000 to initiate a Sectoral Employment through Career Training for Occupational Readiness (SECTOR) program, and $100,000,000 for the multi-agency POWER+ initiative focused on transforming local economies in communities transitioning away from fossil fuel extraction or energy production. The request also continues the Workforce Opportunities for Rural Communities grant program. The remaining $1,155,278,000 will be directed by formula to states to provide Workforce Innovation and Opportunity Act (WIOA) dislocated worker services and rapid response services, an increase of $93,725,000. Other WIOA programs for adults and dislocated workers would also receive slight increases.
Veterans Clean Energy Training Program – $10,000,000 for a competitive grant program to prepare eligible veterans, transitioning service members, and the spouses of veterans and transitioning service members for careers in clean energy sectors. This program will be administered by the Department of Labor’s Employment and Training Administration, in conjunction with the Veterans’ Employment and Training Service and the Department of Veterans Affairs.
National Youth Employment Program – A new National Youth Employment Program is proposed to provide competitive grants to communities to operate summer and year-round youth employment programs through partnerships with employers in high-demand industries and occupations. In addition to employment, programs will provide supportive services, such as transportation and childcare, necessary for successful youth participation in summer and year-round employment and will connect youth with additional skill-building opportunities that 12 enable them to enter on-ramps to careers. The FY 2023 request for this new program is $75,000,000, which the department estimates will provide services to an estimated 22,500 participants in 2023.
Civilian Climate Corps – A new Civilian Climate Corps (CCC) to pilot climate resilience and mitigation demonstration grants. The request for is $15,000,000 and will rely on DOL partnerships with other Federal agencies. DOL will focus on job training and paid community service, including pre-apprenticeships and Registered Apprenticeships, for underrepresented populations in clean energy and climate mitigation, along with supportive services, to connect participants to high quality jobs in those growing sectors.
Pell Grants – To increase equitable and affordable access to an education beyond high school, the budget would increase the maximum Pell Grant by $2,175 over the 2021-2022 award year, helping an estimated 6.7 million students from low- and middle-income backgrounds overcome financial barriers. One piece of the budget’s proposal is to double the maximum Pell Grant by 2029. The Administration continues to support expanding federal student aid, including Pell Grant eligibility, to Deferred Action for Childhood Arrivals (DACA) recipients, commonly known as DREAMers.
Adult Education – The $38.7 million request for National Leadership Activities includes $15 million to scale up college bridge programs for low-skilled adults without a high school degree or equivalency, $10 million for an initiative focused on disconnected youth without a high school diploma and continues support for state efforts to increase the literacy and workforce skills of adults and program evaluation.
People with Disabilities – The Office of Disability Employment Programs is requesting $15.3 million for an equitable transition model program to help fund competitive integrated employment (transitioning from sheltered workshops and subminimum wage)
Support Students Through Pandemic Response and Recovery – A $468 million investment in Full-Service Community Schools and partnerships to provide integrated student supports. Supports can include mentoring and job training.
Increase Support for Children with Disabilities – The budget more than doubles funding to $250 million for IDEA Personnel Preparation grants to support a pipeline of special educators at a time when most states are experiencing a shortage of special educators.
Invest in Educator Recruitment and Retention – $514 million for the Education Innovation and Research program, of which the Department would target $350 million towards identifying and scaling models that improve recruitment and retention of staff in education, including models that would improve resources and support for educators, and provide teacher access to leadership opportunities that improve teacher retention and expand the impact of great teachers within and beyond their classrooms.
Reimagine the High School to Postsecondary Education Transition – The budget provides a new $200 million investment in Career-Connected High Schools, an initiative that would support competitive grants to partnerships of local educational agencies, institutions of higher education – including community colleges – and employers, to support early enrollment in postsecondary and career-connected coursework; work-based learning opportunities; and academic and career-connected instruction across the last two years of high school and the first two years of postsecondary education.
We’ll continue to keep our advocates informed of new developments and opportunities where your voice can help us protect critical programs of interest to local Goodwill organizations and the individuals they serve, as we go through the budget and appropriations process.
