President’s Budget Would Reshape Workforce Programs

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

On April 2, the Trump Administration submitted its Fiscal Year 2027 (FY27) budget proposal to Congress. The president’s plan recommends significant reductions to domestic programs and suggests an overall decrease in funding for the U.S. Department of Labor by approximately 26 percent, or $3.5 billion, compared to current funding levels.

As with the FY26 budget request, this proposal aims to discontinue funding for certain federal workforce programs, such as Job Corps and the Senior Community Service Employment Program (SCSEP).

Additionally, the budget revives the Administration’s plan to consolidate spending across most other employment and training grant programs—including Reentry Employment Opportunities grants, Workforce Innovation and Opportunity Act (WIOA) state grants for adult, youth, and dislocated worker training, as well as Youthbuild—into a combined “Make America Skilled Again” state block grant. Under this framework, states would be required to allocate at least ten percent of their grant funds to apprenticeships.

The budget plan would defund other programs and agencies, including the Low-Income Home Energy Assistance Program (LIHEAP), Community Development Block Grant, AmeriCorps, and Adult Education and Literacy programs. The proposal would maintain the maximum Pell Grant award at $7,395 for 2027-28 award year.

The President’s budget request is not binding; ultimately, Congress will set the FY27 funding levels for federal programs and activities. Lawmakers from both political parties quickly voiced concerns about the suggested reductions.

“While there are some improvements over last year’s domestic discretionary budget request, including full support for the Pell Grant program, the request has several shortcomings,” said Sen. Susan Collins (R-ME), chair of the Senate Appropriations Committee. “For example, the proposal includes unwarranted funding cuts in biomedical research. It would also terminate worthwhile programs like LIHEAP, which helps low-income families and seniors to pay their energy bills during the cold winter and hot summer months, and TRIO, which assists low-income, first-generation students in pursuing higher education. Job Corps, which helps students from troubled backgrounds gain the skills and education they need to enter the workforce, join the military, or pursue higher education, would also be phased out. These are proven programs that I strongly support.”