MOED warns of federal funding uncertainty, outlines data and employer‑vetting plans for returning citizens

The mayor’s Office of Employment Development told the Baltimore City Council that federal workforce funding has generally declined and that proposed federal changes could alter how money is distributed and what activities receive priority, a development MOED said it is preparing for while pursuing local data and employer‑vetting strategies.

Director Matt Garvin told council members that the workforce law now in effect is the Workforce Innovation and Opportunity Act (WIOA), last authorized in 2014, and that legislation to reauthorize and reshape federal workforce funding has been debated in Congress. He said a proposal called the Stronger Workforce for America (ASWA) would have required 50% of funding to go to occupational training; that proposal drew pushback from local workforce advocates. Garvin said the president’s recent “skinny” budget references a different approach, dubbed “Make America Skilled Again” (MASA) by his office, and that federal emphasis may shift toward registered apprenticeship and block‑grant proposals.

Why it matters: MOED’s programming relies on federal WIOA funds for adult and youth workforce services. Changes at the federal level or reductions in funding can constrain MOED’s flexibility to provide supportive services, wage subsidies and other non‑training activities the office uses to help jobseekers with barriers to employment.

Key points from the hearing

- Funding outlook: Garvin said federal WIOA allocations were appropriated for FY26 and that MOED expects base funds in July and advance funds in October of the fiscal year. He said potential future legislation could change the funding mix and that workforce advocates are pushing back against restrictions that would earmark larger shares solely for training.

- Program risk and contingency: Garvin said workforce funding has trended downward and that some federal programs (he cited Job Corps as an example of a program facing cuts) have been affected. He said MOED will continue working with partners, philanthropic funders and the city’s congressional delegation to protect funding and the flexibility needed for supportive services.

- Data system and performance measurement: In response to council questions about consolidating workforce data, Garvin described an effort to build a Workforce Integrated Data System (WIDS), a shared performance and case‑tracking platform for workforce providers. He said an RFP for the WIDS will be released and that the platform will help measure equity, placement and outcomes across providers.

- Services for returning citizens and employer vetting: Councilman Gray asked whether MOED has considered partnering with the Mayor’s Office of Equity and Civil Rights to vet employers and protect returning citizens from wage theft and exploitation. Garvin said MOED has partnered with that office previously in other capacities and that “we would be open and we will follow‑up to make sure that we can do that.” Denise Brown described MOED’s reentry center and said the REC’s employment assistance exceeded targets for residents served and employment placements.

Context and limitations

Garvin stressed that national reauthorization efforts and the president’s budget proposal are fluid; local allocations for FY26 were appropriated but future years remain uncertain. He emphasized that MOED combines federal, state and philanthropic funding and that the office has used state ARPA and wage subsidy programs to support registered apprenticeship and employer incentives.

Ending

Council members offered to assist MOED with congressional advocacy and asked the office to follow up with concrete proposals on employer vetting, WIDS deployment timelines, and contingency plans should federal funding become more restrictive.