Senate Appropriations Hearing Centers on Labor Department FY2026 Proposal and 'Make America Skilled Again' Block Grant

Senate Appropriations Subcommittee Chair Capito opened a hearing on the Department of Labor's fiscal year 2026 budget request, saying the administration proposes to reduce the agency's funding by $4,600,000,000 — a decrease of nearly 35 percent — and asking the department to explain priorities and proposed consolidations.

The budget request would consolidate multiple federal training programs into a single Make America Skilled Again block grant meant to give states flexibility in spending workforce dollars, Secretary of Labor Chavez de Reamer told the panel. "By consolidating siloed federal training programs into a single Make America Skilled Again grant, states will be able to spend more time and money delivering high quality training for their workers and less time complying with burdensome federal regulations," she said.

Ranking Member Senator Baldwin criticized the administration's budget summary as sparse and said the administration's proposal would cut funding for workforce development programs by roughly half. "This budget request would mean fewer opportunities for workers to gain the skills they need for good and high paying jobs," Baldwin said.

Members raised specific concerns about the consequences of consolidating programs into a block grant. Several senators, including Baldwin and others, warned that block-granting can erode program funding over time if states must offset other spending priorities. "A block grant is a deliberate approach that's been taken by many administrations to gradually end programs," one senator warned during questioning.

Secretary Chavez de Reamer said the administration's goal is modernization and a focus on outcomes, and repeated a commitment to expand registered apprenticeships and work with states. "We are looking to strengthen registered apprenticeships, modernize workforce development programs, and invest in opportunities that upscale workers to meet current labor market demands," she told the committee.

Lawmakers pressed for more detail. Baldwin and others said they had seen too few concrete numbers and pledged to submit additional questions for the record; the subcommittee left the hearing record open until after the full budget request is released.

The hearing included related discussions on Job Corps, apprenticeship contracts, and program transparency, all themes the department said it would continue to discuss with committees of jurisdiction as the appropriations process proceeds.