Department of Labor proposes steep discretionary cuts, consolidates workforce grants into single block grant
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Summary
The Department of Labor’s fiscal year 2026 budget, presented June 5 to the House Education and Labor Committee, proposes about $4.5 billion in discretionary cuts and consolidates multiple workforce programs into a single state block grant called Make America Skilled Again, with 10% of the consolidated funding set aside for apprenticeships.
The Department of Labor’s fiscal year 2026 budget proposal, presented to the House Education and Labor Committee on June 5, would reduce discretionary funding by about $4.5 billion — a cut the secretary described as part of an effort to “eliminate ineffective training interventions” and give states more flexibility to spend workforce dollars.
Why it matters: Committee members pressed whether reductions would weaken enforcement and frontline services and how consolidation would affect long‑standing, targeted workforce programs. Several members warned cuts could shrink investigators, enforcement staff and training resources that serve vulnerable workers.
What the secretary said: Chavez de Reamer defended the proposal as streamlining and modernizing programs, arguing states should have flexibility to consolidate multiple federal job programs into single Make America Skilled Again grants that the department says would allow more local tailoring and faster employer engagement. She said 10% of the proposed consolidated grant would be targeted to support registered apprenticeships.
Specific budget numbers and claims: The secretary said the proposal would cut approximately $4.5 billion in discretionary funding (described in committee as a roughly 33% reduction from FY2025 enacted levels). Chavez de Reamer also said FY2025 showed $214 million in arrears in Job Corps-related accounts and that the department intends to eliminate ineffective interventions as part of the budget plan.
Concerns raised by members: Members from both parties asked how the department will maintain enforcement — including Wage and Hour investigations, OSHA inspections and other compliance work — if staff levels decline. Rep. Robert C. “Bobby” Scott (D‑Va.) and other Democrats sought clarification about apparent discrepancies in projected FTE counts in budget documents and requested follow‑up written responses; the secretary agreed to provide clarifications for the record.
Oversight and next steps: Committee members said they will use the appropriations process to probe the budget’s operational impacts and seek periodic reports. Chavez de Reamer said the proposal is preliminary and that she will provide technical assistance to Congress as lawmakers consider changes.
Ending: The department will provide further clarifications to the committee on staffing projections and program details; members said they will submit follow‑up questions in writing and that appropriations decisions will determine final funding levels.