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Tennessee Department of Labor seeks funding for youth jobs, reentry and apprenticeships in FY27 budget presentation

Senate Commerce and Labor Committee · February 10, 2026

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Summary

Commissioner Denise Thomas told the committee the department requests $8 million (nonrecurring) to continue the Tennessee Youth Employment program, $1.5 million for a reentry employment program, and continued funding to expand rural health‑care apprenticeships; the department cited workforce modernization wins and a $1.54 billion unemployment trust fund balance.

Commissioner Denise Thomas presented the Tennessee Department of Labor & Workforce Development FY27 priorities to the Senate Commerce and Labor Committee, highlighting modernization gains and several programmatic requests intended to grow the state's workforce pipeline.

Thomas described the Tennessee Works Hub as a centralized, data‑driven support for employers and requested three permanent positions to staff the hub. She asked for $8,000,000 in nonrecurring funds to continue the Tennessee Youth Employment program (which has served roughly 8,500 youth) and $1,500,000 for a reentry employment program aimed at helping people leaving incarceration secure subsidized work experience with gradually decreasing employer subsidies.

On apprenticeships, Thomas said the state has more than 1,600 participants in rural health‑care apprenticeship training (about 1,000 in registered apprenticeships) and that the department proposes continued shared‑savings funding to expand those opportunities. CFO Andy Sommer told the committee the department continues to find administrative efficiencies; he also said the state's unemployment trust fund ended FY25 at about $1,540,000,000 and is earning roughly 3.25% interest.

Why it matters: Committee members pressed for county‑level maps and completion metrics. The department said it awarded 37 grants for the apprenticeship program, touched 86 counties and that many registered apprentices have employment from day one; some pre‑apprenticeship participants are still completing requirements. The funding requests would expand youth employment, micro‑credential and apprenticeship opportunities and support reentry efforts — all aimed at increasing labor‑force participation and filling employer demand.

Outcome: The committee voted to forward the Department of Labor and Workforce Development FY27 budget to the Finance Committee.