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State workforce director warns federal budget proposals could cut key training funds
Summary
Department of Workforce Services Director Liz Gagan told the Wyoming Workforce Development Council that competing federal budget proposals introduce substantial uncertainty for workforce grants, highlighting possible cuts and a new federal grant structure that could shift when and how Wyoming receives funding.
Liz Gagan, director of the Department of Workforce Services, told the Wyoming Workforce Development Council in Jackson that federal budget proposals create substantial uncertainty for state workforce funding and program planning.
Gagan said the White House, Senate and House committee budget proposals differ markedly and that the White House proposal would consolidate several Department of Labor grants into a single program dubbed "Make America Skilled Again," funded at about 24% below current levels. "If we were to lose 24% of our federal funding, that would be a reduction of about $2.2 million a year," she said, noting the department currently receives roughly $9 million in these grants.
Gagan also flagged a larger legislative package referred to in the meeting as "HR1" (described by staff as creating "workforce Pell" grants) that would give workforce boards a central role in determining eligible short‑term career programs and would not take effect until July 1, 2026. "We don't know exactly what this is going to look like, but ... this workforce board will likely be determining which programs will be part of the new workforce Pell grants," she said.
On other budget scenarios, Gagan summarized that a Senate committee mark would largely retain current programs, while a House committee summary cited in her remarks proposed deeper cuts (members’ summaries ranged from roughly 28–35% in some Department of Labor/ETA areas). She said those figures, if enacted, could change the department's ability to fund training, adult basic education and re‑entry employment programs, and stressed that the department currently has operating funds through June 30, 2026.
Gagan recommended council members watch for guidance and implementation details from the Department of Labor and the White House, and she emphasized priorities the state plans to protect if funding tightens — notably apprenticeships and work‑based learning. She also said Wyoming will apply for a newly released Department of Labor industry skills‑driven grant aimed at advanced manufacturing, energy (including nuclear), shipbuilding and AI development; if Wyoming wins that grant, state businesses could receive funds for upskilling employees.
Why it matters: council members said the uncertainty complicates planning for workforce pipelines tied to large local projects and to industries facing acute skills shortages. Gagan urged the council to monitor pending federal decisions and to prepare for options including continuing resolutions or other stopgaps that determine near‑term funding flows.
Next steps: Gagan said DWS will continue to brief the council as federal budget actions unfold and that the council may be asked to weigh in on program priorities and grant administration if the new federal grant structures move forward.
