The Trump Administration has released its proposed FY2027 budget for the U.S. Department of Labor. Below are the highlights.
Employment Training Administration (ETA): ETA administers federal workforce development programs and funds unemployment insurance benefit programs administered by the states. As in the FY26 budget, the FY27 budget again calls for the elimination of Job Corps due to its “uneven performance outcomes and high costs per participant.” However, the proposed budget does include a request for $176,370,000 to ensure an orderly shutdown of the program.
The proposed budget also includes the FY26 proposal to consolidate several workforce development programs into a single Make America Skilled Again (MASA) grant program that provides funding directly to states and localities. Additionally, the Administration proposes transferring the Career and Technical Education (CTE) programs currently housed in the Department of Education to ETA in order to position the Department of Labor as the “lead agency overseeing work to prepare Americans for high-paying skilled jobs and build pipelines of skilled talent for employers in critical industries, thereby reducing regulatory and administrative burdens on States.” The proposed budget allocation for CTE programs is $1,450,000,000.
Veterans’ Employment and Training Service (VETS): VETS provides employment resources to veterans and separating service members, including protecting their right to employment and providing access to training and employment opportunities. The FY27 Budget and FTE request for VETS is the same as the FY26 approved budget.
Office of Federal Contract Compliance Programs (OFCCP): OFCCP is again slated to be eliminated despite the fact that Congress allocated $100 million to the agency in the final FY26 budget. Enforcement of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) and Section 503 of the Rehabilitation Act of 1973 (Section 503) will be transferred to a new agency within the Department of Labor, the Office of Civil Rights.
This new agency will also house the Civil Rights Center , the agency with the Department of Labor that investigates claims of discrimination filed by Department of Labor employees and recipients of financial assistance under Title I of the Workforce Innovation and Opportunity Act (WIOA).
Office of Disability Employment Policy (ODEP): The FY 2027 Budget request includes $33,810,000 and 46 FTE for ODEP.
Women’s Bureau: The FY 2027 budget again seeks to eliminate funding for the Women’s Bureau.
Many changes are on the horizon for the Department of Labor as well as the regulated community, workers, and grant recipients. Stay tuned.
