As the end of the calendar year approaches, Congress stillhas several unresolved issues that will likely need to be addressed in the newyear. As part of the broader deal to re-open the government in mid-November,Congress fully funded a portion of the government including the US Departmentof Agriculture, Legislative Branch, and Department of Veterans Affairs. Therest of the government, including the Departments of Education and Labor, areonly funded through January 30, 2026.
As funding negotiations continue, Congress also mustconfront the expiring enhanced Affordable Care Act (ACA) healthcare subsidies.Congressional leaders in both parties have offered various proposals rangingfrom a straight-forward extension, extensions with income limits, and theninvolving federal funding to Health Savings Accounts to help counteractincreased premiums.
These varying levels of uncertainty are also having animpact to the broader economic conditions. Recent data suggests that theunemployment rate has risen to its highest level, 4.6%, in the last four years.That is still a low unemployment number so the emphasis on workforcedevelopment and connecting the right talent to growing and emerging industrieswill also continue.
As Congress formally begins its Workforce Innovation andOpportunity Act (WIOA) Reauthorization effort, the US Department of Labor hasreleased a Training Employment Guidance Letter (TEGL) focused on advancinginnovation – many of the recommendations have been reflected in previous WIOAreauthorization efforts including youth work experience flexibility, greaterincumbent worker training expenses, and increased supportive service deliveryafter program exit. MUS will be active within the legislative process asfurther actions are considered.
Urgency around workforce policy was on display with theNegotiated Rulemaking for Workforce Pell implementation. Expansion of PellGrants to programs that are 8-15 weeks in duration was included in the Big,Beautiful Bill when it was signed in July 2025. The Department of Education,along with the Department of Labor and a panel of 13 negotiators, workedthrough several layers of procedural issues with the emerging Workforce Pellframework. There was a distinct connection made between this policy and opportunityfor training dollars with the federal workforce system. As the Department ofEducation finalizes its rules, attention will turn to Governors/states forprogram approval as we move towards the award year beginning on July 1, 2026.
