February 1, 2026

MUS Policy Perspective

At the beginning of President Trump’s second term, his Administration released a budget proposal for the Department of Labor which would have collapsed and consolidated the existing WIOA state/local formula allocations for workforce development activities. This block grant approach, entitled ‘Make America Skilled Again,’ would have potentially eliminated the local workforce development system. In addition to the program administration changes, the total level of funding was cut by nearly 50%.

Over the next several months, Congress debated whether to accept these proposed workforce development cuts. Recently, local workforce development stakeholders got their answer – the proposed cuts from the Trump Administration, and those reflected in a House Appropriations Committee draft, were soundly rejected by bipartisan congressional leaders.

Congress is poised to pass its Labor, HHS, Education Appropriations Bill that will maintain the current WIOA funding mechanisms and fund its programs at current funding levels. It is clear that there was not support in Congress to enact sweeping cuts to these programs. These renewed funding levels will be in effect until September 30, 2026.

In the meantime, MUS members and allies should use this momentum as a springboard to continue building support for WIOA programs, funding, and outcomes. This bipartisan funding deal will bring more certainty to federal spending but only for a limited time. Capturing the momentum from this outcome could help advance additional priorities in a tough political and funding environment.

In practice, this involves proactive outreach from MUS members to their congressional delegations to highlight the work, partnerships, and goals within their region. Congressional members and their staffs are interested to learn more about those efforts and ways they can help. MUS is continuing this work at a higher level as an organization with frequent briefings and meetings – we can leverage that effect by making the local connections as well.

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