DOL budget faces cuts, as Labor Secretary resigns

The Department of Labor (DOL)—which serves tens of millions of people, from health and safety to fair wages and pensions and nondiscrimination in federal contracts—is facing fiscal and leadership issues of the gravest kind. The widening allegations of misconduct affecting the secretary are sure to undermine the department’s efforts to forestall the deep budget cuts proposed in the latest Trump budget. 

Budget cut of 26% proposed 

Reprising his prior budget proposal, President Trump has asked that the DOL receive $9.9 billion in fiscal year (FY) 2027, a 26% reduction from current funding levels. 

Congress opposed those cuts in the past and is expected to do so again, but with war, inflation, demands for vast sums for defense, and mid-term elections looming, the Congressional response is unpredictable. 

OFCCP and Jobs Corps to be eliminated 

The administration will save $2.4 billion by eliminating the Office of Federal Contract Compliance Programs (OFCCP) and Job Corps. 

The OFCCP is already a “rump” entity. The White House proposes moving OFCCP’s remaining functions to monitor bias against disabled workers and veterans to an expanded Office of Civil Rights. At least one suit is challenging the Job Corps cut. 

Apprenticeships in peril 

Despite publicly supporting an expansion of apprenticeship programs, the president proposes to cut $3.4 billion from the Make America Skilled Again framework, which consolidates workforce training programs into one grant scheme.