State and Federal Update: September 23, 2025

Federal policy update 

Budget Battle Continues as Shutdown Looms

On September 9, the House of Representatives Appropriations Committee advanced its funding bill for programs administered by the Departments of Health and Human Services, Labor, and Education by a 35-28 party-line vote. As NYATEP has shared, this measure would impose devastating harm on the workforce system. It includes elimination of WIOA formula funds for Youth, and a one-year “freeze” on Adult formula funds, as well as ending the Senior Community Service Employment Program, Women in Apprenticeship and Nontraditional Occupations, and a number of programs supporting re-entry of justice-involved individuals. The WIOA cuts alone would remove $135 million from New York State next year, depriving tens of thousands of adults and youth of needed services and hamstringing employers looking to add talent. 

The House bill stands in stark contrast to the corresponding Senate measure. Passed in July with a bipartisan vote of 26-3, that bill would keep workforce funding roughly level from prior years.  Now the two houses of Congress must reconcile their respective funding bills, and must do so by September 30 to avoid a government shutdown. 

With only a week to go, the outcome is very much in question. Republicans in Congress are attempting to pass a short-term continuing resolution that would keep the government open for seven weeks, buying more time to negotiate a full budget. This past Friday, the House approved a bill to do so on a near-party line vote, but the Senate rejected it as Democrats called for negotiations to ease proposed cuts to health care.  The Republicans are expected to try again as the shutdown deadline gets closer. 

While workforce measures are not now at the center of public debate over the budget, the nature of negotiations could change that quickly. NYATEP is reaching out to members of Congress in both parties to communicate the importance of these funds and programs. We urge all members and workforce stakeholders to get involved by reaching out to your Representatives with our template letter and resource toolkit, and will share any urgent updates as we receive them. 

Federal Court Injunction Pauses Social Services Shifts

On September 10, a federal court issued a preliminary injunction halting the Trump administration’s plans to shift administration of federal social services programs by imposing new rules that would have cut funding for early childhood education, food banks, domestic violence shelters, and community health centers among other services. 

A coalition of 21 Attorneys General, including Letitia James of New York, brought the suit. They argued that the changes inappropriately redefined longstanding, bipartisan interpretations of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), the federal measure passed in 1996 that overhauled public assistance policy. Previously, administrations of both parties had interpreted PRWORA to allow states to use funds for public health, education, and other anti-poverty programs regardless of immigration status. The Trump administration’s changes would have forced states to verify immigration status, or else face steep funding cuts and program closures. 

In New York, AG James’s office estimates that the injunction will preserve early education for more than 43,000 low-income children statewide, as well as access to primary and preventative care for 2.4 million New Yorkers who utilize community clinics for healthcare. PRWORA dollars also support a wide range of social services including mental health support and food, housing, and utility assistance. 

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