State and Federal Update: June 16, 2025

State

Fiscal Cliff Task Force Bill Goes to Governor
For the second straight year, a bill sponsored by State Sen. Roxanne Persaud to establish a “fiscal cliff task force” to study issues related to benefits cutoffs in public assistance programs and make related recommendations, has passed both houses of the state legislature. It now awaits Governor Hochul’s signature or veto. Last year, the governor vetoed the bill as part of a larger rejection of a number of proposed task forces.

Income Disregard Cap Measure Passes Senate
Another bill sponsored by Sen. Persaud, to raise the level of earned income that does not count against public benefits from 200 percent to 400 percent of the federal poverty line, passed the State Senate. With the Assembly set to end its 2025 session next week, there is limited time to advocate, but NYATEP urges members to reach out to Assembly Members Gary Pretlow and Maritza Davila as well as Speaker Carl Heastie to support this measure. 

Federal

Job Corps in Limbo After Restraining Order
As noted in the last issue of The Buzz, on May 29, the U.S. Department of Labor (DOL) announced a decision to “begin a phased pause” of the Job Corps program, to go into full effect by June 30. In effect, this move would end the program, created by Congress more than 60 years ago. Opponents of the measure filed a lawsuit arguing that DOL cannot unilaterally end a program that Congress legislated, and the court issued a Temporary Restraining Order blocking the shutdown move, with a hearing scheduled for June 17. 

While the law seems to be against the administration here, the preparation for the shutdown already has led to centers across the country beginning to cease operations, including sending their youth participants back to their places of origin. Local Workforce Development Boards across New York State and beyond are scrambling to ensure that displaced former Job Corps participants have some continuity of services, including housing in addition to training and education. 

Federal Budget Talks Continue 
The reconciliation budget measure which passed the House of Representatives earlier this spring remains under consideration in the Senate. While nothing has been made public, insiders report that the White House’s budget proposal has not gotten much traction on Capitol Hill. What this means specifically for workforce is unclear, but given the administration’s preferred approach of block-granting programs and cutting total funding by approximately 50 percent, bad news for the larger proposal seems like good news for the workforce field. (As a member of the US Workforce Association, NYATEP signed onto a letter urging the House Education & Workforce Committee to reject the administration’s block-grant-and-cut proposal.)

The Senate HELP Committee did release its portion of the Senate’s proposed budget, which maintained the House proposal to support “Workforce Pell Grants”—using Pell funds to cover costs of programs that run from 8-15 weeks.   

Administration Proposal: Move CTE to DOL, End CTE for Postsecondary
With the Trump administration looking to shut down the US Department of Education (DOE), it is proposing to move career and technical education (CTE) programs to DOL. An interagency agreement between the two Departments would shift administration of Carl D. Perkins Act funds, which support CTE programs, from DOE’s Office of Career, Technical, and Adult Education, to DOL. The administration argues that this change would help students and workers build skills in response to evolving employer demand, clarify the value of alternative credentials, and bolster accountability. 

A DOL official explained that CTE and WIOA programs are “aligned by design,” and argued that this move is in keeping with many recommendations for system alignment that education and workforce experts have supported for many years. CTE industry groups including the Association for Career and Technical Education strongly oppose this measure, however. The administration also is seeking to eliminate funding for community colleges under the Perkins Act, currently amounting to over $400 million. The budget would shift those grants to support middle and high school students. This move could imperil funding support for popular programs such as dual enrollment, through which high school students can earn college credit and get a jump start toward a postsecondary degree. 

NYATEP will continue to monitor events as they unfold and share details to our members as soon as possible. If you have an immediate questions or concerns, please contact David Fischer, Interim Executive Director, at [email protected].