President’s FY27 Budget Request: Labor and Education

April 07, 2026

President’s FY27 Budget Request: Labor and Education

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BY Amanda Mead

The FY27 proposal would significantly restructure workforce, education, and social programs, with major implications for employers, older adults, and the caregiving workforce.

President Trump on April 3, 2026, released his highly anticipated budget request for Fiscal Year (FY) 2027, proposing sweeping changes to federal spending that would reshape domestic policy priorities.

The request calls for deep cuts or outright eliminations of many social programs, alongside a more than 40% increase in military spending, and relies on the partisan budget reconciliation process to move the plan through Congress.

Building LeadingAge’s initial April 3 review of the President’s budget request, we explore the budget request’s key elements regarding the Department of Labor (DOL) and Department of Education (DOE).

Related to DOL, the budget proposes to consolidate a dozen workforce development programs into one funding stream: the Make America Skilled Again (MASA) grant program. The MASA program would seek to expand Registered Apprenticeships by providing grantees with a minimum 10% expenditure on Registered Apprenticeship activities.

Additionally, the budget proposes to eliminate the Senior Community Service Employment Program, which provides part-time, paid community service positions and work-based training for unemployed, low-income individuals, age 55 or older ($395 million), as well as Job Corps ($1.6 billion).

The budget also proposes cuts to worker safety agencies ($234 million), which would include the elimination of Susan Harwood Training Grants, and the Office of Federal Contract Compliance Programs ($101 million). The president’s budget included similar proposals in FY26, which Congress rejected.

Additionally, under the proposed budget, the Office of Foreign Labor Certification (OFLC) would be moved from the Employment and Training Administration to the Office of the Secretary. OFLC would assume responsibilities for specialized visa activities and immigration policy coordinating functions currently handled by the Occupational Safety and Health Administration and the Bureau of International Labor Affairs, respectively.

Related to the DOE, the budget proposes to transfer the Office of Career, Technical, and Adult Education to the Department of Labor and to eliminate the Adult Education program altogether. The budget also proposes to cut $8.5 billion from K-12 programs and $2.7 billion from higher ed programs, but would provide an additional $10.5 billion for Federal Pell Grants.

Lastly, in keeping with this administration’s efforts to combat fraud, the proposed budget would provide $30 million to support the newly established National Fraud Division in the Department of Justice.