The FY2018 Budget Request Cuts Employment Services to Homeless People and People At-Risk of Homelessness by $1.8 Billion

Employment, Homelessness

The President’s Fiscal Year (FY) 2018 Budget Request proposes to cut employment services funding to assist homeless people and people at-risk of homelessness in the Department of Labor budget by $1.8 billion compared to both the enacted FY2016 funding level and the enacted FY2017 funding level, the latter which was not enacted at the time the budget request was prepared.

Training and Employment Services — Adult, Youth, and Dislocated Worker Activities:

  • The Administration proposes to reduce funding for the three major Workforce Innovation and Opportunity Act programs for adults, youth, and dislocated workers by 40% or $1 billion compared to both the enacted FY2016 and enacted FY2017 levels.  This includes a proposed reduction of $325 million for the Adult Employment and Training Activities, $349 million for Youth Activities, and $405 million for Dislocated Worker Employment and Training Activities compared to both the enacted FY2016 and enacted FY2017 levels.  These programs are important because they provide training and employment assistance for adults, youth, and dislocated workers, including low-income and homeless individuals.

Training and Employment Services — National Programs:

  • The Administration proposes to reduce funding for National Training and Employment Services Programs by 32% or $200 million compared to both the enacted FY2016 and enacted FY2017 levels.  This includes the entire elimination of the Migrant and Seasonal Farmworker Programs of $81 million and the Workforce Data Quality Initiative of $6 million, a proposed reduction of 16% or $103 million for the Dislocated Workers Assistance National Reserve, a proposed reduction of 11% or $10 million for the Reintegration of Ex-offenders Program, and slight reductions for the National Apprenticeship Program, YouthBuild, and Native American Programs compared to both the enacted FY2016 and enacted FY2017 levels.  The Migrant and Seasonal Farmworker Programs are critical and life-saving by providing migrant and seasonal housing to escape extremely hot and cold weather and training and employability development services to low-income youth and families principally employed in migratory and seasonal farmwork.  The Workforce Data Quality Initiative is important because it provides competitive grants to support the development of integrated and longitudinal data systems that integrate education and workforce data and performance information to allow for better analysis of training and employment programs and increased employment success.  The Reintegration of Ex-offenders Program is important because it provides training and other services to assist individuals exiting the criminal justice system and at-risk youth in high-poverty, high-crime areas to successfully transition to community life and long-term employment.  The National Apprenticeship Program is important because it supports state and local apprenticeship programs through outreach, partnerships, economic development strategies, and expanded access to apprenticeship opportunities for under-represented populations.  YouthBuild is important because it provides academic training and occupational skills training to at-risk, high school dropouts ages 16 to 24 through classroom time to earn a GED or high school diploma and preparation for college or other post-secondary training opportunities and construction or rehabilitation of affordable housing for low-income or homeless families.  Native American Programs are important because they provide grants for training, work experience, and other employment-related services to Native Americans.

Job Corps:

  • The Administration proposes to reduce funding for Job Corps by 14% or $240 million compared to the enacted FY2016 level and 15% or $255 million compared to the enacted FY2017 level.  The majority of the reduction in funding for Job Corps is for Operations with a 15% reduction of $240 million compared to the enacted FY2016 level and a 15% reduction of $246 million compared to the enacted FY2017 level.  The funding for Construction, Rehabilitation, and Acquisition is proposed to be reduced by less than 1% or $143,000 compared to the enacted FY2016 level, but by 11% or $9 million compared to the enacted FY2017 level.  The funding for Administration is proposed to be reduced by less than 1% or $61,000.  The Job Corps Program is important because it assists economically disadvantaged youth ages 16 to 24 who are basic skills deficient, a school dropout, a parent, homeless, a runaway, or a foster child, or in need of additional education, vocational training, or intensive counseling and related assistance in securing housing, transportation, child care, and access to mentoring support in order to participate successfully in regular schoolwork or to secure and maintain employment.

State Unemployment Insurance and Employment Service Operations:

  • The Administration proposes to reduce funding for State Unemployment Insurance and Employment Service Operations by 9% or $356 million compared to the enacted FY2016 level and 8% or $310 million compared to the enacted FY2017 level.  The majority of the reduction in funding is for Employment Services Grants to States with a proposed reduction of 38% or $264 million compared to the enacted FY2016 level and 38% or $255 million compared to the enacted FY2017 level.  There is also a proposed slight reduction in funding for Work Opportunity Administration and for American Job Centers.  Employment Services Grants to States are important because they provide no-fee employment services to job-seekers and employers nationwide.  Work Opportunity Tax Credit Administration is important because the tax credit provides a federal tax incentive to private-sector businesses to hire new individuals who face significant barriers to employment.  American Job Centers funding is important because American Job Centers provide workers and employers with quick and easy access to a wide array of enhanced career development and labor market information services and it also improves the accessibility of the public workforce development system for individuals with disabilities.

Program Administration:

  • The Administration proposes to reduce funding for Program Administration by less than 1% or $199,000 compared to the enacted FY2016 level and 3% or $4 million compared to the enacted FY2017 level.  Program Administration funding is important because it provides for the federal administration of Employment and Training Administration programs for adults, youth, dislocated workers, and other targeted groups and oversees unemployment insurance programs in each state, career centers, and apprenticeship training programs.

Veterans Employment and Training:

  • The Administration proposes to increase funding for Veterans Employment and Training by 3% or $8.4 million compared to the enacted FY2016 level and less than 1% or $554,000 compared to the enacted FY2017 level.  This increase includes an increase of 18% or $6.9 million compared to the enacted FY2016 level and less than 1% or $37,000 compared to the enacted FY2017 level for the Homeless Veterans Program.  It also includes an increase of 13% or $1.9 million compared to the enacted FY2016 level and 10% or $1.4 million compared to the FY2017 level for the Transition Assistance Program.  There are also slight reductions in funding for Jobs for Veterans State Grants, the National Veterans’ Employment and Training Services Institute, and Administration.  The Jobs for Veterans State Grants are important because they support disabled veterans’ outreach program specialists and local veterans’ employment representatives to provide services to transitioning members of the Armed Forces and to the spouses or other family caregivers of wounded, ill, or injured members.  The Transition Assistance Program is important because it provides employment information and other services to more than 200,000 separating service members and their spouses.  The National Veterans’ Employment and Training Services Institute is important because it provides training to service providers to effectively assist veterans in obtaining employment.  The Homeless Veterans’ Reintegration Program is important because it provides employment programs to assist homeless veterans and veterans at risk of homelessness who are transitioning from certain institutions.

Overall, the President’s FY2018 Budget Request proposes to cut funding for programs that provide training and employment services to homeless individuals and families and to those at risk of homelessness by $1.8 billion.  With half a million adults and children who are homeless on a given night and more than 175,000 of them without even a basic shelter, Congress should increase, instead of decrease, funding for training and employment services programs because there are hundreds of thousands of homeless adults and tens of thousands of homeless youth and thousands of unemployed homeless adults and unemployed homeless youth to not only help unemployed and homeless Americans obtain employment, but also to prevent and end homelessness for many Americans.