WORKFORCE CONNECTIONS - Vol. 61

In This Issue:

State & Federal Policy Updates; Conference Committee
MWA Updates: Board Member Appointment
News From Around the Sector: Jobs, funding, news and updates

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PUBLIC POLICY UPDATES

State Public Policy

State Legislature Update

Conference Committee Appointed to

Finalize FY26 State Budget

Following the passage in late May of the FY26 State Budget in the Senate, budget deliberations now move to the Conference Committee process. Both the House and Senate have appointed three members from their respective chamber to hash out the differences between the House and Senate proposals.

The House appointed House Ways & Means Chair Aaron Michlewitz, House Ways & Means Vice-Chair Ann Margaret Ferrantes, and House Ways & Means Ranking Minority Member Todd Smola. The Senate appointed Ways & Means Chair Michael Rodriques, Senate Ways & Means Vice-Chair Joanne Comerford, and Senate Ways & Means Ranking Minority Member Patrick O’Connor.

The Workforce Development programs remained largely the same in both the House and Senate versions of the proposal, with the one major exception – the Senate proposal did not allocate any additional funds for the year to the Workforce Competitiveness Trust Fund.

Below see the various Workforce Line items and their funding proposed in each version.

MWA Budget Priorities

MassHire Career Centers (local centers)/ 7003-0803

House Final -$8,253,620

Senate Final - $8,253,620

Workforce Competitiveness Trust Fund (WCTF) 1595-1075

House Final - $10,000,000

Senate Final - 0

Re-Entry Demonstration. 7003-0150

House Final - $2,725,000

Senate Final - $2,475,000

YouthWorks/Summer Jobs 7002-0012

House Final - $15,240,000

Senate Final - $15,240,000

Career Technical Institutes 7002-1091

House Final - $8,985,600

Senate Final - $8,985,600

Registered Apprenticeship Expansion 7003-0151

House Final - $3,315,140

Senate Final - $3,315,140

Employment Program for Young Adults with Disabilities 7003-0607

House Final - $1,000,000

Senate Final - $1,000,000

Department of Economic Research 7003-0105

House Final - $891,496

Senate Final - $891,496

Community Empowerment and Reinvestment Program 7002-2021

House Final - 0

Senate Final - $7,500,000

School-to-Career Connecting Activities7027-0019

House Final - $6,531,266

Senate Final - $6,531,266

Increasing Access to Career & Technical Education 7035-0001

House Final - $3,118,500

Senate Final -$3,118,500

MWA Data Legislation Heard Before Committee on Labor & Workforce Development

H.2171 & S.S1230, An Act to make data on workforce development outcomes public and accessible filed by Rep. Aaron Saunders and Sen. Patricia Jehlen respectively, had a public hearing on the tenth of June before the Joint Committee on Labor & Workforce Development.

This legislation, supported by the MWA, would require timely access to Department of Unemployment Assistance (DUA) wage data to help the workforce system better understand employment outcomes of the individuals served by the publicly funded workforce development system. This legislation is a long sought after solution to a persistent problem with wage data for the workforce development system.

The MWA, in coordination with our partners at the Workforce Solutions Group, testified before the Committee at the hearing in June, and has submitted written testimony to the Committee. The next step in the process will be to urge the Committee to move the bill out favorably, for the bill to progress through the legislative process.

Legislature Finalizes Supplement Budget Bill

With excess revenues from the surtax on millionaires continuing to roll into the State, the legislature has finalized their supplemental spending bill – dollars that are constitutionally required to be spent on transportation and education.

The bill directs $1.3 billion dollars in surtax revenue, of which $716 million is directed towards transportation spending. $535 million of that portion is directed to the MBTA system, with other funding being sent to local transportation aide to cities and towns. Included in the final proposal is a requirement that cities and towns abide by the MBTA Communities Act in order to access additional funding, a controversial law since its implementation under the Baker Administration.

On the education side of the allocations, approximately $593 million is being spent on various education initiatives. The majority of that funding – almost $241 million - is being used to meet the state’s goal of reimbursing local cost for special education. Another $100 million is directed towards career technical education capital grants.

Importantly, $10 million is directed to reduce the waitlist for ESOL services across the Commonwealth, with a particular prioritization on programs that focus on training for workers for in-demand jobs.

May 2025 Unemployment Rate

and Economic Analysis

The Executive Office of Labor and Workforce Development released the unemployment rate for May 2025 and the revised rate for April 2025. Click here to read the 06/18/2025 state press release. The May 2025 estimates show 3,766,800 Massachusetts residents were employed and 189,700 were unemployed, for a total labor force of 3,956,500. The May unemployment rate at 4.8 percent was 0.2 percentage points higher than the revised April rate of 4.6 percent.

The labor force participation rate, the share of the working age population employed and unemployed, increased by 0.2 percentage points to 66.9 percent. The labor force was up 56,200 from the May 2024 estimate of 3,900,300 following the annual revision, with 21,400 more employed residents, and 34,800 more unemployed residents.

May 2025 Employment Overview

Leisure and Hospitality gained 1,400 jobs over-the-month. Over-the-year, 2,800 were added.

Financial Activities gained 1,100 jobs over-the-month. Over-the-year, 3,400 were added.

Construction gained 1,000 jobs over-the-month. Over-the-year, 4,000 were lost.

Education and Health Services gained 1,000 jobs over-the-month. Over-the-year, 7,100 were added.

Information gained 400 jobs over-the-month. Over-the-year, 600 were lost.

Trade, Transportation, and Utilities gained 300 jobs over-the-month. Over-the-year, 200 were lost.

Manufacturing gained 200 jobs over-the-month. Over-the-year, 1,600 were lost.

Other Services gained 200 jobs over-the-month. Over-the-year, 100 were lost.

Government lost 500 jobs over-the-month. Over-the-year, 2,300 were added.

Professional, Scientific, and Business Services lost 1,900 jobs over-the-month. Over-the-year, 4,300 were lost.

Detailed labor market information is available here.

Federal Public Policy

Federal Updates

Additional Details Released on Trump Administration FY26 Budget Proposal

Details continue to emerge from the Trump Administrations FY26 budget proposal, including details on the “Make America Skilled Again” initiative. The proposal would collapse all DOL workforce programs from WIOA Title I to Youth Build, Apprenticeships, Data Quality, Migrant Seasonal Farm Worker, etc into the “Make America Skilled Again” (MASA) block grant to states and locals. The formula for distribution would be determined by the Secretary. Further details remain murky, and what formula the Secretary may use is unclear.

Immediately following the release of the proposal, the USWA, NAWB and NAWDP sent a letter to the House Chair of Education & Workforce in stark opposition to the consolidation proposal (Joint FY26 DOL Budget Letter to Ed and Workforce Committee June 2025.pdf)

As further details emerge, the MWA will work with our federal partners to oppose the move, while continuing to push for more flexibility around federal dollars. Since the release of the budget proposal, WIOA Reauthorization has been put aside for now as Congress works through the Administration’s proposal this summer.

JobCorps Closure Halted

The Dept of Labor (DOL) had announced earlier this month that they would be implementing a nationwide “pause of operations” on all Job Corps sites across the country. This action was met with a lawsuit filed by the National Job Corp Association.

A District Court Judge in Manhattan issues a Temporary Restraining Order (TRO) on the pause of operations in early June until a decision was entered by the court following a June 17th hearing.

Following the June 17th hearing, it was announced on June 25th that the TRO would be extended to a preliminary injunction. The Judge cited the Federal law creating Job Corps and the Congressional appropriations towards the program as a directive towards the DOL to continue to fund and operate the program.

The court did leave open the possibility for DOL to file for a stay on the proceedings while DOL seeks to appeal the decision by the District Court, and further litigation could develop. For now, the program will remain in operation as legal proceedings continue.

MWA AND MEMBER UPDATES

MWA Board of Directors

Welcomes Kevin Lynn

We are pleased to announce the appointment of Kevin Lynn, Executive Director of the MassHire Springfield Career Center as a Career Center Representative. We are confident that Kevin's twenty plus year commitment to Workforce Development will help us navigate challenges and seize new opportunities ahead.

MWA's full list of Board of Director's can be found here.

NEWS FROM AROUND THE SECTOR

The News from Around the Sector section on our website is where you can access the news, jobs, funding announcements and more anytime throughout the month. Go to: www.massworkforce.com/around-the-sector.

Here is a just sample of the events, funding opportunities, jobs, and more posted on our website:

Job & Training Opportunity: The Department of Unemployment Assistance (DUA) is accepting applications for appointment to their DUA Board of Review. To see more about this positions, click here .
Article: Misclassifying Workers as independent Contractors is Costly for Workers and States , Economic Policy Institute