Federal Updates

Following the Federal Government reopening in November ’25, Congressional spending is yet again set to expire on January 30th absent congressional action.

Thankfully, on Tuesday January 20th, Congressional leaders announced a bipartisan spending agreement for FY26 Labor, Health & Human Services spending package. The agreement mirrors previous proposals from the Senate Appropriations Committee from Fall 2025 which level funds the majority of WIOA and Workforce development programs. This agreement also quells the fear of potential block grants to the federal workforce system.

In addition to the spending package, Congressional appropriators also included calls for the Dept. of Labor and Dept. of Education to give biweekly briefings and reports on the two agencies Inter-Agency Agreement implemented at the beginning of the Trump Administration.

The report outlines congressional concerns about the agreement, and the lack of authority for the Dept. of Education to transfer funds & programs over to the Dept. of Labor. To curtail those efforts, Congress will be more closely monitoring the two departments, should this legislation pass. A vote is still yet to take place, but is anticipated to occur prior to the January 30th deadline for funding.

Please find the appropriations contained in the

FY26 spending package below:

• Workforce Innovation and Opportunity Act Title I – State Formula Grants / $2,919,332,000
• WIOA Adult / $875,649,000
• WIOA Dislocated Worker / $1,095,553,000
• Wagner-Peyser / Employment Service Grants / $653,639,000
• WIOA Youth / $948,130,000
• Workforce Data Quality Initiative Grants / $6,000,000
• Apprenticeship Grants / $285,000,000
• DW National Reserve / $300,859,000
• Native American Programs / $62,500,000
• Ex-Offender Activities / $110,000,000
• Job Corps / $1,603,325,000
• Migrant and Seasonal Farmworkers / $97,396,000
• YouthBuild / $105,000,000
• Senior Community Service Employment Program / $395,000,000
• Trade Adjustment Assistance / $50,300,000
• Career and Technical Education State Grants / $1,439,848,000
• Combined CTE and Adult Ed / $2,155,303,000
• Vocational Rehabilitation / $4,253,834,000
• Strengthen Community College Grant Program / $65,000,000
• Adult Education State Grants and National Leadership Activities / $715,455,000

You are invited to MTF's

Virtual Open House

January 30th, 2026

10:00am - 11:00am

Please join the Massachusetts Taxpayers Foundation (MTF) for a concise, informative briefing on Gov. Healey’s FY27 budget proposal, which will translate what the spending plan & the state’s fiscal picture mean for what matters most to your organization.

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The briefing will review notable spending & revenue trends, & the proposal's impact on our economy, our residents, & our competitiveness. They will also introduce the MTF team & showcase how our work shapes policies that support fiscal health, economic growth, & quality of life across the state.

Please see here for more information and to register.