Congress Extends Government Funding to March; WIOA Reauthorization Bill Excluded in CR
Washington Update
Continuing Resolution/WIOA Reauthorization
Congress narrowly averted a government shutdown early Saturday morning by passing a slimmed-down continuing resolution (CR), which was then sent to President Biden’s desk for his signature. The original 1,547-page bill was condensed to just 118 pages, and the final version notably excluded reauthorization of the Workforce Innovation and Opportunity Act (WIOA). Earlier versions of the CR included various legislative measures, such as the A Stronger Workforce for America Act (ASWA), all of which were ultimately removed to prioritize a more focused approach. The final legislation funds the government at current levels through March 14, 2025, excludes provisions for raising or suspending the debt ceiling sought by President-elect Donald Trump, allocates $100 billion for disaster aid, and extends programs in the farm bill through September to allow more time for negotiations.
The bipartisan proposal that was released earlier in the week faced sharp criticism from President-elect Donald Trump and Elon Musk, a close Trump ally who is set to lead the newly created Department of Government Efficiency (DOGE). Both argued that the bill contained excessive provisions that should be removed, and that language on the debt ceiling should be added. On Thursday, December 19, House Republicans attempted to pass a GOP-only stopgap measure that included a two-year debt limit suspension, but it failed in a 174-235 vote, with 38 Republican lawmakers joining Democrats in opposition.
With the A Stronger Workforce for American Act legislation removed from the CR, the path forward for WIOA reauthorization remains uncertain, as it is unclear whether the 119th Congress will have enough advocates to prioritize workforce training.
Meanwhile, Senator Bob Casey’s (PA) departure from Capitol Hill leaves a void in disabled workers' advocacy, as he fought in his final days to add a provision ending the subminimum wage to the WIOA reauthorization bill, believing that legislation is the best way to eliminate the 14(c) exception in the Fair Labor Standards Act. Casey emphasized the need for a statutory foundation to ensure lasting policy change and also highlighted his collaboration with Senators Maggie Hassan (NH), Tammy Duckworth (IL), Chris Van Hollen (MD), and Cory Booker (NJ) on disability issues. He expressed hope that they will continue this work in the next Congress, including efforts to strengthen the home health care workforce.
Click here to access the full CR.
Department of Labor
President-elect Donald Trump’s Department of Labor (DOL) landing team includes key officials from his first term, such as Virginia Secretary of Labor Bryan Slater, former EEOC member Keith Sonderling, and healthcare executive Thomas Beck, along with a former chair of the Federal Labor Relations Authority. Slater served as DOL’s assistant secretary for administration and management under Trump, while Sonderling was acting head of the Wage and Hour Division before joining the EEOC. Beck, vice president of labor relations at HCA Healthcare, also chaired the Federal Labor Relations Authority and advised Trump’s first-term transition. Additional landing team members are expected soon, with agencies like the EEOC and NLRB forming their own teams. These teams are critical for the transition process, especially before Senate confirmations allow new leadership to officially take over.
Congresswoman Lori Chavez-DeRemer (OR), Trump’s pick for Labor Secretary, has started seeking support for her nomination on Capitol Hill, meeting with Senator Markwayne Mullin (R-Okla.), a member of the Senate HELP Committee last week. Chavez-DeRemer will also meet with Republican Senators Josh Hawley (MO), Lisa Murkowski (AK), Ted Budd (NC), Tommy Tuberville (AL), and Marsha Blackburn(TN) this week.
Unions have shown cautious optimism about her nomination, while some businesses are concerned it could signal a shift away from the GOP’s pro-employer labor stance. However, she is seen as one of Trump’s least controversial nominees and may gain support from Democrats aiming to preserve aspects of President Biden’s labor agenda. Chavez-DeRemer’s efforts on the Hill are supported by Molly Conway, a former DOL official from Trump’s first administration.
House Education and the Workforce Committee/Senate HELP Committee
On Wednesday, December 18, Congressman Bobby Scott (VA) was re-elected as the lead Democrat on the House Education and the Workforce Committee, marking his sixth term in this role. Scott reaffirmed his commitment to advancing policies that protect workers' rights, expand access to high-quality education, and improve health care for all. He plans to focus on overseeing the incoming administration while opposing Republican efforts to cut education funding and block student loan forgiveness initiatives. Scott will work alongside Congressman Tim Walberg (MI), the newly elected chair, with whom he aims to collaborate on evidence-based policies. Regardless of which political party is in charge, Scott emphasized that his mission remains the same: to build an America where everyone can succeed.
Significant changes are underway in the Senate for the Health, Education, Labor, and Pensions (HELP) Committee, as incoming Majority Leader John Thune (SD) has announced several new Republican members joining the committee next term including Senators Tim Scott (SC), Josh Hawley (MO), Jim Banks (IN), Mike Crapo (ID), and Marsha Blackburn (TN). These changes come as the committee prepares to address critical workforce and education issues in the upcoming legislative session.
California Behavioral Health Workforce
On Monday, December 16, the Biden Administration approved nearly $2 billion in state and federal funds to bolster California's behavioral health workforce. The Centers for Medicare and Medicaid Services authorized $1.9 billion over five years to “improve quality and behavioral health outcomes” in select counties. Part of the funding will strengthen the workforce at hospitals and clinics serving Medi-Cal beneficiaries, including through scholarships, training, and recruitment programs. Additional funds are designated for children and youth with behavioral health conditions or those at risk of developing them.
The BH-CONNECT program, part of Governor Gavin Newsom’s $15 billion overhaul of the state’s behavioral health system, aims to expand services for Medi-Cal beneficiaries. The funding will support transitional housing, inpatient psychiatric care, and community-based mental health initiatives. Starting in July 2025, BH-CONNECT will also expand short-term rental assistance for individuals transitioning from institutional settings or foster care.
This approval comes as states expedite Medicaid initiatives, anticipating potential shifts in federal health care policy under the next administration. Critics caution against the program’s waiver of a federal rule that restricts Medicaid funding for large psychiatric institutions, arguing it could lead to an overemphasis on locked facilities at the expense of less restrictive community care.
Initial Jobless Claims
In the week ending December 14, the advance figure for seasonally adjusted initial claims was 220,000, a decrease of 22,000 from the previous week's unrevised level of 242,000. The 4-week moving average was 225,500, an increase of 1,250 from the previous week's unrevised average of 224,250. The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending December 7, unchanged from the previous week's unrevised rate.
Click here to access the report.
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