WIOA Reauthorization Stalled by Dispute Over Disability Employment Provisions
Washington Update
Appropriations
Speaker of the House Mike Johnson (LA) faces internal opposition from key members of the GOP as he works to finalize a government funding deal ahead of the Friday, December 20, funding deadline. Two House Freedom Caucus members, Congressmen Matt Rosendale (MT) and Andy Biggs (AZ), have vowed to oppose any short-term funding bill, or continuing resolution (CR), regardless of whether it includes disaster aid. The Freedom Caucus has taken a hardline stance, insisting that President Joe Biden’s nearly $100 billion emergency disaster aid request be fully offset and limited to “absolutely necessary” expenditures. These internal divisions mean Johnson will likely need Democratic support to avoid a government shutdown, as enough Republicans are expected to vote against any CR to require bipartisan backing.
Meanwhile, Senate Majority Leader Chuck Schumer expressed optimism, stating both chambers are “on the right track” to passing a stopgap funding bill. However, President-elect Donald Trump’s potential involvement could complicate negotiations, as he has yet to signal whether Republicans should push for new funding levels to support his policy priorities or proceed with a CR that maintains current funding. Disaster relief remains a contentious issue, with some lawmakers advocating for attaching relief funds to the funding bill, while others in the Senate push for a standalone vote. With just two weeks remaining, Johnson must navigate GOP infighting and secure bipartisan cooperation to prevent a shutdown.
WIOA Reauthorization
Senator Bob Casey (PA) is blocking the bipartisan, bicameral legislation, A Stronger Workforce for America Act (H.R. 6655), which would reauthorize the Workforce Innovation and Opportunity Act (WIOA). Casey is demanding the legislation include language to phase out the subminimum wage for workers with disabilities, a stance that has stalled the bill negotiated by leaders of the Senate Health, Education, Labor, and Pensions (HELP) Committee and House Education and the Workforce Committee.
Senator Bob Casey, a longtime advocate for disability rights, has introduced legislation to eliminate the 14(c) exemption, which allows employers to pay disabled workers below the federal minimum wage using special Department of Labor certificates. His proposal includes transitioning to a “competitive integrated employment” model while providing businesses with support to adapt. Casey has made it clear that he is willing to block the legislation, A Stronger Workforce for America Act, unless it includes provisions to phase out the subminimum wage for disabled workers.
The exemption has long been a contentious issue and, while the Biden administration recently proposed a regulation to end new 14(c) certificates and phase out existing ones over three years, the rule will not be finalized before Biden leaves office. It remains unclear if President-elect Donald Trump supports eliminating the policy.
Proponents of 14(c) argue that it provides essential employment opportunities for disabled individuals, who face some of the lowest employment and labor-force participation rates in the country. House Education and the Workforce Committee Chair Virginia Foxx (NC) called the Biden administration’s plan “misguided and irresponsible,” warning it could leave disabled workers “jobless and isolated.”
This impasse raises questions about the future of WIOA reauthorization, with time running short for Congress to resolve the dispute and advance the legislation. On Tuesday, December 3, the U.S. Chamber of Commerce highlighted its support for WIOA reauthorization by sending Senate and House leaders a letter endorsing A Stronger Workforce for America Act (H.R. 6655).
Click here to access the full letter.
House Education and the Workforce Committee
The race to lead the House Education and the Workforce Committee seems to be coming to a close as Congressmen Tim Walberg (MI) and Burgess Owens (UT) make their final appeals to GOP steering committee members ahead of this week’s vote. The winner will succeed current Chair Virginia Foxx (NC), who is term-limited after serving as chair or ranking member since 2017.
Walberg, the dean of the Michigan delegation, is emphasizing his seniority and plans to strengthen the education-to-career pipeline and reduce higher education costs. Owens, who chaired the subcommittee on higher education, is advocating for increased school choice and alternative career paths.
Republicans are looking for a successor who will continue Foxx’s policy agenda. Committee member Congresswoman Lisa McClain (MI) expressed support for Walberg, highlighting his experience and connections to Michigan, and emphasized that the committee should continue its current direction and let him set the agenda. Congresswoman Erin Houchin (IN), who serves on both the steering committee and the education committee, remains undecided, noting that she has met with both candidates and plans further discussions to better understand their visions and ensure ongoing priorities are represented. Key priorities for the committee in the 119th Congress include expanding career pathways beyond four-year degrees, reforming higher education, and enhancing special education support. Houchin has expressed support for expanding Pell Grants for short-term programs and boosting support for career and technical education.
Senior committee member, Congressman GT Thompson (PA), highlighted the need to reform the Higher Education Act (HEA), which was last updated in 2008. Although the committee has proposed individual measures addressing college affordability and foreign influence, these have stalled in the Democrat-controlled Senate. Thompson also stressed the importance of changes to the Individuals with Disabilities Education Act (IDEA), which was last reauthorized in 2004. Houchin leads a bill that defines dyslexia in IDEA, a measure the upcoming Senate Health, Education, Labor, and Pensions Chair Bill Cassidy (LA) has prioritized for the next Congress. Thompson noted that addressing IDEA and HEA reforms is long overdue, and the 119th Congress could be particularly active in education policy.
On Tuesday, December 3, the U.S. Department of Labor (DOL) proposed a rule that would end the practice of paying disabled workers less than their peers by phasing out the 14(c) certificate. While proponents say the change would open more opportunities for disabled workers, its future remains uncertain, as President-elect Donald Trump could choose to overturn it. Senator Bob Casey (PA), a long-time advocate for eliminating the subminimum wage who has currently placed a hold on WIOA reauthorization to achieve that objective, expressed support for the proposal but noted it should have been introduced earlier. Casey stated, “I was hoping that they would have advanced that much earlier in the president’s term — that would’ve been helpful to get that locked into place. I’m not sure we’ll be able to do that now.”
Click here to access the DOL press release on the proposed rule.
Short-Term Pell
With just two weeks remaining in the 118th Congress, the window for lawmakers to pass a short-term Pell bill is rapidly closing, although there is optimism that such legislation could gain traction in the next Congress. U.S. Department of Education Secretary nominee Linda McMahon has expressed support for short-term Pell grants, though her broader plans for the agency remain unclear. In a September op-ed advocating for the Bipartisan Workforce Pell Act, McMahon argued that many degree programs have strayed from their original mission, describing the traditional one-size-fits-all approach to workforce development as outdated. She emphasized the need for the educational system to provide clear and viable pathways to achieving the American Dream that do not solely rely on four-year degrees.
Despite bipartisan agreement on the program, short-term Pell has historically struggled to pass through the legislative process with lawmakers often disagreeing on the necessary guardrails to ensure that federal dollars are not allocated to low-quality training programs. Some higher education groups oppose the program outright, contending that the federal government already funds numerous short-term initiatives that often yield weak economic returns. With a Republican-controlled Congress and McMahon’s endorsement, some policy advocates believe that short-term Pell now has a better chance of success. Education Design Lab Vice President Kevin Stump attributed skepticism around short-term Pell to the lack of data on these programs, however he pointed to growing local support, highlighting state-level initiatives like Propel NC and Texas House Bill 8 as evidence of demand. Stump expressed optimism, noting that short-term Pell has garnered strong bipartisan support across diverse communities, which he believes positions the new administration and Congress to take meaningful action.
National College Attainment Network CEO Kim Cook expressed cautious support for short-term Pell, provided there are quality safeguards in place. However, she raised concerns about its potential impact on overall Pell funding, questioning whether increased use of short-term programs could lead to a funding shortfall, an issue the program has previously faced.
Click here to access Linda McMahon’s September op-ed.
The Fast Track Healthcare Apprenticeship Act
On Friday, December 6, Senator Ron Wyden (OR) introduced The Fast Track Healthcare Apprenticeship Act, which would make it easier for healthcare employers to create new registered apprenticeship programs to train the next generation of healthcare professionals. The bill is in response to a pressing need for healthcare professionals, which was exacerbated by pandemic-related burnout, and seeks to address delays in the approval process for new apprenticeship programs.
Under the U.S. Department of Labor’s Healthcare Apprenticeships, there are already programs that support a variety of healthcare roles, but the slow application review process has hindered efforts to meet the growing demand for these critical roles. The proposed legislation would expedite and modernize this process by requiring federal and state labor agencies to decide on applications within 45 days and mandating the digitization and modernization of apprenticeship agreement forms to enhance accessibility for applicants. The bill has received support from healthcare leaders.
Click here to access the full bill.
Click here to access a one-page summary.
Apprenticeship Training Programs
The future of apprenticeship training programs now rests with President Donald Trump, as he takes office having not fully implemented the overhauls he proposed during his previous term. President Joe Biden also failed to achieve significant changes in his administration.
Apprenticeship programs, which receive bipartisan support and are often seen as a viable alternative to college, play a key role in workforce development, particularly in advanced manufacturing, cybersecurity, and healthcare. Despite growth in the number of apprentices — from about 400,000 in 2016 to 667,000 in 2023 — overall participation remains low.
The main ideological divide centers on who should regulate and oversee apprenticeship programs. Democrats advocate for modernizing and funding the Registered Apprenticeship system, with oversight by unions and government officials, while Republicans favor a more flexible approach with less government regulation for employers. The Biden administration introduced significant policy changes, including a nearly 800-page rule to revamp the Registered Apprenticeship system, which aimed to expand access to high school students and young workers and impose stricter requirements. However, employer groups and labor unions criticized the proposed changes as overly rigid and potentially discouraging participation.
The rule, which was expected to be finalized by August, has been stalled at the White House’s regulatory clearinghouse since June, raising fears it could be abandoned if Trump wins. In 2017, Trump launched an executive order to expand apprenticeships and introduced Industry Recognized Apprenticeship Programs (IRAPs), which gave employers more flexibility but were met with skepticism from labor unions. The Biden administration ended IRAPs, but conservative groups, including Project 2025 and the America First Policy Institute, are pushing for their revival and criticizing Biden’s approach.
Experts agree that apprenticeships will continue to be a focal point under President Trump’s administration, as the economic and practical need for these programs remains unchanged.
Unemployment Rate
On Friday, December 6, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the November jobs report, which showed a rebound in payrolls with the 227,000 jobs being added last month. The report reaffirmed that a recession is not an imminent risk while also supporting the changes for an interest rate cut by the Federal Reserve on December 18. In addition, the October and September payroll figures were revised by upwards by 24,000 and 32,000, respectively. The unemployment rate rose slightly to 4.2% from 4.1%
Click here to access the report.
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