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Initial Thoughts on the President’s FY22 Budget Proposal

President Biden released his FY 2022 budget request today, providing a more detailed look at the administration’s spending priorities for the coming year. The request includes an increase for WIOA programming, and an initial outline for the American Jobs Plans which will likely take shape as part of a wider infrastructure package, pending further Congressional action. As a reminder, the President’s request is usually the beginning of the appropriations process, so there is still a lot of additional action yet to come in the House and Senate as lawmakers consider this proposal and craft their own spending proposals. 

Still, the budget is an indication of what the Administration is thinking. In the case of the current Administration, the budget needs to be read as both the “traditionally” funded activities of the Departments and Agencies composing the federal government and as a precursor for where the Administration would like Congress to go with regards to investments in the nation’s infrastructure. Aspects of President Biden’s infrastructure proposals—in the form of the American Jobs and Families plans— are scattered throughout the FY22 budget in an effort to make clear that the large, targeted increases envisioned by these proposals have a connection to ongoing federal funding efforts, including the federally funded workforce development system authorized by WIOA.

Overall WIOA sees proposed increases in FY22, particularly in the funds for dislocated workers, both in the formula grants and in the national reserve. The proposal also calls for two (2) new initiatives, National Youth Employment (NYEP) and Veterans’ Clean Energy Training, which includes spouses. The NYEP includes summer and year-round employment activities for youth, as well as support services such as transportation and childcare. We applaud this – it’s been a long while since we have seen summer youth funds and it’s been a high priority to re-fund, especially in light of the current youth unemployment crisis.

With regards to the American Jobs Plan, here is what the budget further envisions for this proposal:

“…[The American Jobs Plan] is an investment in America that will create millions of good jobs and rebuild our country’s infrastructure. It will invest in Americans and deliver the jobs and opportunities they deserve and will address long-standing and persistent racial injustice. 

Workforce development will play a critical role in both rebuilding the economy, especially after the tremendous loss of jobs due to the pandemic, and in developing the workforce that will build the new backbone of our country. As more people look for jobs, rejoin the workforce, or seek out new opportunities in a changing economy, there will be a greater need for quality job training and education and meaningful credentials so workers can earn higher wages, develop rewarding and lasting careers, and improve their economic well-being. 

President Biden’s jobs plan responds to employer demand for skilled labor and improves equity. These investments will be a link for workers to in-demand, high quality jobs and provide transferable skills. The proposal focuses on workforce development models with a proven track record, including apprenticeship, sector-based training, and intensive career services. Racial equity is also prioritized within this proposal—workforce investments will be targeted to underserved groups, including people of color, individuals with disabilities, justice-involved individuals, and low-income people. 

For the Department, this includes investments of $81.5 billion over 10 years, including: the creation of a new $22 billion Sectoral Employment through Career Training for Occupational Readiness (SECTOR) program, which will spur the creation of high-quality training programs in growing sectors; $18 billion for a new Comprehensive Supports for Dislocated Workers (CSDW) program to provide comprehensive supports to enable dislocated workers to participate in high-quality training programs; $10 billion to vastly expand Registered Apprenticeship (RA) and the pathways into these proven earn-and-learn programs; $9 billion for competitive grants to build the capacity of the community college system to deliver high-quality training programs; $8 billion for states to greatly expand access to intensive, staff-assisted career services offered through the Employment Service network; $4 billion for states to provide subsidized jobs to workers with barriers to employment, especially public assistance recipients; $1 billion to expand workforce development services to justice-involved individuals; $2 billion to support the phase-out of the 14(c) subminimum wage program and provide support to states to expand access to competitive, integrated employment opportunities and fair wages for workers with disabilities; and $7.5 billion for DOL enforcement and worker protection activities to ensure employers are providing workers with good jobs -- including jobs with fair and equal pay, safe and healthy workplaces, and workplaces free from racial, gender, and other forms of discrimination and harassment -- and to combat misclassification of employees as independent contractors…”

More analysis will be released soon and please be sure to join us for the next coffee & conversations session on June 10th at 2PM ET for more details. 

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