DOL Funding Cut by 26% in Trump Budget Proposal

President Donald Trump on Friday proposed a 26% cut to the Department of Labor’s budget, part of a sweeping plan to slash non-defense discretionary spending by $163 billion, or 22.6%, in fiscal 2026.

The budget recommendations include proposals to “Make America Skilled Again” by slashing the DOL budget by $1.6 billion, according to the White House release, leaving states and localities to allocate funding for development programs. The administration argues this arrangement will avoid “funneling taxpayer dollars to progressive non-profits finding work for illegal immigrants or focusing on DEI.”

Trump’s budget also proposes eliminating Job Corps entirely, calling it a “failed experiment.” Job Corps, founded in 1964, offers free education and vocational training to young people aged 16 through 24, and has educated more than 2 million people since its creation in 1964, according to the program. According to the administration, this would save more than $1.58 billion.

The president also proposed cutting the Senior Community Service Employment Program, which would save $405 million, according to the administration, indicating that it too is a “failed agency” that “is effectively an earmark to leftist, DEI-promoting entities like the National Urban League, the Center for Workforce Inclusion, and Easter Seals.” The program offers job training and part-time employment to low-income and unemployed seniors. The proposal similarly states that seniors would benefit more from state and local programs.

Together, the proposals would slash about $3.63 billion from the DOL, about 26% of its $13.9 budget for fiscal 2025.

Last year, the acting secretary of labor, Julie Su, advocated for an increase in the DOL’s budget, which she said was necessary to implement the SECURE 2.0 Act of 2022.

Trump’s proposed cuts and broader budget come as Congress works on a larger budget resolution aimed at extending the 2017 tax cuts and sharply reducing government spending.

Last week, the House Committee on Oversight and Government Reform advanced a plan to overhaul the federal pension system by gradually reducing benefits for federal employees—part of a sweeping reform effort.

It remains unclear, however, whether that proposal or the president’s changes to the DOL programs will be included in the final reconciliation bill.