Over the weekend, the Department of Labor (DOL) released its fiscal year (FY) 2026 “Budget in Brief” that requests $8.6 billion for the department (down from $13.9 billion in FY2025) and 10,879 full time employees (down from 14,885 in FY2025).
In particular, at the Employment and Training Administration, the budget proposes to consolidate DOL workforce development programs into a single $3 billion “Make America Skilled Again” grant program. The programs to be consolidated include, among others: (1) Apprenticeship; (2) Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker, and Youth Grants; (3) YouthBuild; (4) Dislocated Worker National Reserve, including Strengthening Community Colleges and Workforce Opportunity for Rural Communities Grants; and (5) the National Farmworkers Jobs Program.
Additionally, at the Wage and Hour Division (WHD), the budget proposes 906 full-time employees for the WHD, a reduction of 245 employees compared to FY2025. The WHD’s overall funding would drop by $25 million in 2026 to $235 million. At the Occupational Safety and Health Administration (OSHA), the budget proposes 1,587 full-time employees for OSHA, a reduction of 223 employees compared to FY2025. OSHA’s overall funding level would drop by $49.9 million in 2026 to $582.4 million. At the Employee Benefits Security Administration (EBSA), the budget proposes 640 full time employees for EBSA, a reduction of 47 employees compared to FY2025. The EBSA’s overall funding would drop by $10 million in 2026 to $181.1 million.
The budget also proposes to eliminate the Office of Federal Contract Compliance Programs (OFCCP) pursuant to President Trump’s Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which DOL says permanently removed the primary basis for OFCCP’s enforcement authority and program work. DOL also proposes to eliminate the Women’s Bureau, which the budget calls “an ineffective policy office that is no longer necessary.” Finally, the budget proposes 866 full time employees for the Pension Benefit Guaranty Corporation (PBGC), a reduction of 85 employees compared to FY2025. The PGBC’s overall funding would drop by $18.6 million in 2026 to $494.2 million.