This week, the U.S. Department of Education revealed in a court filing that it had signed and executed an Interagency Agreement transferring the funding, administration, and oversight of the Carl D. Perkins Career and Technical Education Act to the U.S. Department of Labor. Elsewhere, Congress examined the Department of Education budget and related priorities while Republican Senators released a new education component of their forthcoming reconciliation bill.

Interagency Agreement Seeking to Transfer Perkins Revealed

In a court filing this week, the U.S. Department of Education (ED) revealed that it had entered into an Interagency Agreement (IAA) with the U.S. Department of Labor (DOL) to transfer funding, administration and oversight of the Carl D. Perkins Career and Technical Education Act (Perkins V) and the Adult Education and Family Literacy Act (AEFLA) from ED’s Office of Career and Technical Education (OCTAE) to the Employment and Training Administration (ETA) at DOL. The effort comes as the Trump administration seeks to “dismantle” ED and appears to be in response to several recent Presidential Executive Orders (EOs). The IAA was apparently signed on May 21, although it was only disclosed by ED this week as part of ongoing litigation related to the Department’s efforts to lay off more than half of its workforce. At present, the IAA, along with the layoff effort, are subject to a court injunction and thus paused while this litigation continues to advance in the court system. 

The IAA lays out a confusing and fragmented division of roles and responsibilities between OCTAE and ETA for the oversight and administration of both Perkins V and AEFLA, including the transfer of funds authorized under each law. Rather than simplifying operations within the Departments, the IAA seems to introduce a significantly more complicated administrative structure – one that Advance CTE and its partners fear will disrupt effective implementation without delivering any clear process improvements or demonstrable benefits for the CTE community. While the IAA does appear to recognize the extensive statutory requirements governing Perkins V, OCTAE, and the broader administration of CTE, it nevertheless seems designed to circumvent those legal obligations.

Advance CTE and ACTE issued a statement regarding this IAA following its forced disclosure in the court system, outlining significant concerns regarding this effort and opposing the move given the impact this has already had and is likely to have on the implementation of Perkins V. 

Advance CTE strongly encourages the CTE community to contact its members of Congress to highlight these concerns. To do so, click here.

Trump Administration Proposes to Eliminate Support for Postsecondary CTE

Although the Office of Management and Budget released a “skinny” federal fiscal year 2026 (FY26) budget request in early May, the administration has struggled to provide further details outlining its broader funding vision. Most recently, ED quietly released additional information – previously reported on by Advance CTE – including a deeply concerning and counterproductive proposal to eliminate federal support for postsecondary CTE under Perkins V. The administration’s budget justification claims this shift is necessary to stop “shuffling Americans through an economically unproductive postsecondary system,” and instead proposes to restrict Perkins funding “exclusively for districts to support middle and high school students.” It remains unclear how such a move is “consistent with the administration’s efforts to send education back to the States” or how it aligns with recent Executive Orders emphasizing the need for clear, transparent data on program outcomes. In fact, the proposal would also phase out existing postsecondary accountability measures under Perkins V – an approach that directly contradicts the administration’s stated goal of delivering “unprecedented transparency and accountability.”

Perhaps most importantly, the proposal appears directly at odds with the recently disclosed IAA—an effort the administration claims is intended to create a more integrated education and workforce system. Eliminating federal support for postsecondary CTE would not only undermine this stated goal but would also override state and local control over CTE funding and run counter to the statutory requirements of Perkins V. Current labor market forecasts estimate that 72% of all careers will require some form of postsecondary education or training beyond high school by 2031. Yet rather than expanding access to high-quality CTE aligned to these demands, the administration’s proposal would strip away critical federal support for the very programs designed to meet them—jeopardizing economic mobility for learners and talent pipelines for employers at a time when both are urgently needed.

Advance CTE remains deeply concerned about and opposes these recent revelations and proposals from the administration, which run counter to the needs of learners nationwide. 

Reconciliation Deliberations Continue in Congress

The House and Senate reconvened last week, and the Senate continued work on its forthcoming budget reconciliation bill. Late Tuesday, the Senate Health, Education, Labor, & Pensions (HELP) Committee released its portion of the reconciliation package. This breakdown of the reconciliation proposal, which still needs to be further considered by the Senate, continues to propose significant funding reductions and policy changes to postsecondary student aid programs. Key differences in the current Senate version exclude problematic aspects of the House proposal that would restrict Pell Grant eligibility for part-time students as well as several other regulatory protections. Read HELP Chair Sen. Bill Cassidy’s press release here. 

A summary of key aspects of this proposal, including differences between the House and Senate versions, can be found here. 

Advance CTE will continue to report on the budget reconciliation process and its impacts on the CTE community and broader workforce and education policy landscape.

Senate Appropriators Hold Hearing on Education Budget

Last Tuesday, the Senate Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (LHHS) held a hearing on the proposed fiscal year 2026 (FY26) U.S. Department of Education (ED) budget, which was released the previous Friday evening. U.S. Secretary of Education, Linda McMahon, provided testimony and perspectives regarding proposed cuts to TRIO programs, reductions in Pell Grant award totals amid interest in expanding access to short-term programs, and the impacts on local education flexibility resulting from decreased funding. Secretary McMahon provided written testimony and answered questions from Senators in alignment with the Trump administration’s priorities of returning educational control to states, schools, and families. As shared previously, the FY26 budget proposal reflects a 15% cut to the Department’s budget and is understood to be part of a wider effort to “dismantle” the Department. 

Subcommittee Chair Senator Shelley Capito (R-WV) noted that formula grants, such as Title I and the state formula grant program under Perkins V, are essential to support the flexibility of state and local education agencies. Ranking Member Senator Tammy Baldwin (D-WI) expressed concerns about reports that ED may move CTE and the Office of Career, Technical, and Adult Education (OCTAE) to the U.S. Department of Labor (DOL). As previously reported, this concern was also recently shared by Senator Susan Collins (R-ME), a member of the Senate Health, Education, Labor, and Pensions (HELP) Committee during a recent confirmation hearing.

Secretary McMahon confirmed that the administration has proposed level-funding for Perkins V’s state grant program through its proposed FY26 budget. Watch the full hearing here.

House Ed & Workforce Examines Priorities in ED Budget

On Wednesday, ED Secretary Linda McMahon appeared before the House Committee on Education and the Workforce to provide testimony regarding the proposed FY25 ED budget. The hearing, titled “Examining the Policies and Priorities of the Department of Education,” included substantial discussion of higher education policy, school choice, and CTE. The Secretary’s remarks echoed those from the previous day in the Senate, aligning with President Trump’s priorities to eliminate perceived inefficiency in the federal government and return education to the states, schools, and families. Representatives from both sides of the aisle reacted to the proposed education budget, expressing support for CTE while also raising concerns about funding the workforce ecosystem, budget transparency, and potential structural changes. 

House CTE Caucus Chair Rep. Glenn “GT” Thompson (R-PA) praised the reach of CTE programs that serve nearly 12 million learners and reflect a high school graduation rate of 96%. He emphasized the importance of continued data collection to drive evidence-based policy, expressing that cuts to ED have undermined the completion of the national evaluation of CTE programs required by Perkins V. Rep. Thompson also asked why the administration may seek to limit Perkins funding to K-12 local education agencies, cutting off potential alignment and funding for postsecondary CTE programs that align with secondary curriculum. Rep. Joe Courtney (D-CT) asked the secretary why Perkins funding had not been increased, given the administration’s stated commitment to workforce development. Rep. Courtney raised significant concerns about the administration’s interest in moving OCTAE to DOL, a sentiment shared in the Senate, and noted that if that were to be pursued, it would violate numerous existing educational statutes. 

Other lawmakers connected CTE and other education policies to broader workforce development needs. Rep. Rick Allen (R-GA) emphasized the growing value of short-term credentials and praised proposals to expand Pell Grant eligibility for skills-based training. Ranking Member Bobby Scott (D-VA) criticized cuts to adult education and workforce development programs, citing impacts on a competitive labor force. Secretary McMahon responded that short-term Pell is key to helping students enter the workforce faster and emphasized the need for better alignment between postsecondary options and employer needs. Click here to watch the hearing.

Advance CTE will continue to cover hearings regarding the appropriations process that have further implications for CTE and the broader education system. 

House Ed & Workforce Examines Priorities in Labor Budget

Last Thursday, the House Committee on Education and the Workforce held a hearing that mirrored the previous day’s on education, featuring Secretary of Labor Lori Chavez-DeRemer, titled “Examining the Policies and Priorities of the Department of Labor.” The hearing highlighted the growing efforts to streamline workforce programs under consolidated “Make America Skilled Again” (MASA) grants and support Pell Grant access for shorter-term high-quality training programs.  

Committee Chairman Rep. Tim Walberg (R-MI) delivered opening remarks that framed the hearing as an examination of policies aimed at reducing the size of the federal government while boosting workforce development and emphasized the need for effective workforce policy. Ranking Member Rep. Bobby Scott (D-VA) shared opening remarks that emphasized that DOL is responsible for supporting wage earners and job seekers and is cautiously optimistic that bipartisan reforms like expanding apprenticeships, reauthorizing the Workforce Innovation and Opportunity Act (WIOA), and introducing workforce Pell Grants make a clear commitment to working families.

Secretary Chavez-DeRemer emphasized the Trump administration’s push for employer-centered training, including support for short-term Pell grants and registered apprenticeships, as well as the consolidation of 11 workforce programs into the new MASA block grant. The Secretary shared the goal of reducing bureaucratic hurdles to increase employer participation in developing apprenticeship programs.

Advance CTE will continue to cover hearings regarding the appropriations process that have further implications for CTE and the broader workforce system. 

Senate HELP Committee Holds ED & Labor Nomination Hearing 

Last Thursday, the Senate HELP Committee held a hearing to consider nominations for the Departments of Education and Labor. Among the nominees considered was Dr. Penny Schwinn to serve as Deputy Secretary of Education in ED under Secretary Linda McMahon. Dr. Schwinn was nominated as President Trump took office, having previously served as a Tennessee Commissioner of Education. During the hearing, Dr. Schwinn emphasized the importance of flexibility at the state level in supporting reading scores and increased CTE credentialing. Watch the hearing here.

Last week, ED officially welcomed several additional appointees, including Nick Moore, who will serve as the Deputy Assistant Secretary for Career, Technical, and Adult Education. Read the full press release from ED here.

Advance CTE will continue to report on nominations to executive positions related to education and workforce policy.

Federal Government Shares Plans to Reinstate Some Congressional-Mandated Contracts

Last week, a court filing revealed that the Department of Education plans to reinstate 20 federal research contracts mandated by Congressional statute, including national evaluations, studies, and data collections. For some of the reinstatements, only a small portion of the research activity is slated to restart.

The National Evaluation of Career and Technical Education Programs (NECTEP), the federal evaluation of CTE included in the Perkins V statute, was not listed as one of the research contracts to be reinstated. However, according to the court document, it is being evaluated for eventual reinstatement or recompetition.

Advance CTE will continue to report on cuts to education research that impact CTE and the broader education community.

Job Corps Closures on Pause

Following the previously reported pause to Job Corps operations, a district judge in Manhattan issued a temporary restraining order on the “phased pause” in operations at contractor-operated Job Corps centers nationwide. The order directed the government not to terminate Job Corps contractors or stop work at Job Corps centers until a further ruling in the case. 

The lawsuit was filed by a trade group representing contractors that operate Job Corps centers. The order also mandated the Labor Department to appear at a court hearing on June 17th. The lawsuit alleges that the U.S. Department of Labor is violating federal law and its own regulations by abruptly shuttering the program. 

During her testimony last week regarding the DOL budget, House Education and the Workforce Committee members expressed bipartisan concern about the pause in Job Corps operations directly to DOL Secretary Lori Chavez-DeRemer. The Secretary defended the move as a cost-based and safety concern but cited the ongoing litigation as the reason for the limited response to questions. 

Read more about the cuts and litigation impacting Job Corps centers here.