This week, the U.S. Departments of Education (ED) and Labor (DOL) announced it would move forward with a previously disclosed Interagency Agreement (IAA) to transfer administrative oversight of Career Technical Education (CTE) and adult basic education despite significant concerns related to the effort. The move comes as the Trump administration continues to withhold state grant resources for adult education along with nearly $7 billion in other education funding. 

Trump Administration Announces IAA Will Move Forward

Despite significant concerns that Advance CTE and partners have raised in recent weeks, ED and DOL have announced it is moving forward with a new “partnership” that aims to transfer administration 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, Technical, and Adult Education (OCTAE) to DOL’s Employment and Training Administration (ETA). It remains unclear how the agreement will be implemented moving forward, given that the Departments’ related factsheet indicates that “ED will maintain all statutory responsibilities and will continue its oversight of these programs.”

Advance CTE remains deeply concerned that this agreement’s proposed framework creates needless administrative hurdles for states, requiring them to navigate between two federal departments without any clear reason or benefit. Aspects of the agreement also appear incongruent with the statutory requirements of Perkins V, legislation creating ED, and related annual appropriations legislation. The agreement not only applies to Perkins V, but also to AEFLA – despite the fact that these funds are currently being withheld by the Trump administration. 

Neither ED’s nor DOL’s related press release provides a direct link to the text of the agreement, which was first disclosed last month as part of ongoing litigation regarding the administration’s efforts to lay off half of ED’s federal workforce as part of wider efforts to “dismantle” the department. Nonetheless, a copy of the apparent text of the agreement can be accessed here. 

The action this week follows a recent Supreme Court decision that lifted a previous lower court injunction regarding ED’s layoffs announced earlier this spring. The agreement also comes amid efforts to eliminate funding and support for postsecondary CTE programs as recently proposed by the Trump administration, raising further questions about how these efforts align with the new partnership’s wider goals to prepare a high-skilled workforce needed for the future.  

Advance CTE is continuing to analyze elements of this agreement and will be closely monitoring potential impacts on the ongoing implementation of Perkins V. 

Education Funds Still Withheld by Administration

This week, bipartisan interest grew across both chambers of Congress concerning the $7 billion in withheld education funds, as previously reported. On Thursday, a group of Senate Republicans sent a letter concerning these actions to the Office of Management and Budget (OMB) Director Russell Vought to faithfully implement the fiscal year 2025 (FY25) continued resolution that President Trump signed into law earlier this year. The letter was organized by Sen. Capito (R-WV), who serves as the chair of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS) – the subcommittee responsible for approving funding for Perkins V. Read the letter here.

Sen. Tommy Tuberville (R-AL), a member of the Senate Health, Education, Labor, & Pensions (HELP) Committee, said on Thursday that he expected the funds to be released in the near future.  

At the time of this writing, the administration announced earlier today that a portion of the funds will be released today to support 21st Century Community Learning Centers through Title IV-B of the Every Student Succeeds Act. Funds for other programs through ESSA Title II and Title IV-A, as well as funds for Adult Basic Education under Title II of the Workforce Innovation and Opportunity Act (WIOA) appear to be still “under review” by OMB. Read Sen. Capito’s statement on the release.

The Senate Republicans’ letter joins a growing list of Congressional leaders calling on the administration to release the funds in accordance with the law. A bicameral letter from Arizona Democrats Rep. Greg Stanton (D-AZ) and Sen. Mark Kelly (D-AZ) was filed on July 16. More than 100 House Democrats, lead by Rep. Lucy McBath (D-GA) and Ranking Member of the House Education & the Workforce Committee Rep. Bobby Scott (D-VA) signed onto a letter to OMB Director Vought on July 10. Senate Democratic appropriations leaders also issued a statement on July 1 urging the release of critical funds for schools nationwide.

A coalition of 24 states, including the District of Columbia, filed a lawsuit against the Trump administration on Monday regarding these withheld funds.

Six hundred education stakeholders nationwide, including Advance CTE, sent a letter to OMB Director Vought and Secretary of Education Linda McMahon this week calling for the immediate release of these funds. The letter and accompanying statement make clear that more than 55 million K-12 students and 1.2 million adult learners are impacted by this funding freeze.

Advance CTE remains deeply committed to advocating for CTE as a critical component of the education continuum and the wider impacts these actions have on CTE programs throughout the country. 

Congressional Republicans Approve Rescissions Package

As Thursday became Friday this week, House Republicans approved a package to rescind $9 billion in previously enacted federal spending. The bill rescinds around $8 billion in foreign aid assistance programs through the United States Agency for International Development (USAID) and $1 billion in funding cuts for the Corporation for Public Broadcasting, which supports public radio and television programs, including National Public Radio (NPR) and Public Broadcasting Service (PBS). 

A rescissions package allows President Trump to request that Congress cancel (or rescind) funds that have already been approved in the current federal fiscal year. Following this request, lawmakers have a 45-day window to pass legislation and return it to the president for signature. Otherwise, the approved funds must be spent. The rescissions package was passed along party lines in both chambers of Congress ahead of a July 18 deadline.

Appropriations Coming Into Form as Schedule Shifts in House

This week, the House of Representatives released the fiscal year 2026 (FY26) subcommittee allocations, known as the 302b allocations, to frame the future markup of funding legislative text later on this summer. House Appropriations Committee Chairman Rep. Tom Cole (R-OK) released a statement that provides a high-level overview of available funding for each of the subcommittees. The FY26 allocations reflect a decrease in spending across all non-defense discretionary (NDD) accounts, including the Labor-HHS-ED component, which funds most education and workforce policy and programs at the federal level. The decrease reflected is not as deep as the request reflected in President Trump’s FY26 budget request released earlier this year, but is still substantially lower than current levels of investment. 

The FY26 appropriations schedule in the House has shifted, as the calendar no longer reflects the previously reported markup of the FY26 Labor, Health and Human Services, Education, and Related Agencies Bill by the subcommittee on July 21 and a full committee markup on July 24. This piece of the appropriations legislative package will be picked up by the House following the August recess, most likely in the first week of September. In the Senate, a similar timeline for appropriations legislation impacting Perkins V remains forthcoming. 

Advance CTE will continue to advocate for strengthened investments in CTE via Perkins V and other critical funding streams in support of education and workforce development as these efforts and more continue to take shape.