By Daniel Fourchy, Workforce Development Policy Research Fellow at Gen-Z Emerging Technology Action (ZETA)
Workforce development has become a defining policy area for addressing economic transitions, talent shortages, and the changing nature of work in America. But despite widespread recognition of its importance, especially as Gen Z enters a skills-based economy and over 4 million Baby Boomers retire every year between now and 2027, the 119th Congress has made little meaningful progress in modernizing or expanding federal workforce programs (Source). This report explores the state of workforce policy this session, beginning with why reauthorization of the cornerstone federal workforce law – the Workforce Innovation and Opportunity Act (WIOA) – is unlikely to advance anytime soon, and then turning to Congress’ alternative workforce priorities and challenges in a ‘no new funding’ legislative environment.
Lack of Progress on WIOA in This Congress
Efforts to reauthorize the Workforce Innovation and Opportunity Act (WIOA) have stalled in the 119th Congress due to two key political and structural barriers: disagreements over JobCorps and controversy surrounding the management of adult education programs under Title II.
JobCorps Dispute Splits Congress
JobCorps, a federally funded job training program under WIOA, has become a source of tension. Although the Department of Labor (DOL) is legally prohibited from closing JobCorps centers outright, the centers were paused for review earlier this year (Source). At the same time, the Trump administration’s proposed FY 2025–2026 budget signals an intent to gradually reduce JobCorps funding – raising questions about the program’s long-term future (Source). Complicating matters is the unusual partisan breakdown: while most Republicans tend to support this shift, some oppose it; and the same is true, in reverse, for Democrats (Source). This disagreement makes the bipartisan consensus necessary for WIOA reauthorization harder to achieve.
Title II Management Controversy
Another sticking point is the recent shift of Title II (Adult Education and Family Literacy Act) program management from the Department of Education to the DOL (Source). This move has not been codified into law, and some top Democrats have signaled they would oppose any attempt to do so (Source). Since a Republicans reauthorization of WIOA would likely require formalizing this change, this issue remains a major barrier.
Taken together, these challenges make WIOA reauthorization unlikely to move forward this year, or to be included in the anticipated Continuing Resolution (CR) this Fall. The fact that a similar effort failed in the previous Congress adds to the uncertainty (Source). At this point there is no clear path forward, but the conversation remains active.
Why Nothing Is Moving
Outside of WIOA, there are currently no major workforce development bills gaining significant traction in Congress. One reason is structural: an unwritten but widely acknowledged rule in Congress this session is “no new funding” (Source). Because of this constraint, nearly all workforce bills introduced by the House Republican majority have focused on amending WIOA, which already has an established funding stream. That strategy avoids the political difficulties of securing new appropriations.
However, with WIOA itself stalled, Congress faces a difficult bind. Lawmakers are attempting to work within a framework that they are unable to update or reauthorize. As a result, long-standing problems, such as short training durations or curricula that fail to reflect the needs of a modern workforce, remain unresolved (Source). Without legislative movement, new entrants to the labor market, including Gen Z, are left with a workforce system that is increasingly out of step with the economy.
Workforce Development Priorities Outside of WIOA
With large-scale reform off the table for now, lawmakers have shifted their attention to more targeted proposals and pilot programs that do not require new funding. Among these emerging priorities are digital credentials, the modernization of legacy statutes, and early groundwork for future reauthorization efforts.
Learning and Employment Records (LERs)
Learning and Employment Records (LERs) are a newer concept gaining traction. These digital wallets, often built on blockchain technology, allow individuals to store and share verified credentials and skills. The goal is to better support a skills-based labor market by improving the portability and clarity of training outcomes (Source).
Pilot efforts are underway in companies like Walmart and in the state government of Texas (Source and Source). But public perception remains a hurdle, especially around data privacy and blockchain technology (Source). Explaining how LERs protect users and empower workers will be crucial.
National Apprenticeships Act: An Antiquated Framework
First passed in 1937, the National Apprenticeships Act hasn’t kept up with the evolution of the labor market. The industries it covers are still largely rooted in traditional trades, which limits its relevance to Gen Z and other workers pursuing careers in clean energy, healthcare, technology, and other emerging fields (Source). Updating the Act could help reduce bureaucratic red tape, make Registered Apprenticeship programs more flexible, and create pathways into 21st-century industries.
Perkins Act Reauthorization
The Carl D. Perkins Career and Technical Education (CTE) Act, last reauthorized in 2018, is also expected to receive increased attention. The law provides over $1.4 billion annually to support CTE programs in high schools and postsecondary institutions. As workforce needs evolve, a refreshed Perkins Act could improve alignment between classroom instruction and in-demand skills, including those in advanced manufacturing, artificial intelligence, and energy. Discussions around its reauthorization are still early, but bipartisan interest remains (Source).
Looking Ahead
While Congress has yet to deliver sweeping workforce legislation this session, that doesn’t mean momentum is entirely lost. The shifting nature of the economy, and the urgency of preparing Gen-Z for the jobs of tomorrow, makes this an issue where future progress is still possible.
For Gen Z, this is an opportunity to lead. By engaging with policymakers, advocating for bipartisan ideas, and emphasizing the importance of skills-based education and training, young people can help push workforce development back onto the national agenda. Progress will likely come in pieces, not all at once, but sustained advocacy and fresh thinking can help chart a path forward. If we raise our voices, we can show that meaningful compromise on workforce policy is not only possible, it is necessary.
