Highlights:
- The U.S. Departments of Labor and Education launched a joint workforce development strategy under a new Interagency Agreement.
- Labor Department will manage adult education and career technical programs under Education’s oversight.
- The Supreme Court approved implementation following a district court injunction in McMahon v. New York.
- Officials promise reduced bureaucracy, clearer guidance, and unified state planning systems.
Overview
The Trump administration has announced a sweeping realignment of federal workforce development efforts through a new partnership between the Department of Labor and the Department of Education. The two agencies will now collaborate to create a unified federal education and workforce system, with the Labor Department managing key program operations under the oversight of the Department of Education. Under the new structure, the Labor Department will administer adult education and family literacy programs authorized by Title II of the Workforce Innovation and Opportunity Act (WIOA) and career and technical education initiatives funded through the Carl D. Perkins Act. These responsibilities will be integrated into the Department of Labor’s broader workforce system.Agency Statements
“Our bloated federal bureaucracy has made it increasingly difficult to administer workforce development programs effectively, and our students and workers have been left behind as a result. Under President Trump’s leadership, we are restructuring to meet the needs of our workforce,” said U.S. Secretary of Labor Lori Chavez-DeRemer.
The Department of Education will retain statutory responsibility, policy authority, and oversight of the programs, while the Labor Department focuses on daily operations and integration.
“The current structure with various federal agencies each managing pieces of the federal workforce portfolio is inefficient and duplicative. Support from the Department of Labor in administering the Department of Education’s workforce programs is a commonsense step in streamlining these programs to better serve students, families, and educators,” said U.S. Secretary of Education Linda McMahon.
Background and Legal Update
The Department of Education formally signed the Interagency Agreement (IAA) with the Labor Department on May 21. The next day, a federal district judge in Massachusetts temporarily blocked the agreement through an injunction in the case of McMahon v. New York. However, on July 15, the U.S. Supreme Court granted an emergency stay, allowing implementation of the IAA to move forward. The IAA is a standard government mechanism allowing agencies to share services, streamline coordination, and enhance delivery efficiency.Streamlining Federal Workforce Services
By placing the administration of Perkins V and WIOA Titles I, II, and III under the Department of Labor, the federal government aims to centralize services, eliminate conflicting agency directives, and simplify compliance procedures for states and grantees. According to officials, this change will allow for:- A single federal point of contact for state workforce systems
- Unified state plan portals and synchronized deadlines
- More direct investment in skills training rather than federal compliance costs
Authority and Implementation
This shared management model aligns with Executive Order No. 14278, signed by President Trump on April 23, 2025. The executive directive calls for the reduction of redundant federal administrative functions and the consolidation of services that directly impact the American workforce. State partners and program grantees are encouraged to contact their Employee and Training Administration (ETA) or Office of Career, Technical, and Adult Education (OCTAE) contacts with questions during the transition.
Read full statement: U.S. Department of Labor
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