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3d ago

Labor Department orders phased pause at 99 contractor-run Job Corps centers

Labor Secretary Lori Chavez-DeRemer said the program’s budget shortfalls paired with rising incident reports left no alternative, with workforce partners primed to support students’ completion or job placement.

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Overview

  • The Department of Labor will implement a phased pause in operations at all 99 contractor-run Job Corps centers by June 30 to allow an orderly transition.
  • Officials pointed to a $140 million deficit in 2024 set to climb to $213 million this year along with thousands of serious incident reports as justification for the pause.
  • Senators Susan Collins (R-Maine) and Tammy Baldwin (D-Wisconsin) joined other lawmakers in warning the shutdown threatens workforce development for low-income youth.
  • Students such as a San José trainee have voiced fears of losing housing and career training if the program stops without guaranteed placements.
  • The Labor Department has pledged to collaborate with state and local workforce agencies to help current participants finish their training and find new education or employment opportunities.