The U.S. Department Of Labor (DOL) has announced the end of the Job Corps Program.
The shutdown is credited to reported financial deficits and underwhelming student outcomes. An audit of the program revealed financial deficits of $140 million in 2024 with projections reaching $213 million by 2025. Also, less than half, 38.6%, of enrollees graduate. Though, representatives for the program say the report lacks context.
Labor Secretary Lori Chavez-DeRemer stated that the agency would support facilities in transitioning participants out. As the program pays for travel and lodging the sudden announcement presents logistical challenges. Chavez-DeRemer says the department will evaluate the future of the program with no guarantees of its return, The Hill reported.
“We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities.”
Currently, the reported cost per student, $155,600, exceeds the cost of attending a four-year college or university. Labor Secretary Lori Chavez-DeRemer acknowledged the program’s original intent to help young adults build better lives.
However, she stated that a “startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve.”
The DOL stated that the program will begin transitioning immediately with a full “cessation” by June 30th. According to the DOL website, efforts to close the facilities began early April 2025. The government organization halted new enrollment at the Penobscot Job Corps Center in Maine.
Many lawmakers have taken exception to the decision. As Congress has set aside funds for the program, some believe the move is an overreach by the Trump administration.
On May 31, Tammy Baldwin a Wisconsin senator, said as much in a statement, “Congress appropriated funding for Job Corps, and the Trump Administration can’t just decide to not spend it because they want to make room for tax cuts for billionaires.”
Baldwin also stressed the benefit of Job Corps and its students to the Wisconsin economy.
“Wisconsin is a state that makes things, but without a skilled workforce, our state risks losing that vital part of our identity and economy. Job training programs like Job Corps are a proven way to connect more Wisconsinites with careers that in turn fuel our economy.”
Politicians and states may be concerned about the state of the economy. Yet, there is a greater concern. The Job Corps program was established in 1964 by President Lyndon B. Johnson. The then-president presented the initiative to curb the rising poverty rates and address homelessness. Hoping to increase job prospects in young adults aged 16 to 24.
The National Job Corps association estimates, “4,500 of [current] students were homeless before joining the Job Corps. This presents a problem as programs nationwide seek to transition students out.
According to the National Job Corps Association, the report being used to justify the cessation of the program lacks context and is unreliable.
The “transparency report” which was developed by a DOGE staffer examines a year when Department of Labor rules related to the COVID-19 pandemic limited enrollments in order to mistakenly assert that the program has grown too expensive. In reality, the budget for Job Corps campus operations has not been increased for eight years, despite inflation.
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