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State Workforce Agency Appropriations Priorities FY2027

The Honorable Susan Collins
Chair
Senate Committee on Appropriations
United States Senate
Washington, DC 20510

The Honorable Tom Cole
Chairman
House Committee on Appropriations
U.S. House of Representatives
Washington, DC 20515

The Honorable Patty Murray
Vice-Chair
Senate Committee on Appropriations
United States Senate
Washington, DC 20510

The Honorable Rosa DeLauro
Ranking Member
House Committee on Appropriations
U.S. House of Representatives
Washington, DC 20515

Re: State Workforce Agency Appropriations Priorities

Dear Chair Collins, Chairman Cole, Vice-Chair Murray, and Ranking Member DeLauro, 

I am writing on behalf of the National Association of State Workforce Agencies (NASWA), a non-profit and non-partisan association, whose membership is comprised of workforce agencies in all states, the District of Columbia, and U.S. territories. Our members work to assist citizens across the country with job search assistance, training, labor market information, and unemployment insurance. 

We have the following recommendations for FY 2027 appropriations: 

  • Programs under the Workforce Innovation and Opportunity Act (WIOA) are vital to the U.S labor market and economy and require sufficient overall funding, at levels at or above FY 2026. States also request that appropriators permit greater funding flexibility across WIOA programs (including the Adult, Dislocated Worker, and Youth programs) to better address unanticipated changes in the labor market.
  • Wagner-Peyser Act job search assistance and career navigation helps people return to work faster and reduces unemployment duration. Funding for this program has been static for over a decade. Adequate funding is needed as states support individuals with job search assistance, and businesses with hiring and retention. This funding is especially important as states work diligently to implement the expanded work requirements for SNAP and Medicaid.
  • Apprenticeship programs are key tools to help employers and workers gain skills in demand driven and emerging industries, but consistent and dedicated funding is needed to expand and grow apprenticeshipopportunities. Increased federal investment in this area is critical for meeting the Administration’s goal of reaching 1 million active apprentices across the nation.
  • Unemployment Insurance (UI) administrative funding is critical as states need to be ready for the next recession. Unfortunately, since 2009 state funding levels have failed to meet the need as demonstrated by state-developed budget documents submitted to the U.S. Department of Labor through the Resource Justification Model. Base UI Administrative funding needs to be significantly increased to fight fraud and improper payments, and to ensure that acceptable customer service is provided to both employers and claimants.
  • Fund the Reemployment Services and Eligibility Assessment (RESEA) program at full authorization levels. The RESEA program has a proven track record of accelerating unemployment insurance beneficiaries’ return to work and reducing UI duration and payments
  • Restore federal funding to states to support traditional labor market production. The federal-state Cooperative Statistics Programs with the U.S. Bureau of Labor Statistics produces high quality labor market statistics needed for informed decision-making at the local, state, and national levels. Over the past 20 years, federal funding has been cut by approximately 20%1 after adjusting for inflation, and is insufficient to maintain the availability of accurate labor market data. We also encourage granting states the flexibility to reallocate funding across the four Cooperative Statistics Programs to help states address funding shortages. 

Thank you for your consideration as we work together to support critical workforce programs that strengthen America’s economy, labor market, and national competitiveness. 

 

Sincerely, 
Scott B. Sanders 
NASWA President and CEO