State & Federal Workforce Update: July 28, 2025

State and federal policy updates 

State

• State Workforce Investment Board meets. On Wednesday, July 23, the New York State Workforce Investment Board (SWIB) convened for the first time since October 2024. Highlights included presentations from the New York State Department of Labor (NYSDOL), State University of New York (SUNY), Empire State Development (ESD), and Office of Temporary and Disability Assistance (OTDA). 
   
• NYSDOL Deputy Commissioner Dana Politis shared an update on Job Corps, reporting that DOL is working with OTDA and the NYS Office of Children and Family Services to assist Job Corps participants who might be displaced as a result of the federal administration’s attempt to close the program. She also talked about NYSDOL’s forthcoming survey of jobseekers and businesses, and related communications tools including an online dashboard, and shared information regarding the Teacher Ambassador Program, a partnership with the State Education Department to train middle- and high-school educators on how to deliver high quality career readiness curricula. 
  
  
• NYSDOL’s Chris Pinheiro reported on the state’s recent Registered Apprenticeship outcomes, sharing that as of the end of June 2025 New York had 594 sponsors supporting 925 apprenticeship programs, with a total of 16,940 active apprentices enrolled. Of the 925 programs, 475 are in the building trades with 450 in other industries such as manufacturing and healthcare. In terms of apprentices, however, roughly 80 percent are enrolled in building trades programs. The Finger Lakes region is home to the most programs with 146, followed by New York City (118), the Capital Region (116) and Central New York (115). 
  
  
• SUNY Vice-Chancellor for Workforce Development and Upward Mobility Chris White reported on SUNY Reconnect, highlighting the priority economic sectors for which qualifying New Yorkers can receive financial support to complete their associate degrees. He also shared details about the new SUNY Office of Workforce Development & Upward Mobility, which includes oversight of experiential learning, small business development centers, ESOL programs, and SUNY’s engagement with Registered Apprenticeship. 
  
  
• Michelle Clarke, the recently appointed Vice President and Director, Workforce Development for the Office of Strategic Workforce Development (OSWD) within ESD, shared that her priorities in the role include removing barriers to employment for residents of underrepresented communities; strategic focus on high-demand sectors; and improved data collection. She noted that OSWD has made seven rounds of awards worth over $60 million in all, with Round 8 awards to be announced soon and Round 9 competition to follow. 
  
  
• OTDA shared an update on the likely impact of the federal reconciliation bill on Supplemental Nutrition and Assistance Program (SNAP) recipients in New York State. Time limits for SNAP receipt will be harsher, and the state is likely to see its waiver for households without children revoked. In all, it is projected that approximately 400,000 SNAP recipients will need to engage in at least 80 hours per month of work-related activities to retain their benefits. 
  
  

Federal

• Status of funds. Despite reports last week that the Trump administration had released WIOA Title I funds for Youth programs with Adult and Dislocated Worker dollars soon to follow, we have not yet heard from local Workforce Development Boards that they have received funding. NYATEP is hearing that under-staffing at the US Department of Labor (USDOL) is the sticking point, as the agency has lost a significant portion of its workforce since the beginning of this year. In other funding news, on Friday, July 25, the administration announced that it would release over $5 billion in previously withheld education dollars, including WIOA Title II funds that support adult education. 
   
• USDOL and US ED announce new workforce partnership. On July 15, the two federal agencies formally announced their plans to align, with DOL assuming responsibility for certain WIOA Title II programs as well as Career and Technical Education programs. A fact sheet offers additional detail and justification for this partnership, naming the overall objectives of “provid[ing] a coordinated federal education and workforce system” and “return[ing] authority over education to the States and local communities.” The specific goals of the agreement are to raise the national labor force participation rate, as well as “the postsecondary education attainment rate for populations who face barriers to participating in the labor force.” Workforce observers have noted the challenges of attempting such a complex merger at a time of reduced staff capacity and expertise. 
  
  
• Administration’s AI Action Plan. Last week, the Trump administration released its 28-page action plan on Artificial Intelligence. The plan names AI skill development as a core objective of relevant education and workforce programs, and calls for federal agencies to study data on AI’s labor market impact. It also calls out the need to invest in an AI-focused workforce, including priority roles such as electricians and advanced HVAC technicians; to partner with “state and local governments and workforce system stakeholders” to create industry-driven training programs for these and other positions; and to work with education and workforce actors to expand early career awareness and exposure to engage students in grades 6-12 in AI-related occupations. The plan specifically references pre-apprenticeship and Registered Apprenticeship as pathways for young people to enter AI-related fields. 
  
  
• EO report delayed. In April, the Trump administration’s executive order on workforce development called for federal agencies to assess federal workforce programs and report to the White House within 90 days. That deadline passed on July 22 without any report being announced. It seems likely that the report would have reflected the administration’s budget request released in late spring, which called for a block grant to consolidate 13 distinct workforce programs, along with a substantial funding cut.  It is unclear when or whether the report will be released. Meanwhile, NYATEP continues to hear that Republicans are divided on the merits of the block grant approach, which would shift much policymaking power to state governors. The change would require legislative action, which would almost surely break the longstanding tradition of bipartisanship in federal workforce policy. It is unclear how much of a priority this is for the administration, given many other concerns. We are also hearing that the odds seem to be increasing for a Continuing Resolution to fund WIOA programs, likely at close to the level of the previous year.