Budget Hearing - U.S. Department of Labor

Labor Department and Labor LawHouse Appropriations Subcommittee on Departments of Labor, Health and Human Services, Education, and Related Agencies · 2025-05-15 · 119th Congress
The House Appropriations Subcommittee on Labor, HHS, Education, and Related Agencies held this hearing to examine Secretary of Labor Lori Chavez-DeRemer's fiscal year 2026 budget request for the Department of Labor. Begins at 0:13:23
Transcript
Highlights

Title

FY2026 Department of Labor budget and workforce program cuts

Purpose

The House Appropriations Subcommittee on Labor, HHS, Education, and Related Agencies held this hearing to examine Secretary of Labor Lori Chavez-DeRemer's fiscal year 2026 budget request for the Department of Labor. Members questioned the secretary on proposed cuts to job training programs, Job Corps, the Office of Federal Contract Compliance Programs, H-2A agricultural wage rules, staffing reductions under the Department of Government Efficiency (DOGE), and cancelled labor-related grants. Begins at0:13:23

Who spoke

Chairman Robert Aderholt (R-AL)0:13:23: Opened by criticizing the prior administration's OSHA vaccine mandate and independent-contractor rules0:14:41, and pressed for relief on H-2A adverse effect wage rates for family farms0:16:01.

Rep. Rosa DeLauro (D-CT), Ranking Member0:19:21: Called the budget "anti-worker," opposing a proposed $4.7 billion (35%) cut to the Department of Labor0:22:34; cited plans to cut 90% of OFCCP staff, leaving 50 employees0:26:39, and criticized cancellation of Women in Apprenticeship (Wanto) grants0:23:54 and ILAB Mexico labor-enforcement grants0:24:22; in closing remarks demanded data on RIFs, deferred resignations, and frozen funds2:06:06.

Secretary Lori Chavez-DeRemer0:32:33: Said her department uncovered $4.4 billion in unspent COVID funds being returned to Treasury0:35:44, described her "America at Work" 50-state listening tour0:34:00, and repeatedly cited litigation as barring comment on H-2A, OFCCP, and grant-cancellation questions0:39:410:45:10.

Rep. Mark Harris (R-AL)0:42:47: Asked about H-2A wage rates and apprenticeship support; secretary noted the department received almost 19,000 H-2A applications, a 9% workload increase0:39:11.

Rep. Rosa DeLauro follow-up on trade0:42:47: (same speaker as above, continued Q&A on USMCA/ILAB grants) pressed on whether USTR Ambassador Jameson Greer was consulted before grant cancellations0:45:10.

Rep. David Valadao / unspecified member on independent contractors0:48:34: Asked about the wage and hour division's independent-contractor test reformulation; secretary cited a new field assistance bulletin0:49:55 and gave Job Corps cost figures: ~$1.7 billion annual program cost, ~$80,000 cost per student, ~$50,000 per enrollee0:51:12.

Rep. Steny Hoyer (D-MD)0:53:12: Repeatedly pressed for FTE and buyout numbers, deferred-resignation counts, and RIF data, which the secretary said she could not provide due to litigation0:53:41; cited a Russell Vought quote about wanting bureaucrats "traumatically affected"0:58:01.

Unspecified member citing constitutional boundaries and unemployment fraud0:59:05: Praised cuts to Job Corps and SCSEP and asked about enforcement against illegal immigrants receiving unemployment benefits1:01:15; secretary said states found non-compliant risk losing federal funding1:02:08.

Rep. Val Hoyle (D-OR)1:05:18: Asked for reassurance on OSHA and Wage and Hour Division funding1:05:47; secretary said no statutory cuts to safety functions are planned1:06:39; Hoyle also raised concerns about the executive order stripping collective bargaining rights from 75% of the federal workforce1:09:54.

Rep. Riley Moore (R-WV)1:10:45: Proposed federal version of West Virginia's "Jumpstart Savings" tax-advantaged account for trade workers' tools/equipment costs1:11:33; cited loss of over 3,000 United Steelworkers jobs at a Weirton, WV plant after the Biden administration declined tin-plate steel tariffs1:15:24.

Rep. Frankel (D-FL)1:15:55: Detailed OFCCP's role overseeing $600 billion in federal contracts covering 33 million workers1:17:41, citing settlements including Lockheed ($1.8M), Google ($3.8M), Cisco ($4.75M), Intel ($5M), and Bank of America ($2.2M) for discrimination1:18:57; secretary said OFCCP would "fulfill its statutory requirements"1:19:56.

Rep. Stephanie Bice (R-OK)1:21:27: Discussed her bipartisan paid family leave bill, the More Paid Leave for More Americans Act (HR 3089)1:21:46, and asked about project labor agreements on federal contracts over $35 million1:22:32.

Rep. Bonnie Watson Coleman (D-NJ)1:26:21: Questioned the Job Corps transparency report's origin and methodology1:26:50; secretary cited per-graduate costs up to $268,000 and a one-third graduation rate1:28:16; Watson Coleman also asked about justification for eliminating the Senior Community Service Employment Program1:31:00.

Rep. John Moolenaar (R-MI)1:32:03: Raised H-2A adverse effect wage rate concerns for Michigan fruit and vegetable growers paying over $18/hour1:33:26, and H-2B visa cap issues for Mackinac Island businesses1:36:28.

Rep. Madeleine Dean (D-PA)1:38:15: Criticized the $4.7 billion (36%) proposed cut as unaddressed in testimony1:39:11, citing a $600,000 WIOA funding cut already hitting Montgomery County, PA1:41:44; secretary called the reduction a "re-evaluation," not a cut1:43:53.

Chairwoman (presiding, likely Rep. Julia Letlow, R-LA)1:44:50: Promoted the More Paid Leave for More Americans Act and a Louisiana veteran workforce initiative1:45:41; asked about supporting community colleges and trade schools1:49:13.

Rep. Maxine Dexter or unspecified member ("Harter")1:50:34: Alleged the Wage and Hour Division was defunded and that child labor violations rose 88%, citing a 2023 case of 13-year-olds in a meatpacking plant1:51:04; accused the secretary of holding a taxpayer-funded "birthday party," which the secretary denied, calling it a swearing-in event1:53:22.

Rep. David Valadao / unspecified member praising secretary's travel1:55:04: Noted the secretary had visited eight states in 66 days1:56:00; discussed his Apprenticeship Infrastructure Tax Credit Act legislation1:57:25.

Key moments

DeLauro said the administration proposes cutting the Department of Labor by $4.7 billion, a 35% reduction, and would eliminate WIOA adult and youth job training, replacing it with a block grant that provides $1.6 billion less funding0:22:340:27:53.

DeLauro said eliminating WIOA adult job training would deny services to more than 300,000 adults and WIOA youth training would affect 135,000 young people0:28:16.

Secretary Chavez-DeRemer confirmed the department uncovered $4.4 billion in unspent, unusable COVID-era funds being returned to the Treasury0:35:44.

Rep. Hoyer's repeated questioning about current FTE counts, buyout numbers, and how many employees are being paid without working went unanswered, with the secretary citing litigation and saying she would provide final numbers later0:53:41; her legal team stated it takes 45 days to confirm about 15,000 employees affected by DRPs or RIFs0:57:03.

Rep. Frankel cited over $260 million collected by OFCCP in owed wages over the past decade and asked whether such enforcement remains possible; the secretary said "that is not true" and OFCCP would fulfill statutory requirements, while Frankel argued the relevant executive order precludes such enforcement1:18:271:20:26.

Secretary said the department received almost 19,000 H-2A applications, a 9% workload increase, but repeatedly declined to comment on the adverse effect wage rate due to pending litigation0:39:111:03:28.

Job Corps figures cited: a $1.7 billion annual budget, roughly $80,000 average cost per student, $56,000 cost per enrollee at one district's site and $268,000 per graduate at a nearby center, with only about one-third of students graduating nationally0:51:121:28:44.

A member ("Harter") alleged child labor violations rose 88% and accused the department of eliminating Wage and Hour Division enforcement funding; the secretary denied the division was defunded and denied hosting a "birthday party," calling it a swearing-in event1:51:321:53:22.

DeLauro closed by demanding the department provide the committee data on RIF notifications, probationary terminations, and early retirements by agency, and asked whether the administration will fully obligate FY2025 WIOA funds as appropriated2:07:052:09:14.

Rep. Riley Moore linked the closure of a Weirton, WV tin-plate steel plant, costing over 3,000 United Steelworkers jobs, to the prior administration's refusal to impose tariffs, urging tariff support for steel and aluminum1:15:241:15:55.

Metadata

CommitteeHouse Appropriations Subcommittee on Departments of Labor, Health and Human Services, Education, and Related Agencies
Chamber / CongressHouse · 119th Congress
Date2025-05-15
TypeHearing
Witnesses
The Honorable Lori Chavez-DeRemer — Secretary, U.S. Department of Labor
Videoyoutube
Transcript273 caption blocks · 20,627 words · 2:12:49 runtime
EventCongress.gov 118231