The US Departments of Education (ED) and Labor (DOL) have taken historic steps to integrate the federal government’s workforce portfolio through their recently announced partnership. The initiative is designed to streamline federal workforce programs, reduce administrative burdens, and provide states with a coordinated system for career and technical education (CTE), adult education, and family literacy programs under the Workforce Innovation and Opportunity Act (WIOA).Central to this initiative is the launch of a new, integrated state plan portal, which will allow state agencies to create, review, and manage workforce development plans more efficiently. The portal aims to simplify compliance processes and improve the transparency and accessibility of program management for states and grantees.
Administrative shift and funding transfers
Under the agreement, ED will transfer program funds and detail staff to DOL to support the administration of WIOA Title II programs and Perkins-funded CTE initiatives. This effectively positions DOL as the central hub for federal workforce programs while ED retains core policy authority and oversight.The move means that day-to-day program operations, including grant management, compliance monitoring, and technical support, will now fall under DOL’s purview. Meanwhile, ED will maintain its statutory responsibilities, including program oversight, policymaking, and ensuring compliance with existing federal education and workforce laws.
Leadership statements and vision
US Secretary of Education Linda McMahon emphasised the benefits of the partnership for states and local providers. “The workforce development partnership will allow states to more easily and efficiently administer their programs,” McMahon said. She added that the collaboration with Secretary Chavez-DeRemer would implement “commonsense reforms” aimed at better serving students, families, and states.Labor Secretary Lori Chavez-DeRemer highlighted the administration’s goal of preparing Americans for high-paying, in-demand careers. “We are taking decisive action to streamline unnecessary bureaucracy and advance the skills needed to fill jobs of the future,” she said, stressing that the partnership would better connect workers to training that leads to mortgage-paying jobs.
Background: Interagency agreement and policy context
The partnership is grounded in an Interagency Agreement (IAA) signed on May 21. IAAs are a routine federal tool that allow agencies to share resources, collaborate, and ensure efficient service delivery. In this case, DOL will perform certain day-to-day administrative services for ED’s CTE and WIOA Title II programs in accordance with 31 U.S.C. § 1535, integrating them with the larger suite of workforce programs DOL already manages.This restructuring also aligns with President Trump’s Executive Order on preparing Americans for high-paying skilled trade jobs, signalling the administration’s continued focus on workforce readiness and economic competitiveness.
Programmatic changes and technical infrastructure
As part of the transition, states will now use the new integrated state plan portal to manage their workforce plans, which are submitted every four years and modified biennially. This content management system is designed to improve oversight, reduce redundant reporting, and allow for easier collaboration between state agencies and federal departments.Adult education and CTE grantees will also transition to DOL’s Payment Management System, aligning grants management and payment processes across the two departments. The move is expected to reduce administrative overhead and allow more federal funds to flow directly to workforce programs rather than compliance and bureaucratic costs.
Implications for states, grantees, and students
The transition raises several immediate questions for states, school districts, and workforce providers. These include maintaining funding continuity, ensuring compliance with federal regulations, and preserving the integrity of adult education and CTE programs. Stakeholders will need to adapt quickly to new reporting systems, administrative contacts, and operational protocols.Advocacy organisations have cautioned that moving program administration from ED to DOL could risk narrowing the focus of these programs, potentially treating adult education and CTE as mere job training rather than comprehensive educational preparation. The success of the partnership will depend on close collaboration between federal agencies, state governments, and local providers.
Next steps and ongoing guidance
ED and DOL have pledged to continue providing guidance as the partnership is implemented. States and grantees are advised to contact their respective DOL Employment and Training Administration or ED Office of Career, Technical, and Adult Education points of contact for immediate program questions.Officials stress that this cooperative approach will create a coordinated federal education and workforce system, improving the efficiency, accessibility, and effectiveness of federal workforce programs nationwide.
The bottom line
This administrative realignment marks one of the most significant federal shifts in education and workforce policy in recent memory. By centralising day-to-day program management under DOL while maintaining oversight at ED, the partnership seeks to balance efficiency with regulatory accountability. As millions of students, educators, and job seekers are affected, the coming months will be crucial in determining whether the initiative delivers on its promise of streamlined, high-impact workforce development.
