On May 23rd President Trump released his budget proposal for fiscal year 2018, which included far-reaching and deep cuts to programs from AmeriCorps to the Veterans’ Homeless Reintegration program.
How far will this proposal go? According to the most recent Capitol Hill meetings conducted by our allies in the Committee to Investment in America’s Workforce, not far. Most Republicans on Capitol Hill are highly critical of the budget.
Budget Changes in the Appropriations Process
This skepticism of the Administration’s budget may affect how the appropriations process unfolds. Speaker Ryan has historically been a champion of following regular order for government spending bills: Congress agreeing on a budget resolution, appropriations subcommittees in each chamber marking up 12 appropriations bills, then each bill being taken up separately in an orderly fashion. It’s been many years since the process unfolded this way, but this has been the Speaker’s line – and he was quick to blame Democrats when Republicans were in the minority and this process broke down. This year, however, rather than publicly break with the Administration in a series of appropriations markups, Republican Congressional leadership may instead claim that they have no floor time for full appropriations bills and direct appropriators to pull together a full-year continuing resolution, essentially bypassing the appropriations process.
The Committee to Invest in America’s Workforce has submitted written testimony to the Senate Labor-H subcommittee today, to which NYEC contributed.
Debt Limit Wrinkle
The Treasury Department is currently using so-called extraordinary measures to pay America’s bills, the last debt-limit increase having expired in March. These measures were originally estimated to prevent a default until after the August recess, but Treasury Secretary Steven Mnuchin – who reportedly favors a “clean” debt limit increase without policy riders and has called for the eventual abandonment of the debt limit as a concept – recently announced that the department would hit the ceiling sooner than expected.
According to a CQ Roll Call article, the White House invited several far-right groups to a meeting on May 26 to discuss concessions that could be extracted from Democrats in exchange for increasing borrowing authority. Concessions discussed include, from less painful/unusual to more painful/unusual:
• Matching any debt limit increase with spending cuts, as was done with the 2011 deficit reduction law;
• Extending the sequester;
• Adding work requirements to government assistance programs;
• Caps on mandatory spending;
• Pairing a debt limit increase with prioritizing the payment of interest in case the debt limit is not raised; and
• A balanced budget amendment.
FY17 WIOA Allocations Out Mid-June
Courtesy of Kay Tracy with Minnesota DEED: DOL plans to release final program-year 2017 WIOA Youth allocations in mid-June. They are currently tied up in the OMB review process at the White House. PY17 WIOA Youth allotments will be available retroactive to April 1, 2017, and will be similar to the “planning estimate” released to the states January 13 in TEGL 14-16.
President Trump’s FY18 Opportunity Youth Budget
As a reminder, below are some pertinent line items from the President’s Budget.
Proposed New Obligations (in millions of dollars) FY17 CR FY18 Proposed Change (%)
Department of Labor
WIOA Adult $814 $490 -39.80 %
WIOA Dislocated Worker 1239 699 -43.58 %
WIOA Youth 1002 608 -39.32 %
Reintegration of Ex-Offenders 83 88 6.02 %
Apprenticeship Grants 89 90 1.12 %
H-1B Job Training Grants 128 200 56.25 %
YouthBuild 84 84 0
Job Corps, total 1663 1614 -2.95 %
Community Service Employment for Older Americans 438 5 -98.86 %
Department of Education
VR State Grants 3165 3453 9.10 %
CTE State Grants 1111 791 -28.80 %
Adult Education State Grants 581 486 -16.35 %
ESEA Title I Grants to LEAs 14881 14051 -5.58 %
School improvement grants 449 449 0.00 %
Title I Choice Program 0 1000 n/a
IDEA Grants to States 11872 11049 -6.93 %
Promise Neighborhoods 73 73 0.00 %
Education, innovation, and research 119 370 210.92 %
Corporation for National and Community Service
AmeriCorps State and National 386 2 -99.48 %
AmeriCorps VISTA 96 5 -94.79 %
AmeriCorps National Civilian Conservation Corps 30 25 -16.67 %
Social Innovation Fund 50 0 -100.00 %
Department of Health and Human Services
Runaway and homeless youth basic centers 54 54 0.00 %
Chafee Education and Training Vouchers (for foster youth) 43 43 0.00 %
Community service block grant 714 0 -100.00 %
Department of Agriculture
SNAP Employment and Training 456 477 4.61 %
Department of Justice
Juvenile Justice Programs 270 239 -11.48 %