POLICY UPDATE 8-7-26

August 7, 2026 |

News at NYEC

Registration is open for NYEC’s D.C. Summit in Washington, DC – September 21-23! The DC Summit builds on the coalition’s policy work by bringing members together in Washington, D.C. to engage directly with federal policymakers, strengthen advocacy, and advance investments in the youth workforce.

Legislative Branch

  • Bipartisan Senate Appropriations Leaders Announce Stopgap Funding Deal: Senate Appropriations Committee leaders, Senator Susan Collins (R-ME) and Senator Patty Murray (D-WA), announced that they have reached a bipartisan agreement to continue level-funding for all federal programs through December 11. As a reminder, Congress must pass an appropriations bill (funding bill) by September 30 in order to avert a government shutdown. Because Congress needs more time to reach a final Fiscal Year 2027 appropriations deal, the Senators announced an agreement to pass a continuing resolution through December 11, which would maintain funding for all federal programs through then. The Senate and House are in recess through September, so they will need to vote on this measure when they return. It is likely that this deal – or something very close to it – will pass when they return. 
  • Bipartisan Senators Introduce Bill to Update WIOA Related to Substance Abuse Disorder: Senators John Fetterman (D-PA) and David McCormick (R-PA) introduced S.5263, a bill to amend the Workforce Innovation and Opportunity Act to provide to States and local areas information on the best practices for addressing the effects that substance use disorder has on the workforce, and to provide local areas with grants to provide training activities related to the treatment and prevention of substance use disorder. 

Executive Branch

  • U.S. Department of Education Approves First Workforce Pell Grant Program: The U.S. Department of Education approved the nation’s first Workforce Pell Grant program at Iowa Central Community College, allowing eligible students to use federal Pell Grant funding for a 14-week Emergency Medical Technician (EMT) training program. The approval marks the first implementation of the new Workforce Pell initiative, expanding access to short-term, career-focused training programs that prepare students for high-demand occupations. 

From the States

  • New Jersey: The New Jersey Department of Labor and Workforce Development awarded the Elizabeth Development Company more than $430,000 to expand workforce training opportunities for residents. The funding will support job training initiatives designed to strengthen the regional workforce, connect participants to in-demand careers, and help meet employer workforce needs.  
  • Ohio: The Ohio State University has named former Dublin City Schools Superintendent John Marschhausen as its first assistant vice provost for academic program pathways. The newly created position will focus on expanding partnerships with schools, employers, and community organizations to strengthen workforce development initiatives and create clearer education-to-career pathways for students. 

Resources

Federal Funding Opportunities

  • HHS Grant: FY2026 Runaway Homeless Youth Training, Technical Assistance, and Capacity Building Center (RHYTTAC): The Runaway and Homeless Youth Training, Technical Assistance, and Capacity Building Center (RHYTTAC) provides direct training and technical assistance to existing RHY award recipients and subrecipients to enhance their efforts to successfully implement FYSB-funded projects. Applications are due August 14, 2026. 
  • Forecasted HHS Grant: FY 2026 Basic Center Program: The Basic Center Program (BCP) provides temporary, emergency shelter; and counseling services to youth who have left home without permission of their parents or guardians, have been forced to leave home, or other homeless youth who might otherwise end up in the law enforcement or in the child welfare, mental health, or juvenile justice systems. Applications are due August 17, 2026. 
  • Industry-Driven Skills Training Fund Grant Program: The Department of Labor announced the availability of approximately $40 million for a second round of the Industry-Driven Skills Training Fund (“Training Fund”) grants, with at least $5 million of the total available funding to be awarded to support training in the shipbuilding industry. This second round of Training Fund grants is largely the same as the first round from the original Training and Employment Guidance Letter (TEGL) 02-25, but this TEGL 02-25 Change 1 contains several revisions that apply to the second round of applications. All the information applicable to the second round of Training Fund grants can be found here. Applications are due August 17, 2026. 
  • HUD Grant: FY 2026 Continuum of Care Competition and Youth Homelessness Demonstration Program Grants: The Continuum of Care (CoC) Program is designed to promote a community-wide commitment to the goal of ending homelessness and providing funding for efforts by providers. Applications are due August 26, 2026. 

Member Highlight

NYEC member in Indianapolis- Employindy’s CEO, Ken Clark testified before a Senate HELP Subcommittee on The Impact of AI on the Workforce. In his written testimony, Mr. Clark stated, “Our responsibility is to ensure workers can adapt before disruption becomes displacement. For employers, that means preparing for a future where jobs are increasingly redesigned around AI, requiring new skills, new hiring strategies, and new approaches to developing talent, not simply fewer workers. It will require investment by the public and private sectors to ensure that workers have the resources and pathways they need to reskill and upskill into positions where AI is complementary, not threatening.”

Key federal and state developments, funding opportunities, grants, and resources impacting workforce development programs and services.