The U.S. Department of Labor has announced a phased pause in operations at contractor-operated Job Corps centers across the nation. This decision comes after an internal review of the program's outcomes and structure, aligning with available funding, statutory requirements under the Workforce Innovation and Opportunity Act, and congressional notification protocols.
The operations pause will take effect by June 30, 2025. During this transition period, the department is working with state and local workforce partners to help current students continue their training and connect them with educational and employment opportunities.
This move corresponds with the President’s FY 2026 budget proposal and demonstrates the Administration's focus on ensuring federal workforce investments yield significant results for both students and taxpayers.
“Job Corps was created to help young adults build a pathway to a better life through education, training, and community,” stated Secretary Lori Chavez-DeRemer. “However, a startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve. We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities.”
The Job Corps program has encountered substantial financial difficulties under its current operating framework. In Program Year (PY) 2024, it operated at a $140 million deficit, prompting a necessary pause in center operations by the Biden administration to complete that year. The deficit is anticipated to reach $213 million in PY 2025.
On April 25, 2025, the department's Employment and Training Administration released its inaugural Job Corps Transparency Report. This report assessed financial performance and operational costs using data from program year 2023. Key findings included:
- Average Graduation Rate (WIOA Definition): 38.6%
- Average Cost Per Student Per Year: $80,284.65
- Average Total Cost Per Graduate (WIOA Definition): $155,600.74
- Post-separation average annual earnings for participants: $16,695
For program year 2023, there were also numerous Serious Incident Reports totaling 14,913 infractions:
- Inappropriate Sexual Behavior and Sexual Assaults Reported: 372
- Acts of Violence Reported: 1,764
- Breaches of Safety or Security: 1,167
- Reported Drug Use: 2,702
- Total Hospital Visits: 1,808
Further details can be found in the FAQs provided by the department.
