On May 22, 2025, Secretary of Labor Lori Chavez-DeRemer testified before the U.S. Senate Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, detailing the U.S. Department of Labor’s (DOL) proposed budget, current priorities, and strategic direction. The hearing featured testimony from the secretary and questions from a bipartisan group of senators, focusing on the administration’s proposed funding reductions, restructuring of workforce programs, and the elimination of longstanding initiatives such as the Job Corps. The secretary emphasized a commitment to placing American workers at the center of economic policy, with a focus on supporting the middle class, union members, and small businesses.

Quick Hits

• The president’s FY 2026 budget proposes a $4.6 billion (nearly 35 percent) reduction in DOL funding, consolidation of workforce programs, and elimination of the Job Corps.
• Secretary of Labor Chavez-DeRemer testified before a Senate subcommittee that “essential workers through OSHA, MSHA, and the Wage and Hour Division” are exempt from the deferred resignation program.
• The secretary outlined a worker-centric agenda focused on job creation, workforce development, and regulatory reform.

Proposed Budget Reductions and Program Consolidation

One of the most pressing issues addressed in Secretary Chavez-DeRemer’s testimony was the reduction in forces at the Occupational Safety and Health Administration (OSHA), the Mine Safety and Health Administration (MSHA), and the Wage and Hour Division (WHD). The secretary testified that the “essential workers” at those agencies are exempt from the deferred resignation program. While exempted from the mandatory elements of the deferred resignation program, given the number of resignations from these and other DOL agencies, it appears agency employees are free to take advantage of the program.

The administration’s budget request seeks to reduce DOL funding by $4.6 billion, representing a nearly 35 percent decrease. Central to the proposal is the creation of the “Make America Skilled Again” block grant, which would consolidate multiple federal workforce training programs into a single funding stream, granting states increased flexibility in program administration. The secretary argued that this approach would reduce regulatory burdens and allow states to tailor training to local labor market needs.

Senators expressed skepticism regarding the efficacy of this consolidation, noting that the block grant would cut workforce development funding by approximately half and could undermine bipartisan programs established by the U.S. Congress. Senators raised concerns that such reductions would limit opportunities for workers to access training for high-demand jobs, particularly in key industries such as coal mining, healthcare, and manufacturing.

Regulatory Reform and Worker Protections

Secretary Chavez-DeRemer emphasized efforts to reduce regulatory burdens on businesses, including the rollback of the previous administration’s independent contractor rule, which she characterized as restrictive for freelancers and gig workers. At the same time, she affirmed the importance of maintaining essential safety regulations, particularly for high-risk sectors such as mining. Senators raised concerns about the potential closure of MSHA offices and the impact on miner safety, with the secretary committing to ongoing review and collaboration with relevant agencies.

Multiple senators criticized the administration for a lack of transparency in the budget process, citing limited information provided to Congress and delays in responding to requests for data on workforce reductions and program changes. Secretary Chavez-DeRemer pledged to improve communication and provide periodic updates on program implementation and staffing changes, including the impact of the deferred resignation program and reductions in force across DOL agencies.

The hearing also addressed the significant downsizing of the Office of Federal Contract Compliance Programs (OFCCP), responsible for enforcing nondiscrimination requirements among federal contractors. Senators questioned the legality and implications of reducing OFCCP staff by 90 percent and closing regional offices, particularly in light of ongoing investigations into alleged workplace discrimination. The secretary declined to comment on specific cases due to pending litigation but asserted that nondiscrimination laws continue to be fully enforced.

Senators and the secretary discussed the persistent challenge of low labor force participation rates, particularly in rural and high-poverty states. Childcare affordability and accessibility were identified as major barriers to workforce entry, with bipartisan interest in legislative solutions to support working parents and increase labor participation.

Worker-Centric Approach and Regional Engagement

Secretary Chavez-DeRemer described a nationwide “America at Work” listening tour, aimed at gathering feedback from workers, employers, and community leaders. This initiative is designed to ensure that federal labor policies are informed by regional workforce needs and real-world experiences. The secretary reported that the DOL is prioritizing policies that equip employers and communities with the tools necessary to recruit and retain talent, while also ensuring that workers’ voices are reflected in federal decision-making.

Secretary Chavez-DeRemer said more than 464,000 jobs have been created since January 2025, with notable gains in manufacturing and construction. The secretary attributed this growth to an “America First” strategy, which includes over $8 trillion in private investment and a focus on reducing waste, fraud, and abuse in federal spending. She highlighted efforts to return $4.4 billion in unspent COVID-19 funds to the U.S. Department of the Treasury and the cancellation of over $250 million in certain federal grants as examples of fiscal stewardship. According to the secretary, “the Department of Labor is eliminating unnecessary red tape that stifles innovation.”

A central theme of the testimony was the expansion of registered apprenticeships and skilled trades pipelines. The DOL is collaborating with the U.S. Departments of Commerce and Education to modernize workforce programs and align training with labor market demands. Since January 2025, nearly 83,000 new apprentices and over 900 new apprenticeship programs have been registered.

Secretary Chavez-DeRemer also underscored the importance of early exposure to technical education and the integration of apprenticeships oriented to artificial intelligence (AI). As part of the White House Task Force on Artificial Intelligence Education, the DOL is working to promote AI literacy and proficiency, leveraging financial incentives and partnerships to prepare the workforce for technological change.

The DOL’s current agenda is characterized by a focus on efficiency, accountability, and preparing American workers for the future economy, Secretary Chavez-DeRemer told the subcommittee. She reaffirmed a commitment to safe workplaces, good pay, and secure retirements, and expressed readiness to work with Congress to advance these goals.