President Biden has released his 2025 fiscal year (FY25) budget proposal. The White House released the budget request on March 11, 2024, focusing on topline numbers for major programs under the various agencies and outlining policy proposals. Additional details including the Congressional Budget Justifications (CBJs), which provide additional information and funding specifics regarding many of the proposals, were then released by the departments and agencies.
The President’s Budget Request (PBR) for FY25 proposes a $40 million increase for the Carl D. Perkins Career and Technical Education Act’s (Perkins V) basic state grant program, just under a three percent increase over FY23 enacted levels, for a total of $1.47 billion in FY25. The Administration also included a request for $64 million for the continuation of the competitive grant program “Career-Connected High Schools,” which awards funding supporting dual enrollment, work-based learning, industry-recognized credentials, and career counseling.
Under the Department of Labor, the PBR includes $335 million, a $50 million increase above the FY23 enacted level, to support Registered Apprenticeships and $70 million, a $5 million increase above the 2023 enacted level, in the Strengthening Community College training program.
The request also includes $50 million for a new Sectoral Employment through Career Training for Occupational Readiness program and $8 billion for a new mandatory Career Training Fund. The Career Training Fund, funded over 10 years and jointly administered by the Departments of Education, Labor, and Commerce, would provide funding for 750,000 workers to enroll in evidence-based training programs. The two new programs together would “support the development and expansion of public-private partnerships among employers, education and training providers, and community-based groups to equitably deliver evidence-based, high-quality training, focused on creating pathways into good jobs in growing, in-demand industries,” according to the Biden administration. Additionally, the request includes $37 million for the NIST’s Manufacturing USA program as well as $175 million for NIST’s Manufacturing Extension Partnership (MEP).
The release of the non-binding budget proposal is the first step in the annual appropriations process. While Congress can now begin to determine its funding priorities and develop appropriations packages for FY25, lawmakers must first finish work on funding the government for the current fiscal year.
One Voice Files Apprenticeship Rule Comments
On March 18, 2024, One Voice filed formal comments with the Department of Labor (DoL) on the Employment and Training Administration’s proposed rule entitled “National Apprenticeship System Enhancements.” The notice of proposed rulemaking (NPRM), published on December 14, 2023, changes the regulatory framework for registered apprenticeship programs.
Of 61 responses to the January 2024 survey of NTMA and PMA members, 26 percent stated they currently have registered apprentices and 28 percent have non-registered apprenticeships in the shop, with the remainder responding that they do not have apprentices. On average, respondents averaged 4.6 registered apprenticeships and three non-registered apprentices per company.
In the comments, One Voice stated that non-registered apprenticeships are critical to manufacturing operations. “Not only do many smaller manufacturers utilize non-registered apprenticeships, they typically develop a customized apprenticeship program to meet the specific needs of that company and for operating specific machinery. While businesses in the same industry and region may appear to have similar needs, each employer is different in the skills required to help them succeed,” the comments assert.
One Voice believes reducing barriers to entry, for both individuals and small business manufacturing employers, is a fundamental component of any successful youth, pre-, and registered, or non-registered, apprenticeship program. In the comments, One Voice argues that the NPRM “will not act as a pathway or a bridge to registered programs for non-registered apprenticeship employers, but rather, will create barriers to entry for prospective employees and deter employers from registering their apprentices.”
The annual survey of One Voice members found that 81% currently have an open skilled position with 95% reporting challenges recruiting qualified employees, including 37% facing severe challenges.
The Department of Labor does not currently have a timeline for finalizing the rule.
New Joint Employer Rule Blocked by Court
A federal judge in Texas has halted a final rule by the National Labor Relations Board (NLRB) that aimed to broaden the criteria for establishing a joint employment relationship to include indirect and unexercised control over the terms and conditions of a job. The rule, titled the “Standard for Determining Joint Employer Status,” was scheduled to go into effect on March 11, 2024, after being delayed by Judge J. Campbell Barker of the U.S. District Court for the Eastern District of Texas on February 22 to account for the legal challenges against the rule.
Published on October 26, 2023, the final rule sought to replace the prior standard introduced during the Trump administration, which protected companies from shared liability in unfair labor practices and union bargaining responsibilities starting in April 2020. The new rule would have considered employers joint employers if they had a role in determining key aspects of employment like scheduling, wages, and benefits.
In response to the final rule, the U.S. Chamber of Commerce and various business groups, including the Coalition for a Democratic Workplace, filed a lawsuit to block it, arguing that the new rule “displaces widely accepted common-law standards governing the scope of employment relationships, establishes entirely new tests of employer liability, reconfigures relationships among legally separate entities, erases distinctions between contractors and employers, and threatens billions of dollars in liability and costs.” Judge Barker’s ruling to grant summary judgment and block the joint employer rule cited that exceeds “the bounds of the common law” and in promulgating the rule, the NLRB “failed to reasonably address the disruptive impact [that] the new rule [would have] on various industries.” The NLRB is expected to appeal the decision.
FHWA Proposes Updated to Buy American Requirements for Manufactured Products
The Department of Transportation’s Federal Highway Administration (FHWA) has introduced a proposed regulation to end the use of the general waiver for Buy America requirements on manufactured products. In their notice of proposed rulemaking (NPRM), the FHWA revokes the waiver that has been in effect since 1983, allowing manufactured products (except those primarily made of iron or steel) to be sourced from outside the United States for highway projects. The NPRM also updates the FHWA’s standards for manufactured products under Buy America requirements.
The NPRM outlines the FHWA’s plan to eliminate the general waiver for Buy America requirements and revise the standards to comply with the “Build America, Buy America” Act (BABA) enacted in 2021. The BABA requires all federally funded infrastructure projects to use domestically produced iron, steel, manufactured products, and construction materials.
Along with ending the waiver, the FHWA suggests updating standards to define a manufactured product in line with BABA’s definition. This definition requires a manufactured product to be made in the United States, with the cost of components mined, produced, or manufactured in the United States exceeding 55 percent of the total cost of all components of the manufactured product.
Comments on these proposed changes will be open for submission to the FHWA until May 13, 2024.
UK Signs State-Level Trade Agreement with Texas
The United Kingdom has signed its eighth state-level trade deal, this one with Texas, continuing its “twin-track approach” towards trade, pursuing individual trade deals with states while waiting on the U.S. federal government to move forward with a comprehensive free trade agreement.
The statement of mutual cooperation with Texas, signed on March 13, 2024, will prioritize green energy sectors — including hydrogen and carbon capture — life sciences and business services. It will also focus on growing opportunities in the critical minerals, aerospace, and chemicals sectors.
The agreement is the eighth signed between states and the UK. In November, the UK and Florida signed an agreement to boost trade in “the space, fintech, life sciences, supply chains, transport, infrastructure, agricultural biotechnology sectors, legal services and lawtech.” Deals have also been signed by Indiana, North Carolina, South Carolina, Oklahoma, Utah, and Washington. The UK has also stated they are “actively engaging” in talks to sign agreements with California, Colorado, and Illinois.