Labor & Employment Law Daily Wrap Up, AGENCY NEWS—Labor, Education Departments announce workforce development partnership, (Jul 15, 2025)
By Brandi O. Brown, J.D.
The departments signed the Interagency Agreement on May 21, but implementation was put on hold by the preliminary injunction granted by the district court in McMahon v. New York.
The Labor and Education Departments have just announced the implementation of a workforce development partnership intended to create an integrated federal education and workforce system. Under the agreement, the Labor Department, which “presently administers the majority of federally funded workforce programs,” will have a greater role in administering the adult education and family literacy programs funded under Title II of the Workforce Innovation and Opportunity Act and career and the technical education programs funded by the Carl D. Perkins Career and Technical Education Act. The federal agencies contend that the move will facilitate streamlined services, although the Department of Education will maintain all statutory responsibilities and positions, policy authority, and oversight of these programs.
Injunction stayed. The departments signed the Interagency Agreement on May 21, but implementation was put on hold by the preliminary injunction granted by the district court in McMahon v. New York. This announcement follows the decision by the U.S. Supreme Court granting an emergency request to stay the injunction.
“Under President Trump’s leadership, we are restructuring to meet the needs of our workforce,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “I’m excited to team up with Secretary McMahon as we work together to provide states with clearer guidance, reduced regulatory burdens, and more resources that are directly invested in opportunities for American workers.”
“The current structure with various federal agencies each managing pieces of the federal workforce portfolio is inefficient and duplicative. Support from the Department of Labor in administering the Department of Education’s workforce programs is a commonsense step in streamlining these programs to better serve students, families, and educators,” said U.S. Secretary of Education Linda McMahon.
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