The U.S. Department of Labor is initiating a phased pause in operations at contractor-operated Job Corps centers by June 30, 2025, following an internal review of the program. This decision, influenced by budgetary deficits and low outcomes, aims to support current students in their training and job prospects. Secretary Lori Chavez-DeRemer cited serious incident reports and financial challenges as key factors. In 2024, the program faced a $140 million deficit, projected to rise to $213 million in 2025. A recent report highlighted a low graduation rate of 38.6% and alarming incident statistics, prompting reevaluation of the program’s effectiveness.
WASHINGTON – The U.S. Department of Labor announced today that it will commence a phased pause in operations at contractor-operated Job Corps centers across the nation, initiating a structured transition for students, staff, and local communities. This decision follows an internal evaluation of the program’s outcomes and structure and will be implemented in compliance with available funding, the statutory framework outlined under the Workforce Innovation and Opportunity Act, and congressional notification obligations.
Operations at all contractor-operated Job Corps centers will be paused by June 30, 2025. As the transition unfolds, the department is working closely with state and local workforce partners to help current students further their training and connect with education and employment opportunities.
The department’s decision is in line with the President’s FY 2026 budget proposal and underscores the Administration’s dedication to ensuring federal workforce investments yield significant results for both students and taxpayers.
“Job Corps was established to assist young adults in creating a pathway to a better future through education, training, and community,” stated Secretary Lori Chavez-DeRemer. “However, an alarming number of serious incident reports and thorough fiscal analysis indicate that the program is failing to meet the desired outcomes for students. We are committed to supporting all participants during this transition and linking them to the resources they need to thrive as we assess the program’s future potential.”
The Job Corps program has encountered considerable financial difficulties under its existing operating model. In PY 2024, the program operated with a $140 million deficit, prompting the Biden administration to enforce a pause in center operations to complete the program year. The deficit is expected to escalate to $213 million in PY 2025.
On April 25, 2025, the department’s Employment and Training Administration published the inaugural Job Corps Transparency Report, assessing the financial performance and operational costs based on the most recent metrics from program year 2023. A summary of the key findings includes:
- 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, participants earn $16,695 annually on average.
- The total number of Serious Incident Reports for program year 2023: 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
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