U.S. Labor Department Pauses Contractor-Operated Job Corps Centers Nationwide by June 2025

The U.S. Department of Labor announced a phased pause in operations at all contractor-operated Job Corps centers nationwide, to be completed by June 30, 2025, citing concerns about the program's financial sustainability, safety issues, and poor outcomes for students. This decision aligns with President Trump's FY 2026 budget proposal and follows the release of the first-ever Job Corps Transparency Report, which revealed a $140 million deficit in 2024 and projected a $213 million deficit for 2025. The report highlighted troubling statistics, including a low average graduation rate around 32-38%, high operating costs exceeding $80,000 per student annually, numerous safety incidents totaling nearly 15,000 in 2023, and modest post-graduation earnings of roughly $16,000 per year. Secretary of Labor Lori Chavez-DeRemer emphasized that despite Job Corps' original mission to support young adults through education and training, the program is no longer achieving meaningful outcomes and must be paused for evaluation. During the transition, the department will collaborate with state and local workforce partners to assist current students in continuing their education or employment pathways. The closure will impact thousands of students and staff nationwide, including the Excelsior Springs center, which has served the community since 1966.