The US Department of Labor paused the Job Corps program after a transparency report revealed unsafe conditions and a low completion rate. A phased pause in operations at contractor-operated centers nationwide is scheduled to occur by June 30, 2025. The decision follows an internal review of the Job Corps program’s structure and outcome. The program currently costs taxpayers $1.7 billion per year.
What is Job Corps?
Job Corps, established in 1964, is an education and career-training program for low-income youth aged 16 to 24, offering academic and vocational training to help young people complete high school, acquire skills, and prepare for employment. Secretary Lori Chavez-DeRemer stated, “Job Corps was created to help young adults build a pathway to a better life through education, training, and community.”
DeRemer continued, “However, a startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve. We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities.”
Financial Issues
The Department of Labor’s decision aligns with President Trump’s FY 2026 budget, focusing on ensuring that federal workforce investments yield results for taxpayers and students. Under its current operating structure, the program has faced significant financial challenges.
In 2024, Job Corps operated at a $140 million deficit. As a result, the Biden administration paused center operations to complete the program year. The projected deficit for 2025 is expected to reach $213 million.
First Transparency Report
The first Job Corps Transparency Report was released on April 25, 2025. The report analyzed the costs and performance of the most recent metrics in 2023. The program had an average annual cost of over $80,000 per student, with an average graduation rate of 38.6 percent. The total number of serious incident reports for 2023 was 14,913 infractions. According to a Department of Labor official, “The program has been in a financial crisis for years, creating constant uncertainty for participants and administrators.”
The Future of Job Corps
The Department of Labor has not officially eliminated Job Corps, as only Congress has the authority to do so. There are 123 Job Corps centers nationwide, with 99 of them run by contractors administered by the Department of Labor. The other 24 centers, run by the U.S. Department of Agriculture, will not be included in this suspension.
The Department of Labor will collaborate with local and state workforce partners to help current students and connect them with opportunities. After the phased pause, students will be registered with the American Job Center near their homes and their home state’s Labor Exchange system.
The Wrapup
Following concerns about financial performance and safety, the Department of Labor is phasing a pause in the Job Corps program, with a finalization date of June 30, 2025. Centers run by the U.S. Department of Agriculture are not affected by this pause. After the pause, students will be registered with their state Labor Exchange system and the American Job Center nearest their homes.
