Labor – HHS Appropriations

We anticipate that the Appropriations Committees will move the Labor-HHS bill and other Appropriations bills through committee this year, with little chance of final passage for non-defense related bills until after President Bush leaves office in January. Senior Appropriators told us this past week that they expect to have a continuing resolution in place through February of 2009.

Labor Secretary Elaine Chao testified before the House Labor-HHS Appropriations Subcommittee this past week, defending her proposed budget request that reduces funding for WIA by $500 million this year along with the elimination of the $700 million Employment Service. Chao argued that participants receiving services from Employment Service (ES) could easily be assisted through the One Stop system. However, several Democrats questioned her notion that money for ES could be eliminated along with large cuts to WIA without dramatically impacting service delivery efforts to program participants.