Budget Hearing - U.S. Department of Labor

House Subcommittee on Departments of Labor, Health and Human Services, Education, and Related Agencies

2025-05-15

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Source: Congress.gov

Summary

This meeting of the Subcommittee on Labor, Health and Human Services, and Education convened to discuss the Department of Labor's fiscal year 2026 budget request. Chairman Aderholt welcomed Secretary Chavez-DeRemer, expressing optimism for a new approach after criticizing the previous administration's regulatory policies and emphasizing bipartisan efforts in skills training[ 00:19:37-00:21:50 ] . Ranking Member DeLauro, however, immediately voiced strong opposition, labeling the proposed budget as "anti-worker" and a "hatchet job" due to significant proposed cuts. Secretary Chavez-DeRemer, in her opening remarks, committed to prioritizing American workers through common-sense reforms and efficient use of taxpayer resources[ 00:37:55-00:38:38 ]

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Themes

Department of Labor Budget and Regulatory Approach

Chairman Aderholt criticized the prior administration for exceeding its statutory authority with regulations that he claimed would have harmed businesses and workers, such as COVID-19 vaccine mandates and restrictions on freelance work[ 00:20:02-00:20:58 ] . He welcomed the new administration as a "breath of fresh air" for job creators, emphasizing a shift away from regulatory overreach[ 00:21:33-00:21:38 ]

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. In contrast, Ranking Member DeLauro vehemently opposed the proposed $4.7 billion, or 35%, cut to the Department of Labor's budget, arguing it would dismantle crucial programs that support workers. She accused the administration of freezing congressionally appropriated funds and proposed cuts to worker protection agencies like OSHA and the Wage and Hour Division. Secretary Chavez-DeRemer framed the budget adjustments as a "re-evaluation" of taxpayer dollars to eliminate waste, fraud, and abuse, noting the discovery of $4.4 billion in unspent COVID funding. Representative Dean echoed concerns about the budget cuts, stating they contradict the Secretary's stated values for labor and workers and would negatively impact critical programs.

Apprenticeships and Workforce Development

Both sides of the aisle expressed support for apprenticeship programs. Chairman Aderholt highlighted their positive outcomes for workers and job seekers, advocating for improved program administration[ 00:21:40-00:21:50 ]

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[ 00:22:49-00:22:58 ]

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. Secretary Chavez-DeRemer underscored President Trump's goal of one million apprentices, committing to expand these programs across various sectors with a focus on flexibility and modernization. However, Ranking Member DeLauro criticized the cancellation of "Women in Apprenticeship and Non-Traditional Occupations" (WANTO) grants, arguing it undermines efforts to integrate women into in-demand trades. The proposed elimination of the Job Corps program also drew significant debate, with Democratic members expressing concern over the loss of opportunities for vulnerable youth and seniors. Secretary Chavez-DeRemer cited a Job Corps Transparency Report, highlighting high costs per student and low graduation rates as reasons for re-evaluating the program's effectiveness. Representative Moore introduced the "Jumpstart Savings Program" to provide financial assistance for tools and startup costs for trade school and apprenticeship graduates, receiving commitment for technical assistance from the Secretary[ 01:14:14-01:14:21 ]

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Specific Regulatory and Policy Concerns

Several specific regulatory issues were raised. The Adverse Effect Wage Rates (AEWR) for H-2A farm workers was a key concern for Republican members, who argued it made agricultural labor unaffordable for farmers[ 00:39:32-00:40:04 ]

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[ 01:03:32-01:03:41 ]

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. Secretary Chavez-DeRemer acknowledged the issue but cited ongoing litigation as a barrier to commenting directly, promising collaboration with USDA and Congress. The status of independent contractors and the "gig economy" was discussed, with the Secretary noting a Field Assistance Bulletin for clarity amid ongoing rulemaking[ 00:50:45-00:50:50 ]

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. The cancellation of grants from the Bureau of International Labor Affairs (ILAB), including those for strengthening Mexican labor laws and combating child labor, was heavily criticized by Ranking Member DeLauro as undermining American workers and trade agreements. The Office of Federal Contract Compliance Programs (OFCCP) also became a point of contention, with Representative Frankel alleging the administration was dismantling its ability to fight discrimination, while the Secretary maintained OFCCP would fulfill its statutory requirements[ 01:20:56-01:21:10 ]

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. Additionally, the Secretary committed to supporting the "More Paid Leave for More Americans Act" to incentivize states in developing paid family leave programs.

DOL Staffing and Transparency

Democratic members repeatedly pressed the Secretary on the transparency of staffing changes within the Department of Labor. Representative Pocan expressed frustration over the lack of specific numbers regarding Full-Time Equivalents (FTEs), buyouts, and employees on administrative leave, noting these questions were previously raised without resolution. The Secretary attributed the delay to ongoing litigation and a 45-day confirmation period for employees, assuring that final numbers would be provided when available. Ranking Member DeLauro questioned who was truly in charge of these decisions, referencing Elon Musk's public announcements regarding staffing reductions, and formally requested detailed data on all personnel changes. Representative Harder accused the department of eliminating funding for child labor law enforcement and challenged the Secretary on an alleged "taxpayer-funded birthday party," which the Secretary dismissed as "fake news" and a "swearing-in party".

Tone

The tone of the meeting was largely contentious and polarized, particularly between the Democratic members and Secretary Chavez-DeRemer[ 01:43:51-01:44:11 ]

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. Democratic representatives frequently expressed frustration and skepticism over the Secretary's responses, often perceiving them as evasive or deflecting, especially when citing "litigation" for a lack of specific data[ 00:54:45-00:54:49 ]

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. Secretary Chavez-DeRemer maintained a defensive stance, repeatedly using phrases like "subject to litigation" or "no final decisions made" when pressed on controversial topics[ 00:46:15-00:46:21 ]

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. Conversely, Republican members were largely supportive, praising the Secretary and the administration's policy direction, emphasizing deregulation and job growth[ 00:21:33-00:21:38 ]

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[ 00:50:07-00:50:12 ]

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[ 01:47:06-01:47:11 ]

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. Despite the significant policy disagreements and moments of sharp exchange, the proceedings generally maintained a professional decorum, though a notable exception occurred during a heated exchange regarding a "taxpayer-funded birthday party".

Participants

Transcript

Just a moment.
Well, good morning.  The subcommittee will come to order, and I want to welcome the Secretary of Labor, Chavez de Riemer, and we welcome you to the subcommittee today, and particularly the Subcommittee on Labor, Health and Human Services, and Education for this hearing on the Department of Labor's fiscal year 2026.   budget request.  I want to congratulate you on your bipartisan confirmation as Secretary and look forward to working with you, especially in this new role that you have started just a few months ago.  Of course, the role of the Department of Labor is to foster, is to promote, and develop the welfare of wage earners in the United States to improve their working conditions.   and to advance their opportunities for proper employment.  Unfortunately, under the previous administration, the agency was too often exceeded, it exceeded its statutory authority and attempted to implement a regulatory agenda that   had it not been rejected by the American public in the last year's elections, would have crippled American job creators and undermined the ability of the American workers to secure economic opportunities they need to support their families.  Moreover, the department was more interested in catering to Beltway-based liberal social policy concerns rather than responding to the real needs of American workers, job seekers, and employers.  These misguided harmful regulatory proposals included   An OSHA requirement that, if not found unconstitutional by the Supreme Court, would have required Americans to receive the COVID-19 vaccinations as a prerequisite for employment.  Also, it would have included a wage and hour regulation that would have ended freelance and independent work opportunities, particularly important to workers with caregiving responsibilities who value flexibility.
And also, a   change to overtime regulations that would have reduced worker opportunity for career advancement.  More than 417,000 businesses in Alabama employ over 47% of private sector workers in the state.  Many of the small businesses in the district that I represent are family farms.  No industry suffered more under the harmful regulation regime of the previous administration than the American farmer,   because of an increase in the H-2A adverse effect wage rates.  And so, Madam Secretary, I look forward to working with you and your agency, as well as USDA, to address this adverse effect wage rate issue and supporting this vital industry going forward.   President Trump's election and your subsequent confirmation is a breath of fresh air, not only for the American worker, but also for the job creators.  No longer will American businesses have to fear regulatory overreach or enforcement actions designed to punish employers and limit their success.   Madam Secretary, while the Department's regulatory matters are frequently contentious, we have often been able to find bipartisan common ground on skills training.  Apprenticeships produce positive outcomes for workers and job seekers, putting a priority on what should be the end goal of all workforce development programs, which is a job.   These programs only exist where businesses choose to adapt this intensive approach to human capital management.  We have seen support for these programs flourish under multiple administrations, and I hope that we will continue to build out these opportunities.  The Alabama Office of Apprenticeship was in part created   to respond to employer frustration with the Department of Labor's management of the registered apprenticeship program.
These frustrations included a bureaucratic and outdated, one-size-fits-all approach to skills training with overly prescriptive requirements.  Too often, under the previous administration, the Department of Labor showed favoritism in reviewing apprenticeship program applications and in the name of equity and inclusion,   would have turned a two-page law into a 776-page rule that would have reduced opportunities for American workers of all race and both sexes.  We should be ensuring that American workers and job seekers have direct access to career pathways that work for them and not adding 776 layers of Byzantine mazes to navigate.   Apprenticeships represent an opportunity and a pathway to high-paying jobs.  Unfortunately, the barriers to growth of this career training model will not be solved through funding alone.  Improved program administration and more effective leadership at and by the department can better support the adoption of registered apprenticeships for workers   for our nation's workforce.  I'm hopeful that as we work through this shortened budget year, that we're able to once again find some common ground as we move forward.  And I'm not only hopeful, but I feel like we will be able to do that.   I know that this subcommittee looks forward to hearing from your testimony today and asking questions about the budget and the policies that you are over at your department.  But at this time, before you begin your opening remarks, I would like to yield to the ranking member, Rosa DeLauro, for her opening statement.   It's all you recognized.
Thank you very much, Chairman, for holding this hearing important hearing on what I regard as and this is of when I start out with what I believe is President Trump's anti worker budget request for the Department of Labor.   Secretary Chavez de Reimer, thank you.  Welcome.  And I've said to you on the phone, it's great to see a House colleague here, and congratulations to you.  Big job.  And I would just say personally that I've always spent a lot of time.  I've been on this committee, I think, full committee for 32 years and the same amount of time on the subcommittee.  And I've always believed that the Department of Labor   with regard to resources has been shortchanged.

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