The following is shared from the National Association of Workforce Boards:
The National Association of Workforce Boards (NAWB) conducted a brief national survey of state and local workforce development boards in Fall 2025 to assess the impact of the federal government shutdown and funding uncertainty in general. Responses came from 139 workforce boards across 33 states and the U.S. Virgin Islands.
Among the key findings:
- Cost-cutting measures affect programs, staff, and planning. 64% of respondents reduced costs due to funding uncertainty, with actions including staff layoffs, site closures, reduced programs, hiring freezes, delayed payments, and cuts to travel or training.
- Workforce boards saw an increase in customer demand. 40% of respondents reported changes in customer interaction due to the shutdown. They reported seeing increasing numbers of customers experiencing unemployment and food insecurity and noted that many expressed confusion or stress related to shifting government policies.
- Workforce boards are raising their voices. More than 60% of respondents reached out to federal elected officials to share details of how the shutdown was impacting local communities.
These findings make one thing clear: the current funding environment is unsustainable. Workforce boards are being asked to do more with less, while navigating complex workforce trends and funding shortfalls.
The message to policymakers is urgent and direct. To ensure workforce boards can continue to deliver results, Congress must enact timely appropriations to avoid service disruptions; increase funding for Titles I and II of the Workforce Innovation and Opportunity Act (WIOA); reauthorize WIOA with strengthened local flexibility; and recognize workforce boards as essential infrastructure for economic resilience.