Workforce News 2026May22

Acting Labor Secretary Defends Workforce Development Priorities Before Senate Appropriators

On May 19, Acting Department of Labor Secretary Keith Sonderling testified before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies as part of Congress’s review of the administration’s FY 2027 budget request. The Acting Secretary defended a budget proposal that would significantly reshape federal workforce investments, as it aimed to do in the FY 2026 cycle as well. The administration again proposed reducing overall funding levels and discontinuing some longstanding workforce programs, including Job Corps, citing a desire to focus resources on what it views as more efficient or flexible approaches to workforce development. Although many of these programs have strong bipartisan support, eliminating them remains a central feature of the administration’s workforce agenda. The Acting Secretary emphasized the Department’s continued focus on expanding registered apprenticeship as the core model for workforce development. He pointed to apprenticeship as a scalable, employer-driven approach and underscored the Department’s interest in working more closely with industry to expand these programs beyond traditional sectors and into new fields. The Department framed this approach as a way to better match training to real-time labor market demand, including through stronger employer engagement. This aligns with the Department’s vision as laid out in last year’s National Talent Strategy. Immigration also featured in the discussion. Senator Collins (R-ME) highlighted the impact of slow processing for temporary work visas on employers in her state’s tourism economy, underscoring ongoing workforce shortages tied to visa backlogs. Senator Hyde-Smith (R-MS) similarly raised challenges facing agricultural employers, pointing to the need for improvements to H-2 visa processes and more streamlined or expanded pathways generally. For LeadingAge, the hearing reinforces a couple ongoing trends. First, the administration continues to prioritize apprenticeship and employer-led models as the centerpiece of its workforce strategy, potentially creating opportunities for providers that are able to engage in or develop such programs. Second, the focus of Senators on immigration highlights how deeply workforce challenges across regions and sectors are intertwined with immigration policy, even as viable legislative solutions remain rare.

Department of Education Publishes Final Rule to Implement Workforce Pell

On May 19, the Department of Education published the final rule implementing the new Workforce Pell grant program, a program established by H.R.1 that represents a significant expansion of federal financial aid with implications for the aging services workforce. In short, Workforce Pell allows Pell grants—need-based grants historically limited to longer-term degree programs—to be used for high-quality, short-term workforce training programs designed to prepare individuals for in-demand jobs. Read more here.

White Collar Overtime Updates - Last Friday, the Department of Labor rescinded its 2024 final rule implementing the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees. LeadingAge had commented on the proposed rule in 2023, expressing concerns that the lack of adequate federal and state funding would present a significant limitation on many of our member organizations’ ability to absorb the full financial impact of the rule. The 2024 final rule was subject to a number of legal challenges and was vacated by the U.S. District Court for the Eastern District of Texas in November 2024. The Department of Labor recently dropped its appeal of that decision before the 5th Circuit. The Department's May 15, 2026 rule is technical in nature, as it simply removes the regulatory text from the 2024 final rule from the Code of Federal Regulations. 

On the heels of this rescission, Sen. Sanders (D-VT) and Sen. Takano (D-CA) introduced a bill (S. 4551) on Monday that would establish a minimum salary threshold for executive, administrative, and professional employees exempt from Federal overtime compensation requirements, and automatically update the threshold each year. The salary threshold would start at $45,000 annually and would increase by $10,000 increments each year until 2030, at which point the annualized salary threshold would be equal to the rate of the 55th percentile of weekly earnings of full-time salaried workers nationally (and be subject to automatic updates thereafter). According to Sen. Sanders' press release, the 55th percentile of full-time salaried workers nationally could increase to $98,000 by 2030. The current salary threshold for executive, administrative, and professional employees exempt from Federal overtime compensation requirements is $35,568 annually. We will continue to monitor any developments relating to this legislation. 

Small Business Labor Safety Roundtable - The U.S. Small Business Administration's Office of Advocacy will be hosting a Small Business Labor Safety (OSHA/MSHA) Roundtable on May 22, 2026 from 10:00 am to 12:00 pm EST over Microsoft Teams. The agenda includes remarks from the head of MSHA and a presentation on the OSHA On-Site Consultation Program and the Safety & Health Achievement Recognition Program (SHARP). These roundtables are typically held on a bi-monthly basis, so we will continue to provide updates on upcoming meetings.

Here is your Workforce Weekly Recap from National