Contractor-operated Job Corps centers across the U.S. are set to pause operations by June 30, 2025.
U.S. Department of Labor to Pause Job Corps Center Operations Nationwide by June 30, 2025
Major Restructuring of Job Corps Program Announced
The US Department of Labor has announced a phased stop in operations at all contractor-operated Job Corps locations countrywide, which will end on June 30, 2025.
This decision was made following an internal review that revealed substantial concerns about the program’s performance, safety, and financial viability.
Financial and Operational Challenges
In Program Year (PY) 2024, the Job Corps program incurred a $140 million deficit. The deficit is expected to reach $213 million by PY 2025.
The average annual cost per student was $80,284.65, bringing the total cost per graduate to $155,600.74. Post-program earnings for participants averaged $16,695 yearly.
Safety Concerns and Incident Reports
In fiscal year 2023, the program received 14,913 complaints of significant incidents, which included
372 incidents of unwanted sexual behavior and sexual assault.
1,764 incidents of violence.
1,167 violations in safety or security
2,702 reports of drug use.
1,808 hospital visits
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Transition Plans for Students and Staff
The Department is working with state and local workforce partners to help current students advance their training and link them with educational and job opportunities.
Students from the affected centers will be moved to nearby facilities to finish their programs. Support will also be provided to the impacted staff.
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Alignment with Presidential Budget Proposal
The decision to suspend operations is consistent with the President’s FY 2026 budget plan, demonstrating the Administration’s commitment to ensure that federal workforce investments produce substantial benefits for both students and taxpayers.
Statement from Secretary Lori Chavez-DeRemer
According to Secretary Lori Chavez-DeRemer, “Job Corps was established to assist young adults in creating a path to a better life through education, training, and community.”
However, a staggering number of major event reports and our in-depth fiscal analysis show that the program is no longer providing the desired objectives for pupils.”
🔥 “Job Corps Shutdown Sends Students Packing: $1.5B Cuts Hit St. Paul Center Hard”
📍 St. Paul Students Sent Home Amid Nationwide Job Corps Funding Pause
Dozens of students at the Hubert H. Humphrey Job Corps Center in St. Paul were told they had to leave by June 6, following the U.S. Department of Labor’s broad decision to halt operations at contractor-operated Job Corps facilities around the country.
💬 “We were just told we have to leave,” one youngster told FOX 9. “No warning, no backup plan — just go.”
What’s Behind the Shutdown? A $213M Deficit & Mounting Safety Concerns
The Job Corps program, which began in 1964, offers free housing, education, and vocational training to young Americans aged 16 to 24. However, it is presently suffering its largest crisis in decades:
$140 million shortfall in 2024.
Projected $213 million deficit in 2025.
Cost per student per year: $80,284.65.
The cost per graduate is $155,600.74.
Post-program average income: $16,695 per year
These financial responsibilities, combined with 14,913 significant incidences (372 sexual assaults and 1,764 violent events), compelled the Labor Department to act.
📊 [Source: U.S. Department of Labor Transparency Report, PY 2023]
🧑🏫 Fallout in Minnesota: 50,000 Students Nationwide Affected
Every year, around 50,000 students live and learn in Job Corps sites. Now, those like the St. Paul center have to scurry to:
Transition pupils by June 6th.
Coordinate with the local workforce agencies.
Discover alternate training or work paths.
🗣️ Labor Secretary Speaks Out: “The Program Isn’t Delivering”
“A startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes students deserve,” Lori Chavez-DeRemer, the secretary, stated.
The presidential budget for fiscal year 2026 also asks for diverting monies to more effective federal job training efforts.
📉 Political Divide: Long-Standing Criticism from GOP
While this shift occurred during the current administration, criticism about Job Corps is not new.
The Trump administration had previously targeted the program for deletion, referring to it as a “failed experiment.”
That envisioned future is now becoming a reality.
⚠️ What’s Next for Students?
The Department of Labor says it is committed to assisting students navigate through
State workforce programs
GED and diploma completion possibilities.
Job placement services.
However, the short notice has left many pupils scrambling.
Conclusion
The statewide suspension of Job Corps center operations represents a fundamental reform of the program, with the goal of addressing financial and safety problems while ensuring that students receive the assistance and tools they require to thrive.
The Department remains committed to assessing the program’s potential and ensuring that all participants are supported during the transition.
