NAWB's Initial Analysis of FY21 Appropriations and COVID-19 Stimulus Bill
NAWB's Initial Analysis of FY21 Appropriations and COVID-19 Stimulus Bill
As reported last night by NAWB, Congress released the FY21 Omnibus and COVID-19 Stimulus earlier today. The bill text can be found here. These packages are accompanied by a 7 day continuing resolution to avoid any government shutdowns over the holidays, while we wait for President Trump to sign the bills into law. The President will have until Dec. 28th to formally approve the measures. Upon our first read through the legislative text NAWB has identified a variety of different funding increases that would benefit Workforce Development Boards. Listed below are the relevant funding streams and other notable additions from these spending packages:
• Department of Labor (DOL) - The bill provides a total of $12.5 billion in discretionary appropriations for DOL, an increase of $122 million above the 2020 enacted level and $1.4 billion above the President's budget request. Of this amount, the bill includes:
• $9.4 billion for the Employment and Training Administration, an increase of $99 million above the 2020 enacted level. Within this amount, the bill includes:
• $2.8 billion for Workforce Innovation and Opportunity Act Grants, an increase of $26 million above the fiscal year 2020 enacted level.
• $94 million for Migrant and Seasonal Farmworkers, an increase of $2 million above the fiscal year 2020 enacted level. New bill language is included increasing the eligibility threshold to 150 percent of the poverty line.
• $185 million for Registered Apprenticeships, an increase of $10 million above the fiscal year 2020 enacted level. No funding is provided for Industry Recognized Apprenticeship Programs (IRAPs). New bill language is included that requires the participation of equity intermediaries and business and labor industry partner intermediaries.
• $97 million for YouthBuild, an increase of $2 million above the fiscal year 2020 enacted level.
• $45 million for Strengthening Community College Training Grants, an increase of $5 million above the fiscal year 2020 enacted level. Funding will help meet local and regional labor market demand for a skilled workforce by providing training to workers in in-demand industries.
• $1.7 billion for Job Corps, an increase of $5 million above the 2020 enacted level.
• $200 million for the Reemployment Services and Eligibility Assessments program, an increase of $25 million above the 2020 enacted level.
• $670 million for the Employment Service, an increase of $2 million above the 2020 enacted level
• Career, Technical, and Adult Education: The bill provides $2 billion for career, technical, and adult education programs, an increase of $70 million above the 2020 enacted level. Within this amount, the bill provides:
• PPP - The bill includes $284 billion for first and second forgivable PPP loans, with set-asides for very small businesses and lending through community-based lenders like Community Development Financial Institutions and Minority Depository Institutions. Eligibility for PPP is expanded to certain 501(c)(6) nonprofits
• One time direct payment of $600 to those making less than $75,000 per year or couples who combine for less than $150,000 per year.
• Additional UI payments of $300/week in conjunction with extended UI benefits,
• Rural Broadband - The legislation invests more than $730 million in the expansion of broadband service to provide economic development opportunities and improved education and healthcare services, including $635 million for the ReConnect program, an increase of $80 million over FY 2020. These significant investments in broadband reflect a commitment to enabling Americans in rural
• SNAP - The bill provides for $114 billion in required mandatory spending for SNAP. This fully funds participation as well as the SNAP enhanced allotments authorized by the Families First Act.
• Economic Development Administration (EDA) - $346 million, an increase of $13 million above FY2020. This includes $119.5 million for EDA's Public Works program, which supports brick-and mortar projects in distressed communities across the nation, and $38 million for the Regional Innovation Program, an increase of $5 million, to help create jobs by establishing and expanding region-focused innovative technology business endeavors. Additionally, $2 million is provided for STEM Apprenticeships to help align the skills of workers and the needs of employers. The President had proposed completely eliminating EDA.
• Minority Business Development Agency (MBDA) - $48 million, an increase of $6 million above FY 2020, is provided for MBDA to support minority businesses around the country. The President proposed reducing support for minority businesses through MBDA by $31.7 million.
• Manufacturing Extension Partnership (MEP) Program - $150 million, $4 million above FY 2020. The President had proposed completely eliminating this program.
• $25 million above the request for Defense Manufacturing Communities.
• Includes $272 million for Entrepreneurial Development Programs, an increase of $11 million above the FY 2020 level and $104.4 million above the budget request, including: ▪ $136 million for Small Business Development Centers; ▪ $23 million for Women's Business Centers; ▪ $35 million for Microloan Technical Assistance; and ▪ $19.5 million for the State Trade Expansion Program(STEP)
• $100 million for the Reintegration of Ex-Offenders, an increase of $2 million above the fiscal year 2020 enacted level.
• $1.3 billion for Career and Technical Education State Grants, an increase of $52 million above the 2020 enacted level.
• $675 million for Adult Education State Grants, an increase of $18 million above the 2020 enacted level.
• Student Financial Assistance - The bill provides $24.5 billion for Federal student aid programs, an increase of $25 million above the 2020 enacted level. Within this amount, the bill provides:
• $6,495 for the maximum Pell Grant, an increase of $150 above the 2020 enacted level. The increase will help the maximum award keep pace with inflation.
• $880 million for the Federal Supplemental Educational Opportunity Grant program, an increase of $15 million above the 2020 enacted level.
• $1.2 billion for Federal Work Study, an increase of $10 million above the 2020 enacted level.
• $10 million for the Rural Postsecondary and Economic Development Grant Program for innovative approaches to improve rates of postsecondary enrollment and completion among rural students.
• Early childhood programs receive an increase of $220 million:
• $5.9 billion for the Child Care and Development Block Grant, an increase of $85 million; and
• $10.7 billion for Head Start, an increase of $135 million
More in-depth analysis of this legislation will follow but, NAWB wanted to ensure that our membership had the most up to date information about federal funding.
Please reach out to Matt Bandstra and
[email protected] for any questions about policy, advocacy, or the budget process.