By Shannon Holmes
July 25, 2005

The Senate Appropriations Committee July 14 approved the Labor-Health and Human Services bill 27-0, sending the $145.7 billion measure to the floor for consideration. Action is not expected until after the August recess. The Subcommittee had passed its version of the bill by voice vote July 12.

Senator Arlen Specter (PA), Chairman of the Appropriations Subcommittee on Labor, Health and Human Services and Education, was able to use accounting maneuvers to free up additional spending for the bill. However, because of strong opposition in the House, the lower House numbers are more likely to prevail in conference negotiations.

This legislation would fund programs at the Department of Labor (DOL) at $11.9 billion, $125 million under fiscal year 2005 levels and $295 million above President Bushs request. Workforce Investment Act (WIA) funding was basically maintained at FY 2005 levels, except for Wagner-Peyser (Employment Service), which was cut by $34 million. Highlights include:

• $1.476 billion for Dislocated Workers;

• $894 million for Adult Training;

• $986 million for Youth Training;

• $50 million for Reintegration of Youth Offenders;

• $19.8 million for the Prisoner Re-entry program; and

• $125 million for the Community College Initiative, taken from the National Emergency Grant funding.

Additionally, funding for Pell grants would be increased by $1 billion, to $13.4 billion, raising the maximum annual grant by $50 to $4,100. This is only half of the requested amount. Head Start would increase $56 million to a total of $6.9 billion. The overall funding for the Department of Education is increased by $4.5 billion, 7.6 percent, to $63.7 billion.

The Senate report also included language that would prohibit the DOL from taking any action on a new administrative cost definition prior to WIA reauthorization, and expects the Administration to refrain from any major changes to WIA.

To view the Senate report language please click here.

The House passed version would provide $142.5 billion in discretionary funding. This is $64 million less than FY 2005, a decrease of 0.1 percent, but is $924 million more than the Presidents request. Funding for the DOL would be $14.8 billion, which is $521 million or 3.4 percent less than last fiscal year.

• $1.4 million for Dislocated Worker Assistance;

• $866 million for Adult Training;

• $950 million for the Youth Formula;

• $19.8 million for the Prisoner Re-entry program

• Reintegration of Youth Offenders was zeroed out; and

• $125 million for the Community College Initiative