Labor Department Funding Cut 35% In Trump FY 2026 Budget Proposal

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The US Labor Department would receive $8.6 billion in 2026 under President Donald Trump’s budget blueprint, a nearly 35% cut from its current funding level, according to Bloomberg News.
The $4.6 billion slash in spending would largely come from the administration’s plans to end Job Corps, a nationwide career development and training program for low income young adults, and consolidating state workforce funds, according to a summary from the White House.
President Trump’s budget proposal is subject to Congressional approval, and the size of the cuts asked for are likely to be reduced in the long negotiation process.
U.S. Secretary of Labor Lori Chavez-DeRemer issued the following statement regarding the release of President Donald Trump’s Fiscal Year 2026 Discretionary Budget Request:
“President Trump’s first budget proposal reaffirms his unwavering commitment to putting American workers first, encouraging and empowering states to upskill their workers by expanding apprenticeship opportunities,” Secretary Chavez-DeRemer said. “Coming on the heels of multiple expectation-defying jobs reports, this budget will ignite even more growth by realigning and improving the Department of Labor’s critical mission while slashing costly red tape and allowing workers to keep more of their hard-earned money. The President is securing a prosperous future for all American workers from start to finish, beginning with a good-paying job all the way to ensuring a secure retirement.”
The secretary’s remarks omitted any mention of worker safety and well-being. At press time, ISHN was unable to identify President Trump’s specific budget proposal for OSHA.
There has been speculation that the president’s close relationship with Teamster’s President Sean O’Brien, who endorsed Trump for president, and Secretary Chavez-DeRemer’s previously stated moderate labor views could be mitigating factors saving OSHA from the fate of NIOSH (90% of workforce cut) and EPA (proposed 55% FY ’26 budget cut).
A sweeping reorganization of OSHA’s bureaucracy as part of a broader Department of Labor reorg has been rumored for several months. Each cabinet department has been ordered to submit downsizing plans to the Office of Management and Budget.
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