The U.S. Department of Labor today announced it will begin a phased pause in operations at contractor-operated Job Corps centers nationwide, initiating an orderly transition for students, staff, and local communities. The decision follows an internal review of the program’s outcome and structure and will be carried out in accordance with available funding, the statutory framework established under the Workforce Innovation and Opportunity Act, and congressional notification requirements.  

The pause of operations at all contractor-operated Job Corps centers will occur by June 30, 2025. As the transition begins, the department is collaborating with state and local workforce partners to assist current students in advancing their training and connecting them with education and employment opportunities.

The department’s decision aligns with the President’s fiscal year 2026 budget proposal and reflects the Administration’s commitment to ensure federal workforce investments deliver meaningful results for both students and taxpayers.

“Job Corps was created to help young adults build a pathway to a better life through education, training, and community,” said Secretary Lori Chavez-DeRemer. “However, a startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve. We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities.”

The Job Corps program has faced significant financial challenges under its current operating structure. In PY 2024, the program operated at a $140 million deficit, requiring the Biden administration to implement a pause in center operations to complete the program year. The deficit is projected to reach $213 million in PY 2025.   

On April 25, 2025, the department’s Employment and Training Administration released the first-ever Job Corps Transparency Report, which analyzed the financial performance and operational costs of the most recently available metrics of program year 2023. A summary of the overall findings:

Average Graduation Rate (WIOA Definition): 38.6%

Average Cost Per Student Per Year: $80,284.65         

Average Total Cost Per Graduate (WIOA Definition): $155,600.74

Post separation, participants earn $16,695 annually on average.

The total number of Serious Incident Reports for program year 2023: 14,913 infractions.

Inappropriate Sexual Behavior and Sexual Assaults Reported: 372

Acts of Violence Reported: 1,764

Breaches of Safety or Security: 1,167

Reported Drug Use: 2,702

Total Hospital Visits: 1,808

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