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Immigration

What Contractors Need to Know About Workforce Grant Requirements

Contractors will need to update procedures to comply with updated requirements

Exterior-view-of-Department-of-Labor-building-with-cloudy-sky

Photo courtesy of the Department of Labor.

July 14, 2025

The U.S. Department of Labor’s Employment and Training Administration announced new guidance on work authorization verification for grant programs in an attempt to prevent immigrants without legal status from receiving federal- and state-funded benefits.

In a news release, the department says the guidance will "ensure illegal immigrants are not allowed access to federal workforce development resources and related grants." The announcement is the department’s latest effort to carry out President Donald Trump’s executive order 14218, "Ending Taxpayer Subsidization of Open Borders."

Under this guidance, all grantees funded through the Workforce Innovation and Opportunity Act and related programs must verify valid work authorization before providing participant-level services. This action replaces the Biden administration’s guidance that the Department of Labor says "incentivized illegal immigration" and ensures taxpayer-funded workforce resources remain focused on the American workforce.

Employers are meant to check the status of their workers through the E-Verify system. Employees fill out I-9 forms that indicate their status with the government. Most illegal immigrants pay taxes, yet have access to few programs. This latest guidance will prevent more from accessing taxpayer-funded benefits.

Contractors are advised to update all policies and procedures to verify work authorization and maintain proper documentation in participant case files. To do so, contractors should consult their legal advisors and provide training for their HR departments to implement the updates and guidance.

The guidance applies to the following: WIOA Title I Adult, Dislocated Worker, Youth programs (including statewide employment and training services funded by the Governor reserve), WIOA National Dislocated Worker Grants, Wagner-Peyser Act Employment Service, Reentry Employment Opportunities and other programs authorized under Section 169 of WIOA, YouthBuild, the National Farmworker Jobs Program, and the Senior Community Service Employment Program.

“America’s workforce is stronger than ever under President Trump’s leadership because he is committed to upholding the rule of law and putting American workers first,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “Our updated guidance makes clear that taxpayer-funded workforce services are reserved for individuals who are authorized to work in the United States, as required by federal law. By ensuring these programs serve their intended purpose, we’re protecting good-paying jobs for American workers and reaffirming this Administration’s commitment to securing our borders and ending illegal immigration.” 

The move is among the latest made by the Trump administration in its ongoing efforts to crack down on people working and living in the country illegally.

The new guidance can be found here. 

This article was originally posted on www.roofingcontractor.com.
KEYWORDS: federal contractors grants immigration labor shortage President Donald Trump

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