The Trump administration announced a “phased pause” on contractor-run Job Corps centers nationwide following alarming findings of poor performance, escalating costs, and thousands of serious incident reports. The Department of Labor confirmed that the pause will be implemented by June 30, affecting 99 of the 123 centers.
Labor Secretary Lori Chavez-DeRemer said in a statement, “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.” She emphasized the administration’s commitment to assisting students during the transition.
The Job Corps, a federally funded program designed to help disadvantaged young adults through job training and education, is facing increasing scrutiny. A transparency report released in April revealed that the average graduation rate was just 38.6 percent in 2023. Each successful graduate cost taxpayers an average of $155,600.74. After graduation, participants earned an average annual income of only $16,695.
Serious incident reports in 2023 totaled 14,913, including 372 cases of inappropriate sexual behavior or assault, 1,764 acts of violence, 1,167 safety or security breaches, and 2,702 instances of drug use. The program ran a $140 million deficit in 2024 and is projected to reach a $213 million shortfall in 2025.
The 24 centers operated by the U.S. Department of Agriculture will not be impacted. Contracts with administrators of the 99 contractor-run centers will be terminated during the pause. Students will be redirected to their local American Job Centers and enrolled in their state’s Labor Exchange system for alternative employment and training support.
The Job Corps program is budgeted at $1.7 billion for fiscal year 2025. The administration’s decision to pause the program reflects a broader effort to review federal spending and reallocate resources toward more effective workforce development solutions.
