Spotlight: our Employment Program

June 4, 2025

Impact of federal funding programs on Employment grantees

The Fry Foundation’s Employment program has a longstanding commitment to helping Chicago residents and their families move out of poverty. Poverty is driven by a complex knot of economic, social and structural issues including low wages and unemployment, limited educational opportunities that reduce earning potential, and systemic inequality that perpetuates poverty for historically marginalized groups. The Fry Foundation has focused its effort on supporting vocational training programs, pre-employment training, and policy advocacy that position job seekers and workers to compete for jobs in industries that offer living wages and are important to the region’s economy.

The success of our grantee partners is partially due to federal and state policies that recognize their contribution to the economy and offer public dollars to advance the reach of these critically important job training services. Right now, these groups and the people they serve are facing growing uncertainty due to delays to the reauthorization of two critical federal programs: The Workforce Investment Opportunity Act (WIOA) and Supplemental Nutrition Assistance Program Employment & Training (SNAP E&T). More than 95% of our grantees receive federal workforce development funds based on these two federal programs and an average of 45% of their operational budgets are tied to these sources. Nearly one-third rely on federal funds for 75% or more of their budgets. Amid rising inflation, unemployment, and widening social inequities, this unpredictability threatens grantees’ ability to plan long-term or meet increasing community needs.

Key Federal Programs at Risk

WIOA is the cornerstone of workforce funding. It improves workforce and employment opportunities, it improves and stabilizes income levels, and it supports economic growth, and strengthens local communities. In FY2024, Cook County received $50 million in federal WIOA funding, supporting nearly 6,000 individuals with job placements with salaries averaging $24.03 per hour. (Minimum wage in Illinois is currently $15 an hour.) WIOA-funded programs consistently place job seekers in jobs in high-growth industries that are seen as critical to the economic strength of our region. These public investments reduce income inequality and ensure that our grantee partners can continue to meet rising community needs.

WIOA, enacted in 2014, expired in 2020 but has continued through annual appropriations and temporary extensions. According to the Center for American Progress, reauthorization has stalled due to competing legislative priorities and disagreements between the House and Senate over how to update the Act to reflect post-COVID workforce shifts and technology change. In December 2024, the House passed the bipartisan A Stronger Workforce for America Act to modernize WIOA, but it was dropped from the FY2025 funding bill and will need to be reintroduced.

The path forward is complicated by the Trump administration’s new budget, which, according to the National Skills Coalition, proposes over $183 million in cuts to federal workforce programs. These reductions could significantly impact WIOA’s ability to expand or modernize, particularly for low-income individuals who rely on services like childcare and transportation to participate in workforce development programs. While bipartisan support for reauthorization exists, the administration’s push to reduce federal involvement in workforce development may further delay or reshape WIOA’s future.

The SNAP Employment & Training (SNAP E&T) program helps recipients of food assistance develop skills and access training to find employment. It is federally authorized under the Farm Bill and administered by the U.S. Department of Agriculture. In 2023, Illinois received $14 million in SNAP E&T funding which serves up to 6,000 Chicago residents annually. SNAP E&T is under threat as Congress negotiates the reauthorization of the Farm Bill, now extended through September 30, 2025. The 2018 Farm Bill expired in 2023, and disagreements—particularly over SNAP provisions—have stalled a new comprehensive bill. House Republicans have proposed $230 billion in budget cuts. Advocates warn that such cuts would weaken SNAP E&T's ability to support job seekers. The Center for Employment Opportunities, among others, is urging Congress to adopt bipartisan measures like the Training and Nutrition Stability Act (TNSA) to preserve and strengthen the program. TNSA is a bipartisan legislative proposal introduced in both the House and Senate. Its primary goal is to amend SNAP to ensure that individuals participating in employment and training programs do not lose their food assistance benefits due to temporary earnings from such programs. Its inclusion in the upcoming Farm Bill is seen as a critical step toward aligning workforce development initiatives with nutrition assistance programs.

Federal Executive Order Impacting Workforce Development

Executive orders targeting diversity, equity, and inclusion policies and practices are also expected to harm workforce development programs for people served by Foundation grantees. In particular, Executive Order 14173, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," signed by President Trump in January 2025, significantly impacts workforce development programs, particularly those involving federal funding or contracts. Key implications of this executive order lead to the following:

• Undermining of Equity Goals: Programs designed to close racial and gender gaps may become ineligible for federal funding, even if they have a strong track record of success.

• Straining Public-Private Partnerships: Organizations partnering with federal agencies or contractors may feel pressure to, or be required to, drop DEI commitments, weakening partnerships and credibility in marginalized communities.

• Threatening Inclusive Career Pathways: Effective programs that serve people serving justice-involved individuals and others facing systemic barriers may no longer align with shifting federal priorities, even if they have a strong track record of success.

• Reducing Employer Accountability: With fewer incentives to hire from underserved communities, job placements for individuals facing systemic barriers to employment may decline, undermining core vocational training goals.

The Fry Foundation will continue to monitor the impact of federal actions on our grantee partners and work with them as they navigate the ongoing uncertainty.