“Labor Department admits spending error in apprenticeship contracts
Congress, Inspector General probe potential legal violation
The Labor Department misused more than $1 million to finance a White House-directed apprenticeship program after repeatedly telling Congress that existing funding would not be spent on the initiative, the DOL has confirmed.
The Trump administration intended for the Industry-Recognized Apprenticeship Program to be the centerpiece of President Donald Trump‘s labor policy, but the Labor Department has yet to finalize a rulemaking that would establish the new apprenticeship system—and Congress hasn’t provided any funding for it.
DOL officials have acknowledged, however, that their review of three outside contracts totaling $32 million found that $1.1 million in contracted work was drawn from funding Congress had allocated for a different job-training program and used to advance Trump’s proposal, which would give private sector companies greater freedom to set apprenticeship standards.
Officials made that admission during an Oct. 21 call to brief House and Senate labor committee staffers after House Democrat aides flagged the misspent money earlier this year. House Democrat staffers and a DOL spokesman confirmed the record of the conversation, which Bloomberg Law also verified by reviewing an internal agency discussion document detailing results of the financial review.”
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