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Contractors sue to block Labor Department’s planned June shutdown of Job Corps centers

A federal judge will weigh whether to stop the closures after contractors argued the agency lacks authority

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U.S. President Donald Trump, joined by Tesla CEO Elon Musk, speaks to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
U.S. President Donald Trump gestures, as he departs for Pennsylvania, on the South Lawn of the White House in Washington, D.C., U.S., May 30, 2025. REUTERS/Kent Nishimura/File Photo
Lori Chavez-DeRemer, US labor secretary, during a Senate Appropriations Subcommittee

Overview

  • On June 3, a trade group representing operators of 120 Job Corps centers filed suit in Manhattan federal court to prevent the Labor Department from closing the program
  • The Labor Department cited a $140 million deficit rising to $213 million in 2025, persistently low graduation rates and thousands of safety and security breaches as reasons for the shutdown
  • Plaintiffs contend that federal law prohibits abrupt program elimination without public comment and congressional notification and seek to keep centers open during litigation
  • Established in 1964, Job Corps provides residential education and vocational training to disadvantaged youth aged 16–24, serving about 25,000 participants at contractor-run centers and nearly 60,000 students annually
  • The Labor Department has paused closure timetables pending the lawsuit’s outcome and promised to facilitate orderly transitions for students, staff and local communities