Overview

• The Labor Department announced a phased pause of operations at all 99 contractor-operated centers, with contracts ending on June 30.
• Department cited more than 500 reported sexual assaults in the last three years, over 4,600 violent incidents and 8,000 drug-related cases as evidence of safety failures.
• The program ran a $140 million deficit in 2024 and is projected to hit $213 million in 2025, raising concerns over financial sustainability.
• Only about one-third of participants graduate, costing taxpayers between $155,600 and $187,653 per graduate with post-program earnings averaging around $17,000 annually.
• Officials will coordinate with state and local workforce partners to reassign nearly 25,000 enrolled students to alternative education and employment resources.