Labor Dept to suspend Job Corps centers it says put students in danger, cost taxpayers $1.7B

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EXCLUSIVE: The Department of Labor is suspending operations of Job Corps centers across the nation after revelations that the program, which costs taxpayers more than $1.7 billion per year, is no longer achieving its intended outcomes and is putting students in danger. 

Job Corps was originally created to help young adults build a pathway to a better life through education and community. But Trump administration officials told Fox News Digital that an "in-depth fiscal analysis and a startling number of serious incident reports reveal the program is not helping students achieve intended outcomes or keeping them safe." 

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The decision to suspend the program comes after the Job Corps transparency report was compiled and released in April, finding that the average graduation rate for the program was just 38.6%. 

Secretary Lori Chavez-DeRemer told Fox News Digital that "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."? (Allison Robbert/Bloomberg via Getty Images)

The graduation rate of the program costs as much as $155,600 per student, the report states. The average cost of a four-year college education in the United States is $153,080, according to the U.S. Department of Labor. 

Additionally, once those students move through the program, the study found that they are largely being hired in minimum-wage positions, with participants earning $16,695 annually on average after they leave the program.

Currently, there are approximately fewer than 25,000 students enrolled in the Job Corps program, and participants’ safety is "often at risk." 

Officials said there were 14,913 serious incident reports filed in 2023. In 2023, 373 instances of inappropriate sexual behavior and sexual assaults were reported; 1,764 acts of violence were reported; 1,167 breaches of safety or security were reported; 2,702 instances of drug use were reported; and 1,808 hospital visits for students were reported. 

Trump administration officials told Fox News Digital that the Department of Labor is beginning a phased pause in operations at contractor-operated Job Corp centers nationwide, initiating an orderly transition for students, staff and local communities. 

The U.S. Department of Labor is suspending operations of Job Corps centers across the nation.? (Getty)

Currently, there are 123 Job Corps centers across the United States, and 99 of the centers are run by contractors administered by the Department of Labor. 

An official said that those contracts will be terminated to pause operations. The remaining 24 centers are run by the U.S. Department of Agriculture and will not be impacted by the suspension. 

The pause of operations at all contractor-operated Job Corps centers will occur by June 30. During the transition, the Department of Labor will collaborate with state and local workforce partners to assist current students in advancing their training and connecting them with education and employment opportunities.

Once the phased suspension occurs, students will be connected to other resources and will be registered within the American Job Center closest to their home and the Labor Exchange system in their home states. 

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"Job Corps was created to help young adults build a pathway to a better life through education, training, and community," Secretary Lori Chavez-DeRemer told Fox News Digital. "However, 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." 

Chavez-DeRemer added: "We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities."

The Jobs Corps will cost taxpayers $1.7 billion during fiscal year 2025. 

Trump administration officials told Fox News Digital that the Department of Labor, run by Secretary Lori Chavez-DeRemer, is beginning a phased pause in operations at contractor operated Job Corp centers nationwide. (Annabelle Gordon/Bloomberg via Getty Images)?

The program began in 1964 as part of former President Lyndon B. Johnson’s war on poverty under the Economic Opportunity Act of 1964. The program was intended to give young people from low-income backgrounds a chance to gain academic, vocational and social skills in a residential setting. 

For program year 2024, Job Corps was operating at a $140 million deficit, requiring centers to be paused to save approximately $119 million to reach the end of this program year. 

Department of Labor officials project that in program year 2025 the deficit would grow to $213 million. 

"The program has been in a financial crisis for years, creating constant uncertainty for participants and administrators," a Department of Labor official told Fox News Digital. 

The official stressed, though, that the Department of Labor is "not eliminating Job Corps," and stressed that only Congress has that authority. 

In December 2024, the Biden administration’s Department of Labor instituted a similar pause in operations at two of the Job Corps centers, amid concerns of issues and rising program costs. 

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Officials said that, at this point, the Job Corps program is financially underwater, and the funds appropriated by Congress for the year will not cover the costs of operations for the remaining program year.  

Officials said the pause will allow the department to reassess program alignment with the Trump administration’s "workforce priorities, proposed budget framework, and overall vision for building a modern and effective workforce development program for America’s youth."