On June 21, 2018 the White House released its “Delivering Government Solutions in the 21st Century Reform Plan and Reorganization Recommendations” See https://www.whitehouse.gov/wp-content/uploads/2018/06/Government-Reform-and-Reorg-Plan.pdf
The proposal seeks to organize parts of the federal government with a new alignment designed to eliminate duplication, enhance efficiency and improve service delivery. To be implemented, the proposal would require a comprehensive legislative overhaul through multiple congressional committees in the House and Senate.
The programs that rely on the flow of employer financed Federal Unemployment Tax Act revenue for administrative funding would be realigned.
The federal Office of Unemployment Insurance would be transferred to be part of a newly created American Workforce and Higher Education Administration.
The Wagner Peyser grant providing funding for the public employment service and performing the work test for UI claimants would be transferred to a sub group of Adult Workforce Development.
The Bureau of Labor Statistics would be transferred to the Department of Commerce.
Current law provides for alignment of FUTA funded programs within the Employment and Training Administration and the US Department of Labor. There would not only be significant legislation required to accomplish this but there would also be cost allocation and appropriations issues to be addressed short term and long term through such a reorganization.
We continue to review the proposal and will pay attention to the details as the proposal is further considered by the administration and Congress.
