Funding for State Centers in Recent DOL Appropriations Bill

The 2026 appropriations bill for the Department of Labor (DOL), passed on February 3 by Congress, lacks line-item funding for state employee ownership offices authorized by the WORK Act. The Senate Appropriations Committee had recommended a specific appropriation last July. However, a joint explanatory statement from the House and Senate appropriation committees states that $2 million should be provided for the Employee Ownership Initiative. In general, the joint explanatory statement notes that its recommendations on spending (which cover a variety of issues) “should be complied with unless specifically addressed to the contrary in this explanatory statement.” 

The Employee Ownership Initiative would fund programs established by the WORK Act of 2022, which directed the DOL to create an Employee Ownership Initiative office to provide education on employee ownership (which it has now done) and authorized $50 million in funding over five years, starting in fiscal year 2025, for state employee ownership outreach and education programs. Although the funding was not specially appropriated, directives such as this generally are followed, and given the new leadership of the DOL’s support for employee ownership, this seems likely to happen.

The WORK Act authorized $4 million for the first year of the program, increasing each year over five years. The $2 million would be a modest start but could lead to larger appropriations down the road. There are now 25 state employee ownership centers, most of which are privately funded and under the umbrella of the Employee Ownership Expansion Network, which works closely with the NCEO. They all would be eligible to apply for funding from this pool.