A city that works requires fiscal discipline, economic growth, and effective government services. Following the release of the D.C.’s 2027 budget proposal, experts from the D.C. Policy Center are sharing key insights for policymakers to consider as they review the budget proposal and prioritize investments.
This brief highlights the importance of workforce development investments in the District. The FY2027 budget invests in career readiness for students while cutting workforce training for adults. Both populations need support.
Read the analysis below or download a PDF copy.
Other publications in this series:
- D.C.’s career education strategy leaves out adult learners
- D.C.’s structural budget problem and the path forward
- Streamlining IZ applications will open more affordable units faster
- Delaying BEPS creates an opportunity for reform without forcing unintended consequences
- Supporting childcare subsidies improves D.C.’s economic competitiveness
- A city that works
What the budget proposes
The FY2027 budget invests in high-impact tutoring, which gives individualized academic support to improve student outcomes, and Advanced Technical Centers (ATCs), which give students hands-on training in skilled careers. At the same time, it cuts funding for Adult and Family Education (AFE) grants by $0.4 million, a cumulative reduction of $2.5 million since FY 2025. These grants fund workforce training for adults who need foundational skills or credentials to compete in the job market.[1]
What we found
Between February 2020 and December 2025, D.C. lost 79,800 jobs and remains 10 percent below its pre-pandemic employment peak. In December 2025, D.C.’s unemployment rate of 6.7 percent was one and a half times the national rate of 4.4 percent. The job losses aren’t limited to federal government jobs; even traditionally strong segments of the private sector haven’t recovered. Research shows that entering a recessionary job market has lasting consequences: lower lifetime earnings, fewer opportunities, and worse health outcomes. These associated effects can last for a decade or more.[2]
Why it matters
When the job market is weak, cutting these programs is counterproductive. Workforce investments determine whether D.C. emerges from this period with a strong labor force, or a wider skills gap, higher unemployment rates, and a shrinking tax base. Cutting AFE while investing in younger students leaves adult workers who are already navigating a difficult economy without the training that helps them get ahead.
Recommendations
We recommend the Council consider the following budget actions:
- Maintain investments in high-impact tutoring and ATCs as essential supports during this labor market downturn.
- Restore the $2.5 million cut to AFE grants. Workforce training for adults is a needed expense in a weak economy.
[1] Chelsea Coffin, “Tying D.C.’s education funding to student preparedness, college and career readiness,” D.C. Policy Center, April 23, 2026.
[2] “Life-Cycle Impacts of Graduating in a Recession,” The Reporter, NBER, March 31, 2023; Hannes Schwandt and Till M. von Wachter, “Socio-Economic Decline and Death: The Life-Cycle Impacts of Recessions for Labor Market Entrants” NBER Working Paper # 26638, January 2020, Revised 2023.