Feds pause operations at 3 Michigan Job Corps centers as part of nationwide move

This story has been updated with new information from the city of Detroit and Grand Rapids.

The federal government began pausing operations late last week at dozens of Job Corps centers across the country, including three in Michigan. The “phased pause” by the U.S. Department of Labor started May 29 after an internal review of the program, according to a news release.

Job Corps, a federally funded residential career training program that has been around for more than 50 years, helps low-income young people ages 16 to 24 years old finish high school and get jobs. The program provides room and board and skills training for up to three years, alongside other services, such as child care and transportation. More than 700 students were enrolled at three Michigan centers in the 2023 program year, according to federal data.

Democratic lawmakers from Michigan pushed back against the move and called for a reversal of the decision. In a June 2 letter to U.S. Secretary of Labor Lori Chavez-DeRemer, U.S. Reps. Rashida Tlaib of Detroit; Hillary Scholten of Grand Rapids; Kristen McDonald Rivet of Bay City, and Shri Thanedar, also of Detroit, said the decision was made without advance notice to the centers, and left students and staff scrambling.

“This abrupt disruption has destabilized our communities, which rely on these centers. We understand and share the Department’s interest in improving cost-efficiency and long-term effectiveness. Indeed, there is much work to be done to enhance the services here,” the Michigan delegation wrote. “But an unplanned and abrupt pause in all operations does not support these goals. Instead, it derails the lives of thousands of young people and dedicated staff committed to strengthening our country’s workforce, at a time of great worker shortage across the state.”

Michigan has Job Corps centers in Detroit, Flint and Grand Rapids, according to a U.S. Department of Labor website. The Detroit and Flint location is operated by Tucson-based Serrato Corp. The Grand Rapids center is run by Atlanta-based Human Learning Systems LLC.

The labor department stopped contracts at 99 contract-operated centers, according to an FAQ, leading to a “suspension of program operations.” The pause in operations at all contractor-run centers is slated to occur by the end of June, the news release states. The move, the release said, aligns with President Donald Trump’s 2026 budget proposal and his administration’s “commitment to ensure federal workforce investments deliver meaningful results for both students and taxpayers.”

A Labor Department official confirmed that the three Michigan-based centers had paused operations. The Free Press reached out to the Michigan centers and operators for comment on Monday.

“Center operators began implementing transition plans to mobilize students safely to their home of record and suspend program activities. Funds will be used to pause program operations, which includes managing facilities, maintaining student records,and ensuring students are connected with necessary employment and program resources,” according to the FAQ posted on the U.S. Department of Labor website.

Of 217 Job Corps participants in Detroit, 19 were referred to the city of Detroit and indicated needing a place to stay, Deputy Mayor Melia Howard said in a statement Monday. Of those participants, 12 found accommodations themselves or declined help. Six others were put in temporary shelter and the city is trying to make contact with one other person, she said.

“Our workforce development and housing teams have been in close contact with the Job Corps office in Detroit since late last week when this issue arose. … Job Corps youth participants are eligible for similar training though Detroit at Work and we are confident we will be able to provide training opportunities for those that have been displaced from Job Corps,” Howard said. “Because we know the closure also affects Detroit job corps employees, we will be providing them with job placement support through Detroit at Work.”

Grand Rapids Mayor David LaGrand said in a statement Tuesday morning that he was disappointed by the decision to close the Gerald R. Ford Job Corps Center, which he called a vital resource for education, vocational training and stability for young people facing significant barriers.

“This abrupt closure will have a devastating impact, disrupting the lives and futures of vulnerable youth who rely on the Center, potentially increasing unemployment and homelessness in our community,” LaGrand said. “I strongly urge the Administration to reconsider this damaging step, as even a temporary loss of this center will leave a significant void in our city’s efforts to empower our youth and build a more equitable and just future for all.”

About 25,000 students are enrolled in Job Corps nationwide. The labor department is working with state and local partners to help current students with their training and job opportunities, according to the news release. Students will get copies of their personal documents, can get connected to job opportunities by the labor department and they will get registered with their nearest American Job Center, a nationwide network of services for job seekers.

According to the FAQ, the labor department “will arrange transportation and cover costs to transfer students back to their homes of record,” by the end of June. Staff are employed by contractors, not the federal government. The labor department will provide staff information about employment services, job fairs and unemployment compensation.

The program was paused because Job Corps has been in financial crisis, according to the federal government. A press release cited a $140 million deficit in 2024 and projected shortfall of $213 million for the 2025 program year.

The U.S. Department of Labor’s Employment and Training Administration released a report in April on the Job Corp program’s performance and cost. The average graduation rate was under 40% and the average cost for a student per year was roughly $80,000, according to the report.

“Job Corps was created to help young adults build a pathway to a better life through education, training, and community,” Chavez-DeRemer said in a news release. “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. 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.”

More than 4,500 students were homeless before joining Job Corps, according to a news release from the Washington, D.C.-based National Job Corps Association, which represents staff and students. The association published its own “transparency report context” on the government’s report, which it called an “unsound analysis of the program based on incorrect and misleading information.”

“Job Corps has transformed the lives of millions of Americans. …This decision, based on a deeply flawed report, needlessly endangers the futures and the lives of thousands and potentially millions more young Americans,” said Donna Hay, president and CEO of the National Job Corps Association, in the news release.

The Job Corps program was created in 1964 to tackle youth unemployment. Concerns about the program’s cost effectiveness have cropped up during various points of its history, according to a 2022 report from the Congressional Research Service. A 1993 study, regarded as the most rigorous, found short term benefits and immediate wage increases, but also said wage increases did not remain over time, except for those enrolled at 20 years old or older, the report says.

At the Detroit Job Corps Center on May 30, students were left scrambling and dozens were reportedly lugging garbage bags full of belongings, according to Fox 2 Detroit.

“The staff … they broke the news to us and they had us go to the dorms, pack our stuff,” a student told the TV station.

Mariyah Louis graduated from Detroit Job Corps Center in 2017. She was in the foster care system and had a turbulent relationship with her mother and needed some guidance and assistance in life, she said. The Job Corps program provided stable housing, allowed her to focus and get her high school diploma, trade certificate, driver’s license, health care and mental health resources. Because of Job Corps, she pursued higher education and now owns a car detailing business, she said.

“It broke my heart,” Louis, 27, said when she found out about the pause in operations. “I can relate to that feeling of not knowing what I’m gonna do next, especially being a young adolescent.”

In the last few days since the pause, she created a Facebook group for people affiliated with Detroit Job Corps to access resources and is raising $12,000 for toiletries, home goods and bus passes for students left displaced.

“Job Corps was a safe haven,” she said.

Contact Nushrat Rahman: [email protected]. Follow her on X: @NushratR.

This article originally appeared on Detroit Free Press: Feds pause operations at 3 Michigan Job Corps centers as part of nationwide move

Reporting by Nushrat Rahman, Detroit Free Press / Detroit Free Press

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