U.S. Departments of Education and Labor launch federal partnership to better align college programmes with employment demand

Washington The United States Departments of Education (ED) and Labor (DOL) have announced a new inter-agency partnership aimed at strengthening the link between post-secondary education and workforce requirements. The initiative takes effect in the week starting January 20, 2026, when staff from the Higher Education Programs (HEP) Division of the Department of Education will be stationed at the Department of Labor to begin joint work.

The objective of this collaboration is to improve coordination between federal education programmes and workforce development activities so that the design and delivery of college courses better reflect current job market needs. A core feature of the partnership is the integration of staff and grant management systems. As part of this process, grantees supported by ED’s HEP division will transition to the Department of Labor’s Grant Solutions and Payment Management System. This integration is expected to unify grant administration and reduce procedural duplication across the two departments.

Officials from both departments emphasised that the arrangement builds on existing federal efforts to streamline post-secondary education with career readiness. The Workforce Development Partnership model, previously used to integrate federal funding and programme oversight in workforce initiatives, is cited as the structural basis for this new collaboration.

A stated priority of the partnership is to ensure that students graduate with knowledge and skills that match employer expectations. Dr David Barker, Assistant Secretary for Postsecondary Education, said the initiative will help students make informed choices about programmes that correspond to labour market demand. Dr Henry Mack, Assistant Secretary for the Employment and Training Administration, highlighted the focus on producing workforce-ready graduates while fostering broad civic capacities.

Under the agreement, the Department of Labor will manage grant funds and offer technical support as part of an integrated federal approach to post-secondary education and workforce development. Detailed guidance will be issued to institutions and grantees to help manage the transition.

The new partnership reflects an expanded federal role in linking higher education with employment pathways. Institutions of higher learning are expected to benefit from clearer administrative processes and stronger ties with employers, while students may find more direct routes from academic training to job opportunities in an increasingly competitive labour market.

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