College and career readiness (CCR) depends on more than isolated courses or generic electives. Districts need the resources, guidance, and policy alignment to build coherent learning pathways that support students’ long-term economic stability, self-sufficiency, and civic engagement. Today’s most effective Career and Technical Education (CTE) programs are intentionally designed: they align coursework across grade levels, are taught by educators with real-world industry knowledge, and connect students to local and regional workforce needs. These programs are powerful, but they are also costly to design, staff, and sustain.

For more than four decades, federal funding has played a central role in making high-quality CTE possible. Since 1984, the Carl D. Perkins Career and Technical Education Act (commonly referred to as Perkins funding) has provided formula funding to states for distribution to local districts, supporting program development, equipment, staffing, and student supports. Through five reauthorizations, Perkins has historically been administered by the U.S. Department of Education. Over the past year, however, that long-standing structure has begun to shift.

Timeline: Announced Federal Realignment of Career and Technical Education

Following Senate confirmation of the new Secretaries of Education and Labor in March, the federal government signaled a clear shift in how it defines the role of Career and Technical Education. Rather than viewing CTE primarily as an extension of the K-12 education system, federal leaders began positioning it as the first stage of the national workforce development pipeline. That shift became concrete on May 21, when the U.S. Departments of Education and Labor signed an interagency agreement transferring day-to-day administration of Perkins funding from the Department of Education to the Department of Labor. While Perkins remains a congressionally authorized education program, this agreement moved operational oversight to the agency that administers federal workforce policy.

Additional steps followed in quick succession. In July, the two departments announced a formal workforce development partnership intended to better align federal education and workforce systems. In September, CTE was further integrated into workforce infrastructure through the launch of a consolidated Workforce Innovation and Opportunity Act (WIOA) portal housed at the Department of Labor, streamlining state grant applications and program oversight across workforce programs.

Most recently, near the end of 2025, new federal guidance was issued to governors and state workforce boards outlining expanded WIOA waiver and flexibility options. Notably, this guidance explicitly situates CTE programs within the public workforce system, reinforcing the expectation that CTE aligns directly with workforce planning, labor market needs, and economic development strategies.

Taken together, these actions represent a significant reframing of CTE at the federal level: from an education-centered program to a core component of workforce development policy. While these changes have been implemented through executive action and are not yet codified in statute, legislation to formalize the shift has been introduced for consideration in 2026. For district leaders and CTE educators, understanding this transition is essential, as it is likely to influence funding priorities, accountability measures, and expectations for how CTE programs connect to regional labor markets.

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4 Key Takeaways: What the Federal Shift Means in Practice

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1. State Agencies Face a New Federal Operating Model

The move of Perkins program administration from the Department of Education to the Department of Labor creates a significant shift for State Education Agencies (SEAs). While Perkins regulations and formal policy remain under the Department of Education, day-to-day execution, interpretation, and oversight are now handled by the Department of Labor. This split governance model marks a departure from decades of education-centered administration. Long-standing approaches to Perkins planning, grant applications, and reporting may need to adapt as oversight is applied through a workforce development lens focused on labor market alignment and employer demand.

It is not yet clear whether this transition will introduce additional bureaucratic complexity or lead to stronger coordination and greater impact across education and workforce systems. For districts and CTE leaders, the key implication is that state-level processes and expectations may evolve, making alignment with workforce partners increasingly important.

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2. Minimal Immediate Operational Change for Districts

For school districts, the federal shift in Perkins administration is unlikely to result in immediate, day-to-day operational changes at the district or school level. CTE programs will continue to be delivered locally, and districts will still work through their State Education Agencies for funding allocations, compliance, and reporting. The most significant adjustments will occur at the state level as SEAs adapt to new federal processes, timelines, and interpretations under Department of Labor oversight. As a result, districts may experience indirect effects such as updated guidance, revised templates, or adjusted reporting expectations, but not a wholesale change in how CTE programs operate in the near term.

For now, the practical guidance for district and school leaders is to remain focused on program quality and compliance while staying informed as states refine their processes. Any substantive changes to local requirements are likely to be gradual and communicated through existing state channels rather than implemented abruptly at the school level.

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3. CTE Will Be More Closely Aligned With Economic and Workforce Development Priorities

Directionally, the federal shift signals a stronger alignment between CTE and state and local economic development strategies. CTE is no longer positioned solely as a K–12 education function. Instead, it is increasingly framed as part of a broader workforce system shaped by state and regional labor market needs, employer demand, and economic development priorities. As a result, decisions about which programs are offered, expanded, or sustained may be influenced more directly by workforce agencies, economic development offices, and employer partners alongside education leaders. This approach elevates the role of cross-agency collaboration and may place greater emphasis on labor market data, industry credentials, and employment outcomes.

This reframing also broadens the population CTE is expected to serve. In addition to enrolled K-12 students, federal workforce systems traditionally focus on out-of-school youth, young adults, and individuals seeking reentry or reskilling opportunities. Over time, districts may see increased expectations to align CTE programming with pathways that connect secondary education to postsecondary training, apprenticeships, and workforce reengagement programs.

For district leaders and CTE educators, the implication is not an immediate change in course offerings, but a gradual shift in how programs are justified, evaluated, and funded. Strong partnerships with workforce and economic development entities are likely to become increasingly important in sustaining and expanding high-quality CTE pathways.

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4. Adult Education Will Serve as a Connector Across Systems

The shift toward workforce-centered CTE elevates the role of adult education as a bridge across K–12, community colleges, and job transition programs. Rather than operating in parallel, these systems are increasingly expected to function as a coordinated continuum that supports learners at multiple entry and reentry points. Under a workforce-aligned model, adult education is positioned to connect out-of-school youth, adults seeking reskilling, and career changers with credentialed pathways that intersect with secondary and postsecondary CTE programs. This alignment creates opportunities for smoother transitions between high school programs, community college offerings, apprenticeships, and workforce training initiatives.

For districts, this does not signal an immediate expansion of responsibility, but it does underscore the importance of coordination. Strong partnerships with adult education providers, community colleges, and workforce agencies will be critical to ensuring that CTE pathways remain accessible, flexible, and responsive to learners at different stages of their careers.

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Looking Ahead

The federal transition of CTE program administration reflects a broader effort to better align education, workforce development, and economic priorities. For districts and schools, the core work of delivering high-quality CTE remains unchanged. Programs will continue to be designed locally, implemented by educators, and supported through state channels.

At the same time, the direction is clear: CTE is increasingly being positioned as part of a larger talent development system that extends beyond K–12 and connects more directly to postsecondary pathways, adult education, and regional workforce needs. As states adjust to new federal structures, districts that maintain strong partnerships, use labor market data thoughtfully, and articulate the value of their CTE pathways will be well positioned to adapt Understanding this shift now allows district leaders and CTE educators to engage proactively, rather than reactively, as policies and expectations evolve in the years ahead.

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