This is the alarming situation the U.S. Department of Labor has created by abruptly suspending funding for the Senior Community Service Employment Program (SCSEP). This key program serves 40,000 low-income seniors across the country. This decision, which has raised concerns among advocates and organizations supporting older workers, could potentially leave many low-income seniors unemployed.
>Bloomberg Law was the first to report the funding pause. This follows the release of the approximate $86 million in funds to state formula recipients by the Department of Labor on July 1. Typically the money for our national grantees is made available in May and this year those funds have not yet been released. This delay endangers the future of SCSEP. This decades-old federal senior job training and placement program has been a lifeblood to a large number of low-income seniors who need work.
Yet in its proposed budget for fiscal year 2026, the Labor Department has called for phasing SCSEP out entirely. Rather, the alternative is to eliminate SCSEP and other job training programs. Under a block grant system, money would go directly to states and local communities. This transition has sent a wave of concern through many stakeholders who are worried that this move will threaten the support established to foster older workers.
Goodwill and Easterseals’ warnings are just the latest indications that a major crisis is brewing. They caution that thousands of low-income seniors may soon lose their jobs due to the funding halt.
More than just the services they provide, Kendra Davenport, president and chief executive officer of Easterseals, stressed the social value of the program.
“This is an intrinsically American program, when you think about it: people who want to work, who want to be contributing members of society, people who want to be able to support themselves, who want to be a part of a community,” – Kendra Davenport
Clayton Fong is president and CEO of a foundation that supports employment programs and caregiving services for older adults. He fully endorsed these ideas and values. For the fall, he warned that his organization has on the instant furloughed over 800 senior workers due to the funding cease.
“This funding delay is not just a bureaucratic issue, it’s a crisis for tens of thousands of older adults who depend on SCSEP to survive,” – Clayton Fong
Fong further elaborated on the implications of the funding pause, stating that “this funding pause has painful consequences for jobseekers who are trying to build skills and take care of themselves and their families.” In addition to the above, he brought attention to the overall issues that seniors are facing with increasing Medicaid cuts endangering their healthcare.
The Employment and Training Administration will be awarding grants very soon. This could occur immediately after state and territorial grantees file their statutorily required budgetary plans. Hiring activity is slowing in the broader U.S. labor market. Everyone is concerned that this significant gap in funding will further increase the difficulty older adults face in finding and obtaining employment.
Goodwill Industries has called upon the Department of Labor to speed up the allocation process that is required for SCSEP’s survival. For this reason, they’ve urged Congress to make stronger investments in SCSEP to help deliver the support older workers need.
“Goodwill is urging the Department of Labor to quickly provide the allocations needed for this important program to continue and calls upon Congress to continue to invest in SCSEP, providing essential support for older workers,” – Goodwill Industries
Advocates and organizations have been calling on the Department of Labor and Congress to act swiftly and decisively. They are concerned about keeping crucial job training programs supported for low income seniors who rely on these important services.