Secretary of Labor Elaine Chao testified before the House Ways and Means Committee on March 16. She highlighted the administration’s “ambitious agenda to ensure that America’s economy remains the most prosperous in the world,” explaining that President Bush “has proposed a three-pillar strategy, which includes restraining spending by the Federal government; working with Congress to pass legislation that promotes economic growth; and reforming government institutions so that they can meet the realities of our new century.”
Explaining that the administration has proposed reforms to workforce training programs, Secretary Chao stated, “President Bush believes we must ensure that every adult, especially low- and middle-income Americans, has access to quality skills training. By working together, we can reform the current workforce training system to eliminate duplication and waste, double the number of people trained through major Workforce Investment Act (WIA) grant programs, prepare workers for high-demand occupations, and provide better services for our workforce.”
Under the administration’s proposal, the WIA Adults, WIA Dislocated Workers, and WIA Youth programs and the Wagner-Peyser Employment Services would be consolidated into the WIA Plus Consolidated State Grants. In addition, states would have the option of consolidating into one grant their share of funds from Trade Adjustment Assistance, Adult Education and Vocational Rehabilitation State Grants, and employment and training services under the Food Stamp program. Secretary Chao stated that “by consolidating programs, States will be empowered to train more workers; design a job training and service delivery system that trains workers for jobs in the 21st Century economy; rationalize the way they deliver workforce-related services; improve results; and reduce administrative overhead.”
Finally, Secretary Chao highlighted the administration’s support for Association Health Plans (AHPS), which “would allow small businesses, civic, faith-based, and community associations, and others to pool together through their trade and professional associations to provide health benefits for workers and their families.” She further explained that legislation to establish AHPs “is a key component of the President’s plan to improve access to quality, affordable health coverage for all Americans.”
During the question and answer session, many Democrats questioned the secretary about President Bush’s proposal to reform Social Security. In particular, Rep. Stephanie Tubbs Jones (D-OH) pointed out that a majority of women and minorities depend on Social Security as a retirement benefit and expressed her concern that under the Bush plan, Social Security would no longer be a “guaranteed benefit” for these groups. Secretary Chao responded that the administration planned to “shore up” the integrity of the Social Security financial system, but did not outline the president’s plan. Rep. Jones concluded that “private accounts” alone would not be enough to solve the problem.
