Is Elon's Empire Crumbling?

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Judge and lawmakers question the Trump administration's plan to gut Job Corps centers

CATHY BUSSEWITZ
June 05, 2025

Members of Congress and a federal judge are questioning the Trump administration's plan to shut down Job Corps centers nationwide and halt a residential career training program for low-income youth that was established more than 50 years ago.

The Department of Labor last week announced a nationwide "pause of operations" for dozens of Job Corps centers run by private contractors. The department cited an internal review that concluded the program was costly and had a low success rate.

The review also identified safety issues at the residential campuses. The Department of Labor said it would transition students and staff out of the locations by June 30.

The program was designed for teenagers and young adults who struggled to finish high school in traditional school settings and then go on to obtain training and find jobs. Participants received tuition-free housing, meals and health care.

Critics have argued that closing the campuses would leave young people homeless and deprive them of opportunities and hope. They also maintained the Trump administration did not have legal authority to suspend Job Corps because it was created by Congress.

Lawmakers asked Labor Secretary Lori Chavez-DeRemer about the decision when she appeared before the House Education and Workforce Committee on Thursday.

"Job Corps, which you know has bipartisan support in Congress, trains young, low-income people, and helps them find good-paying jobs and provides housing for a population that might otherwise be without a home," U.S. Rep. Bobby Scott said.

Scott, a Virginia Democrat, read from a letter Chavez-DeRemer wrote in support of Job Corps last year. The letter said the program increased participants' employment and wages, and decreased their reliance on public benefits.

"You've made a starkly abrupt shift from a champion to a destroyer of this important program," said Democratic Rep. Suzanne Bonamici of Oregon, adding that students in her district were distraught.

In response, Chavez-DeRemer said she recognized that only an act of Congress could eliminate Job Corps. She said the Labor Department had instead used its authority to halt the program's operations but planned to comply with a federal court order that temporarily blocked the action.

U.S. District Judge Andrew Carter of New York issued a temporary restraining order on Wednesday that prohibited the Labor Department from terminating jobs, removing students from the 99 contractor-run centers or eliminating the Job Corps program without congressional authorization.

The order was sought as part of a lawsuit filed Tuesday by the National Job Corps Association, a trade group which includes business, labor, volunteer and community organizations. The group alleged the Labor Department's decision would have disastrous consequences, including displacing tens of thousands of vulnerable young people and forcing mass layoffs.

During Thursday's House committee hearing, Scott asked several Job Corps students in attendance to stand.

"These students were on their way to getting a good job and earning a living wage. On behalf of them, I urge you to immediately reverse the decision to effectively shut down all Job Corps centers," Scott said.

Chavez-DeRemer responded that the Trump administration wanted to eliminate ineffective training interventions. The report released in April by the Labor Department's Employment and Training Administration said Job Corps operated at a $140 million deficit during the last fiscal year and had an average graduation rate of under 39%.

"Our recently released Job Corps transparency report showed that in 2023 alone, more than 14,000 serious incidents were reported at the Job Corps centers, including cases of sexual assault, physical violence, and drug use," Chavez-DeRemer said. "This program is failing to deliver safe and successful outcomes our young people deserve."

The National Job Corps Association maintained the statistics were misleading. It said the 14,000 serious incidents included power outages, inclement weather, athletic injuries that required treatment and adult students leaving campus without prior approva.

The group also said that Job Corps' graduation rates have historically been above 60%, but were depressed by COVID-19 policies during the year the Labor Department reviewed.

Seth Harris, senior fellow at the Burnes Center for Social Change at Northeastern University, said in an interview that Job Corps is wildly popular on Capitol Hill. He recalled having to slow down Job Corps due to funding challenges when he served as acting secretary of labor during former President Barack Obama's administration.

"I got angry calls from elected members of the House and Senate on both sides of the aisle," Harris said.

The Job Corps program was designed to help young people who were not succeeding in school or who had left school without a place to go, placing them in a residential setting outside their community and providing them with vocational training, he said.

The Labor Department shutting down Job Corps would be illegal because there's a process outlined for closing down the centers which includes publishing performance data, justifying the closure and allowing time for public comment and remediation, he said.

"This is plainly illegal," Harris said. "But it is entirely on brand for Donald Trump to beat up on poor kids, largely kids of color, who are trying to make their lives better."

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