[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] EXAMINING THE POLICIES AND PRIORITIES OF THE LABOR DEPARTMENT'S APPRENTICESHIP PROGRAM ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON HIGHER EDUCATION AND WORKFORCE INVESTMENT COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ HEARING HELD IN WASHINGTON, DC, NOVEMBER 20, 2019 __________ Serial No. 116-46 __________ Printed for the use of the Committee on Education and Labor [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: www.govinfo.gov or Committee address: https://edlabor.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 39-489 PDF WASHINGTON : 2021 ----------------------------------------------------------------------------------- COMMITTEE ON EDUCATION AND LABOR ROBERT C. ``BOBBY'' SCOTT, Virginia, Chairman Susan A. Davis, California Virginia Foxx, North Carolina, Raul M. Grijalva, Arizona Ranking Member Joe Courtney, Connecticut David P. Roe, Tennessee Marcia L. Fudge, Ohio Glenn Thompson, Pennsylvania Gregorio Kilili Camacho Sablan, Tim Walberg, Michigan Northern Mariana Islands Brett Guthrie, Kentucky Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon Glenn Grothman, Wisconsin Mark Takano, California Elise M. Stefanik, New York Alma S. Adams, North Carolina Rick W. Allen, Georgia Mark DeSaulnier, California Lloyd Smucker, Pennsylvania Donald Norcross, New Jersey Jim Banks, Indiana Pramila Jayapal, Washington Mark Walker, North Carolina Joseph D. Morelle, New York James Comer, Kentucky Susan Wild, Pennsylvania Ben Cline, Virginia Josh Harder, California Russ Fulcher, Idaho Lucy McBath, Georgia Van Taylor, Texas Kim Schrier, Washington Steve Watkins, Kansas Lauren Underwood, Illinois Ron Wright, Texas Jahana Hayes, Connecticut Daniel Meuser, Pennsylvania Donna E. Shalala, Florida Dusty Johnson, South Dakota Andy Levin, Michigan* Fred Keller, Pennsylvania Ilhan Omar, Minnesota Gregory F. Murphy, North Carolina David J. Trone, Maryland Haley M. Stevens, Michigan Susie Lee, Nevada Lori Trahan, Massachusetts Joaquin Castro, Texas * Vice-Chair Veronique Pluviose, Staff Director Brandon Renz, Minority Staff Director ------ SUBCOMMITTEE ON HIGHER EDUCATION AND WORKFORCE INVESTMENT SUSAN A. DAVIS, California, Chairwoman Joe Courtney, Connecticut Lloyd Smucker, Pennsylvania, Mark Takano, California Ranking Member Pramila Jayapal, Washington Brett Guthrie, Kentucky Josh Harder, California Glenn Grothman, Wisconsin Andy Levin, Michigan Elise Stefanik, New York Ilhan Omar, Minnesota Jim Banks, Indiana David Trone, Maryland Mark Walker, North Carolina Susie Lee, Nevada James Comer, Kentucky Lori Trahan, Massachusetts Ben Cline, Virginia Joaquin Castro, Texas Russ Fulcher, Idaho Raul M. Grijalva, Arizona Steve C. Watkins, Jr., Kansas Gregorio Kilili Camacho Sablan, Dan Meuser, Pennsylvania Northern Mariana Islands Gregory F. Murphy, North Carolina Suzanne Bonamici, Oregon Alma S. Adams, North Carolina Donald Norcross, New Jersey C O N T E N T S ---------- Page Hearing held on November 20, 2019................................ 1 Statement of Members: Davis, Hon. Susan A., Chairwoman, Subcommittee on Higher Education and Workforce Investment......................... 1 Prepared statement of.................................... 4 Smucker, Hon. Lloyd, Ranking Member, Subcommittee on Higher Education and Workforce Investment......................... 5 Prepared statement of.................................... 6 Statement of Witnesses: Pallasch, Mr. John,.......................................... 8 Prepared statement of.................................... 10 Additional Submissions: Jayapal, Hon. Pramila, a Representative in Congress from the State of Washington: Letter dated August 26, 2019 from the Attorney General of Washington............................................. 48 Letter dated November 18, 2019 from the Western Governors Association............................................ 54 Norcross, Hon. Donald, a Representative in Congress from the State of New Jersey: Letter from Victor Rodeia................................ 63 Letter from Steven Vellegas.............................. 64 Letter from Brent Brockley............................... 65 Letter from Dennis Smith................................. 66 Letter from Joshua Sherrard.............................. 67 Letter from Benjamin Stilson............................. 69 Letter from Christian Gailardo........................... 70 Letter from Larry Gibertson.............................. 72 Letter from Wesley Anderson.............................. 74 Letter from Raymond A. Smith III......................... 75 Letter from Jarett Dziarkowski........................... 77 Questions submitted for the record by: Chairwoman Davis......................................... 83 Fulcher, Hon. Russ, a Representative in Congress from the State of Idaho......................................... 89 Foxx, Hon. Virginia, a Representative in Congress from the State of North Carolina............................ 87 Harder, Hon. Josh, a Representative in Congress from the State of California.................................... 86 Levin, Hon. Andy, a Representative in Congress from the State of Minnesota..................................... 86 Norcross, Hon. Donald, a Representative in Congress from the State of New Jersey................................ 85 Scott, Hon. Robert C. ``Bobby'', a Representative in Congress from the State of Virginia.................... 79 Stefanik, Hon. Elise M., a Representative in Congress from the State of New York............................. 88 Trone, Hon. David, a Representative in Congress from the State of Maryland...................................... 87 Mr. Pallasch response to questions submitted for the record.. 90 EXAMINING THE POLICIES AND PRIORITIES OF THE LABOR DEPARTMENT'S APPRENTICESHIP PROGRAM ---------- Wednesday, November 20, 2019 House of Representatives, Subcommittee on Higher Education and Workforce Investment, Committee on Education and Labor Washington, D.C. ---------- The subcommittee met, pursuant to call, at 1:05 p.m., in Room 2175, Rayburn House Office Building. Hon. Susan A. Davis (Chairwoman of the committee) presiding. Present: Representatives Davis, Takano, Jayapal, Harder, Levin, Trone, Bonamici, Adams, Norcross, Smucker, Guthrie, Grothman, Walker, Comer, Watkins, and Murphy. Also Present: Representatives Scott, Foxx, Hayes, and Wild. Staff Present: Christian Haines, General Counsel -; Eli Hovland, Staff Assistant; Stephanie Lalle, Deputy Communications Director; Andre Lindsay, Staff Assistant; Jaria Martin, Clerk/Special Assistant to the Staff Director; Katie McClelland, Professional Staff; Kevin McDermott, Senior Labor Policy Advisor; Richard Miller, Director of Labor Policy; Max Moore, Office Aide; Janice Nsor, Oversight Counsel; Udochi Onwubiko, Labor Policy Counsel; Veronique Pluviose, Staff Director; Jonathan Walter, Labor Policy Fellow; Joshua Weisz, Communications Director; Cyrus Artz, Minority Parliamentarian; Courtney Butcher, Minority Director of Member Services and Coalitions; Dean Johnson, Minority Staff Assistant; Amy Raaf Jones, Minority Director of Education and Human Resources Policy; Audra McGeorge, Minority Communications Director; Jake Middlebrooks, Minority Professional Staff Member; Carlton Norwood, Minority Press Secretary; Chance Russell, Minority Legislative Assistant; and Mandy Schaumburg, Minority Chief Counsel and Deputy Director of Education Policy. Chairwoman Davis. Good afternoon. The Committee on Education and Labor will come to order and I welcome everybody. I note that a quorum is present. The committee is meeting today for an oversight hearing on the policies and priorities of the Labor Department's apprenticeship program. Pursuant to Committee Rule 7(c) opening statements are limited to the Chair and the Ranking Member, and this allows us to hear from our witnesses or from our witness sooner and provides all members with adequate time to ask questions. I recognize myself now for the purpose of making an opening statement. Today, we will examine the Department of Labor's policies and actions regarding our Nation's apprenticeship system. I want to welcome Assistant Secretary Pallasch to the committee. Thank you for being with us today, sir. The national apprenticeship system is, simply put, our Nation's most successful job training program. First authorized by the 1937 National Apprenticeship Act, Registered Apprenticeships provide hundreds of thousands of workers each year with access to paid, on-the-job learning opportunities in high-demand fields. These programs place workers in apprenticeships that offer wages that increase as apprentices build their skills and competencies. It offers nationally portable and stackable credentials that are widely recognized and valued by employers and offers advancement in a rewarding career path. In fact, according to the most DOL data, and I would say also cited in our witness' prepared statement, 94 percent of apprentices in Registered Apprenticeship programs successfully retain employment with an average starting salary of roughly 70,000 annually. At the same time, these programs help employers address the skills gap by building a pipeline of productive and talented workers who are more likely to remain at their jobs long term. The Registered Apprenticeship system has experienced tremendous growth with more than 600,000 new apprentices since 2017, showing that employers trust the strong quality standards that have made the Registered Apprenticeship system the gold standard in workforce training. Clearly, we should be building on the nationwide and bipartisan support for the Registered Apprenticeship, a system that has the public's trust. Unfortunately, under this administration, the Department of Labor is instead disregarding its core responsibility to support Registered Apprenticeships while irresponsibly moving forward on creating a separate and untested new program known as Industry-Recognized Apprenticeship Programs, or what has been referred to as IRAPs. The National Apprenticeship Act makes clear that the Labor Secretary alone has the authority to set quality standards for apprenticeship programs that safeguard the welfare of apprentices. And the act further requires the Secretary to cooperate with state apprenticeship agencies in doing so. Yet the IRAP model, which has been developed with little input from states, employers, or the public, actually eliminates the Secretary's responsibility to protect the welfare of apprentices through quality standards and safeguards. And IRAPs leave the 27 states and territories with their own apprenticeship agencies vulnerable to having multiple apprenticeship standards within their boundaries. And as a result, the apprenticeship may be subject to one set of standards for Registered Apprenticeship programs within a state, but also numerous different standards set by third parties, all under the name of apprenticeship. The Department has claimed that this new I-RAP system will not harm Registered Apprenticeships. On several occasions, the Department assured Congress that IRAPs would not divert funding away from Registered Apprenticeships to promote IRAPs. However, when the committee sought to clarify details, the Department provided inconsistent and contradictory answers. And then just recently, the Department admitted to taking at least $1.1 million that Congress specifically appropriated for high-quality Registered Apprenticeship programs to fund IRAPs. Press reports suggest that amount could actually be far higher, and we are looking to the Department for transparency that is long overdue. I am disappointed that the Department repeatedly misled this committee about its misuse of RA funds for IRAPs, Registered Apprenticeship funds. However, I am hopeful that the DOL Inspector General, who is investigating these discrepancies, will determine whether the Department violated the law by funding a program without appropriations from Congress. What we do know is that the reallocation of resources from the Registered Apprenticeship program has left state apprenticeship offices across the country without state directors. In fact, 6 out of the DOL's 25 offices of Apprenticeship in states across the country had no leadership for most of the past year, including in Alabama, Tennessee, Nevada, Oklahoma, Idaho, and Texas. Vacancies within the federal Office of Apprenticeship have also prohibited crucial operations, like streamlining the registration process and even ensuring implementation of nondiscrimination apprenticeship regulations. Despite all the resources expended to start this new I-RAP model, DOL itself admits that there is not one I-RAP currently in existence and has cancelled any guidance to describe what an IRAP might be. As I have said, the Registered Apprenticeship system has the potential, the great potential, to provide hundreds of thousands, if not millions, of Americans access to high-quality pathways that lead to the middle class and beyond. Yet to do so, the Department must fulfill its responsibility outlined in the National Apprenticeship Act to protect workers and provide high-quality apprenticeship opportunities that can empower them with the skills and credentials needed to be competitive in today's economy. Mr. Pallasch, before I close, I also wanted to acknowledge that this committee has been asking for more clarity on the Department's actions all year. But despite requests made in letters this February, hearings in May, more letters in June, briefings in August, September, and October, your agency waited until 9:30 last night to provide documentation responding to some, but not all, of our outstanding questions. And I would add an additional letter this morning. These actions show a lack of cooperation with Congress and a lack of transparency on the part of the department. And from my experience, this type of behavior typically means there is something to hide. These actions also show a lack of respect for this committee from the department and the Employment and Training Administration. So I hope this hearing will bring to light the many missing details of the department's actions, including the details that are still missing from the information provided to our committee last night. I hope that today's discussions will help both the Department of Labor and this committee refocus on what should be our common goal: strengthening the quality and variety of Registered Apprenticeship opportunities for all Americans. I now yield to Mr. Smucker for his opening statement. We are still looking for--we will be introducing you in just a moment, sir. Thank you. Mr. Smucker. [The statement of Chairwoman Davis follows:] Prepared Statement of Hon. Susan A. Davis, Chairwoman, Subcommittee on Higher Education and Workforce Investment Today, we will examine the Department of Labor's policies and actions regarding our nation's apprenticeship system. I want to welcome Assistant Secretary Pallasch to the Committee. Thank you for being with us today. The national apprenticeship system is, simply put, our nation's most successful job training program. First authorized by the 1937 National Apprenticeship Act, Registered Apprenticeships provide hundreds of thousands of workers each year with access to paid, on-the- job learning opportunities in high-demand fields. These programs place workers in apprenticeships that offer: * Wages that increase as apprentices build their skills and competencies; * Nationally portable and stackable credentials that are widely recognized and valued by employers; and, * Advancement in a rewarding career path. In fact, according to the most recent DOL data, 94 percent of apprentices in Registered Apprenticeship programs successfully retain employment, with an average starting salary of roughly $70,000 annually. At the same time, these programs help employers address the skills gap by building a pipeline of productive and talented workers who are more likely to remain at their jobs long-term. The Registered Apprenticeship system has experienced tremendous growth, with more than 600,0000 new apprentices since 2017, showing that employers trust the strong quality standards that have made the Registered Apprenticeship system the gold-standard in workforce training. Clearly, we should be building on the nationwide and bipartisan support for the Registered Apprenticeship, a system that has the public's trust. Unfortunately, under this Administration, the Department of Labor is instead disregarding its core responsibility to support Registered Apprenticeships, while irresponsibly moving forward on creating a separate and untested new program, known as Industry-Recognized Apprenticeship Programs, or I-RAPs. The National Apprenticeship Act makes clear that the Labor Secretary, alone, has the authority to set quality standards for apprenticeship programs that safeguard the welfare of apprentices. The Act further requires the Secretary to cooperate with state apprenticeship agencies in doing so. Yet, the I-RAP model, which has been developed with little input from states, employers, or the public, eliminates the Secretary's responsibility to protect the welfare of apprentices through quality standards and safeguards. And I-RAPs leave the 27 states and territories with their own apprenticeship agencies vulnerable to having multiple apprenticeship standards within their boundaries. As a result, an apprenticeship may be subject to one set of standards for Registered Apprenticeship Programs within a state, but also numerous different standards set by third parties - all under the name of apprenticeship. The Department has claimed that this new I-RAP system will not harm Registered Apprenticeships. On several occasions, the Department assured Congress that I-RAPs would not divert funding away from Registered Apprenticeships to promote I-RAPs. However, when the Committee sought to clarify details, the Department provided inconsistent and contradictory answers. Then, just recently, the Department admitted to taking at least $1.1 million dollars that Congress specifically appropriated for high- quality Registered Apprenticeship programs to fund I-RAPs. Press reports suggest that amount could actually be far higher, and we are looking to the Department for transparency that is long overdue. I am disappointed that the Department repeatedly misled this Committee about its misuse of RA funds for I- RAPs. However, I am hopeful that the DOL Inspector General, who is investigating these discrepancies, will determine whether the Department violated the law by funding a program without appropriations from Congress. What we do know is that the reallocation of resources from the Registered Apprenticeship program has left state apprenticeships offices across the country without State directors. In fact, six out of DOL's 25 offices of Apprenticeship in states across the country had no leadership for much of the past year, including Alabama, Tennessee, Nevada, Oklahoma, Idaho, and Texas. Vacancies within the federal Office of Apprenticeship have also prohibited crucial operations, like streamlining the registration process and even ensuring implementation of non-discrimination apprenticeship regulations. And despite all the resources expended to start this new I-RAP model, DOL itself admits there is not one I-RAP currently in existence and has canceled any guidance to describe what an I-RAP might be. As I have said, the Registered Apprenticeship system has the potential to provide hundreds of thousands--if not millions--of Americans access high-quality pathways that lead to the middle class and beyond. Yet, to do so, the Department must fulfill its responsibility-- outlined in the National Apprenticeship Act--to protect workers and provide high-quality apprenticeship opportunities that can empower them with the skills and credentials needed to be competitive in today's economy. Mr. Pallasch, before I close, I also want to acknowledge that this Committee has been asking for more clarity on the Department's actions all year. But despite requests made in letters this February, hearings in May, more letters in June, and briefings in August, September and October, your agency waited until 9:30 last night to provide documentation responding to some, but not all, of our outstanding questions. These actions show a lack of cooperation with Congress and a lack transparency on the part of the Department, and from my experience, this type of behavior typically means there is something to hide. These actions also show a lack of respect for this Committee from the Department and the Employment and Training Administration. I hope this hearing will bring to light the many missing details of the Department's actions, including the details that are still missing from the information provided to our Committee last night. I hope that today's discussions will help both the Department of Labor and this Committee refocus on what should be our common goal: strengthening the quality and variety of Registered Apprenticeship opportunities for all Americans. I now yield to the Ranking Member, Mr. Smucker, for his opening statement. ______ Mr. Smucker. I would like to thank the Chair for yielding. Secretary Pallasch, good to see you. I believe we just spent some time together at one of the state prisons in Chester near my district in Pennsylvania. I appreciated you being part of what really was quite an amazing event there, talking about what we can do to ensure that those who are incarcerated, when they leave the prisons, have the skills to enter the workforce. And so you were a significant part of that event and I appreciate it, and it is good to see you here again. On the heels of National Apprenticeship Week, today we will hear from the Secretary from the Labor Department on their apprenticeship programs, which I think we agree can help to energize the U.S. workforce. By supporting apprenticeships and other earn-as-you-learn programs, we can help change the too often held misconception that a baccalaureate degree is the only pathway to a successful life. Thanks to some of the pro-growth policies that have been ushered in by Republican leadership in Congress and the White House, our economy is booming. Unemployment is at historic lows. And, in fact, we now have 7 million jobs that remain unfilled across the country. Apprenticeships offer one of the strongest solutions to closing this skills gap and strengthening the American workforce. Nothing can prepare a student quite like on-the-job experience and apprenticeships are a tried and true method to help students enter the workforce with the skills they need to succeed and to achieve their own American dream. In fact, according to the Department of Labor, 94 percent of apprentices retain employment after completing their apprenticeship program and the average starting salary after completion is around $70,000. Regrettably, a 2018 survey of U.S. employers showed that nearly half of all job creators struggle to hire employees with the right skills for the job and for the sixth year running skilled trade jobs continue to be the hardest position to fill all over the world really. Registered apprenticeships are one tool that we can use to strengthen the workforce, but it is important to give recognition to increasingly innovative and growing employer-led apprenticeship programs. Employer-led apprenticeship programs account for more than 80 percent of all apprenticeship programs nationwide. Employers know best what skills their employees need to excel in the workplace, and Congress should encourage employer- led innovation in the apprenticeship space. That is why I certainly support efforts to cut the regulatory red tape that prevents so many employers from revolutionizing the way that we integrate the education system with the workforce development system. We recently had a bipartisan roundtable in regards to apprenticeship and heard from employers about the need to be able to respond quickly and bring employees up to speed quickly and the flexibility that is required for them to be able to do that effectively. So I would like to thank the Trump administration, the Task Force on Apprenticeship Expansion, which was created to address this very issue. Among other suggestions the final report of the task force recommended reducing the regulatory burden faced by businesses, allowing them to be flexible in the program requirements to meet the varying needs of different industries. So I applaud you and the Trump administration for this commendable effort to close our widening skills gap with commonsense solutions. I also do look forward to pursuing a productive dialogue today about apprenticeships and taking time to address recent reports of misappropriated funds. I want to first and foremost go on the record that Congress must ensure that hard-earned taxpayer dollars are used efficiently and effectively. So I look forward to hearing from the Department today about the steps that they have taken to conduct a thorough review of its accounts. I know that we would all like to be reassured that the Department has been able to correct any issues discovered in that review so that they will not be repeated. But I hope that this committee can also take on its responsibility to work towards solutions that will increase access to career-changing opportunities. Workforce programs like apprenticeships will aid in closing the skills gaps and putting more Americans to work. So I look forward to hearing from today's witness and learning more about the innovative ways that we can help provide students with skills-based education and in-demand jobs through apprenticeship programs. Thank you, Madam Chair. [The statement of Mr. Smucker follows:] Prepared Statement of Hon. Lloyd Smucker, Ranking Member, Subcommittee on Higher Education and Workforce Investment On the heels of National Apprenticeship week, today we will hear from the Labor Department on their apprenticeship programs, which can help energize the U.S. workforce. By supporting apprenticeships and other earn as you learn programs, we can help change the misconception that a baccalaureate degree is the only pathway to a successful life. Thanks to pro-growth policies ushered in by Republican leadership in Congress and the White House, our economy is booming and unemployment is at historic lows. However, more than seven million jobs remain unfilled across the country. Apprenticeships offer one of the strongest solutions to closing this skills gap and strengthening the American workforce. Nothing can prepare a student quite like on-the-job experience, and apprenticeships are a tried-and-true method to help students enter the workforce with the skills they need to succeed and achieve the American Dream. In fact, according to the Department of Labor, 94 percent of apprentices retain employment after completing an apprenticeship program and the average starting salary after completion is $70,000. Regrettably, a 2018 survey of U.S. employers showed that nearly half of all job creators struggle to hire employees with the right skills for the job, and for the sixth year running, skilled trade jobs continue to be the hardest positions to fill all over the world. Registered apprenticeships are one tool we can use to strengthen the workforce, but it's important to give recognition to increasingly innovative and growing employer-led apprenticeship programs. Employer- led apprenticeship programs account for more than 80 percent of all apprenticeship programs nationwide. Employers know what skills their employees need to excel in the workplace, and Congress should encourage employer-led innovation in the apprenticeship space. That's why I support efforts to cut the regulatory red tape that prevents so many employers from revolutionizing the way we integrate the education system with the workforce development system. Thanks to the Trump administration, the Task Force on Apprenticeship Expansion was created to address this very issue. Among other suggestions, the final report of the task force recommended reducing the regulatory burden faced by businesses, allowing them to be flexible in their program requirements to meet the varying needs of different industries. I applaud the Trump Administration for this commendable effort to close our widening skills gap with commonsense solutions. Instead of pursuing a productive dialogue today about apprenticeship programs, many of my Democratic colleagues will spend their time talking about recent reports of misappropriated funds. I want to first and foremost go on the record that Congress must ensure that hard-earned taxpayer dollars are used efficiently and effectively. I look forward to hearing from the Department about the steps they have taken to conduct a thorough review of its accounts. I know that we would all like to be reassured that the Department has been able to correct the issues discovered in that review so that they will not be repeated. This committee has a responsibility to work towards solutions that will increase access to career-changing opportunities. Workforce programs like apprenticeships will aid in closing the skills gap and putting more Americans to work. I look forward to hearing from today's witness and learning more about the innovative ways that we can help provide students with skills-based education and in-demand jobs through apprenticeship programs. ______ Chairwoman Davis. Thank you, Mr. Smucker. Without objection, all other members who wish to insert written statements into the record may do so by submitting them to the Committee Clerk electronically in Microsoft Word format by 5 p.m. on December 4, 2019. I will now go on to introduce our witness. I wanted to check, Mr. Guthrie, did you want to-- Mr. Guthrie. Thanks. I just welcome Assistant Secretary Pallasch here. He worked in Kentucky and appreciating all the good effort that he did in Kentucky. And I appreciate being here to hear his testimony and ask questions today, so thank you. Chairwoman Davis. Thank you very much. And I will just formally, Assistant Secretary John Pallasch is responsible for overseeing the policies and priorities of the Employment and Training Administration, which administers federal government job training and worker dislocation programs, including the Office of Apprenticeship, federal grants to states for public employment service programs, and unemployment insurance benefits. And I want to administer the oath to him pursuant to Committee Rule 7(d). The witness will please stand and raise your right hand. [Witness sworn.] Chairwoman Davis. Let the record show that the witness answered in the affirmative. Assistant Secretary Pallasch, we appreciate your being here today and look forward to your testimony. I wanted to just remind you that we have read your written statement and it will appear in full in the hearing record. Pursuant to Committee Rule 7(d) and committee practice you are asked to limit your oral presentation to a 5-minute summary of your written statement. Before you begin your testimony, please remember to press the button on the microphone in front of you so that it will turn on and the members can hear you. As you begin to speak the light in front of you will turn green and after 4 minutes the light will turn yellow to signal that you have 1-minute remaining. When the light turns red, your 5 minutes have expired and we ask that you please wrap up. We will let Mr. Pallasch provide his testimony before we move to member questions. And when answering a question please remember, again, to turn your microphone on. I now recognize Assistant Secretary Pallasch. Welcome. TESTIMONY OF JOHN PALLASCH, ASSISTANT SECRETARY FOR EMPLOYMENT AND TRAINING, UNITED STATES DEPARTMENT OF LABOR[NJ1] Mr. Pallasch. Chairwoman Davis, Ranking Member Smucker, Chair Scott, members of the subcommittee, thank you for the invitation to testify today. As the Assistant Secretary of the Employment and Training Administration, I'm keenly aware of both the challenges we face and the promise our agency has to help grow America's workforce. Successfully helping people find a job is only possible because of the strong economy created by this administration's focus on removing barriers to opportunity for all Americans. Since January 2017, more than 6 million jobs have been added to the economy. The unemployment rate has remained at or below 4 percent for 20 straight months. The African American and Hispanic unemployment rate have reached historic lows. The unemployment for adult women has hit its lowest rate since 1953. And the unemployment rate for those without a high school diploma has also fallen to historic lows. And in a remarkable achievement, for 19 months there have been more job openings in the United States than there are job seekers, a testament to this administration's pro-growth agenda. The mission of ETA is to contribute to the more efficient functioning of the U.S. labor market by providing high-quality workforce development, labor market information, income maintenance services, primarily through state and local workforce development systems. As with many of the programs at ETA, our mission in apprenticeships is to help develop the next generation of worker skills. Around the world and especially in Europe, apprenticeships serve as a strong foundation of the economy. In Austria, Germany, and Switzerland, for instance, 55 to 70 percent of young people begin their career with an apprenticeship. In contrast, apprenticeships make up only a third of a percent of the overall workforce in America. There are several ways that our agency is aggressively working towards expanding apprenticeships. We've invested in states, industry partners, and intermediaries to help fuel historic growth in apprenticeships. This year the department also launched efforts to expand apprenticeship pathways to equip workers with the skills needed for our--the next generation economy by committing $100 million for our Closing the Skills Gap grant opportunity. We emphasize skill-building because, as Ranking Member Smucker mentioned, after the completion of a registered apprenticeship, the average starting salary is $70,000 and 94 percent of apprentices will retain employment. These investments are paying dividends. Since January 2017, we've added more than 650,000 new apprentices. In FY '18 alone, we added an all-time high of 238,000 new apprentices, only to be surpassed in 2019, with more than 250,000 new apprentices added, including more than 80,000 in the last quarter alone, both record highs. This administration's commitment to growing the apprenticeship model cannot be disputed. As I conclude my testimony, I want to emphasize the important work being done by ETA and the importance of carrying out this mission in a way that is faithful to the American taxpayer. Shortly after arriving at the Department, I was made aware of a possible misapplication of training and employment services, or TES, appropriated funds. TES funds are appropriated to expand opportunities related to the Registered Apprenticeship Program. Upon my arrival on July 23rd of this year, it was brought to my attention that between mid-2018 and early 2019, TES funds may have been expended to directly support activities related to Industry-Recognized Apprenticeship Programs. Immediately upon receiving this information, I directed ETA to ascertain the facts and take appropriate corrective action. ETA, in consultation with career and noncareer staff from the Solicitor's Office, the departmental budget center, the Office of Apprenticeship, and the ETA front office reviewed the work that had been performed under three existing apprenticeship contracts. Working closely with a capable team from the Office of the Solicitor, the Departmental Budget Center, and the Office of Apprenticeship, we ensured that expenditures for this work were obligated against the proper appropriation accounts. Based on the facts known to us at this time, we believe the issue has now been corrected. While this particular use of test funds predated my arrival at the department, as head of ETA I can assure the members of this subcommittee that this is not an issue that I take lightly. Following referral requests from both Congress and ETA, the Office of the Inspector General's investigating this matter. And ETA intends to fully cooperate with the OIG to ensure full transparency and identify corrective measures that would avoid a similar situation in the future. As we move forward, I'm committed to ensuring funding is used appropriately at all times to support ETA's programs. As the Assistant Secretary of Employment and Training, it is an honor to serve the American people alongside the hardworking staff at the Department of Labor. I look forward to working with Congress to lift up all Americans through the dignity of work. Thank you. [The statement of Mr. Pallasch follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairwoman Davis. Thank you. Thank you very much. Under Committee Rule 8(a) we will now question our witness under the 5-minute rule. And as Chair I will ask the first question and then yield to the Ranking Member. We will then alternate between the parties. I want to recognize myself now for 5 minutes. Mr. Pallasch, as you know, the department has made clear to our committee through congressional testimony and questions for the record and responses to letters that the appropriations language is clear. Funds appropriated for apprenticeships are meant to expand opportunities related to Registered Apprenticeships and that DOL was not using funds for I-RAP establishment. Congressional intent was made even more clear this spring when over 20 Republicans joined Democrats in voting down an appropriations amendment aimed at opening up apprenticeship funding for IRAPs. And yet, we now know that the DOL has publicly admitted that they have used at least $1.1 million in Registered Apprenticeship funds on IRAPs and the DOL Inspector General is now auditing these actions, as you have mentioned. I am sure you know that knowingly and willingly making false statements or representations to Congress is a violation of Title 18. And I would like to state for the record that DOL has yet to correct misinformation previously provided to this committee, including communications to me in response to letters and questions for the record. As I mentioned in my opening statement, your agency provided our committee late last night documents attempting to demonstrate that actions have been fixed--have been taken to fix this misuse of funds, but, honestly, I am having difficulty believing that these actions have actually been fixed. The documents provided to our committee last night admitted that there are no IRAPs actually in existence. So I am having a hard time understanding how this administration is defining apprenticeship generally. Where is the cutoff line between what is and is not an apprenticeship? Could you answer that, sir? Mr. Pallasch. Yes. Thank you very much for your question, Chairwoman Davis. As head of ETA, I am tasked with increasing opportunities across all of our job-training programs. That includes the Registered Apprenticeship Program as well as any of the other job-training programs. The IRAP NPRM, the Notice of Proposed Rulemaking, intended to increase additional opportunities within the apprenticeship scope. As we've all discussed here today, the apprenticeship model is one that's recognized by all as a successful model. So in an attempt to grow opportunities within the apprenticeship space, in order to better closely match the performance that we see in our European colleagues, we've tried to create a new model. We've tried to create a new pathway, if you will, for individuals to enter the workforce. Chairwoman Davis. Could you--well, I will go on here, but I still am not hearing quite where you set that line in terms of apprenticeships, but I will go on. Because I am wondering if it concerns you that the millions of dollars that are being used by the contractors for Registered Apprenticeships results in only 41 referrals for programs to become Registered Apprenticeships. So, you know, the question here is whether DOL is somehow now prioritizing IRAPs over Registered Apprenticeships even with Registered Apprenticeship funds. What do we know about the Office of IRAPs? How is it being staffed? How many people are there? And where do potential applicants go? If somebody is interested and expressing an interest and wanting to move forward, there is a sense here that they could be directed to a newly created and apparently fully staffed Office of IRAPs. Could you explain that to us? Mr. Pallasch. Yes. Chairwoman Davis, I'm not familiar with the stat that you referenced, the 41 new Registered Apprenticeship programs. Currently, there are 23,000 Registered Apprenticeship programs and the Department added 3,000 in 2018 alone. So we continue to aggressively pursue Registered Apprenticeships. I've worked very closely with the head of the Office of Apprenticeship to further streamline and increase the awareness of the Registered program. We have taken a number of steps in order to release the--reduce the burdens on employers who are looking to establish Registered Apprenticeship programs. So our commitment to that is very clear. With regards to the IRAP office that you mentioned, within the Office of Apprenticeship there is a division of Industry- Recognized Apprenticeship Program. There are a handful of staff in that office who work somewhat on the IRAP Program, but also on the Registered program, as well. Obviously, as we're in an active Notice and Comment Rulemaking, there are individuals who need to be working through the comments that we receive, so that's the majority of what that office is currently doing, is working on that NPRM with the hopes of publishing a final rule in the very near future. Chairwoman Davis. Do you have confidence? Because I think you mentioned that you really don't have any idea how all this happened. And I am just wondering do you think that there are clear lines now that you are going to be able to distinguish between how those funds are appropriately used? Mr. Pallasch. Yes, I think the lines are very clear. I have made those lines known to our staff. We have made those lines known to our contractor. There's a very clear distinction between what I referred to in my opening statement as the TES funds, the Training and Employment Services funds-- Chairwoman Davis. We will look-- Mr. Pallasch. I'm sorry? Chairwoman Davis. I am sorry. My time is running out, so I just wanted to clarify that I would look forward to your responses by the end of the next week to the questions that we have already asked. That would be helpful. And just be sure that we know that the standards that are being set are clear and that are being utilized. The whole idea, of course, of the National Apprenticeship Act is to be sure that we are protecting the welfare of apprentices. And is that something that you have a clear understanding of? Mr. Pallasch. Yes. Chairwoman Davis. Okay. Thank you very much. I appreciate your responses and want to go on to the Ranking Member. And in this case Mr. Comer is going to be first. Thank you. Mr. Comer. Thank you, Madam Chairman, and good to have a fellow Kentuckian here today. You mentioned in your opening statement that 55 to 70 percent of European countries take advantage of apprenticeships in the first step of their careers. Here in the U.S. that figure is much, much lower than that. It seems to me that for whatever reason there is a stigma in the United States attached with apprenticeships versus going to the old route of going to get a regular 4-year bachelor's degree in a regional university. What benefits do you see from youth apprenticeship programs that help them add value, you know, in the workplace versus a regular 4-year bachelor's degree? Mr. Pallasch. I believe that there is huge value in both youth apprenticeships or pre-apprenticeships and in the apprenticeship model in general. In the FY 2019 spending plan for the Office of the--or Office of Apprenticeship we've committed $42-1/2 million to just that, to explore and expand youth apprenticeships across the country. We've been very aggressive with the Registered Apprenticeship Program. You indicated that there was a stigma, that there is a misconception about the Registered program. Most folks think of it very much as a construction-only program. Construction does represent about 65 percent of the Registered program, but there's an additional 35 percent in other industries. And what we are working with the Office of Apprenticeship to do is to identify those states who have expanded outside of the construction world to see if we can't use those models and replicate them across the country. Mr. Comer. What can we do to change the minds of parents and some educators that apprenticeships is a better path for I would say most young Americans? Any time I go to a school or talk to parents or talk to different groups, you know, I tell the story that I am sure the majority of those of us in Congress hear from our employers every day is that their biggest challenge in business today is finding workers. They can grow their business, they can invest and make--invest additional capital, which is what we want to grow the economy. But the one thing holding them back more than anything is the hardship of finding skilled, qualified workers. But when you talk to students about their futures and you say, well, you know, you can go to college and you can get a 4- year degree and have a lot of student loan debt and you may or may not have a lot of value in that degree when you graduate versus you can go and do apprenticeships and get certifications and you can, you know, through a lot of communities get through with little to no debt and you have immediate quality job offers. What can we do to change the stigma to help parents realize that this is, in many cases, a better opportunity to go the apprenticeship route and the certification route versus a regular traditional 4-year degree? Mr. Pallasch. I appreciate your question because that's one of the largest challenges we have at the Department of Labor is trying to create, as I referenced earlier, this idea of multiple pathways, that there are any number of pathways that an individual can follow into the workforce, whether that's an apprenticeship model, whether that's a 2-year degree, whether that's a certificate program, whether that's a 4-year degree. That's very much going to be based on the individual and the resources and the skills that they have, but we need to make sure that we are creating those opportunities, so should a high school student want to begin a pre-apprenticeship program even before graduating high school, we need to help to foster that. We need to allow them to pursue that if they've decided for one reason or another that a 4-year degree is not in their future and not something they're interested in. We've got to make sure that they understand the benefits of the $70,000 starting salary that we talked about earlier and the 94 percent retention rate. And share that with not just students, but with their parents to say that there's a viable path forward to family-sustaining wages through any number of pathways. Mr. Comer. Well, I appreciate the work that the Trump administration is doing in focusing on this and trying to develop more apprenticeships. And really, we in Congress need to all work together in a unified voice to educate today's parents and school administrators that this is, in many cases, a better path to go for the future of those students. So I appreciate what you are doing and look forward to working with you in the future. And, Madam Chair, I yield the balance of my time back. Chairwoman Davis. Thank you. Ms. Jayapal. Ms. Jayapal. Thank you, Madam Chair. Apprenticeship programs are proven to help workers move into skilled middle- class jobs and we know that these programs work better than the alternative. In my home state of Washington these Registered Apprenticeship programs outperform nonunion apprenticeship programs across the board, including the inclusion and performance of women and people of color. But the Trump Department of Labor has proposed hasty and sweeping changes that lower the protections in place for these very successful apprenticeship programs. Mr. Pallasch, the bipartisan Western Governors Association issued a formal letter to the DOL in response to this proposal. Among many other objections, they expressed concerns that the Trump DOL's proposal has, and I quote, ``no strong requirements that employers abide by current regulations, including apprentice wage progressions and working conditions, program length, and equal employment opportunity requirements.'' In two sentences, how do you respond to the association's concerns? Mr. Pallasch. Thank you, Representative, for your question. Unfortunately, because we're in Notice and Comment Rulemaking, I can't respond to specific questions and specific issues within the rule. But what I can share with you is a commitment that we have to serve and to bring underrepresented populations into not just traditional, but nontraditional apprenticeship programs, as well. Ms. Jayapal. Madam Chair, I seek unanimous consent to enter the following reports into the record, both of which express similar concerns about the Trump DOL's proposal. That is the Western Governors Association comments and the Attorney General of Washington comments regarding the apprenticeship programs. Chairwoman Davis. So ordered. Ms. Jayapal. Thank you. I also have concerns with the fact that DOL is not implementing Registered Apprenticeships according to the regulations currently in place. Right now states create affirmative action plans for their apprenticeship programs, programs that DOL must then approve. Mr. Pallasch, how many of the 27 state apprenticeship agency plans have gotten review from your office and how many have been approved? Mr. Pallasch. I apologize, I don't have that information with me today, but I'm happy to provide that information to you. Ms. Jayapal. I would appreciate that. It seems like a very important thing for the Assistant Secretary of Labor for Employment and Training to have. It is my understanding that the DOL is understaffing the Registered Apprenticeship department, which is in charge of ensuring protections for Registered Apprenticeships. Instead, your department has diverted resources to work on unregistered, nonunion industry apprenticeship programs even though these programs are unauthorized and unappropriated for. How many staff are dedicated to oversight of the Equal Opportunity requirements? And how many staff would be needed to complete the reviews that your department is required to perform by the end of this year? Mr. Pallasch. So the current staffing level, Representative, within Office of Apprenticeship is 122. The ceiling, the FTE ceiling, for that office is 141. Since I began with ETA back in July, I've been very aggressive not just with the Office of Apprenticeship, but with all the programs to ensure that we are backfilling any and all vacancies. So I can assure you, we are working aggressively to fill not only any vacancies within Office of Apprenticeship, but across ETA. With regards to your specific questions, as I mentioned earlier, there is a Division of Industry-Recognized Apprenticeship Program within the Office of Apprenticeship, which, I believe, has nine staff who part-time are working on the I-RAP program, part-time working on the Registered program. The rest of the staff within the Office of Apprenticeship are dedicated to the Registered Apprenticeship Program. Ms. Jayapal. And so the oversight of the Equal Opportunity requirements, what is the total number there? You gave me a lot of numbers and I am trying to figure out which one answers my question. Mr. Pallasch. Understood. I don't know that I have a specific staff breakdown for the EEO requirements, but I can certainly get that for you. Ms. Jayapal. Okay. And in terms of the oversight of the entire Registered Apprenticeship Program how many staff are dedicated to those activities? Mr. Pallasch. Again, so if we work under our current onboard strength of 121 and we remove out partial staff from the Division of Industry-Recognized Apprenticeship Program, somewhere around 112, 115 would be dedicated specifically to the Registered program. Ms. Jayapal. And what exactly are you doing to conduct oversight of the entire Registered Apprenticeship system? Mr. Pallasch. So within the Office of Apprenticeship, as you may know, at the state level there's both Office of Apprenticeship Registered programs and then there are what are called state apprenticeship agency programs. So in roughly half the states around the country ETA has a state director, an Office of Apprenticeship state director, who's responsible for the Registered program within that state; responsible for working with employers; standing up programs; working on competency frameworks. And the other half of the country, that's handled by the state through the state apprenticeship agency. Ms. Jayapal. Okay. I just want to get in one question. I only have 5 seconds. Will you commit to providing to me and this committee in the next week a detailed explanation and plan for how your department will comply with its responsibilities to conduct oversight of the Registered Apprenticeship system, including prompt review of all affirmative action plans? Mr. Pallasch. I can commit that we will work with you on this issue. This appears to be of great importance to you, so I commit to working with you on that, yes. Ms. Jayapal. So within a week you will provide me with updated information and we can begin that conversation? Mr. Pallasch. It wouldn't be fair for me to--I don't know the time that it will take us to pull that information together, but I certainly will work with you and your staff. Ms. Jayapal. Thank you, Mr. Pallasch. Yield back. Chairwoman Davis. Mr. Guthrie. Mr. Guthrie. Thank you very much. Hey, it is great to have you here. It is great to have you here in Washington. I know you did, as I said before, a good job back home as executive director of Kentucky's Department of Labor and appreciate your public service. And I will start with like every day hardworking Americans search for good-paying jobs. Many Americans find a pathway to good-paying jobs through apprenticeship programs that provide real earn-and-learn opportunities that often turn into careers. For workers, apprenticeships are a chance to learn technical skills alongside seasoned industry professionals. That is why I helped introduce, along with many members of this committee, several members of this committee, the Partners Act, which will allow small and medium-sized businesses to join together to support apprenticeship programs. I am also currently working on a bill to create a Registered Apprenticeship Program to help address the shortage of educators across the country. So the questions for you, Mr. Secretary, we know that apprenticeships work for students and employers. Therefore, I strongly believe Congress must find ways to best facilitate the apprenticeship system. During your time serving as executive director of Kentucky's Department of Labor's Office of Employment and Training, what feedback did you receive from employers participating in the Registered Apprenticeship system? And how are you using that information to improve apprenticeships broadly speaking? Mr. Pallasch. Thank you very much for your question, Representative Guthrie. Two of the major complaints that I heard while in Kentucky was the burden, the paperwork burden in the application process itself. And then the other issue that was consistently raised with me was the idea of how do we transition from a time-based model to a competency-based model within the apprenticeship program? Traditionally, the Registered Apprenticeship application was around 65 pages. Since coming to Washington, working with the Office of Apprenticeship we've reduced that down to 12 pages, so a 70 percent reduction in the size of the application. With regards to the transition from time-based competency to a--I'm sorry, from time-based models to a competency-based model we've reduced that time from around 90 days down to 14. What we were learning was that if an individual wanted to change a registered program from time-based to competency- based, they would essentially have to go back to the beginning and start over. And what we've done is we've created a fast track that allows them to more easily do that. So that just creates more apprenticeable occupations that are available for any employer to take advantage of. Mr. Guthrie. Okay. Thank you very much. And also, I know we are looking at criminal justice reform and it is important that when people have the opportunity to leave the justice system that they have opportunities before them. And so I know in your testimony you mentioned that the department is committed to supporting second chances for those transitioning back into society from the criminal justice system. I believe it is important to support collaboration among state leaders to create smooth transitions for these individuals, and Kentucky has already begun these efforts. Given your experiences, what have been the most successful methods for ensuring that these individuals are able to reintegrate into the workforce in their communities? And what can Congress do to support these efforts? Mr. Pallasch. So one of the things that we were able to do in Kentucky was working with the warden of the North Point Prison in Lexington, and he allowed us, as the Employment and Training Administration, to come in and provide training, job training, workforce training to the inmates while in the prison. This is an issue, as Ranking Member Smucker mentioned, we discussed with the folks up at the Chester State Correctional Facility earlier this month. Seeing how we can help get folks from either the Pennsylvania workforce system or the local workforce system into the prisons to begin working with the incarcerated population while they're still in prison. So being as proactive as we can rather than waiting for them to achieve reentry, can we not work with them while they're incarcerated? So that to me is one way that we can be far more proactive and far more effective is if we're able to get in and work with the inmates in their facilities. Mr. Guthrie. How can Congress help with that? Mr. Pallasch. So there's-- Mr. Guthrie. There is a lot of at state. There is a lot at state prisons, but there are Federal prisons, as well. Mr. Pallasch. Yeah. So it's a little bit trickier with the state and the Federal split. As you may know, with state prisons most of the inmates are somewhat local, whereas Federal prisons you may be coming from another state, you may be coming from the other side of the country. But with the state prisons it's very much usually local individuals, so there's a local tie to that community. And that local workforce board has a vested interest in making sure that those individuals, when they come out and reenter that local community, are prepared to work. So as with most of the workforce system, I think this is very much a local issue and a local-driven issue of how can local workforce boards and state workforce boards work with state Offices of Correction to ensure that there's a linkage between workforce training and inmates while in prison. Mr. Guthrie. Okay, thank you. My time just expired, so I appreciate your answers and appreciate you being here. I yield back. Chairwoman Davis. Thank you. Ms. Bonamici. Ms. Bonamici. Thank you, Chairwoman Davis and Ranking Member Smucker, and thank you to our witness for being here. Thank you, also, to Mr. Guthrie for mentioning the Partners Act. I have enjoyed working with you on that. I have heard from many people across Oregon who have told me that Registered Apprenticeships have changed their lives for the past several years. I have led more than 100 of my colleagues in urging the Appropriations Committee to increase Federal investments for these programs. So I am extremely concerned about reports showing that the department of Labor disregarded congressional intent when spending these dollars. And I align myself with the remarks of Chairwoman Davis regarding our disappointment with receiving responses late last night and early this morning. I still have some questions. In a recent call with Committee Staff, the department admitted to using $1.1 million of funds appropriated for Registered Apprenticeships to support IRAPs. And this was confirmed by a Department of Labor spokesperson in a November 6, 2019, article in Bloomberg Law. Chairwoman Davis, I request unanimous consent to enter this article into the record. Chairwoman Davis. So ordered. Ms. Bonamici. Thank you. This suggests that the department knowingly violated the purpose statue which requires that agencies apply appropriations only to the purposes for which they were made. So, Assistant Secretary Pallasch, the department did use $1.1 million for IRAPs that was appropriated for Registered Apprenticeships, is that correct? Mr. Pallasch. Representative Bonamici, what happened was is there was a misapplication of that funding. As I mentioned-- Ms. Bonamici. So I want to reclaim my time and just ask is it correct that the department used $1.1 million for IRAPs that was appropriated for Registered Apprenticeships? Mr. Pallasch. There was $1.1 million in funding misapplied to the TES account. Ms. Bonamici. And was that amount that was misappropriated limited to $1.1 million? Mr. Pallasch. Yes. Ms. Bonamici. What is the total amount of money that the department has spent or obligated to be spent on IRAPs, and that includes grants, personnel, funding that was provided by incidental benefit? And just to clarify, I am not just talking about the $1.1 million that was misused. What is the total amount of Department of Labor dollars that have been spent on IRAPs? Mr. Pallasch. So, Representative, that's a difficult number to come up with because of the nature of the program administration appropriation. There's broad discretion for agency and agency direction to use that PA funding, so it's very difficult for us to disaggregate out the I-RAP from that program administration account because it serves not only the Office of Apprenticeship, but all of the ETA programs. Ms. Bonamici. Well, I would submit, Mr. Assistant Secretary, that if it is--just because it is difficult doesn't mean that you shouldn't do it. And we need to know how much of that appropriated funding has gone to IRAPs. It is my understanding that there is a separate office to create IRAPs. Is the department--with nine staff assigned. Is the department tracking all of the costs associated with creating IRAPs? Mr. Pallasch. Again, Representative, it's difficult from a budgetary standpoint, not from a programmatic standpoint. It's difficult from a budgetary standpoint for the department or ETA to track spending within the program administration account because of the flexible nature of that account. Ms. Bonamici. And, again, just because it is difficult doesn't mean that it shouldn't be done. And it is my understanding that the department has admitted to using PA funds to replace the misappropriated money that was spent on IRAPs. Of that amount how much of the program administration, or PA, funds has the department spent on IRAPs? Mr. Pallasch. Again, if you're asking how much of the program administration funds was used for the misapplied TES account, that's the $1.1 million. Ms. Bonamici. I am asking how much the department has spent of PA funds on IRAPs. Mr. Pallasch. Again, that's a figure that budgetarily we just--we can't disaggregate. Ms. Bonamici. Has the department accounted for all of the appropriated funds that were misused? Mr. Pallasch. Yes. To my knowledge, the TES account has been made whole. Ms. Bonamici. Thank you. I remain concerned about how the department has used funding that was appropriated by Congress for Registered Apprenticeship programs for IRAPs, and I hope we can get some more complete answers from you on the record. But there are a few initiatives created by the Obama administration and continued under this administration that have supported Registered Apprenticeships. For example, the Industry and Equity Intermediary Partnership supported more than 20,000 Registered Apprentices in Fiscal Year 2019 alone, including intermediaries that created new apprenticeship programs. So does providing funding to intermediaries help scale up and expand existing apprenticeship initiatives and increase the number of apprentices across the country? Mr. Pallasch. Yes. We believe the use of intermediaries not only scales up apprentices, but it also helps us with the underrepresented populations that I referred to earlier, bringing more women into apprenticeships, more underrepresented populations. Ms. Bonamici. Thank you. We have in Oregon, Oregon Tradeswomen which is doing a great job of diversifying the workforce. And I just had a roundtable conversation with several apprentices and they have very compelling stories. So, again, I will be submitting questions for the record to see if we can get more detailed answers on the questions that I asked. And I yield back the balance of my time. Chairwoman Davis. Thank you. Mr. Watkins. Mr. Watkins. Thank you, ma'am. Sir, I often hear from employers that the most successful workforce development system is one that works well with the local education system. Part of integrating these systems is encouraging students to be lifelong learners and expose them to multiple pathways for career success, such as apprenticeship programs. However, we must also ensure that there is a better coordination among state agencies and the Federal agencies working on all these issues in order to accomplish that goal. What work does ETA do to help states better coordinate with their employment-focused agencies, with their education agencies? And what are you doing to work with the U.S. Department of Education to help achieve that goal? Mr. Pallasch. Thank you, Representatives Watkins. This issue was of paramount concern to me while working in Kentucky. It was very challenging as the head of the Office of Employment and Training to administer a workforce program while I received guidance from the Department of Labor that may have been inconsistent or even conflicting with guidance that was received by my fellow workforce partners from the Department of Education. So as soon as I arrived in Washington, one of the first things that I did was reach out to my colleagues at the Department of Education: the assistant secretary who handles their K through 12 programs, the assistant secretary who handles their adult and career technical ed, and the assistant secretary who handles vocational rehab. And I shared with them, as well as the assistant secretary at HHS, who handles the TANF program, and the assistant secretary at USDA, who handles the SNAP E&T, or the SNAP Employment and Training Program. And I shared with them that it's imperative that the Federal community speak with one voice. To your point, if states are going to be able to take advantage of the flexibility, if states are going to be able to work across programs, then we as a Federal community, as the oversight community, need to speak with one voice. And we need to empower states and locals to work together in education and workforce and vocational rehab and adult education and community colleges to create a holistic approach to workforce at a local level. So that's what I'm trying to facilitate is that cooperation amongst the Department of Education, USDA, HHS, and the Department of Labor. Mr. Watkins. Thank you. Not a day goes by when I don't hear about the skills gap between the 7 million unfilled jobs in our country. You mentioned in your testimony that the Department recently committed $100 million to your Closing the Skills Gap grant solicitation. You also mentioned that there were 238,000 new apprentices in Fiscal Year 2018 alone. How would you reconcile this growing number of apprentices with a skills gap that seems to be growing? And what reforms do we need to make to our workforce development system, including apprenticeships, in order to meet this need? Mr. Pallasch. Thank you. Yes, in addition to the $100 million for the Closing the Skills Gap, there was an additional $183 million for scaling of apprenticeships. So the department has been very committed to trying to close that skills gap while, at the same time, continuing to aggressively push the Registered program. As I mentioned, there's not only 250,000 new apprentices in 2019, but there's 3,000 new Registered Apprenticeship programs in 2018. So the program continues to grow as we are simultaneously working to close that skills gap. And that's probably the biggest challenge facing the department right now is we hear about earn-and-learn and we hear about lifelong learning and stackable credentials. How is ETA able to facilitate so that state and local workforce boards can address the skills gap that exists in their local area? They have the labor market information. They know where jobs are going in their local communities. How do we provide them the support so that they can address those skills gaps? Mr. Watkins. I want to return to a statistic you mentioned that 55 to 70 percent of youth in a number of European countries take advantage of apprenticeships as a first step in their career. Here in the United States it seems that there's a stigma attached to pursuing any route other than a bachelor's degree. For some reason we have come to think that anyone who does not go down this path is less valuable of a member to society. I believe that part of changing that dehumanizing and discriminatory mindset is exposing youth to alternative career paths early on in life. What benefits do you see from programs like youth apprenticeships that show these young people the value of other forms of workforce development? Mr. Pallasch. Thank you. I think that early exposure to a pre-apprenticeship program or any type of job skills, job training, job education program that allows an individual as they're maturing through school and shortly after school to identify a career pathway that works for them. That's really what we're after. As I mentioned, $42 million in the Office of Apprenticeship's budget in FY '19 is dedicated to just that: youth apprentices. How do we grow those youth apprentices? Also within the Office of Apprenticeship we're trying to expand the scope of the Registered programs. I mentioned earlier that there's a stigma that Registered Apprentices are simply construction workers. We know, for example, that-- Chairwoman Davis. Thank you. Mr. Pallasch, I am sorry, I just have to intervene because the gentleman's time is up, but we'd like to get back to that. Okay? Mr. Pallasch. Thank you. Chairwoman Davis. Mr. Norcross. Mr. Norcross. Thank you. Appreciate it. Standards count, we understand that. And certainly, when we look at the Registered Apprenticeship programs, and you have mentioned it several times now, people think of the trades which have been around for almost 100 years. It is a proven way of educating. And a pre-apprentice program in high school is what most people in this room absolutely know, it is called shop. They are taught firsthand in high school; been doing it since you went to school and I went to school. But you talked about that successful program and you compared it to the European model, and we have looked at that. The European model outside of the construction program is where they excel. The construction programs in this country are equal to any in the world. And, in fact, the Taft-Hartley programs in this country are not funded by government virtually at all. They are all self-funded. They have graduation rates at approximately 90 percent-plus versus those who are non-Taft- Hartley, which are less than 40 percent. So when we look at graduation rates of apprenticeship programs I think it is a great indicator of whether that program actually works. The point I am trying to make here is the construction industry is one that works extremely well, costs the government virtually nothing for the Taft-Hartley plans. Why would you want to interject a non-Registered program into something that works so well? Why wouldn't you exclude those construction industries that have worked for close to a hundred years? Mr. Pallasch. Representative Norcross, again, I appreciate your question. I can't comment specifically on the IRAP rule because it's in Notice and Comment Rulemaking. Mr. Norcross. I am not asking about the rule. Why would you want to change a program that has worked for a hundred years, that continues to work today? Forget the rule. Mr. Pallasch. So to answer your question, I don't want to change the Registered program. I want to enhance the Registered program. As you indicated, the construction--and as I indicated earlier, construction represents 65 percent of the Registered program. So how can we grow the Registered program in other industries? That's what we're asking. Mr. Norcross. That is what I want to hear, outside of the industries. Mr. Pallasch. Correct. Mr. Norcross. Because this is when it works. I spoke to you earlier, I went to that other 4-year school. I went to the apprenticeship. I have here letters from apprentices and journeymen that I would like to enter into the record with unanimous consent. Chairwoman Davis. So ordered. Mr. Norcross. That they are talking about those standards and how well they work. So, as you know, the construction industry is a transient where the work is. We follow it. You don't want somebody on the West Coast teaching one set of standards and somebody on the East Coast the other. This is a program that works. And you know what? When you talk about spending $42 million, there is--you don't have to spend it in that industry. So what I want to leave us with is that the IRAP proposals do not follow the model that works, where the apprentices are given incremental increases in wages as their skills expand. That is something that they love in the industry. They know as they come in as a first-year apprentice that second year, as their skills improve, their wages will improve. Yet, in the I- RAP program, that is not involved in it. Why, without commenting on the rule, would you want not the apprentices to know what they are going to make over the course of their apprenticeship? Mr. Pallasch. Representative, there's certain hallmarks that we would look for in any apprenticeship program, whether a Registered Apprenticeship Program or an un-Registered Apprenticeship Program. And at the crux of that is the skill- based learning, the credential, the mentoring that exists within an apprenticeship program. Again, whether-- Mr. Norcross. So why wouldn't you include wages? Mr. Pallasch. Pardon me? Mr. Norcross. Why wouldn't you include wages for those years of the apprenticeship? Why are you excluding that? Why would you not want them to know that? Mr. Pallasch. Again, under advice of our attorneys, I can't comment on the rule. Mr. Norcross. I am not asking about the IRAP rules. In an apprenticeship program, wouldn't you want the apprentices to know that with their skills increasing, their wages would increase? Mr. Pallasch. So that exists within the Registered program today. Mr. Norcross. So you approve of that and you think that is a good idea? Mr. Pallasch. As I mentioned earlier, yeah, my responsibility is to grow apprentices in any and all models. Mr. Norcross. Do you think having wage increases as part of those programs is a good idea or a bad idea? Mr. Pallasch. I think the Registered model is a good model and every-- Mr. Norcross. Will you answer the question, please, with all due respect? Mr. Pallasch. I don't think it's appropriate given the Notice and Comment Rulemaking for me to weigh in on-- Mr. Norcross. I was not asking about the rulemaking. Also, do you look at graduation rates of programs that say they are more successful or less successful? Do you have any standard when it comes to graduation rates? Mr. Pallasch. Graduation rates form Registered programs? Mr. Norcross. Yes. Mr. Pallasch. Do we look at the graduation rates? Mr. Norcross. Yes. Mr. Pallasch. Yes. So some of the measures that we look at are successful completion and earning the credential, yes. Mr. Norcross. Do you make that information public? Mr. Pallasch. Yes. Mr. Norcross. So every apprenticeship program reports back to you, those 23,000, to let you know what the graduation rates are? Mr. Pallasch. They--we track the number of credentials attained. Mr. Norcross. Graduation rates. I defer back. Chairwoman Davis. The gentleman's time is up. Mr. Norcross. I would like the answer to my question submitted to me, graduation rates of the 23,000 programs. I yield back. Chairwoman Davis. Thank you. Next is Mr. Grothman. Mr. Grothman. Thank you. First of all, I think we have an obvious problem here in that we don't have enough people getting involved in these apprenticeship programs, what I will call skills-based education. Part of it is attitude appearance. A lot of it, I think, is, quite frankly, bad advice from school counselors. Do you have any general suggestions--and as a result, we have way too many people getting degrees that are not of value to them or starting on a path to degrees that aren't going to be valuable to them and they drop out. And in addition to getting a degree that is not increasing their earning potential, a lot--frequently they have a lot of student debt to boot. What can we do to get around these attitude problems, get around sometimes bad advice people are getting from their schools? Mr. Pallasch. Representative, I thank you for your question. As I mentioned earlier, I think the way that I can address that or at least start to deal with that issue is by working with the Department of Education. Working with our elementary and secondary education office that's responsible for K through 12 education across the country and making sure that they understand the vital role that they play in workforce. And when I talk about workforce, I talk about the broader workforce, not just ETA's workforce, but the broader workforce. And how does the education system play into that? How are they preparing students upon graduation to enter the workforce? Mr. Grothman. Can we specifically talk about salary or wage compensation nor number of job openings? Is that something you could make available to the public? Mr. Pallasch. Absolutely. And we've talked not only about the 7.1 million open jobs, but the other number that keeps me awake at night are the 34 million Americans who aren't part of the labor force. Mr. Grothman. Okay. Mr. Pallasch. Not just the unemployment rate, but the forgotten men and women of the workforce. Mr. Grothman. We have also had even people in this committee talk about getting a college degree like it is somehow superior to getting an apprenticeship. And from what I can see, there is a lot more necessity for maintenance people, for people in manufacturing. So it kind of offends me when people imply like somehow they have accomplished something better than apprenticeship. And we have people talk that way here. Is there anything specific we can do to prevent that attitude from spreading, I mean, given that we do have people, including congressmen, who kind of talk that way? Can you--do you have any other suggestions how we can change the attitude? Mr. Pallasch. Again, I think hearings such as this where we shine a spotlight on the success of the apprenticeship model and what it means. And when we talk about 94 percent retention rate and we talk about $70,000 starting salary, those are real- world numbers. And that does not include the assumption of any debt, so individuals who are entering the workforce through an apprenticeship program, $70,000 debt-free. We need to make sure that individuals understand that apprenticeship is a viable option, that it is one of those multiple pathways that we talked about. Mr. Grothman. Okay. Right now there is some restrictions to employment, age-based restrictions on ability to use certain equipment, which maybe delays people entries into these fields. Do you have any plans to look into that or see whether some of these restrictions are perhaps too extreme and perhaps we could get people working in a manufacturing setting at a younger age? Mr. Pallasch. I'm not familiar with the specific restriction you talk about. I'm not sure if that's at the state or the Federal level, but I'm happy to work with you or your staff to look into that issue. Mr. Grothman. Okay. I yield the remainder of my time. Chairwoman Davis. Thank you. Thank you for yielding. Mr. Levin. Mr. Levin. Thank you, Madam Chairwoman. So, Assistant Secretary Pallasch, the data you were referring to, 70 percent or 94 percent employed, that is Registered Apprenticeship data, right? Mr. Pallasch. That's correct. Mr. Levin. Seventy thousand dollars a year, Registered Apprenticeship data, right? Mr. Pallasch. Correct. Mr. Levin. Growing fast, Registered Apprenticeships? Mr. Pallasch. Correct. Mr. Levin. Unbelievable data from the department, huge success? Mr. Pallasch. Correct. Mr. Levin. All right. So let us talk about this other enterprise you have going on. In a letter to the committee this past July, the department stated that IRAPs may receive ``incidental benefit'' from funds appropriated solely for Registered Apprenticeships. Will you please explain to the committee how the department is justifying the use of RA funds on the premise that this is permissible if it provides incidental benefit to IRAPs? And please explain the Solicitor's role in determining what constitutes an incidental benefit. Mr. Pallasch. Thank you very much for your question, Representative Levin. So this was one of the issues that we attempted to address in the letter that we delivered earlier today. Mr. Levin. Yes, so if you could just quickly explain it in simple terms, that is the point of the hearing. Mr. Pallasch. Understood. Yes, and the overarching doctrine that applies is the necessary expense doctrine that talks about any expense that is reasonably related to accomplish the stated purpose of the appropriation. Now, within that, there is an incidental benefit clause that says if another program were to receive an incidental benefit, that would be allowed. In an abundance-- Mr. Levin. So let me just ask you, did the Solicitor's Office tell the department, tell ETA, that you can use Registered Apprenticeship funds if it can be shown that there is incidental benefit to IRAPs? Mr. Pallasch. Not to my knowledge. Mr. Levin. They didn't do that? Mr. Pallasch. Not to my knowledge. So, again, the controlling legal-- Mr. Levin. Well, the information that has been made available to the committee says they did precisely that. Mr. Pallasch. The controlling legal document is the necessary expense rule. Within the necessary expense rule there is an incidental benefit that is allowed. Mr. Levin. And the Solicitor's Office didn't give you this information? Mr. Pallasch. Give me--I'm sorry, give me what information? Mr. Levin. My question to you is whether the Solicitor's Office told the department or ETA that you can use Registered Apprenticeship funds if it can be shown that there are incidental benefits to IRAPs. It is a simple yes or no question. Mr. Pallasch. I'm not familiar with that. Mr. Levin. Is the administration saying that as long as the money promotes both Registered Apprenticeships and IRAPs, appropriated funds can be used for IRAPs? Mr. Pallasch. When you say ``appropriated funds,'' are you talking about TES appropriated funds or PA? Mr. Levin. That is the only funds you have, sir, the funds we appropriate for your department. Mr. Pallasch. We also have program administration funds, or PA funds, which would be allowed to be used for both Registered and any industry-recognized work program. Mr. Levin. So you are saying that the program administration funds can be used without limit for IRAPs? Mr. Pallasch. It is my understanding that after talking with our departmental budget center and the Office of the Solicitor and the appropriations attorneys, yes, there's broad-- Mr. Levin. And how much of those program administration funds have you used for IRAPs? Mr. Pallasch. As I discussed earlier, that's a number that we can't disaggregate. We're not able to-- Mr. Levin. What did you think you would be asked, sir, when you came here today? Mr. Pallasch. Oh-- Mr. Levin. What is going on where there has been misappropriated funds, where the Secretary repeatedly came here and he said he would not use RA funds for IRAPs, and now we found out that was not true, and that you have been using our appropriated funds for IRAPs? What do you think the topic of conversation would be here, sir? Mr. Pallasch. We thought that this would be a topic of conversation. Mr. Levin. And you are not prepared to give us the basic data on the funds expended? Mr. Pallasch. Again-- Mr. Levin. I used to work--I used to run a state department in Michigan that only used your funds along with some funds from other Federal--you know, I ran the workforce system in Michigan. And I would not have dared to come to a hearing unprepared to explain the expenditure of funds. Mr. Pallasch. Again, I'm prepared to explain the expenditures of TES, Training and Employment Services, funding as that was the subject of the request from Congress. Mr. Levin. I am asking you about program administration funds right now. Mr. Pallasch. Again, program administration funds, as I mentioned, there's broad discretion for the agency. Mr. Levin. Too complicated, too hard to say how much have been used for IRAPs. Mr. Pallasch. Yeah, as I'm told by our departmental budget center, it's--I don't want to say impossible. It is extremely difficult to disaggregate the funding because program administration funding is used for all ETA programs. Mr. Levin. Right. My time is limited. Under the legal theory that apparently was proffered by the Solicitor's Office at DOL, would it not be the case that if Federal funds were appropriated for women's health, say, that they could also be used for abortion services on the grounds that they are expanding opportunities to receive services related to women's health? Mr. Pallasch. I'm-- Mr. Levin. That would seem logical, wouldn't it? Mr. Pallasch. I'm not familiar with the instance you're referring to, so I'm not comfortable-- Mr. Levin. I just told you what the instance is. Mr. Pallasch. Again, that's not my area of expertise. I wouldn't be comfortable commenting on whether that's an appropriate use or not. Mr. Levin. All right. Well, sir, my time has expired. I am extremely concerned about this department creating a new program for which we explicitly told you we are not appropriating funds and you are using funds made for--you are using funds for programs that you have proudly told us are extremely successful, are growing fast, lead to real middle class jobs for Americans, on your own unproven theory. Chairwoman Davis. Mr. Levin, I'm sorry, your time is up. Mr. Levin. Thank you. Chairwoman Davis. Thank you. Mr. Levin. I yield back. Chairwoman Davis. Thank you. Mr. Takano. Mr. Takano. Thank you, Chairwoman Davis, for this critical hearing on the Department of Labor's improper--improper-- handling of the Registered Apprenticeship Program and the money appropriated by Congress. Mr. Pallasch, it is my understanding that DOL allowed a contractor to use Registered Apprenticeship funds to create a group called Apprenticeship Powered by Industry, known as API. Additionally, one of its three stated goals was to ``support the establishment of the I-RAP model.'' It is also my understanding that this API initiative was also used for recruiting and developing potential I-RAP accreditors, or SREs, despite DOL telling this committee that they have not convened any meetings or working groups on IRAPS. My first question to you, was API created with Registered Apprenticeship funds? And was it a major part of this initiative to support IRAPs? Mr. Pallasch. Thank you for your question, Representative. Just so we're clear, the committee that you're referring to both existed and was disbanded prior to my joining the Department of Labor, so I cannot speak definitively to how the committee came to be and what their work exactly was. Mr. Takano. It is really difficult to hold accountable a department that sends this committee people who weren't there when these committees were formed or disbanded and they can't answer questions. It is very frustrating. Well, so you can't answer the question because you weren't there. This includes finding programs to become IRAPs and organizations also to apply to become SREs. And was this all done using Registered Apprenticeship money? Mr. Pallasch. Again, Representative, any-- Mr. Takano. You can't answer the question because you weren't there. Mr. Pallasch. So any money that was misapplied to the TES account, or the Training and Employment Services account, was discovered in the contractual review that we discussed earlier in the letter I provided. And all of that funding was appropriately charged to the program administration account. Mr. Takano. Well, let me just ask you the question again. Finding programs to become IRAPs and organizations also to apply to become SREs, was this done using Registered Apprenticeship money? Mr. Pallasch. Again, any funds there were misapplied from the TES account were appropriately charged against the program administration account, and that was done through a working group with career and noncareer staff from the Solicitor's Office, the departmental budget center, the Office of Apprenticeship, and the ETA front office. So that working group, a very capable working group, sat down and went deliverable by deliverable within those three contracts and anything that was attributable to the Industry-Recognized Apprenticeship Program was appropriately paid for out of the program administration account. Mr. Takano. Well, Assistant Secretary Pallasch, are you aware that the committee first requested information in February regarding the department's handling of apprenticeship funding? Mr. Pallasch. I am. Mr. Takano. Are you also aware that those requests were reiterated multiple times in public hearings, letters, and staff-level briefings over the last 9 months? Mr. Pallasch. I am. Mr. Takano. And is it your testimony today that this information was not available until 9:30 p.m. last night before this hearing? Mr. Pallasch. I was--Representative, I was attempting to, upon my arrival, to address some of these issues. I believe there was three briefings that I attended with Committee--or Subcommittee Staff to try to better understand those issues, better understand their concerns. And as I mentioned, there was an exhaustive review done, that contract review was very exhaustive, to ensure that we were identifying the appropriate funding amount and the appropriate appropriation to charge those funds against. So it was a complex issue. Mr. Takano. Well, in fact, the department finally sent a partial response to this committee at 9:30 last night. Are you aware of any internal policies or practices in which the Department of Labor collects information requested by Congress, but decides to withhold that information in order to impede congressional oversight? Mr. Pallasch. No, I am not aware of such a process. Mr. Takano. You are not aware of that, okay. Do you agree that the department's decision to provide long-requested information to the committee roughly 15 hours before this hearing makes it harder for the committee to conduct proper oversight on behalf of the American taxpayers? Mr. Pallasch. It was important for us to deliver the requested information as accurately and completely as we could, and, unfortunately, that finalized with us delivering that to you late last night. Mr. Takano. Well, and you already answered, yes, you were aware of the many, many times that we have requested this over several months. And yet, it is delivered 15 hours before. It is the intent of DOL to impede congressional oversight and authority? Mr. Pallasch. No, it is not. Mr. Takano. Well, from where I sit it is increasingly evident that the Department of Labor intentionally directed funds that Congress intended for the Registered Apprenticeship Program towards an untested program called IRAPs after explicitly telling Congress the opposite. This is unacceptable, Mr. Assistant Secretary. Thank you and I yield back. Chairwoman Davis. Thank you. Thank you. Your time is up. I now turn to the Ranking Member of the committee, Dr. Foxx. If it is the wish of the committee, we will go on to Ms. Adams at this time. Ms. Adams. Thank you, Chairwoman Davis and Ranking Member Smucker, for convening the hearing. And thank you, Mr. Secretary, for being here. I want to touch on a couple of items that my colleagues have addressed already as it relates to the Department of Labor's adherence to Federal law. As you may know, my home state of North Carolina has a state apprenticeship agency. The National Apprenticeship Act stipulates that the Department of Labor engage with state apprenticeship agencies when formulating and promoting labor standards. And given the department's new I-RAP rule implicates this law, how and when did you engage with state apprenticeship agencies in this formation? Mr. Pallasch. Again, Representative Adams, I appreciate your question, but the IRAP rule is in open Notice and Comment Rulemaking, so I'm unable to comment on the rule itself. During that Notice and Comment Rulemaking I would inform you that we received over 324,000 comments from states, from trade organizations, from business associations, from interested members of the public, which is most comments that the department--or that ETA has ever received on a rule. Ms. Adams. Okay. So you can't--I am not really asking about the rule itself, but the formation of the rule. And so the department is currently using money to develop IRAPs and has staff in an I-RAP office. So these actions and questions are within the scope of the committee's investigation of the department's misuse of appropriated funds. But you don't have any--I mean, I don't want you to comment about the proposed rule, but the formation of it. Mr. Pallasch. So the formation of the division of the Industry-Recognized Apprenticeship Program Office within the Office of Apprenticeship was done in consultation with the department's Solicitor's Office and the departmental budget center. So there were no appropriations issues with the creation of that office. Ms. Adams. Okay. So it is my understanding that you informed the staff from the House and the Senate committees that the Department of Labor has taken steps to streamline the registration process for Registered Apprenticeships to make it easier for employers to participate in the system, but those actions have not been implemented because all of the work on Registered Apprenticeship are on hold to create the IRAP system. It that is not actually the case will you commit that this streamlined registration process will be submitted to the Office of Management and Budget for official review by the end of this month? Can you commit to that? Mr. Pallasch. Representative Adams, I want to make sure that we're clear. The work on the Registered program not only has continued, but has been more aggressive than at any point in history. So simply, while we're going through the IRAP Notice and Comment Rulemaking, the Registered program is continuing to run, it's continuing to operate, we're continuing to making improvements to it and make it more efficient. Ms. Adams. So what about my question about the end of the month? Are you able to submit an official review? Mr. Pallasch. What--I'm sorry, I wasn't following? Ms. Adams. Well, you-- Mr. Pallasch. What specifically are you asking us to produce? Ms. Adams. So you said that--I wanted to know if you could make a commitment that the registration process will be submitted to the Office of Management and Budget for review by the end of the month. Mr. Pallasch. Are you talking about-- Ms. Adams. Have you reviewed it? Have they reviewed it? Mr. Pallasch. The streamlined application process for the Registered program that I referenced earlier? Ms. Adams. Yes. Has it been reviewed? Mr. Pallasch. I-- Ms. Adams. So you can't commit. Okay, well, let me move on. One of the few quarrels that I have with our Registered Apprenticeships is the lack of diversity, particularly gender diversity. And the last figure I saw was that only 8 percent of all Registered Apprentices are women. So what is the department doing to address this gap? Mr. Pallasch. Representative Adams, that's a huge concern of mine. I've been working with the Women's Bureau within the Department of Labor. I spoke at their Women and Apprenticeship event earlier this month. One of the things that we are trying very hard to do through our intermediary contracts is improve not only diversity, but make sure that underrepresented populations are present in Registered Apprenticeship programs going forward. So we are very committed to that. Ms. Adams. Okay. So you are taking steps to address it? Mr. Pallasch. Absolutely. Ms. Adams. Okay. Can you specifically say, other than you said you made some presentations, what tangible kinds of things are you doing? Mr. Pallasch. So a number of those organizations, those intermediaries that I talked about, are working specifically with underrepresented populations. Some are working with women in trades. I'm happy to provide a breakdown of each of those contracts and the targeted deliverables within those. But those contracts very much speak to diversity and growing the Registered program. Ms. Adams. Well, thank you very much for your responses. Chairwoman Davis. Thank you. Ms. Adams. My office can probably help you with some of that. Thank you very much. I yield back. Chairwoman Davis. Thank you. I now turn to the Ranking Member, Dr. Foxx. Mrs. Foxx. Thank you, Madam Chairman. Mr. Pallasch, I have some questions to begin with and I would appreciate it if you could answer them as quickly as possible. You have said that there were misspent funds on the I-RAP program, is that correct? Mr. Pallasch. There were misapplied funds, yes. Mrs. Foxx. You are asserting today that you believe the review conducted to determine the amount of misspent funds was thorough and erred on the side of being overly inclusive of any funds spent on the program that should not have been, correct? Mr. Pallasch. Correct. Mrs. Foxx. Are you telling us today that the accounting issues with the spending have been addressed? Mr. Pallasch. Yes. Mrs. Foxx. And that means that any funds paid for out of the wrong account have been corrected? Mr. Pallasch. That is correct. Mrs. Foxx. In fact, I think you said that about four times. Mr. Pallasch, given all of this and your testimony, can you assure us that we will not see this happen again under your watch and that you have put in place the appropriate checks to ensure it will not happen again? Mr. Pallasch. Representative Foxx, I can. One of the things that we did was actually modify all three of the contracts in question and share those modifications with the contractors to alert them that there were to be no I-RAP deliverables under any of those contracts unless additional PA, or program administration, funding was added to those contracts. In addition, I've asked the department's chief procurement officer to take a look at the contract administration and the policies and procedures in place to make sure that they're as robust as need to be. And then, in addition, I've also asked the Inspector General in addition to Congress' request that they look into the ADA violation, I've asked the Inspector General to look into the procedures, the policies, exactly how we got to where we are, so that I can assure you that going forward that we won't find ourselves in this situation again. Mrs. Foxx. Mr. Pallasch, why were IRAPs created? What are you doing to address some of those issues in the Registered Apprenticeship space? And to be clear, are you sure you are properly spending the available Federal funds on these activities? Mr. Pallasch. So the I-RAP program is an outgrowth of both the Task Force on Apprenticeship and the executive order signed by the President. And what the department is trying to do is through the Notice and Comment Rulemaking with the Notice of Proposed Rulemaking is create an additional pathway that would allow individuals to enter the apprenticeship model. So that's very much what we are focused on with the I-RAP rule. Mrs. Foxx. And you said earlier you are making sure the money is being spent correctly? Mr. Pallasch. Yes. Mrs. Foxx. Okay. How many contracts do you currently have working on apprenticeships? Mr. Pallasch. I believe there are 27 contracts in one capacity or another that are working towards apprenticeships. Mrs. Foxx. Is any of that work related to IRAPs? Mr. Pallasch. Any work that is related to IRAPs will be appropriately paid for out of the program administration account. Mrs. Foxx. Who oversees the accounting of that work and ensures the contractor not has to do work that would be inconsistent with the funding appropriated? Mr. Pallasch. So that's the program office, the Office of Apprenticeship, and what's called the contracting officer's representative, or the COR. Mrs. Foxx. With the backup of the IG, as I understood you say earlier? Mr. Pallasch. We're asking the IG to look into the policies and procedures to make sure that they're as robust as needed. Mrs. Foxx. Have you included other safeguards to ensure the contractors will spend funds only on allowable expenses moving forward? Mr. Pallasch. As I mentioned earlier, those contract modifications are a very clear message to our contractors that there is to be no additional Industry-Recognized Apprenticeship Program work on any of those contracts if and until they are notified that additional appropriate funding is added to their contract. Mrs. Foxx. Now, Mr. Pallasch, this hearing is about apprenticeships, but while you are here I want to ask about the Job Corps program. This is a program that has a noble goal, but has fallen woefully short of expectations and hopes. This committee has had several hearings on the program, looking at implementation and safety of the program. In fact, the DOL IG just released its Management Challenges and Job Corps' safety was chief among those concerns. There is a lot that needs to be done in that program if it is ever going to achieve that noble goal. My question to you is whether your office is working on these issues. And if so, when can you come and brief us on these efforts? Mr. Pallasch. Yes, we are. One of the primary deputies within my office is dedicated entirely to the Job Corps program, so he's been on board with the department for over 2- 1/2 years and been focused solely on Job Corps. And a significant amount of his time has been focused on this security and safety issue. There was a comprehensive safety and security plan that was adopted by the department in March of this year. There's been any number of security enhancements that have taken place. I believe that the funding is around $55 million. So we have worked very closely with the IG to address the concerns that they have in their Management Challenges Report to make sure. They had a report last year that had three recommendations. We have closed all three of those recommendations with the IG. So we work very closely with the IG when they come to us with issues or concerns related to the safety of our students. Mrs. Foxx. Madam Chairman, I think we are owed about 50 seconds. I would like to take the remainder of that time to give Mr. Pallasch the time to clear the record about any other questions you have received today. Are there any answers from earlier today that you would like to expand upon at this time? Mr. Pallasch. I appreciate that, Chairwoman Foxx. One of the complicating issues is this idea of program administration. And I understand the frustration from some of the members that we're not able to articulate exactly how much money is spent under the program administration account. A large part of that has to do with the fact that staff, who are funded out of the program administration account, do not track their activities within that account. So we have staff who work on any number of programs, paid for out of the program administration account. So if we're asked to attribute some percentage of that program administration to a specific activity, we simply can't do it because that's not the way the time and attendance system works. So I want to be clear that we have-- Chairwoman Davis. Thank you, Mr. Pallasch. Mr. Pallasch. Thank you. Chairwoman Davis. Yeah, thank you. Mrs. Foxx. Thank you, Madam Chairman. Chairwoman Davis. Mr. Trone. Mr. Trone. Thank you, Chairman Davis and Ranking Member Foxx, for holding this important hearing. Registered Apprenticeships are by far America's most successful workforce training program, delivering real results, both workers and employers. On a bipartisan basis, Congress has consistently provided for the expansion of Registered Apprenticeships. Unfortunately, rather than doing that, the Trump administration has improperly shifted funding from Registered Apprenticeships to start an entirely new program, the Trump-initiated, Industry-Recognized Apprenticeship, IRAP, Program, and then misled Congress as to what they are doing. I am concerned that the DOL isn't sufficiently carrying out its statutory requirements to safeguard the welfare of apprenticeships within the Registered Apprenticeship system. Can you explain why the DOL guidance on apprentice to journeyman worker ratios was pulled down in last December of last year and has yet to be replaced? Mr. Pallasch. So, Representative Trone, I appreciate the question. That's one of the issues that I'm working with the Office of Apprenticeship on. As I mentioned earlier, there are a number of initiatives that I'm working with that office on to try to improve the efficiency and the efficacy of the Registered program. And that ratio circular is one of those specific issues. Mr. Trone. One second, let me back up. It is 11 months. Mr. Pallasch. Understood. I was not at the department when it came down, but shortly after I joined in July, it was brought to my attention as something that we needed to address. Mr. Trone. Okay. Well, sooner versus later. I would also be interested to hear your plans for apprenticeship complaints, the complaint form that expires in January. I saw a notice was filed in the Federal Register soliciting comments on this form, but it is, again, already mid-November. And why is there such a delay in starting this process? And I am concerned the deadline--given there is about a 60-day comment period, can you confirm when that form will be complete and renewed, will it be done by January 31, 2020? Mr. Pallasch. We are aware of that deadline and we are working diligently to meet that deadline. Mr. Trone. Okay. We will count on that. Thank you. I would like a detailed explanation and plan on how these regulations can be fully implemented and approved in the coming weeks. And we would like a clear answer on why the guidance was pulled down and the complaint form was not addressed in a timely manner. If you could put something to committee in writing, that would be great. Could you get something back in the next week or so? Mr. Pallasch. I don't know if I can commit in the next week, but I will commit to working with you and your staff to get you the answers you need, yes. Mr. Trone. The week after Thanksgiving be good? Mr. Pallasch. We'll work as quickly as we can. Mr. Trone. Excellent. As my colleagues discussed today, the Department of Labor is awarded contracts supporting apprenticeships, three firms: Meyer & Meyer, Booz Allen, Edelman; $32 million. It is the department's position only $1.1 million of the Registered Apprenticeship funds were expended on these contracts to support IRAP. What has been done to support the actual Registered Apprenticeships with these millions of dollars awarded? Mr. Pallasch. So those are three separate contracts. The first contract is the Edelman contract, which is an outreach contract. There's a campaign that we're working with the contractor to develop to promote apprenticeships. As I mentioned, we're very interested in growing the apprenticeship model, the uptake of the apprenticeship model, so that's--we're working very close with Edelman on that. Booz Allen Hamilton is responsible for creation of the apprenticeship.gov website. We've tried to create a one-stop shop for any--whether it's an employee, an employer, a parent, a student who's interested in apprenticeships that they can-- Mr. Trone. I think that is important and I am glad you brought up the website because I always look for ways my constituents can get a better job. And I have to say that after searching that apprenticeship.gov website for Registered Apprenticeships in my district, I realized it is not really a website to help find Registered Apprenticeships. When I look for positions there is 2,526 postings on that site, but only 11 were for Registered Apprenticeships. Can you explain to us how you justify using Registered Apprenticeship funds when less than 1 percent of the website's posting are for true Registered Apprenticeship positions? Mr. Pallasch. So I'm not familiar with the data that you refer to there, but I can assure you that in the contract review that I referenced earlier, we worked very closely with Booz Allen Hamilton to determine which were Registered Apprenticeship deliverables and which were IRAP deliverables under that very contract. And anything that was misapplied to the TES account, or the Training and Employment Services account, was appropriately funded out of the PA account. Mr. Trone. Well, there were over 100,000 new apprenticeship opportunities in Fiscal Year 2018 and I would like if we could, get a clear explanation as to why the department is using Registered Apprenticeship funds for a website that is clearly not being used to promote Registered Apprenticeship opportunities. Is that fair? Mr. Pallasch. I'm not necessarily understanding what you're saying. Again, the contractor, Booz Allen Hamilton, was brought on board to create-- Mr. Trone. Twenty-five hundred jobs. Mr. Pallasch. Correct. Mr. Trone. Not only--versus 11 about Registered Apprenticeships. Mr. Pallasch. Again, I'm not familiar with that data. I'm happy to look into that issue and get back to you because that's something-- Mr. Trone. If you could look into it and get back the week after Thanksgiving, that would be great. Chairwoman Davis. Thank you, Mr. Trone. We now turn to the Ranking Member for her closing statement. Oh, I am sorry. Sorry. Mr. Scott, Chairman of the committee, we now turn to you for your distinguished remarks. Mr. Scott. Thank you. Mr. Pallasch, you mentioned that virtually all of the students in the Registered Apprenticeships' 94 percent end up with jobs at $70,000 a year, is that right? Mr. Pallasch. Yes, that's the average, correct. Mr. Scott. Okay. And are there comparable numbers for the IRAPs? Mr. Pallasch. There is not an IRAP program, so there is no data. Mr. Scott. So you have no data at all on the IRAPs, okay. You indicated that there are 3,000 new apprenticeship programs in 2018 alone? Mr. Pallasch. That is correct. Mr. Scott. Are those Registered Apprenticeships? Mr. Pallasch. Correct. Mr. Scott. Now, Ms. Adams asked you about the streamlined process, the process to streamline the process for registering a program under the Registered Apprenticeship programs. Do you have proposals in the works to streamline the process for Registered Apprenticeship programs? Mr. Pallasch. Again, I was not--when Representative Adams referenced that, I'm not exactly sure what she's referring to. As I mentioned, we've taken some proactive measures within the Registered program to streamline the application process and reduce the paperwork. That is complete, that is done. The new application is up and active. And that showed about a, as I mentioned earlier, 70 percent reduction in that paperwork burden. Mr. Scott. Okay. And did I understand you to say that you had figured out a way to fund IRAPs with Department of Labor money even though the appropriations said Registered Apprenticeship programs only? How are you able to spend Department of Labor money anyway on IRAPs? Mr. Pallasch. So, again, there's two accounts that are the subject of this hearing. The first is the Training and Employment Services account, which is specifically appropriated to further and enhance the Registered Apprenticeship Program. There's also the program administration, or the PA account, which the agency has broad discretion to use for any directives, any policies as it sees fit. Any of the IRAP funding is coming out of that program administration account, which is an appropriate use of those funds. Mr. Scott. Now, have you been in touch with the Solicitor's Office on that to give you guidance on how to use appropriated money for IRAPs? Mr. Pallasch. Absolutely. The Solicitor's Office, the departmental budget center, career and noncareer staff from both of those offices have worked with us lockstep in this process. Mr. Scott. And is that guidance in written form so we can see it? Mr. Pallasch. I don't know. There was a working group created, as I mentioned earlier. I don't know that there was written guidance. There was membership on that group from the Office of the Solicitor and from the appropriations office within the Office of the Solicitor. Mr. Scott. Well, can you go look and see if you can find written guidance that says you can spend Department of Labor money on funding IRAPs? Mr. Pallasch. I will look into that issue. Mr. Scott. Now, my reading of the IRAP regulations is that the National Apprenticeship Act requires the DOL cooperate with state agencies engaged in the formulation and promotion of standards of apprenticeships. Is that requirement in IRAPs? Mr. Pallasch. Again, because the I-RAP rule is in Notice and Comment Rulemaking it's inappropriate for me to comment on specific elements within that rule. Mr. Scott. In the rule, okay. Can you tell me whether or not my home state of Virginia has been consulted in the development of IRAPs? Mr. Pallasch. I cannot tell you here today if Virginia submitted comments on that rule, but I'm certainly willing to get back to you with that information. Mr. Scott. Thank you. I yield back. Chairwoman Davis. Thank you. Thank you, Mr. Scott. And we now go to Ms. Hayes. Mrs. Hayes. Thank you. Assistant Secretary, Pallasch, thank you so much for being here. I am concerned that we are losing sight of the fact that every dollar misused by the department represents a lost opportunity for a stable, high-paying job for one of my constituents. I support apprenticeship programs and multiple pathways to success. I am listening and a lot of the questions that I had--this is not my committee. I waived onto this committee because I had lots of questions. And much of what--many of my questions were already brought up by my colleagues and it seems like there is this idea of either you support apprenticeship programs or you don't, and that is not really what is happening here. The thing I would like to say to you is that while assurances are great, you could have done a much better job to help us support what you are trying to do had we been provided with the documentation a lot sooner. The night before the hearing, and I have seen this, and I think that is what gives me concern hearing after hearing, whether it is the Department of Labor, the Department of Agriculture, the Department of Education, we are getting the information right before the hearing and we can't help you do your job better or support you, you know, as a collective body on both sides to say, you know, let us give you the support that you need. So just moving forward, we all support apprenticeship programs. I don't think that is the argument here. In my state, we have 4,312 Registered Apprenticeship programs, all bolstering higher--more access to opportunities. At my high school, I was a high school teacher, postsecondary education is not the pathway to success for everyone, so I get it. You said you want to enhance apprenticeship programs, but I don't understand if Registered Apprenticeship programs require wage progressions consistent with skills gained through those programs and IRAPs do not, then how could--how is IRAPs a better program as far as apprenticeships? Mr. Pallasch. Representative Hayes, thank you for your comments. And I first want to share my support for the apprenticeship model. As you mentioned, I think we all agree that the apprenticeship model is the model that we need to further. Again, unfortunately, I can't talk specifically about the I-RAP rule and what is contained and what is not contained in that rule. Mrs. Hayes. Okay, but can you say that--okay, so can we agree that Registered Apprenticeship programs require a salary progression while IRAPs do not? Mr. Pallasch. I cannot say what an I-RAP does or does not contain because there is no final rule yet. Mrs. Hayes. Okay. Can you say if IRAPs are required to have an Equal Opportunity plan, like Registered Apprenticeship programs? Mr. Pallasch. Again, under advisement of my attorneys I should not be speaking about specific elements within that rule. Mrs. Hayes. So I am assuming that you cannot say that there is comparable data that says that IRAPs have the same salary post-graduation as apprenticeship programs, that $70,000 a year that you talked about? Mr. Pallasch. Again, I can't specifically speak to the I- RAP program because it does not exist currently. Mrs. Hayes. Okay. So how about the fact that I think a lot of what you have heard today and a lot of the concerns of my colleagues are that congressionally appropriated funds, which we had been assured over and over would not be used for something other than they were appropriated, have now been shifted to support programs like IRAPs? And I have heard you say over and over that there is two accounts. If, in fact, you have worked with Solicitor General--I mean the Office of the Solicitor in order to implement these programs and you knew you were coming to this hearing, why wouldn't you just bring that information with you? We could have gaveled out an hour ago. Mr. Pallasch. Because, again, if you're talking about the program administration funding and how much-- Mrs. Hayes. The program administration funding. Mr. Pallasch. Again, as I mentioned, it's the way that fund is tracked and the way that staff are assigned to that account and that their activities are not tracked within that account. Mrs. Hayes. Right. Mr. Pallasch. So there may be budget activities, there may be HR activities, there may be apprenticeship activities, there may be Registered activities. There's no way to break out an individual's time to provide you that specific number that you're looking for, under the PA account how much was applied to the I-RAP program. Mrs. Hayes. But if it is as complicated as you say, then I would--I am just imagining from in my office, if I were going into a hearing or going into a meeting and I had to give this complicated metrics that you are describing, there is no way to describe it, I would make sure that I sat with my staff and broke it down to the lowest common denominator and made it as simple as possible, so that when I sat on the other side of that dais in order to present this information, I would have given the committee more than 15 hours to go through it. I would have made the effort, you know, if we are truly trying to enhance these programs and move them forward, to say then what can we do to disaggregate it? I just find it very difficult to believe that the Department of Labor can't come up with a system by which we are pulling this apart. To simply say we can't do it just doesn't seem reasonable when we are talking about millions of dollars in appropriated funds and hundreds of thousands possibly of students on the other side of these programs that are looking for us to get it right. Mr. Pallasch. Real quick, I want to make sure that there were no misappropriated funds. There were misapplied funds that have since been corrected. So all of the Training and Employment Services funds were spent on the Registered Apprenticeship Program. There are challenges with the program administration account, I will admit that. But, unfortunately, I don't have the ability to disaggregate that data in the way you're looking for. Mrs. Hayes. Well, I thank you. My time is up. Chairwoman Davis. Thank you. Mrs. Hayes. But we could have helped you with those challenges had we had the information. Chairwoman Davis. Thank you. Now turn to Ms. Wild. Ms. Wild. Thank you, Madam Chair. Mr.Pallasch, let us wrap up this issue of money being misapplied. You do agree that to date Congress has never appropriated any funds for IRAPs, correct? Mr. Pallasch. There is--the department does not have a specific appropriation for the Industry-Recognized Apprenticeship Program, correct. Ms. Wild. Okay. So will you commit today, sitting here today, going forward that no money has been dedicated to Registered Apprenticeships will be used to fund and staff an I- RAP office? Mr. Pallasch. Yes. Ms. Wild. You will make that commitment today? Mr. Pallasch. Yes. If we're talking about TES, or Training and Employment Services, funds appropriated for the Registered program, yes. Ms. Wild. Thank you. You and I agree on the apprenticeship model and that we need to shine a spotlight on it. I, frankly, think that contrary to some of the statements on the other side of the aisle that everybody in this room agrees with that. But I have major concerns about the lack of action that the Department of Labor has taken with regard to staffing levels, especially in the state offices of apprenticeship. We all know that staffing is important to administration. And back in a March hearing, my colleague Mr. Walker asked a witness from the Dallas County Community College about his experience with working with the Federal Government on Registered Apprenticeships. And the witness responded about his regional office in Dallas saying they are great, they have terrific knowledge of apprenticeship programs. We consider them a critical partner, but they are understaffed. First of all, would you agree with the witness from the Dallas County Community College about the understaffing issue? Mr. Pallasch. Not knowing all of the facts that they were referring to, I would be reluctant to admit to that. But I what I would admit to is what I mentioned earlier, is that it's been a commitment of mine from the first day in office that all of our programs fill all of their vacancies. Ms. Wild. And I understand that you didn't come to the department until July, but that testimony was back in March. And the Texas state apprenticeship director position is still vacant along with now Alabama, Idaho, and Oklahoma directors. And at one point, when Tennessee and Alabama were both vacant, the director in Georgia was covering three states at once. You have now been on the job for 5 months, but we still have at least three state director vacancies and staffing levels are operating below 70 percent capacity. So if these state offices are critical to the success of the Registered Apprenticeship system, isn't it true that the vacancies are going to undermine the effectiveness of the system? Mr. Pallasch. So I'm not familiar with the 70 percent staffing level that you indicate, but I'm happy to provide a full accounting of where the Office of Apprenticeship is on all of the current vacancies that exist. Ms. Wild. Well, my next question was going to be, and you must have anticipated it, what exact steps have been taken since you came to this position to fill these positions? And can we expect that they will be filled by the end of this year, 2019? Mr. Pallasch. Again, I would not commit to when they will be filled, but what I can commit is that I've got a weekly staff meeting with all the administrators for the programs across ETA. And on a weekly basis I provide an update on where we are as an agency with all of our vacancies. Ms. Wild. So tell us what you learned at your last weekly meeting. Where are we in terms of filling these vacancies? Mr. Pallasch. Again, I will commit to provide you a listing of exactly where we are in all of the Office of Apprenticeship vacancies. Ms. Wild. Okay. Well, that is great, but you just had a meeting last week, right, if you have weekly meetings? Mr. Pallasch. Correct. Ms. Wild. Tell us what you were told at that point. Mr. Pallasch. So it's not what I was told. Every week we provide to the administrators a listing of all the vacancies. For ETA-wide there's about 65 vacancies in any given week. So our Office and Management and Support Services provides that listing to the program administrators and I make it very clear that they are to fill any and all vacancies that they have in their program. Ms. Wild. Well, we have been asking for months about a plan for filling these offices and positions and the Department of Labor has yet to provide one. Can you commit to providing this plan to the committee in writing within the week after Thanksgiving? Mr. Pallasch. We will commit to providing you a listing of all the current vacancies and our efforts to fill those vacancies, yes. Ms. Wild. You will provide us with all of the current vacancies and your efforts to fill those vacancies by the end of the week after Thanksgiving? Mr. Pallasch. Again, I would be reluctant, especially given the holidays and staff-- Ms. Wild. Well, the reason I am trying to pin you down is because we have been asking for months and we never get answers, so I need an answer. Mr. Pallasch. Understood. And I will commit to providing that information as quickly as we can to make sure that you've got full and accurate information. Ms. Wild. I need a deadline on that. Mr. Pallasch. It would be unwise for me to give you a deadline this day without talking to staff first. Ms. Wild. So you won't give me a deadline of, say, the end of 2019, December 31st of this year? Can we expect all of that information? Mr. Pallasch. Again, I--you can expect that information as quickly as we can get it to you. Ms. Wild. Thank you. Chairwoman Davis. Thank you very much. I'm sorry that your time is up. Ms. Wild. Thank you. Chairwoman Davis. And I want to make a point, I think, as you could appreciate, Mr. Pallasch, that this has been very frustrating from our end. I know it sounds like it has been frustrating from yours, as well. But we really need to have those responses. And what we are hoping for is that we can see a number of responses. And in a moment I will just remind my colleagues of the time that they have to submit those questions, as well, that there--really by the end of this month, but even as you receive that information. So we need to have an ability to have that dialogue. And it has been happening through the correspondence and yet that has been delayed on so many different fronts, so I wanted to bring that to your attention. Thank you. I believe everybody who wants to address the witness at this time has spoken. So I want to remind my colleagues that pursuant to committee practice, materials for submission for the hearing record must be submitted to the Committee Clerk within 14 days following the last day of the hearing, preferably in Microsoft Word format. The materials submitted must address the subject matter of the hearing. Only a Member of the committee or an invited witness may submit materials for inclusion in the hearing record. Documents are limited to 50 pages each. Documents longer than 50 pages will be incorporated into the record via an internet link that must be provided to the Committee Clerk within the required timeframe. But please recognize that years from now that link may no longer work. I also want to thank you again, Mr. Pallasch, for your participation. I think what we have heard is very valuable. I will have a comment in just a minute, but, at the same time, it reflects the lack--the frustration that I just mentioned in terms of getting appropriate information. Members of the committee may have some additional questions and we ask you to please respond to these questions in writing. The hearing record will be held open for 14 days in order to receive those responses. So even though we are looking for comments by the end of next week, at the same time we know that could be extended by virtue of when they come in. I remind my colleagues that pursuant to committee practice, witness questions for the hearing record must be submitted to the Majority Committee Staff or Committee Clerk within 7 days. And the questions submitted must address the subject matter of the hearing. I now want to recognize the distinguished Ranking Member for her closing statement. Mrs. Foxx. Thank you, Madam Chair. I also would like to thank Secretary Pallasch for testifying today. And I want to address just briefly the last questions that were being asked. We all know that there are 7.1 million vacant jobs in the country, so it is logical to assume that there are unfilled jobs in all of the government agencies. And demanding that the department explain every single job that is vacant and why it is vacant and what has been done to fill it seems a little unreasonable to me. I think everybody if they have a legitimate job that is vacant wants to fill it as quickly as they possibly can. I happen to have a job in my office that we would like to get filled. And I suspect if we talked to members, everybody has got some jobs unfilled. We all agree that apprenticeship programs are a tried and true method for providing students with the skills they need to remain competitive in today's economy. There are also tried and true methods for providing people who are already working with the skills they need to remain competitive. And I am, frankly, encouraged as I talk to people who have apprenticeship programs that they are talking more and more to existing workers about going into apprenticeship programs to improve their skills. There is certainly room for improvement in every--any government program, and I talk about that a lot. But I do appreciate the department's leadership in championing policies that work or American families and workers. I look forward to working with you and my colleagues here today on strengthening the apprenticeship programs and reversing the stigma that a baccalaureate degree is the only path to achieve lifelong success. I am, frankly, very happy that the world, and our country in particular, has awakened to that issue. We must ensure all funds are used not only efficiently and effectively, but in full accordance with the law. I am glad to hear that commitment from Mr. Pallasch today and I expect the high standards he promised to be kept. For apprenticeships to be part of solving the skills gap in the Nation, the programs need to be flexible and meet the needs of workers and employers, and be able to adapt to the growing needs of the economy. I thank you again, Mr. Pallasch, for your time. And I thank the Chairwoman for the hearing. I look forward to continuing the conversation and work on this issue. I yield back, Madam Chair. Chairwoman Davis. Thank you, Dr. Foxx. I appreciate that and now recognize myself for the purpose of making my closing statement. And I would say as I look to my good friend and the Ranking Member, I know that there are many things that we totally agree within this. We want this to succeed. We want--we know we have a depth of programs in our country, but we can do better than that. And we know that many, many more students throughout this country and adults can benefit from these programs, but we need to be sure that we are communicating honestly and clearly. Thank you, Mr. Pallasch, for being with us today. We know that this raises a number of serious issues with the Department of Labor's handling of the U.S. apprenticeship system. Despite your testimony, the fact remains that the department improperly spent over a million dollars, though likely much more, that should have been invested in expanding Registered Apprenticeships, which guarantee apprentices decent wages, valuable credentials, and a pathway to the middle class. As I said at the beginning of the hearing, the apprenticeship programs are experiencing record levels of participation and interest. We are very excited about that. We have a rare chance to strengthen Registered Apprenticeships so that more American workers can experience the benefits of high- quality apprenticeship programs. But we also know that we can't accomplish that in a bipartisan manner if the department continues to resist transparency, divert resources to unaccountable and unproven apprenticeship programs, and violate the clear intent of Congress to invest taxpayer money in Registered Apprenticeship programs that have a long record of success. I urge you, the Employment and Training Administration and the Department of Labor, to recommit to the core purpose of our apprenticeship system: to ensure access, opportunities that provide well-paying jobs and benefits, valuable skills, and a credential that can set apprentices on a path to a rewarding career. And I strongly urge you to reconsider your actions on supporting IRAPs. And think that today's hearing makes clear that stronger language and protections need to be included in our appropriation laws to protect from these unacceptable actions happening in the future. Our oversight in to the department's actions will only continue from here, but we also look forward to working with you and each of our colleagues to expand the high-quality Registered Apprenticeship opportunities that have helped so many Americans succeed in the modern economy. I urge my colleagues to send in their questions as we have talked about. And if there is no further business, without objection the committee stands adjourned. Thank you. [Additional submissions by Ms. Jayapal follow:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [Whereupon, at 2:59 p.m., the subcommittee was adjourned.] [all]