Key Takeaways
- •Witnesses urged Congress to expand Pell Grant eligibility to short-term technical programs and modernize the Perkins Act to help small businesses overcome a critical skilled labor shortage.
- •Mike Gibson (Executive Vice President, Associated General Contractors of Kansas) called for tax incentives for equipment donations and more flexible federal funding to support industry-led training initiatives.
- •Rep. Meuser (R-PA-9) and Keith Gunuskey (Superintendent of Schools, Wallenpaupack Area School District) discussed how local business advisory committees ensure school curricula align with real-world workforce demands.
- •Rep. Williams (R-TX-25) emphasized reducing regulatory burdens for small firms, while Rep. Velázquez (D-NY-7) focused on ensuring CTE programs are equitable and accessible to students from underserved communities.
- •Bipartisan consensus on expanding apprenticeship models into non-traditional sectors suggests future legislative action to provide students with debt-free pathways to high-paying careers in cybersecurity and healthcare.
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Hearing Analysis
Overview
The House Small Business Committee held a hearing on February 24, 2026, titled “Career and Technical Education: Developing the Future of Main Street Success,” to examine the role of Career and Technical Education (CTE) in addressing the nationwide skilled labor shortage. Chairman Roger Williams (R-TX-25) opened the session by emphasizing that small businesses are the backbone of the American economy but are currently struggling to fill essential roles in trades, healthcare, and manufacturing. Ranking Member Nydia Velázquez (D-NY-7) highlighted CTE as a vital pathway for economic mobility, particularly for underserved communities, while stressing the need for equitable access and federal support to overcome barriers like transportation and funding.
Key Testimony
The witness testimony provided a comprehensive look at the challenges and successes of local CTE programs. Keith Gunuskey, Superintendent of the Wallenpaupack Area School District, described the success of hands-on programs in building trades and healthcare but noted that the rising cost of equipment and a shortage of qualified instructors—who often leave for higher-paying private sector roles—hinder expansion. Mike Gibson, Executive Vice President of the Associated General Contractors of Kansas (AGC), testified that the construction industry needs 500,000 additional workers this year. He advocated for pre-apprenticeship programs and criticized the administrative burdens that prevent small firms from sponsoring registered apprenticeships. Nikki Nix, Chief Academic Officer for the Godley Independent School District (Godley ISD), showcased her district’s "enrollment, enlistment, or employment" model, which utilizes student-run businesses and dual-credit partnerships with Hill College to prepare students for the workforce. Finally, Zach Boren, Senior Vice President of Apprenticeships for America, argued for expanding apprenticeships into non-traditional sectors like cybersecurity and healthcare, suggesting that the U.S. should emulate the higher investment levels seen in the United Kingdom and Germany.
Overview
Several specific policy proposals were discussed throughout the hearing. Witnesses and members frequently cited the need for greater flexibility in the Perkins Act (Perkins V) to allow for earlier career exploration in middle school and to reduce reporting "red tape." Mike Gibson and Rep. Jake Ellzey (R-TX-6) discussed the "Short-term Pell" initiative, which would allow Pell Grants to be used for high-quality, short-term technical programs. Other proposals included tax incentives for small businesses that donate equipment to schools, "per-apprentice" financial incentives for small employers, and the creation of a more streamlined registration process at the United States Department of Labor (DOL) for apprenticeship programs.
The hearing identified significant impacts across multiple sectors, including construction, advanced manufacturing, healthcare, information technology, and agriculture. Small businesses in these fields were described as being at a disadvantage compared to larger corporations that have the human resources capacity to manage complex federal training regulations.
Industry Impact
The discussion involved several key organizations. The Small Business Administration (SBA) was frequently mentioned as a potential vehicle for workforce development counseling and as a partner that could work with the DOL to simplify apprenticeship sponsorship for small firms. Godley Independent School District (Godley ISD) was praised as a model for its 14 career clusters and its proactive rebranding of CTE as "career readiness." The Wallenpaupack Area School District was highlighted for its use of Occupational Advisory Committees to align curriculum with local industry needs. The United States Department of Labor (DOL) was criticized for its rigid apprenticeship registration processes and ratio requirements, which witnesses argued are too burdensome for small shops. The Associated General Contractors of Kansas (AGC) was noted for its "Build Up Kansas" digital recruitment initiative. National organizations like the National FFA Organization (FFA) and SkillsUSA were recognized for their role in teaching "soft skills" or professional standards. The American Welding Society (AWS) and ASE (National Institute for Automotive Service Excellence) were referenced as providers of the industry-recognized credentials that ensure student mobility. The United States Department of Education was mentioned in the context of needing better inter-agency collaboration with the SBA and DOL.
Partisan dynamics were largely collaborative, with both parties agreeing on the economic necessity of CTE. However, subtle differences emerged: Republican members, such as Rep. Daniel Meuser (R-PA-9) and Rep. Mark Alford (R-MO-4), focused heavily on reducing regulatory hurdles, equipment costs, and the "stigma" of vocational training. Democratic members, including Rep. Hillary Scholten (D-MI-3) and Rep. Johnny Olszewski (D-MD-2), placed more emphasis on diversity, equity, and the provision of "wraparound" services like childcare and transportation to ensure all students can access these pathways.
Notable exchanges included Rep. Tony Wied (R-WI-8) and Rep. Jake Ellzey (R-TX-6) questioning witnesses on the importance of "soft skills," such as punctuality and teamwork, which employers often value as much as technical proficiency. Rep. Troy Downing (R-MT-2) highlighted the unique challenges of rural districts, leading to a discussion on the use of mobile labs and virtual reality simulations to bring high-tech training to remote areas. Rep. Derek Schmidt (R-KS-2) and Mike Gibson discussed the success of using social media platforms like TikTok and Instagram to recruit Gen Z into the trades.
Overview
The hearing concluded with Chairman Williams and Ranking Member Velázquez reaffirming their commitment to bipartisan legislative solutions. Members were given five legislative days to submit additional materials for the record, signaling that the committee will continue to evaluate the SBA’s role and potential reforms to federal workforce funding.
Transcript
[Gavel sounds.] The committee will come to order. Without objection, the Chair is authorized to declare a recess at any time. I now recognize myself for my opening statement. Good morning, everyone. I want to thank our witnesses for being here today to discuss the importance of Career and Technical Education, or CTE, and its role in supporting our nation's small businesses. In today's rapidly evolving economy, the demand for skilled labor has never been higher. From manufacturing and construction to healthcare and information technology, small businesses across the country are struggling to find qualified workers to fill essential roles. According to recent data, there are millions of unfilled jobs in the United States, many of which require specialized skills that traditional four-year degrees do not always provide. This skills gap is a significant hurdle for Main Street, limiting the ability of small businesses to grow, innovate, and compete in a global marketplace. CTE programs offer a proven solution to this challenge. By providing students with hands-on training and industry-recognized credentials, CTE prepares the next generation of workers for high-demand, high-wage careers. These programs are not just for high school students; they also provide critical upskilling and reskilling opportunities for adult learners and workers looking to transition into new fields. Today, we will hear from experts and practitioners who are on the front lines of CTE. We will discuss how these programs are being implemented in our schools and communities, the challenges they face, and the opportunities for federal policy to better support their success. I look forward to a productive discussion on how we can strengthen the pipeline between our classrooms and our small businesses. I now recognize the Ranking Member, Ms. Velázquez, for her opening statement.
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