Montana Leads Nation in Workforce & Education Alignment, Prepares Next Step on Federal Modernization Initiative
- — July 24 2025
Helena, Mont. - With the passage of House Bills 449, 656, and 823 earlier this year, Montana has positioned itself as a national leader in workforce modernization—proactively aligning state workforce and education systems ahead of major changes outlined in the new interagency agreement (IAA) between the U.S. Departments of Labor and Education.
The IAA, announced July 15, 2025, lays out a joint vision for streamlining career and technical education (CTE) under Perkins V alongside Titles I, II, and III of Workforce Innovation Opportunity Act (WIOA) public workforce system funding. Thanks to forward thinking reforms signed into law by Governor Greg Gianforte during the 2025 legislative session, Montana is already aligned and ready to lead.
“These reforms weren’t reactive—they were strategic,” said Labor Commissioner Sarah Swanson. “Montana’s workforce and education partners anticipated the direction of federal policy and took early, decisive action to align our systems and better serve students, jobseekers, and employers. We are leading from the front.”
HB 449, HB 656, and HB 823 overhauled outdated structures and aligned state-level workforce training with real-world needs. This legislation simplifies governance, integrates career pathway planning, and strengthens access to training resources across state programs – improvements that directly support the IAA’s national objectives.
“The proactive measures taken through House Bills 449, 656, and 823 demonstrate a commitment to preparing our students for meaningful careers while addressing the real-world needs of employers.” Said Lance Melton, Executive Director, Montana School Boards Association. “This forward-thinking approach reflects Montana’s status as a leader for innovation and collaboration in education and workforce development.”
In June 2025, Governor Gianforte sent a letter to the US Department of Education formally consolidating Titles I, II, & III of WIOA at the MT Department of Labor and Industry, delivering on a core tenant of the IAA’s long-term vision and ensuring greater state flexibility.
“I’m honored that our work in the 2025 Legislature has helped position Montana as a national leader in workforce and education alignment,” said Rep. Brad Barker. “HB823 ensures that our State Perkins Plan Committee integrates the voices of business, labor, and education to reduce administrative barriers, align priorities, and focus on outcomes that matter for students, workers, and employers.”
“HB656 moved the funding needle,” said Rep. Ken Walsh. “By bringing agencies together, we can make sure Montanans aren’t falling through the cracks when it comes to accessing critical job training and employment services. It’s about giving people the tools they need to succeed and contribute while reducing government red tape.”
Next Steps: Joint Collaboration on Perkins V
Montana is now preparing for the next phase of implementation: aligning the state’s Perkins V CTE programs with the IAA framework. In the coming weeks, the Montana Department of Labor & Industry (DLI) will join collaborative meetings with the Office of Public Instruction (OPI) and the Office of the Commissioner of Higher Education (OCHE) to develop a shared action plan.
“These conversations will be critical to maximizing the impact of our WIOA and Perkins investments,” Swanson said. “We’re focused on creating seamless, community-driven career pathways—starting in schools and extending into apprenticeship, postsecondary training, and meaningful work.”
“We’re thrilled to take this next step forward. By aligning Perkins V and WIOA under one coordinated strategy – deepening connections across K-12, higher education, workforce partners, and industry – we’ll create truly seamless pathways.” Said Clayton Christian, Commissioner of the Office of Higher Education. “This unified plan will ensure every participant benefits from comprehensive support and clear opportunities for success.”
Montana’s proactive leadership continues to draw national attention, and the state is working closely with federal agencies and peer states to support successful, state-led implementation of the IAA. For additional information, please see the federal IAA Fact Sheet and Governor Gianforte’s letter to the US Department of Education.
Contact
Sam Loveridge: Public Information Officer, Department of Labor and Industry