By: Bill Osterndorf
OFCCP’s three priorities for FY 2025 are to:
- Continue work on the agency’s Mega Construction Project (Megaproject) Program
- Focus on strategic enforcement of the agency’s laws and regulation
- Enhance the agency’s outreach to workers, employers, and other stakeholders
Unlike recent budget justifications, the FY 2025 budget justification proposes no major changes to OFCCP’s activities or funding. There are no new initiatives announced in the budget justification. While OFCCP sought significant funding increases in recent years, the funding requested for FY 2025 is in line with current funding for the agency.
OFCCP Funding and Staffing
OFCCP has requested $116 million in funding for FY 2025. Congressional funding for OFCCP’s operations has remained level since 2015 with appropriations ranging from a low of $103 million in FY 2018 and 2019 to a high of $111 million in FY 2023. The funding requested for FY 2025 is a much smaller amount than the funding requested by the agency for 2022, 2023, and 2024. OFCCP had requested $141 million for FY 2022, $147 million for FY 2023, and $151 million for FY 2024.
OFCCP’s FY 2025 budget justification shows that the agency expects staffing to remain at the same level it has been in the last two fiscal years. The agency currently has about 490 full-time employees (FTEs) for staff. The agency’s low point for staffing came in FY 2021 and 2022 when it had about 450 FTEs. The number of FTEs has dropped significantly since FY 2015 when the agency had 621 FTEs. The FY 2025 staffing request is significantly different than the FY 2024 staffing request, when OFCCP asked to increase staffing to 620 FTE.
Construction Megaprojects
The FY 2025 budget justification shows OFCCP will continue to focus on federal contractors and subcontractors involved in construction projects. This focus on construction began in 2021 and should expand further in FY 2025 as the agency begins compliance reviews of construction megaprojects. The agency has identified 24 megaprojects where OFCCP will be involved in providing compliance assistance and conducting reviews.
OFCCP also intends to strengthen its general enforcement efforts for construction contractors and subcontractors. The agency expects to implement a revised scheduling letter that requests new and additional information at the start of construction reviews. The FY 2025 budget justification states that enhanced requests for information will “ensure that disparities in pay, promotion, assignment, and other opportunities are not veiled by convoluted data disclosures.”
Strategic Enforcement
OFCCP’s FY 2025 budget justification states the agency will focus on situations where there are strong indicators of potential systemic discrimination in hiring and compensation. This also continues a multi-year trend for OFCCP. The budget justification suggests the agency will use new tools and more sophisticated analyses to identify and resolve alleged discrimination.
OFCCP expects to make changes to enhance its evaluation processes. The FY 2025 budget justification states that the agency will assess the effectiveness of its triage process and adjust thresholds and parameters used by field staff. The budget justification also states that OFCCP has added data scientists to improve analyses of information provided during compliance reviews. The agency intends to identify patterns involving the use of artificial intelligence or other technology in employment decisions.
OFCCP Outreach
The FY 2025 budget justification indicates that OFCCP intends to be more involved with employers, workers, and other organizations. OFCCP intends to link federal contractors and subcontractors involved in megaprojects with agencies that can assist with recruiting and training programs. The agency also intends to educate employees and job seekers about their workplace rights, and to expand the agency’s relationships with community-based organizations.
DCI will keep its clients and the federal contractor community apprised of any updates as they become available.
