Three federal agencies have released “America’s Talent Strategy: Equipping American Workers for the Golden Age.” The EEOC has detailed actions it has taken to prevent workplace religious decision. The recently signed tax and spending law makes changes to the educational assistance provisions in the Internal Revenue Code. Congress will return after Labor Day from its August recess.
Federal Agencies Issue Talent Strategy – The Departments of Labor, Commerce, and Education published a report, “America’s Talent Strategy: Equipping American Workers for the Golden Age.” According to the report, the strategy, “lays out a comprehensive plan to address the workforce needs of American companies, integrate existing workforce development systems to maximize efficiency and effectiveness, provide accountability for workforce training programs, upskill incumbent American workers, and develop alternatives to 4-year college degrees.”
The strategy includes five pillars:
EEOC Details Actions to Prevent Workplace Religious Discrimination – The Equal Employment Opportunity Commission (EEOC) announced enforcement actions it has taken to “defend the religious liberty of American workers.” The issues addressed include Covid-19 vaccine mandates and other religious accommodations. According to EEOC Acting Chair Andrea Lucas, “Title VII recognizes the reality that religious freedom is a fundamental right that transcends workplace policies.”
As a result of Covid-19 vaccine mandates, the EEOC received more than 10,000 religious accommodation charges and indicated that it has recovered over $55 million for workers impacted by these mandates. The actions include filing lawsuits and settlements with different employers including healthcare systems, hotels, and a charter school.
The EEOC also has resolved cases and filed lawsuits raising issues such as denying religious accommodations to employees of different faiths, firing an employee over faith-based social media posts made outside of work that did not mention the workplace or coworkers, failing to accommodate the request of an employee to observe the Sabbath in accordance with her faith, and not accommodating requests to wear clothing due to their religion.
Law Makes Changes to Educational Assistance Programs - As part of the tax and spending law (P.L. 119-21), formally known as the “One Big Beautiful Bill”, educational assistance provided under Section 127 of the Internal Revenue Code will be adjusted starting in 2026 based on the cost of living. This section allows employees to exclude from the gross income of employees up to $5,250 of employer-provided educational assistance. Educational expenses that qualify include tuition, fees, books, supplies, and equipment.
The law also made permanent the temporary program that allowed employers to exclude from gross income of employees of up to $5,250 of student loan payments as part of an educational assistance program. The payments can be made either to the employee or a lender, and this amount also will be increased based on the cost of living starting in 2026.
Section 529 of the Internal Revenue Code established savings accounts usually used for higher education expenses. Under the law, Section 529 plans can now be used to pay for the expenses (tuition, curriculum materials, books, and tutoring) of students who are enrolled in elementary or secondary public, private, or religious schools. Additionally, effective July 4, 2025, the law will allow 529 plans to pay for skilled trades and vocational training programs, professional license, and certification fees, and required continuing education courses to maintain licensure or certification.
Congress Returns from Recess – Congress is scheduled to return from its August recess after Labor Day. September will be dominated by efforts to fund the federal government for the fiscal year that starts on October 1st. There are 12 appropriations bills that need to be passed. To date, the House of Representatives has passed two appropriations bills while the Senate has passed three. Fiscal year 1997 was the last time that Congress passed all 12 appropriations bills prior to the start of the fiscal year. It is doubtful that Congress has sufficient time in September to pass all of the appropriations bills, which means that either a continuing resolution funding the government for a limited period of time will need to be approved or there will be a partial government shutdown.
Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at neilreichenberg@yahoo.com.