Career-training companies scoop up federal funds with little oversight

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Career-training companies scoop up federal funds with little oversight
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The United States spends untold millions on workforce training programs. Many don’t help people find jobs.

Having previously worked as a certified nursing assistant, Magilke leaped at the chance to move up in the medical field with the full $4,000 tuition for a medical-assistant training program covered. But she said she was never told that she needed in-person clinical training — which MedCerts did not provide — to make her a viable candidate for a job as a medical assistant.

Students enrolling in traditional two- and four-year colleges can easily find graduation rates and can even get some employment data. But the Department of Defense does not release information on how many students complete specific programs for some of its grants — or even how much money the providers get. The Department of Labor does track and publish results, but the state and federal data on how many students finish a program and get jobs is often contradictory or is simply unavailable.

Michigan state officials said companies use such disclaimers to justify any exception to the required performance metrics. Department officials said that MedCerts had been meeting or exceeding its goals for the number of students who pass a certification exam.Complicating matters further, agencies don’t track what kinds of jobs the students get, meaning they have no way of knowing whether the students ended up in the field they were studying.

“Some workforce boards are persistently under-resourced, and they lack an understanding of how to best use WIOA money,” said Justin Birch, program director of workforce development at the Rural Local Initiatives Support Corporation. Significant federal funding for workforce training programs like those MedCerts offers comes from military grants, including a military spousal benefit known as MyCAA and the grant Oue used. And these grants receive even less oversight than WIOA’s; no information is collected about how many students get jobs or continue their education elsewhere.

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