A crisis for older workers in America
Thousands of older Americans nationwide may soon find themselves out of work—not for their performance, not because they’re retiring, but due to flat funding. A critical federal programme that has worked for years to put low-income seniors on the job is in danger of being cut back or delayed by the Department of Labour (DOL).
At the centre of the crisis is the Senior Community Service Employment Program (SCSEP), a programme that has existed for decades to connect adults 55 and older with part-time, community-based employment. For some of these adults, SCSEP has been more than just an employment programme—it’s been a lifeline, a road to security, and a way of maintaining dignity in old age.
But now, that stability is under threat.
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What’s going on with the SCSEP program?
The Department of Labour usually releases the SCSEP programme funding in May each year. However, there has been a significant delay this time. Although the DOL released approximately $86 million to state-level beneficiaries on July 1, over $300 million intended for national-level grantees remains unallocated.
This abrupt cutoff in funding has brought uncertainty and fear to the approximately 40,000 seniors who benefit from the program. In the absence of these federal funds, nonprofit agencies that help fund SCSEP—such as Goodwill and Easterseals—are saying they will be forced to lay off staff, leaving thousands of older workers unemployed.
And that is not just a temporary glitch. The proposed 2026 federal budget includes the elimination in its entirety of SCSEP. If enacted in this form, the programme will be replaced by a system of block grants, which would shift the administration of job training funds to states and municipalities and potentially end the national structure that has helped older workers for generations.
Why this matters so much
SCSEP is more than a pay cheque for the majority of seniors. It provides job training, work experience, and a chance to give back to their communities in positive ways. Participants are placed into work in schools, libraries, hospitals, and nonprofits, acquiring skills that enable them to get back into the job market or find long-term employment.
People in SCSEP are often among the most vulnerable in society. You will need to be age 55 or older, unemployed, and earn no more than 125% of the federal poverty level to apply. Many of the participants survive month-to-month, and losing this programme would drive them deeper into poverty.
Kendra Davenport, the president and CEO of Easter Seals, emphasised this in an interview earlier this year. She ou ha She added that discontinuing the programme at this time, when so many older Americans are still struggling to recover from the economic effects of the pandemic, could lead to catastrophic consequences.
Behind the numbers and dollars are the stories of people. Among SCSEP participants are those who have been out of the workforce due to job loss, health issues, or caregiving responsibilities. Through SCSEP, they find new purpose, become engaged with others, and learn skills that restore their self-confidence and financial stability.
The programme especially serves the marginalised. For instance, according to the National Council on Aging (NCOA),
Many SCSEP participants are over 65. A few are over 70. Some are veterans, those without a college degree, or those in rural areas with poor access to jobs. SCSEP offers them a chance when few others can.
Some have used the programme as a launching pad for second careers. Others rely on it to top up their incomes until they qualify for full Social Security. And some just want to remain active in their communities and not sit at home alone.
WhaWhat is the future of SCSEP?
Officials have yet to announce the release date for the remaining SCSEP dollars this year. The longer it delays, the harder it becomes for nonprofits to make tough decisions—lay off staff, reduce services, or put new enrolments on hold.
Adding to the sense of urgency is the recent proposal to eliminate SCSEP entirely in 2026. If Congress acquiesces, what scant infrastructure exists for this vital programme would be erased, and cities and states would have to find their own methods to serve older workers on far less money.
A number of advocacy organisations are coming out, requiring the Department of Labour and Congress to move quickly and make available the rest of the 2025 funding. They are also requiring Congress not to approve the 2026 budget cuts and leave SCSEP on its current footing.
These groups contend that cutting SCSEP would not just hurt older Americans—but it would hurt local economies, too. Seniors working through the programme help nonprofits perform better and enhance public services for everyone.
A broader consideration of priorities
This budget crisis reflects a larger trend as well. Across the federal government, services aimed at vulnerable populations are on the table to be reorganised or cut. While there might be altruistic intent in plans to streamline or decentralise government outlays, the impact on real flesh-and-blood individuals cannot be ignored.
Older Americans are one of the population’s fastest-growing demographics. With life expectancy on the rise and more individuals delaying retirement out of necessity, help programmes like SCSEP will only get more robust. Today isn’t the day to pull the rug out from under those who need services the most.
A program worth saving
The Senior Community Service Employment Program has been operating quietly and effectively for decades. It’s one of the few job training programmes specifically for older adults. It lifts people out of poverty, keeps them active mentally and physically, and serves local nonprofits and community organisations in the process.
The current delay in funding has already taken a toll and caused stress and confusion. But the threat of the programme being cut entirely is even more frightening. If the government doesn’t act swiftly, thousands of seniors will be denied the services they rely on—not just to work, but to live with dignity.
As policymakers bicker over priorities and budgets, one thing should be beyond question: older worker spending is not a financial burden. It’s a wise, compassionate decision that benefits all of us.
If SCSEP disappears, we might never know how much damage it has done until it is too late.
