The Labor Department is suspending Job Corps centers following a report that found the program has safety and financial issues and is failing to accomplish its intended outcomes.

While Job Corps was originally created by former President Lyndon B. Johnson to help young adults improve their lives through education and community, Trump administration officials told Fox News on Thursday that an "in-depth fiscal analysis and a startling number of serious incident reports reveal the program is not helping students achieve intended outcomes or keeping them safe." 

A Job Corps transparency report released in April found that the average graduation rate for the program was just 38.6%, with the program costing as much as $155,600 per student. After students complete the program, they are mostly being hired in minimum-wage positions, making $16,695 annually on average.

There are roughly fewer than 25,000 students now enrolled in the program.

Also, according to officials, there were 14,913 serious incident reports filed in 2023 over the program. During that year, 2,702 instances of drug use were reported; 1,808 hospital visits for students were reported; 1,764 acts of violence were reported; 1,167 breaches of safety or security were reported; and 373 instances of inappropriate sexual behavior and sexual assaults were reported.

The department is starting a phased pause in operations at contractor-operated Job Corp centers to facilitate an orderly transition.

There are 123 Job Corps centers across the U.S., 99 of which are run by contractors administered by the Labor Department. The Agriculture Department runs the remaining 24 centers, which will not be impacted by the pause.

The pause in the operations of the centers will occur by June 30, and the Labor Department will work with state and local workforce partners to assist current students.

"Job Corps was created to help young adults build a pathway to a better life through education, training, and community," Labor Secretary Lori Chavez-DeRemer told Fox News. "However, a startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve." 

"We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities," Chavez-DeRemer added.

During fiscal year 2025, Job Corps will cost taxpayers $1.7 billion. 

Job Corps operated at a $140 million deficit for program year 2024, requiring centers to be paused to save approximately $119 million to reach the end of this program year. Labor Department officials project that the program year 2025 deficit will grow to $213 million.