In this paper I note the basic paradox of workforce development policy: that, in an era in which skills are more important than ever as determinants of labor market earnings, we spend fewer and fewer public (federal) dollars on workforce development over time. I present trends in funding and in program evolution over time for programs funded by the Department of Labor and others. I then review the cost-effectiveness of programs for adults and youth from the evaluation literature. I consider some other possible reasons for funding declines, and some newer developments in workforce policy, mostly at the state and local levels, before concluding with some policy recommendations.