BTSD programs were never designated as literacy programs, although many students who came for upgrading needed such work, and programs were often considered at the ground level a general basic education rather than merely training. Both the social objectives of CMTP and the character of BTSD as basic education came under attack in the early 1970s, particularly with the recession of 1973-4.²⁰ The overall economic focus was tightened. In particular, Canada Manpower came to see that training at the literacy level did not reliably lead to people getting jobs or taking further training, and therefore did not serve the federal mandate for job training.²¹ There were also concerns about the number of young secondary school drop-outs involved in programs. As a result, BTSD programs were tied more closely to vocational training, overall seat purchases began to be reduced, and seat purchases below the grade 8 level dwindled through the decade, and were completely discontinued after 1981-2. After this time, the federal government did not have a focused involvement in adult literacy, which was seen as a responsibility of the provinces. Consequently, "by the end of the 1970s, program provision for the most undereducated adults had almost ceased to exist."²²

In the late 1970s and early 1980s, in part as a response to the end of federally-funded programs for the least educated, other organizers of adult literacy programs became increasingly active.²³ Educators in educational institutions, community organizers working in poor neighbourhoods, or charitably-minded community members, saw a need for programming and worked to see it started. Programs were organized, usually at a local level, in school boards, community colleges, libraries, and voluntary and community organizations.

Adult literacy work more nearly fit the provincial mandate for education than the federal mandate for job training. Although adult literacy was generally a low priority in child-centred education ministries, some provincially-funded programs were begun. School districts and community colleges developed or supported literacy programs in a number of provinces. Community colleges were generally more active in British Columbia, Alberta and Saskatchewan. School districts were more active in Ontario and Québec, although unevenly, without central policy. Educational institutions in the Atlantic provinces had only minimal involvement, often confined to the purchase of materials for volunteer groups.