The budget reconciliation bill that Congress passed in July includes legislation that would expand Pell Grant eligibility to learners and workers who want to pursue a short-term job training program, creating new possibilities for economic opportunity for those for whom a four-year college program is not the best option.
But Pell expansion also brings uncertainties and potential problems, as a webinar sponsored by the Bipartisan Policy Center last week outlined.
Starting in 2026, learners will be able to use Pell Grants to pay for programs that are less than 15 weeks in length and prepare students for high-skill, high-wage, or in-demand jobs, providing a pathway to postsecondary credentials and economic mobility.
But the timetable for implementing Workforce Pell next January has also raised questions around states’ capacity and preparedness to administer these new grants. “There’s a lot of unknowns that need to be known,” said Mark D’Amico, professor of Higher Education, University of North Carolina at Charlotte. “And I think there’s also a lot of heavy lifting by states that needs to be done.”
D’Amico and other panelists for the BPC discussion, which was moderated by Paul Fain, co-founder of Work Shift, said a crucial issue is states being able to develop data-gathering and data-sharing systems to demonstrate that programs—particularly non-credit programs—meet Workforce Pell eligibility standards.
In for-credit programs, the education and training providers eligible for Workforce Pell are the same as those currently eligible for Pell Grants: institutions of higher education that are accredited and able to receive Title IV under the Higher Education Act. Programs must be between 150 and 599 clock hours and between 8 and 15 weeks.
For non-credit programs—an increasingly popular option for many learners—states will have to provide data to prove eligibility to federal authorities. Requirements include:
- The program must prepare students for high-skill, high-wage, or in-demand industry sectors or occupations.
- The program must meet the hiring requirements of employers;
- The program must lead to a recognized postsecondary credential that is stackable and portable, unless the program prepares a student for employment in an occupation where there is only one recognized postsecondary credential;
- The program must provides credit that articulates to one or more additional certificates or degree programs.
The U.S. Secretary of Education will also have a role in ensuring that the program:
- Has been offered by the institution for at least one year prior to receiving eligibility.
- Has a verified completion rate of at least 70%, within 150% of normal time for completion.
- Has a verified job placement rate of 70%, measured at 180 days of program completion.
- Meets an earnings requirement that looks at program cost, median earnings, and the federal poverty level.
“There are lots of complexities within this eco-system,” said D’Amico. “One is being a great educator and getting students ready for the work force – the other is having the data ready.”
Chandler LeBoeuf, Executive Vice President of Education at the Louisiana Community and Technical College System, outlined how states like Louisiana are addressing these data divides through integrated data systems and the migration of non-credit data into student information systems.
And Kelli-Marie Vallieres, Chief Workforce officer of the state of Connecticut, spoke about how her state’s Career Connect program has developed outreach systems to stay in touch with employers in order make sure job-training strategies are focused on the occupations that are most needed and valued.
“Our businesses and our academic institutions really don’t speak the same language,” Vallieres said. “You need an interpreter.”