Clarifying Misinformation About the Workforce Pell Grant Program

When Congress passed the One Big Beautiful Bill Act last year, it included a section known as the Bipartisan Workforce Pell Act. According to the act’s legislation, this initiative aims to allow students to use federal Pell Grant funds to finance short-term, job-focused training programs. A lot of noise is swirling around the creation of this new program. Students, institutions, and even states will have to complete actions on their end to qualify for this funding.

• What will students need to do to receive this funding?

Students must meet a litany of criteria to access this critical funding source. Most importantly, interested students will need to complete a FAFSA for the award year for which they’re seeking financial aid. For instance, students expecting to receive a workforce Pell Grant in the fall 2026 semester will need to complete a 2026-27 FAFSA on www.studentaid.gov. Completing this crucial form will help financial aid offices determine whether you qualify for a Pell Grant.

Equally important is that students must not have earned a graduate or professional degree. Unlike the traditional Pell Grant program, students who have earned a bachelor’s degree may still qualify for this funding. As always, students must meet eligibility requirements for the Title IV Aid program (i.e., not defaulted on federal student loan obligations, is a U.S. Citizen or permanent non-resident, and is in good standing with the institution’s satisfactory academic progress policy).

Students who have exhausted their lifetime eligibility usage limit of 600% are ineligible for the workforce Pell Grant program. There are a few caveats to this expansion of the Pell Grant program. First, students who received a Pell Grant award during their previous undergraduate studies can participate in the workforce Pell Grant program. However, the 600% lifetime eligibility usage remains in effect. Therefore, a student may have limited Pell Grant eligibility during their academic studies in the workforce Pell Grant program. Second, students who fail to complete required verification may not also qualify for the workforce Pell Grant program. It’s essential to consult with a financial aid counselor about your eligibility for this funding, given the complex labyrinth of regulations in the program.

Concurrent enrollment is not doable for students receiving a traditional Pell Grant or a workforce Pell Grant. Thus, students will only receive federal financial aid assistance for one program at a time. So, if a student decides to enroll in a degree-seeking program and gets a traditional Pell Grant award, they cannot double-dip into a short-term certificate program and receive a workforce Pell Grant award simultaneously.

• What will institutions of higher education need to do?

Currently, there remains significant uncertainty about how the workforce Pell Grant will develop into a robust program of credentialing underserved students. To participate in the workforce Pell Program, an institution must meet strict parameters set forth by federal and state governments:

1. A short-term program must be 8-14 weeks long. If an institution is offering a short-term program in the form of credit hours, then there must be 150 to 599 clock hours of instruction to satisfy the workforce Pell Grant program’s stringent requirements.
2. A short-term program must have been in operation at an accredited institution for a minimum of one year before becoming eligible for this grant funding.
3. A short-term program must lead to a recognized postsecondary credential that is stackable to a future degree. It must also be portable across multiple employers. To qualify for the portability standard, the short-term certificate must help obtain employment with a variety of employers. A carve-out to this requirement stipulates that the short-term program need not be portable if it prepares students for jobs in an occupation for which there is only one recognized postsecondary credential.
4. Akin to gainful employment reporting, institutions must ensure a job placement rate of 70% or better within 180 days for all short-term programs receiving workforce Pell Grant funding.
5. One of the more rigid requirements for institutions to comply with is maintaining a 70% completion rate within 150% of the program’s normal time to completion for the short-term program.
6. Published tuition and fees for the short-term program may not exceed value-added earnings (median earnings adjusted by Bureau of Economic Analysis regional price parity minus 150% of the poverty line).
7. Distance education is permissible; correspondence courses are impermissible. There are no exceptions to this regulation regarding correspondence courses.

• What role do state governments have in the workforce Pell Grant program?

In a first for federal student aid, state governments will play a significant role in administering the workforce Pell Grant program. There’s a two-step program approval process for the workforce Pell Grant program. First, Governor’s Offices, in conjunction with state workforce boards, are responsible for identifying high-demand jobs needed in that state. States must certify that a short-term program offered in their state prepares students for “high-skill, high-wage, or in-demand” occupations based on that state’s needs. Second, Governors must verify that the short-term degree programs are stackable and portable, as outlined earlier. Finally, states must collect detailed administrative data on students participating in this program to aid the federal government in calculating the placement rate and completion rate for each school participating in this program.

Unlike the traditional Pell Grant program, states will have immense flexibility in implementing the workforce Pell Grant program. States will have the sole power to deem specific programs eligible for the expanded funding. States will also have the ability to enhance the program’s standards by enforcing stricter requirements beyond the minimum required by the federal government. States can also add other metrics to determine if a program meets state-specific economic goals aligned with the intent of the funding.

Intriguingly, states will need to negotiate bilateral agreements with other states to allow students to participate in workforce Pell Grant funding outside their domiciled state. This part may be the most contentious component of the workforce Pell Grant program.

To improve the chances of success at the state level, some states are passing legislation to create a formal state authorizing entity to handle the administrative burden of this new program. A few states are focusing on the need for an enhanced longitudinal data system to improve recordkeeping of non-credit program outcomes. Under the country’s federalist system, some states may devise better methods than others to collect this vast body of data for the federal government.

A few examples of programs potentially eligible for this funding include health-related, career and technical, and child-care programs. Each state is responsible for ascertaining what programs may qualify for funding.

Award amounts will vary as it is contingent upon a program’s length and intensity. Due to the short-term nature of the programs (in many cases, shorter than a full academic year), most students will qualify for only a partial amount of the maximum Pell Grant award for that academic year. Financial aid offices will need to monitor students to avoid inadvertently awarding a student closely.

 Currently, much remains in the air about the future of the workforce Pell Grant program. Until more details emerge from states, students and colleges will likely remain on the sidelines as they try to determine their next steps.