On May 18, the Department of Education (ED) released its final rule for the implementation of Workforce Pell. Beginning July 1, eligible students will be able to use Pell Grants for approved high-quality, short-term workforce training programs. 

The final rule establishes the regulatory framework for the Workforce Pell Grant program. As written in the One Big Beautiful Bill Act, eligible workforce programs must be between 150 and 599 clock hours and span at least eight but less than 15 weeks. Programs must lead to a recognized postsecondary credential that is stackable to a higher-level, for-credit program and prepares students for employment in high-skill, high-wage or in-demand occupations. 

To qualify for Workforce Pell eligibility, a program must have been in existence for at least one year and be offered by an accredited institution that has not faced a suspension, emergency action or program termination within the previous five years. 

Students must also meet existing Pell Grant eligibility requirements, including having a valid Social Security number, a high school diploma or recognized equivalent. They must be within Pell Grant lifetime usage limits (to which Workforce Pell applies). The regulations also establish additional eligibility requirements specific to Workforce Pell participants: 

• A student who received a bachelor’s degree may be eligible for a Workforce Pell Grant to enroll in an eligible program 

• A student enrolled in a program that leads to a graduate credential or who has attained a graduate credential is not eligible for a Workforce Pell Grant  

• A student may not receive concurrent Pell Grants for more than one eligible program at a time. 

Under the final regulations, governors, in partnership with state workforce boards, will identify high-skill, high-wage or in-demand industries and occupations to determine which programs are eligible for Workforce Pell funding. States will also have to determine if programs meet the “stackability” requirements originally outlined in the statute.  

Once a governor approves a program, ED will review documentation submitted by the institution to verify that the program meets federal requirements related to instructional length, clock hours, completion rates and job placement outcomes. 

• Completion Rate: 70 percent of program participants must complete the program within 150 percent of the normal time to completion.  

• Employment Rate: 70 percent of program completers must be employed during the second quarter after program exit. 

Institutions will eventually also be required to demonstrate that program graduates earn enough after completion to justify the total cost of attendance, reflecting a focus within the program on value and student return on investment. As part of the accountability provisions, a program’s published tuition and fees cannot exceed its “value-added earnings,” defined as the difference between the median earnings of program completers and 150 percent of the federal poverty guideline for a single individual during the applicable tax year. Notably, the final regulations exclude students from this measure who are still enrolled in education, a key priority we highlighted during the previous comment period to ensure students can be encouraged to pursue additional education along their career pathway. Unfortunately, the employment rate metric does not contain this exemption.  

Programs can lose eligibility by failing to meet the completion rate, job placement rate, or value-added earnings requirements. 

Now that the final rule has been issued, states will be able to finalize their approval processes and submit programs to the federal government for the Secretary’s approval. It is important to remember that there will likely only be a few programs identified as eligible at the beginning of the program’s launch, but that additional programs can be added as states and local institutions identify needs and build out data and reporting systems.  

ACTE will continue to distribute information as it becomes available. If you have any questions, please contact ACTE’s Government Relations Manager, Jimmy Koch (jkoch@acteonline.org).