On May 19, the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies held a hearing titled “A Review of the President’s Fiscal Year 2027 Budget Request for the Department of Labor.” Acting Labor Secretary Keith Sonderling testified regarding the Administration’s proposed fiscal year (FY) 2027 funding levels and policy priorities for the U.S. Department of Labor (DOL).

Throughout the hearing, senators questioned the Administration’s proposed restructuring of federal workforce development programs, reductions to overall discretionary spending, and the growing coordination between the Departments of Labor and Education.

Democrats on the subcommittee criticized the administration’s “political crusade” to eliminate the Department of Education (ED) by shifting to co-manage programs with other agencies through recent interagency agreements. They argued that DOL is not equipped to manage these programs[AH1]  and that moving ED programs across agencies has resulted in difficulties in administering education programs while creating new challenges for DOL in administering its own programs.

Proposed cuts to the Job Corps program also emerged as a major flashpoint. Sen. Susan Collins (R-ME) said the program helped students in her state move into cybersecurity, shipbuilding and other careers. Sens. Chris Murphy (D-CT) and Jeanne Shaheen (D-NH) also warned that eliminating Job Corps could hurt workforce pipelines tied to shipbuilding and the defense industrial base.

A recording of the hearing can be found here.

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).

Congress was in session this week, and Secretary McMahon testified before the House Committee on Education & Workforce regarding the Department of Education’s (ED) priorities and President Trump’s FY27 budget proposal. ED also launched numerous grant competitions this week, including one focused on career pathways, and released a new draft of accreditation regulations ahead of another week of accreditation negotiated rulemaking. Read more updates below.  

• ED Secretary McMahon Testified at House Education and Workforce Committee Hearing: On May 14, the House Education and Workforce Committee held a hearing titled, “Examining the Policies and Priorities of the Department of Education,” where U.S. Secretary of Education Linda McMahon testified. Read more on the blog.  

• ED Launches Several Grant Competitions: This week, ED announced the launch of several grant competitions, including the Ready to Learn Program and the Promise Neighborhoods Program, the Comprehensive Centers Program, the Teacher Quality Partnership Program, and a $144 million investment for students with disabilities. ED and DOL also announced a grant competition related to career pathways, and readers can learn more about this grant and the call for peer reviewers on the blog. 

• OCTAE Issues Memo on Postsecondary Credentials: On May 12, the Office of Career, Technical and Adult Education (OCTAE) at ED issued a memo to states on recognized postsecondary credentials in CTE fields, outlining strategies for states related to expanding and assessing credentials. OCTAE also recommends incorporating AI certifications into CTE programs. 

• ED Releases New Draft of Accreditation Regulations: This week, ED released a new draft of accreditation regulations ahead of the second and final week of accreditation-related negotiated rulemaking. While most of the regulations remain unchanged, a few noteworthy edits were made, including a new definition of “academic freedom” that accreditors would be required to enforce and new transfer of credit language.  

• Department of Commerce Announces Funding Opportunity to Upskill American Workers in AI: On May 11, the Department of Commerce announced that it is making available approximately $25 million in funding as part of a new AI Upskill Accelerator Pilot Program. This initiative will support the design and implementation of AI workforce training, helping to train workers and grow industries that are integral to regional economies.  

• Lawsuit Attempting to Stop Dismantling of ED Moves Forward: On May 8, a federal judge denied a motion to dismiss a lawsuit seeking to stop the administration from dismantling ED. The NAACP, the National Education Association and other groups sued the department and ED Secretary McMahon in March 2025, alleging that the administration’s attempts to close the department are illegal. 

• Federal Student Aid Launches Hiring Spree: An article from POLITICO noted that ED’s Office of Federal Student Aid has launched a hiring spree, seeking to onboard an additional 334 full-time workers despite mass layoffs occurring at the office last year. 

• FAFSA Simplifications Led to Increased Student Eligibility: A report from the Government Accountability Office found that the simplification of the FAFSA process, including a shorter application for some applicants and a reworked eligibility formula, led to a 6% increase in the number of students eligible for Pell Grants and a 31% increase in the number of students eligible for the maximum Pell Grant in 2024-25 compared to the previous year. 

• Secretary of Education Visits Alaska as Part of National Tour: Secretary of Education Linda McMahon continued her Returning Education to the States tour, visiting Alaska. On May 8, she visited Mat-Su Career & Tech High School, touring classrooms specializing in forestry and piloting. She then participated in a workforce development roundtable with students to hear what sets Mat-Su Career & Tech High School apart and how the programs support career development. 

On May 14, Secretary of Education Linda McMahon testified before the House Committee on Education and Workforce on the Administration’s FY 2027 budget proposal and other priorities.

One of the main targets of questioning at the hearing was the Department of Education’s (ED) decision to exclude nursing programs as a “professional degree” under new student loan limits. ED’s final rule for these new limits excludes graduate-level nursing programs from its defined “professional degree” category. The change caps federal borrowing for nursing students at $100,000, separating them from designated professional fields, such as medicine and law, that have  $200,000 limits. McMahon argued that the designation aims to reduce students’ costs. It is important to note that this designation has no other impact on nursing programs aside from the loan limits.

There was also significant discussion during the hearing regarding proposed cuts and block grants in the Administration’s budget, as well as the series of inter-agency agreements (IAA) to move several education programs from ED to other agencies.

Regarding CTE, Rep. Haley Stevens (D-MI) expressed concern over the IAA shifting the administration of Perkins funds from ED to the Department of Labor as well as the Trump Administration’s proposal that would be prohibit Perkins funds from being used for postsecondary CTE programs.

McMahon defended the IAA stating that it will allow states to better align their education and workforce development efforts.

A recording of the hearing can be found here.

On May 11, the Departments of Education (ED) and Labor (DOL) jointly launched the Career Pathways Exploration (CPE) Grant Competition. The competition, which utilizes Student Support and Academic Enrichment funds from Title IV of the Elementary and Secondary Education Act, will award funding to states to support the integration of career exploration opportunities in elementary and secondary schools.  

Grant applicants must describe how they will provide career and/or college exploration and advising opportunities to promote greater awareness of the range of postsecondary educational and career options, and how the project or proposal is designed to support workforce development programs aligned with state priorities or meet one of several other workforce-development related goals. Projects that also include a focus on talent marketplaces will receive bonus points. Applications from states are due on June 9. 

The Departments also issued a call for peer reviewers and are seeking experienced K-12 career pathway professionals to review and evaluate grant applications during the summer over a two-week period. Readers interested in the opportunity can view the notice here and contact ED (careerpathways@ed.gov) with any questions. 

College- and Career-focused CTE Programs: An article by Jane Furey in AERA Open examines the association between school district income level and access to college-focused CTE programs, defined in the research as programs that lead to occupations which require a postsecondary credential (typically a bachelor’s degree), or career-focused CTE programs, which typically support direct transition to the workforce after high school. The research analyzed CTE programs offered in Michigan during the 2019-20 school year and found that 57% of school districts offered at least one CTE program, with 53% offering college-focused CTE programs and 29% offering career-focused programs.  

On average, 4% of high school students in a district are enrolled in a career-focused CTE program and 12% are enrolled in a college-focused program. School districts serving high-income students are more likely to offer college-focused CTE programs and just as likely to offer career-focused programs compared to low-income districts, and rural districts are less likely to offer either option compared to urban districts.  

Interestingly, the report also found that school districts located in communities with a higher share of adults holding a bachelor’s degree or higher offer slightly fewer CTE programs and have lower enrollment in CTE across the board. The author hypothesizes that college-educated parents may advocate more for traditional college prep/AP coursework than for CTE 

Career Navigation in a Fragmented Labor Market: A report from the Project on Workforce at Harvard University examines how community college students and low-wage workers navigate the labor market and gather career information. Drawing on a nationwide survey and interviews, the researchers found that students’ and workers’ careers are primarily shaped by repeated pivots, often in response to external shocks such as layoffs, college stop-outs, health issues and caregiving responsibilities. These shocks prompt individuals to seek labor market information. 

Community college students rely the most on family for career information (25.7%) while low-wage workers primarily leverage online tools (20.3%). Both groups indicated that teachers, career counselors and employers offer the most reliable career information. However, many participants also stated that career information is often overwhelming, misleading and confusing. Furthermore, several career coaches interviewed said that they have high caseloads but receive little training and lack access to reliable labor market information.  

Delaware Pathways Outcomes: A report from RTI International analyzes the postsecondary and workforce outcomes of students in high school career pathway programs in Delaware. Examining administrative and survey data from career pathway graduates between 2022 and 2024, the researchers found that these students graduate high school at much higher rates than the total student population. About half of pathway graduates participated in an immersive work-based learning (WBL) experience, with higher rates for graduates who were enrolled in vocational-technical (vo-tech) high schools (81%) compared to comprehensive high schools (29%). Furthermore, the study linked WBL participation to stronger postsecondary enrollment and a greater likelihood that a student secured a career aligned with their pathway. 

Pathway graduates who secure full-time employment in a career aligned with their program tend to earn more than those who work in an unrelated field, with outcomes varying by program. Health science students, for instance, are more likely to enroll in postsecondary education than architecture and construction students. When considering different institutions, law and public safety students have the highest WBL participation rate (94%) in vo-tech high schools, while in comprehensive high schools, education and health science students have the highest WBL participant rates (46%).  

Effective State-developed CTE Pathways: A study from Insightful Education Solutions presents the results of a national assessment of secondary CTE programs focused on the extent to which states take the lead in structuring, aligning and reporting on CTE pathways and outcomes. The researchers analyzed 47 states and DC based on the following four areas: 

Structure: Whether a state organizes CTE programs down to the pathway level 

Data: Whether a state collects and reports pathway-level student participation and outcomes data  

Workforce Alignment: Whether CTE student activity reflects state workforce needs 

Transparency: Whether pathway information and data are easily accessible 

Researchers found significant variation in how states structure and assess CTE programs. Forty-four states have state-developed CTE program structures fully or partially in place, but fewer states report detailed pathway enrollment and outcomes data. There were also differences in the level of alignment between pathway activities and state workforce needs. The evaluation focused on state-led program structure, which may have disadvantaged states in which CTE program development occurs more frequently on the local level.  

State profiles provide information on each area examined as well as the most active programs and industries, and several specific policy actions and initiatives are highlighted as well. Arizona, for example, makes its data easily accessible on the state’s education website. 

It has been relatively quiet this week on the Hill, as Congress has been on recess. They return next week for a two-week session before Memorial Day. Late Monday night, Senate Republicans unveiled a reconciliation package with money for ICE, Border Patrol and security related to the East Wing ballroom project. They plan to put the reconciliation bill on the floor the week of May 18, the final week both chambers are scheduled to be in session this month. Conversations on the war with Iran also continue, as House Democrats called for answers on the economic cost of the war. Read more policy updates below.  

• Advance CTE Releases Vision for CTE: On May 1, Advance CTE released their vision for the future of CTE: “The Connected Path: A Shared Vision for Opportunity & Empowerment Through Career Technical Education.” The vision, supported by ACTE and numerous other education groups, focuses on ensuring students are connected to flexible CTE pathways that are aligned with industry needs and emerging technologies.  

• Reps. Thompson and Bonamici Introduce Bill to Create Skill Savings Accounts: On May 7, Reps. Thompson and Bonamici, co-chairs of the Congressional CTE Caucus, introduced the bipartisan Skill Savings Account Act. This bill creates skill savings accounts for workers of all ages to use for education expenses including workforce development and nontraditional learning opportunities. ACTE and Advance CTE have endorsed this bill.  

• ED and DOL Announce New Grant Competition: On May 1, the Departments of Education (ED) and Labor (DOL) announced the Fiscal Year (FY) 2026 competition for the Competitive Grants for State Assessments (CGSA) Program. The purpose of the CGSA program is to enhance the quality of assessment instruments and assessment systems used by states for measuring the academic achievement and growth of elementary and secondary school students. Applications close on June 16, 2026.  

• ED Finalizes Comprehensive Centers Program Requirements: On May 8, ED finalized requirements for the Comprehensive Centers Program, which provides technical assistance to state, regional and local education agencies on various topics. The Department identified college and career readiness as one of the topics applicants may focus on when proposing to establish a technical assistance center under the program. ACTE and Advance CTE commented on these proposals earlier this year, recommending that the Department consider highlighting CTE. 

• IES Launches FY 2026 SBIR Grant Contest: On April 30, the Institute of Education Sciences (IES) launched its FY26 Small Business Innovation Research (SBIR) Grant Competition, which awards funding to companies developing education technology products (such as virtual and augmented reality, simulations and learning software). Applications for proposals are due on June 29.  

• DOL Names New Senior Leadership: Following the departure of Labor Secretary Lori Chavez-DeRemer, Acting Secretary Keith Sonderling announced new senior DOL leadership on May 1. 

• ED and Treasury Employees are Transferred as Part of Program Shift: In a letter that was released on May 4, the Treasury Department confirmed that it has started preparations to take over ED’s 9 million defaulted student– loan accounts. As part of this transfer, seven ED employees will move to the Treasury, and two Treasury employees will move to ED.  

• ED and DOL Host Roundtable Discussion on Degree-Connected Apprenticeships: On April 30, as part of National Apprenticeship Week, ED and DOL hosted a discussion with community college, university and workforce-development leaders to spotlight degree-connected Registered Apprenticeships across the country. 

• Congress Awarded More than $290 Million in Community College Funding Through Earmarks: An analysis conducted by the Association of Community College Trustees found that Congress awarded more than $290 million in funding to local community college projects in FY 2026 through earmarks, provisions in federal budget bills that direct funds to local community projects. ACTE conducted a similar analysis and found that CTE-related projects received over $209 million in funding through earmarks.  

• Federal Education Data Updates Lag: An analysis by Chalkbeat found that, after the Trump Administration slashed staffing and contracts at the Institute of Education Sciences, a significant number of data tables and research (including the Digest of Education Statistics) have not been updated since January 2025, limiting the public’s access to recent and reliable education statistics.