On September 26, the Department of Education released its final Gainful Employment (GE) rule. The rule is set to take effect July 1, 2024, with the first data reported in early 2025. 

The final GE rule, which is largely unchanged from the draft rule that the administration released in May, would apply to all certificate programs at public institutions, including community and technical colleges, and all programs at for-profit institutions. These programs would be subject to two new measures of performance.  

First, there is  a new debt-to-earnings rate that compares the median annual payments on loan debt borrowed for the program to the median earnings of its Federally aided graduated. For a program to pass, the debt payments must be no more than 8 percent of annual earnings or 20 percent of discretionary earnings.  

The final rule also includes a new earnings premium test, which would require at least half of program graduates to have higher earnings than a typical high school graduate between the ages of 25 and 34 in their state’s labor force who never enrolled in a postsecondary institution.  

If a program fails either metric in a single year, they will be required to provide warnings to current and prospective students that their program could be at risk of losing federal funding. If a program fails the same metric in two of any three consecutive years, it will no longer be eligible to participate in federal student aid programs. The department estimates that about 1,700 programs serving nearly 700,000 students would fail the debt-earnings ratio test or not pass the earnings threshold. 

The final GE rule also contains a new Financial Vale Transparency (FCT) framework that will “provide information to all students in all programs on the typical earnings outcomes, borrowing amounts, cost of attendance, and sources of financial aid to help students make more informed choices.” 

As the department moves forward with the implementation process, ACTE will continue to keep you informed on what this rule means for your programs and the postsecondary community. 

On September 26, the Senate moved forward on a bipartisan continuing resolution (CR) that would keep the government open when the current federal fiscal year ends on September 30. The vote puts the Senate on a path to pass the CR later this week. 

The Senate legislation will fund the government until November 17. According to Senate Majority Leader Chuck Schumer (D-NY), funding will continue at the same levels as fiscal year 2023. The CR will also provide approximately $6.15 billion in funding for Ukraine and $5.99 billion in disaster relief. The legislation will also temporarily extend the expiring authority of the Federal Aviation Administration (FAA) and a few other expiring programs 

If the CR passes the Senate, it will then move to the House where it faces an uphill battle. Many House Republicans came out against the bill citing its lack of border protection policy. Speaker Kevin McCarthy (R-CA) indicated on Tuesday evening that he would seek a meeting with President Joe Biden to try to work out a deal that would keep the government open while also including language on border protection, and the House may try to vote on their own CR later in the week. However, both the House and Senate must pass the same bill and send it to the President to be signed into law to avoid a government shutdown. Most Washington insiders are not optimistic at this point that this can occur, so agencies are starting to prepare for a potential shutdown. We will have more on that potential and new developments as the week unfolds! 

Today ACTE has released CTE: Developing the Manufacturing Workforce, the fifth in our revamped series of Sector Sheets describing CTE’s role in growing the workforce for vital industry sectors. The Sector Sheet series is published with support from ACTE’s long-time partner Pearson. 

These revised Sector Sheets include job opportunities in each sector and descriptions of how CTE prepares learners for the workforce in each sector, all in a new format featuring streamlined text and additional graphics to make these advocacy tools even more effective. 

This Sector Sheet describes how CTE supports the critical manufacturing workforce, which employs almost 13 million people nationwide with countless more workers needed each year to meet industry demand. It also shares information on occupations, earnings and credentials that give readers guidance for how to enter and progress within fields such as semiconductor manufacturing, electric vehicle and battery manufacturing, and supply chains. Finally, the Manufacturing Sector Sheet demonstrates the importance of CTE in developing the workforce by describing how CTE prepares learners through courses, industry credentials, work-based learning, career and technical student organizations and more. 

As we move forward with the revamped Sector Sheets, both the newer and older Sector Sheets will be available on the ACTE Sector Sheet webpage for download and use. We encourage you to share these tools with students, counselors, policymakers and others to spread the message about CTE and its benefits for students and the workforce. 

This week Congress continued its efforts to fund the government and avoid a shutdown before the end of the month, without much progress. The House continues to struggle to pass appropriations bills on the floor and has also been unable to come to an agreement on a continuing resolution (CR) to keep the government open after the fiscal year ends on September 30, which is needed if the appropriations bills aren’t complete. Appropriations work in the Senate remained stalled most of the week as well, but they are now planning to take up their own version of a CR next week. Even with that step, the odds of a bill the passing the House remain low, increasing the potential of a government shutdown on October 1. Read more news and notes below:

• Department of Education Announces Funding to Improve Career Opportunities for Students with Disabilities: ED has announced nearly $199 million in funding for the Pathways to Partnerships disability innovation fund that aims to support individuals with disabilities in accessing self-advocacy training, career pathways and independent living. The funding will go towards 20 model demonstration projects focused on increasing economic self-sufficiency and decreasing the unemployment disparity between youth with and without disabilities.

• Biden-Harris Administration Awards Funding to Support Hispanic-Serving Institutions: ED and the Biden-Harris Administration have announced an award of more than $40 million being dispersed to Hispanic Serving Institutions (HSIs) across the country, including community colleges. The funding will assist these institutions in providing supports, expanding postsecondary attainment and opportunities and preparing Hispanic and Latino learners to enter the workforce.

• Department of Education Issues Details for ARP Spending Extension Requests: ED has announced a 14-month deadline extension for spending American Rescue Plan money in a letter sent to state grantees this week. Grantees can request the extension through state education agencies, which would allow for a spending deadline of as late as March 2026. Applicants will need to explain how a longer spending period would contribute to the acceleration of student learning and expand the continued path of academic recovery.

• Committee on Education & the Workforce Holds Hearing on Strengthening the Workforce Development System: This week, the Committee on Education & the Workforce held a hearing on the Workforce Innovation and Opportunity Act (WIOA) in which leaders discussed the legislation’s progress and needed areas of improvement since its enactment in 2014. Legislators discussed issues such as the high unemployment rate and the persistent shortage of skilled workers that have not sufficiently been improved since the passing of WIOA. The hearing also touched on reforms for WIOA’s bureaucracy, accountability mechanisms and provisions for better outcomes needed to fulfill the programs’ potential. Read more about the hearing on the blog here.

On September 20, the House Education and Workforce Subcommittee on Higher Education and Workforce Development held a hearing titled “Strengthening WIOA: Improving Outcomes for Jobseekers, Employers and Taxpayers.” This hearing examined the issues at play at the heart of the Workforce Innovation and Opportunity Act (WIOA) as lawmakers work on reauthorizing the legislation. 

Those testifying were Mr. Scott Sanders, president and CEO of the National Association of State Workforce Agencies (NASWA); Ms. Rya Conrad-Bradshaw, vice president of corporate markets at the Cengage Group; Mr. Rick Beasley, executive director of the South Florida Workforce Investment Board; and Mr. Mason Bishop, nonresident fellow at the American Enterprise Institute. 

Subcommittee Chair Burgess Owens (R-UT) opened the hearing by identifying many issues in the economy that need reform. “In July of 2014, the United State had 4.8 million unfilled jobs. In July of this year, there were 8.8 million unfilled jobs, an increase of four million. Further, the labor force participation rate has not improved a bit since WIOA was enacted.” 

The witnesses stated that the law often stymies innovation among states and other organizations, dissuades employers from participating because of bureaucratic red tape and does not do enough to reach and encourage individuals to use the training services. “We are trying to operate in an iPhone economy with programs that were created and modeled from the New Deal and Great Society — and continue to do so,” said Bishop. “We must modernize this program and provide the governance and service delivery improvements and flexibility that will allow innovation and new ideas.”  

Several of the speakers also noted the need to provide more performance data on the programs and to make the information more accessible and less confusing for potential program participants and employers. Conrad-Bradshaw cited a Harvard study that finds there are more than 7,000 eligible training providers encompassing about 75,000 eligible programs in more than 700 occupational fields nationwide. 

Notably, Rep. Bobby Scott (D-VA), the ranking member of the full committee, used his time to talk about short-term Pell. In a question directed to Beasley, Scott asked, “If they had access to a Pell Grant, they’d be able to train a lot more people in your programs, is that right?” Beasley responded by saying that if Pell covered the training costs, his organization would use the other resources for support services to help individuals complete their programs. 

A recording of the hearing can be found here. 

Guided Pathways Adoption by Community Colleges: The Community College Research Center (CCRC) recently published a report on guided pathways implementation across community and technical colleges in Ohio, Tennessee and Washington. Researchers found that CTE pathways were the most likely to be mapped and scaled in all three states, regardless of the total level of guided pathways adoption in each state.

The following list details how community and technical colleges are implementing guided pathways:

• In Ohio, 89% of all colleges have mapped out requirements and course sequences for CTE program pathways.
• Colleges are increasingly organizing their programs by meta-majors to help students’ direct entry into the workforce or career advancement education.
• Advising and onboarding practices like students taking career-relevant courses early in their postsecondary education and mandatory education planning were usually adopted in tandem across each state.

Researchers recommend that any institutions interested in following the model discussed in this report design their practices, policies and systems parallel to the four pillars of the guided pathways system.

Reforming Government-supported Job Training: The American Enterprise Institute recently published a series of reports analyzing the effectiveness of federal programs funded through the Workforce Innovation and Opportunity Act (WIOA) and presenting options for experimentation at the local level. In the first of these reports, researchers share that job training programs are struggling to show positive outcomes for participants and that job training funding has been declining since the 1970s.

Researchers suggested the following changes to fix WIOA program operations for increased outcomes, success and efficiency:

• Reduce administrative red tape for participation in a WIOA program to improve opportunity for individuals who are in the reentry process following incarceration, are economically disadvantaged or have disabilities.
• Clarify which agencies must co-locate in a job center to share costs and provide local WIOA officials with the ability to enforce cost-sharing rules.
• Hold annual meetings at the start of each program year allowing local, state and federal workforce development administrators to provide input into setting goals and discuss systems improvements.
• Expand sector-based training programs, allowing workers without degrees to earn living wages and receive training for key sectors of the economy where labor demand is strong.

The report also suggests that increased WIOA funding would lay the groundwork for improving programs and lead to better outcomes.

Addressing Equity Blockers to Work-based Learning: A report recently published by the Education Strategy Group examined how leaders are identifying and effectively addressing equity blockers affecting students in work-based learning on the secondary and postsecondary levels. Researchers found that offering equitable work-based learning opportunities was a key focus area for each of the six communities within the New Skills Ready Network (NSRN) as leaders across the country increasingly look to erase barriers and improve meaningful experiences for all students.

The report highlights some of the following issues, barriers and circumstances limiting students’ participation in a work-based learning program:

• Geographic proximity and transportation challenges, with a lack of effective transit routes convenient enough for economically disadvantaged individuals.
• Scheduling constraints owing to existing part-time employment for students with financial needs as well as limited availability for students with caregiving responsibilities.
• Minimum requirements for participation that lead many types of students to self-select out of applying for a work-based learning experience.
• Lack of local staff capacity to identify, vet and engage industry partners; provide support; and collect data.

To combat these barriers and target increased access to students who need it most, researchers emphasize the importance of information sharing and recommend that districts ramp up their efforts to formalize and publish their policies, which may serve as examples to others.

This week was a busy period in Washington as both chambers of Congress were in session for the first time following the August recess. Efforts were primarily focused on the appropriations process ahead of the deadline to enact funding bills or pass a continuing resolution before the end of the fiscal year on September 30, although both the House and Senate ran into issues moving forward. Many experts are now increasing the odds of a government shutdown. Meanwhile, the House and the Senate continued their efforts to advance their respective spending bills in policy areas of transportation, agriculture and national defense. Read more news and notes below:

• Department of Education Celebrates Completion of Nationwide Unlocking Pathways Summit Series: ED and the Biden-Harris Administration have announced the completion of the nationwide Unlocking Pathways Summit series, concluding with one final stop in Biloxi, Mississippi. This series was a part of the Raise the Bar: Unlocking Career Success initiative, aimed at reimagining the high school experience to help learners thrive in future careers by earning postsecondary degrees and industry credentials to meet economic demands and employer needs. The initiative was a joint effort across ED, DOL, DOC, public and private sector leaders and multiple community-based organizations that was split into four parts across four different states. ACTE leaders attended each event to ensure the CTE voice was included.

• Department of Education Announces New Actions to Build on Work to Accelerate Learning and Improve Student Achievement: ED and the Biden-Harris Administration have announced a list of additional actions to improve classroom instruction and accelerate academic success across the nation for the start of the new school year as a part of the Department’s Raise the Bar: Lead the World Effort. The Department announced actions that include increased state funding to improve student outcomes, expanded school capacity to build a diverse educator workforce and strategic initiatives to provide student supports for mental health needs and combat absenteeism.

• Department of Labor Awards $44 Million to Support Job Training Services for Workers in Multiple Regions: The Department of Labor has announced more than $44 million in awards for the Appalachian Regional Commission, the Delta Regional Authority and the Northern Border Regional Commission to help workers in across these regions secure good jobs in high-demand industries through career training and supportive services. The funding comes as a result of the Department’s efforts to advance economic mobility and address historic inequities for marginalized communities of color, rural areas and other underserved and underrepresented communities in these areas.

• Chairman Owens to Hold Hearing on Strengthening the Workforce Development System: The Committee on Education and thehe Workforce’s Subcommittee on Higher Education and Workforce Development will hold a hearing titled “Strengthening WIOA: Improving Outcomes for Jobseekers, Employers, and Taxpayers” on Wednesday, September 20 at 10:15 a.m. EST. The hearing will aim to dissect the job market, analyze the WIOA system and highlight current practices that are working to create a system that matches the needs of a modern economy. 

• IES Announces the Extending the Reach of the Career and Technical Education (CTE) Research Network: The Institute for Education Science (IES) has announced the establishment of a second research network focusing on CTE. The new network will be named the “Extending the Reach of the Career and Technical Education (CTE) Research Network” and will carry out scientifically based research and evaluation to develop, improve and identify successful methods for addressing education and employment training needs of CTE participants in CTE programs. ACTE is a partner in this network and will be focused on disseminating research from the project.

• Applications for New Awards; Education Research Grant Programs: This week, ED and the Institute of Education Sciences (IES) issued a notice calling for research grant applications for research teams to participate in research networks focused on critical problems of education policy and practice, including CTE. Interested parties have until January 11, 2024, to submit an application and be considered for funding opportunities.