One of the more positive creations of the One Big Beautiful Bill Act (OBBBA) is the expanded Pell Grant eligibility for students enrolled in short-term, career-focused programs — known as Workforce Pell Grant. The benefits of this program are twofold. First, the students benefit by getting financial support that was not previously available to them which in turn allows more individuals to benefit from these programs. Second, states and businesses within them will benefit from a more skilled applicant pool. The bill calls for awards to be made starting on July 1, 2026, for the 2026-2027 academic year.
The application process and initial eligibility requirements are the same as the traditional Pell Grant. The student must…
- file the Free Application for Federal Student Aid (FAFSA);
- not have already received a bachelor’s degree;
- be otherwise eligible to receive Title IV aid generally and eligible for Pell Grant specifically based on the FAFSA results; and
- be eligibly enrolled.
The last bullet is the crucial difference since Workforce Pell Grant is only available to students enrolled in programs that meet the following criteria:
- be at least 150 clock hours of instruction (or credit hour equivalent) but less than 600 clock hours;
- must be a minimum of eight weeks long but less than 15 weeks long; and
- has been offering instruction for at least one year.
These characteristics are easy enough for the institution to know and even adjust for if programs do not currently meet all the criteria. However, the next set of criteria will be challenging for institutions in states that do not currently aggregate and track employment data on which program eligibility is reliant.
A state board authorized under the Workforce Innovation and Opportunity Act (WIOA) will need to determine the following:
- The program provides education aligned with high-skill, high-wage, or in-demand industry sectors;
- Meets the hiring requirements of potential in-demand industry or sector employers; and
- Satisfies any applicable educational prerequisite for professional licensure or certification in the state or states in which the program is offered.
And in addition to the state board review, a recognized accreditor must determine that the program…
- Leads to a recognized postsecondary credential that provides academic credit that can be applied towards one or more certificate or degree programs*. *Programs that prepare students for occupations where there is only one recognized postsecondary credential do not have to meet this requirement.
- Leads to a recognized postsecondary credential that is recognized by more than one employer.
- Provides information on the institution’s website about the recognized postsecondary credential provided by the program, including any third-party endorsements of the credential, the occupations the credential prepares a student for, and the competencies achieved to earn the credential.
- Provides a written disclosure to and confirmation of receipt of the disclosure from prospective students.
- Ensures students will have access to transcripts for the completed coursework without a fee.
- Has been offering instruction for not less than one year before an accreditor determines eligibility.
Finally, the Department of Education will then determine if a program:
- Has a verified completion rate of 70 percent, within 150 percent of normal time of completion.
- Has a verified job placement rate of at least 70 percent, measured 180 days after completion.
- Provides a positive return on investment for students and taxpayers by which the total amount of tuition and fees charged to a Workforce Pell Grant recipient will not exceed the value-added earnings of the recipient one year after he or she completes the program.
- For at least two of the three most recent award years, the median earnings of Workforce Pell Grant recipients must not be less than the median earnings of a high school graduate in the state in which the program is located.
These requirements are still subject to change during the negotiated rulemaking process. The sessions are currently scheduled for December 8-12, 2025, and January 5-9, 2026, where the committee will address both Workforce Pell and Institutional Accountability. The Department hopes to publish the final rule shortly thereafter, but it seems unlikely they will be able to implement by July 1, 2026, as originally planned.
Delaying implementation may be a good thing for all. Most states do not track the metrics by which program eligibility must be measured. For those that do not, it is advised not to wait until after the final rule is published before planning for this eventuality. Institutions can also use this time to identify potentially eligible programs and make the necessary tweaks to those that do not meet all the eligibility requirements. The same advice applies here, waiting for the exact specifications will likely put you behind the eightball.
So, in summary, Workforce Pell Grant will expand Pell Grant eligibility to students and programs that were not previously eligible and because of how it will be targeted, should increase the size of the skilled workforce needed for industry in individual states. The students benefit by getting increased opportunity for formal training in their field of interest. Higher education institutions will likely see higher enrollment in programs that they already offer. State industries will have a larger pool of skilled workers available to them. It’s a win-win-win situation. However, it will take a lot of work for the various parties to put the program together in such a way that colleges, states, accreditors, and the Department of Education can seamlessly ascertain eligibility and get timely funding to the students.
To read updates on implementation for Workforce Pell and the other new regulations in the OBBBA, follow the Higher Education Assistance Group Blog. If you’re interested in learning more about the negotiated rulemaking process, you can read about it here.
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