The US Department of Education (ED) recently issued the final regulations for the much- anticipated Workforce Pell Grant program. The rules take effect on July 20, 2026, but allow for early implementation on July 1, which is not likely given the very short timeframe to get the state and institutional processes in place. Also noted in the final regulations was a change in the name of the legislation used to create this program. The One Big Beautiful Bill Act is now referred to as the Working Families Tax Cut Act. Several details of the program will be explored in this article, but we encourage our members and partners to read the regulations and seek knowledge regarding the process being used in your state.
There are a few fundamental concepts to keep in mind when digesting all aspects of this new program. First, the Workforce Pell Grant program is optional to participate in for institutions and states. It is likely that every state will eventually participate, but the application, data collection, and monitoring processes may persuade some institutions to determine that the burden of the program's requirements may not be worth minimal awards for students.
It is also important to clarify that Workforce Pell is not a new, separate program, but is part of the standard Pell Grant program with all the same student eligibility requirements along with supplemental requirements for programs to earn and maintain eligibility. Students who have a bachelor’s degree are eligible to receive grants, but students who are accepted to a program for graduate credit or have a graduate credential are not eligible to receive funds. Any Pell Grant funds utilized in an eligible workforce program will be calculated into a student’s Lifetime Eligibility Used (LEU). It is anticipated that there will be a limited number of programs that initially meet the eligibility requirements but are likely to grow over time.
Eligible Workforce Programs
Final regulations codify many of the proposed regulations to be used for program eligibility. Programs must:
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Provide an education aligned with the requirements of high-skill, high-wage, or in-demand industry sections or occupations, meet the hiring needs of employers, lead to a recognized postsecondary credential that is stackable and portable (or prepares students for employment for which there is only one recognized postsecondary credential), and ensure that a student receives academic credit for the program for at least one certificate or degree program at one or more eligible institutions.
Student Eligibility
Provisions in the final regulations do note circumstances that would prohibit students from receiving a Workforce Pell Grant. These include:
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Students receiving non-federal grants or scholarships equal to or more than their cost of attendance. If any funds are directly traceable to the US Government, those would be considered Federal dollars that do not count toward the relevant total. Perhaps the most relevant example here includes funding from the Workforce Innovation and Opportunity Act.
Governor’s Responsibilities
Every governor or designee has a major role to play in establishing eligible programs within their state. Governors must submit an attestation that the state workforce board/committee was consulted when determining if a program is an eligible workforce program. The procedures and processes will vary from state to state. The following elements must be included in establishing program approval prior to submission and approval by the US Secretary of Education:
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Establish written policies and processes to evaluate whether a program meets the initial eligibility requirements listed above, which includes requirements for institutions to submit the necessary information for the Governor to assess a program's completion rate and job placement rates; and create a process for an institution to appeal the Governor's determination.
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Require an eligible institution to submit to the Governor a list of students that completed the program in each award year, provide the necessary information to verify the job placement rate, and report the published tuition and fees for the eligible workforce program through a process the US Secretary of Education determines.
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Require the Governor to provide the US Secretary of Education with a certification, including the components outlined in regulation, that an eligible workforce program was approved by the Governor and meets the requirements.
Secretary of Education's Requirements
Final approval for program eligibility rests with the US Secretary of Education. The legislation places several requirements for approving the programs, collecting and monitoring the necessary data for specific calculations, and providing limited waivers for program requirements related to submission of completion rates and the Governor's certification of job placement rates. Additional responsibilities and details include:
The process for a program to gain and maintain eligibility so that students may receive a Workforce Pell Grant is arduous as evidenced in the regulations. Ohio and Iowa that have websites with information about their state and the application that is open for their institutions to apply for the Governor’s approval. New America has put out a state playbook for implementation to help guide states through the process. The National College Attainment Network (NCAN) offered a blog last fall with many basic elements of the program that you can review here.
While this article details many of the specifics related to the legislation, it does not address the process that financial aid administrators will have to establish to effectively get these awards to students. A certainty is that the procedures will vary greatly among institutions. NCAN will continue to monitor the implementation of these new grants for students and share critical learnings with our members.