Are States Prepared for Workforce Pell?
Sara Weissman
August 28, 2025
Some states are going to have a harder time than others proving their noncredit programs are eligible for Pell money, a new report says. But they can start preparing now.
Thanks to the One Big Beautiful Bill Act becoming law this summer, workforce Pell is now a reality and federal aid dollars are expected to flow to low-income students in short-term programs as soon as next July.
But now comes the hard work of figuring out which programs are eligible—and some states aren’t ready, according to a new report from the State Noncredit Data Project, which helps community college systems track data related to noncredit programs. Not all states collect the data needed to make that determination, and some offer programs that wouldn’t make the cut, the report concluded.
Under the legislation, short-term programs need to meet certain requirements to qualify for Pell money. For example, state governors need to verify they align with high-skill, high-wage or in-demand jobs. Programs also must be able to build toward a credit-bearing certificate or degree program and be “stackable and portable across more than one employer” unless preparing students for jobs with just one recognized credential. They have to exist for at least a year and meet outcomes goals, including completion and job-placement rates of at least 70 percent. And programs can’t charge tuition higher than graduates’ median “value-added earnings,” or the degree to which their income exceeds 150 percent of the federal poverty line three years out of the program.
