The Promoting Employment and Lifelong Learning Act of 2025 (the PELL Act) would create a new Workforce Pell Grant program within the federal aid system. Starting with the 2026-2027 award year, eligible students could receive Workforce Pell Grants to attend short, non-degree workforce programs (150–600 clock hours, typically 8–15 weeks) offered by eligible institutions or other approved providers. These grants would function similarly to Federal Pell Grants but are restricted to “eligible workforce programs” that align with high-demand, high-skill sectors and lead to portable credentials. Program outcomes would be scrutinized (minimum 70% completion and 70% job placement rates), and tuition/fees would be capped relative to earnings of past graduates. The bill also prohibits concurrent receipt of other Pell benefits for the same period and counts any Workforce Pell time toward a student’s duration limit. The Governor of each state would play a key role in approving eligible programs, with the Secretary providing final determinations and oversight. The changes would take effect July 1, 2026.
Key Points
- 1Establishes a Workforce Pell Grant program (401(k)) to run for award years beginning July 1, 2026, and onward, modeled after the existing Pell Grant program but limited to eligible workforce programs.
- 2Eligible programs and students:
- 3- Programs must be 150–600 clock hours (or equivalent), offered by an eligible institution, run 8–15 weeks, and not be correspondence courses.
- 4- Programs must be aligned with high-skill, high-wage, or in-demand sectors, meet employer hiring needs, and lead to a portable or stackable credential.
- 5- Programs must meet outcome standards: at least 70% completion within 150% of normal time and at least 70% job placement within 180 days of completion.
- 6- Tuition/fees must not exceed value-added earnings (based on past graduates’ earnings vs. poverty level) for the relevant year; partial-year grants can be prorated if the program is shorter than a full academic year.
- 7Oversight and eligibility process:
- 8- The Governor of each state determines whether a program meets the criteria for an eligible workforce program; the Secretary then makes formal determinations about program eligibility and continued participation.
- 9- New programs can receive provisional eligibility for up to 3 years if they meet the criteria and provide alternative earnings data when necessary.
- 10Student and benefits rules:
- 11- A student’s eligibility for a Workforce Pell Grant mirrors Pell eligibility but requires enrollment in an eligible workforce program and excludes those pursuing graduate credentials or already possessing one.
- 12- A student cannot receive both a Workforce Pell Grant and other Pell benefits for the same period.
- 13- Time spent on Workforce Pell is counted toward the student’s overall duration limit for Pell-eligible aid.
- 14Effective date: Applies to award year 2026-2027 and beyond (not retroactive).