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S 383119th CongressIn Committee

JOBS Act of 2025

Introduced: Feb 4, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The JOBS Act of 2025 would create a new federal Pell Grant program specifically for short-term, high-quality job training programs. Known as the job training Pell Grant, this program would allow students who have not yet earned a postbaccalaureate degree and are enrolled in eligible nondegree or nontraditional career training at a college or university to receive Pell funds for programs lasting roughly 8 to 15 weeks (150–600 clock hours). To qualify, programs must be part of career pathways aligned to industry needs, be listed and approved through federal workforce and accreditation processes, and result in a recognized postsecondary credential. The bill also expands oversight and data-sharing between education and labor agencies, reduces the minimum Pell Grant floor, and takes effect July 1, 2025. In short, it extends Pell Grant support to shorter, employment-oriented training options intended to align with in-demand jobs.

Key Points

  • 1Creation of a job training Pell Grant program (subsection k of HEA §401) for eligible short-term training programs that lead to recognized credentials and prepare students for high-skill, high-wage, in-demand occupations.
  • 2Eligibility and program criteria for eligible job training programs include: 150–600 clock hours over 8–15 weeks, alignment with industry needs and a recognized postsecondary credential, institutional credit articulation for noncredit work, and approval/verification by the institution and a state or industry partnership; programs must be part of an eligible career pathway and listed on WIOA provider lists.
  • 3Accrediting and quality oversight expanded: accrediting agencies must demonstrate capability to evaluate the program and ensure that credentials and industry partnerships are properly identified and aligned with licensure or certification prerequisites.
  • 4Interagency data sharing: Education and Labor departments must share performance data related to workforce indicators to monitor program outcomes, with NCES reviewing annual performance reports on eligible providers.
  • 5Financial change: The minimum Pell Grant amount is reduced from 10 percent to 5 percent of the maximum Pell Grant, effectively lowering the floor and broadening access for smaller awards.
  • 6Effective date: The provisions take effect July 1, 2025, with program administration for award years beginning July 1, 2025 and thereafter.

Impact Areas

Primary groups affected:- Students seeking short-term, career-focused training who do not plan to pursue a traditional degree and may benefit from Pell funding for nontraditional pathways.- Institutions of higher education offering eligible job training programs (including community colleges and other postsecondary institutions) that provide the required hours, credentials, and industry alignment.Secondary groups/areas affected:- Employers and industry partnerships in high-demand sectors that gain access to a larger pool of job-ready graduates with recognized credentials.- Accrediting agencies and state boards responsible for approving and evaluating eligible job training programs.- State workforce systems and local workforce development boards, given the alignment with WIOA pathways and the data-sharing requirements.Additional impacts:- Increased oversight and accountability for short-term training providers, with emphasis on credential quality and alignment to labor market needs.- Potential budgetary impact for the Pell program, given expanded eligibility and the lowered minimum grant floor; costs would depend on enrollment and program uptake.- Administrative changes for schools to certify program alignment, secure industry partnerships, and report performance data to federal agencies.
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