U.S. Department of Education Issues Final Rule to Create New Workforce Pell Grant Program

Currently, institutions of higher education award Federal Pell Grants to students with financial need to help them earn undergraduate degrees and certificatecredentials programs. Workforce Pell bridges the gap between education and employment by allowing Pell Grants to be used for workforce training programs that prepare individuals for immediate employment in as little as 8 weeks. In addition, Workforce Pell requires colleges to limit their tuition and fees based on the earnings of program graduates, ensuring that programs continue to demonstrate value over time.

Workforce Pell was created in response to a simple truth: a great education and a better life do not necessarily require a four-year college degree. Whether through apprenticeships, hands-on CTE, or certificate programs, pathways that prepare students for high-skill, family-sustaining employment are critical to our nation's success and should have access to the same Pell Grant funding as traditional undergraduate programs.

"The Trump Administration's postsecondary education agenda is straightforward: we should shift away from high-cost, low-value programs to low-cost, high-value programs," said U.S. Secretary of Education Linda McMahon. "Americans should not have to spend years in college and take on debt they may never be able to repay before entering the workforce. Under President Trump's leadership, American students will soon be able to graduate with little to no debt and be well-prepared to start earning in one of today's in-demand jobs in weeks, not years."

"Pell Grants will now reach high-quality, short-term workforce programs in high-skill, high-wage, and in-demand fields," said Acting Secretary of Labor Keith Sonderling. "No more forcing Americans to choose between long, expensive degrees or no training at all. This opens doors for Registered Apprenticeships, career and technical education, and targeted-skills training-programs that lead to good-paying jobs, fast."

Governors, in consultation with State workforce boards, will identify high-demand industries and career fields in order to determine which workforce programs are eligible to receive Workforce Pell Grant funds. Eligible programs will then be required to meet certain time and length requirements, completion percentages, and employment metrics, and prove they deliver a real return on investment for students as shown by data. This process provides the opportunity for real collaboration between States and Governors to identify programs that will greatly impact job outcomes and economic return in their State.

Additionally, Governors will be able to collaborate on workforce programs through bilateral agreements, allowing an eligible institution in one State to offer an eligible workforce program to students in another State through distance education.

To learn more about the final rule package, see here.

Background:

On July 4, 2025, President Trump signed the Act into law, which made historic changes to federal higher education programs. The Department held a public hearing on August 7, 2025, to receive public feedback on implementing the law and later convened two negotiated rulemaking committees to address the changes made by the Act.

The Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee met for five days of negotiations in December 2025. The AHEAD Committee included a range of impacted stakeholders, including higher education institutions, state workforce boards, employers, and organizations representing taxpayers. The Committee addressed the Workforce Pell provisions contained in the Act and reached consensus on the final vote.

Following negotiated rulemaking, the Department published a Notice of Proposed Rulemaking in the Federal Register on March 9, 2026, and invited public comment. The Department received over 500 comments, which are summarized and addressed within the final rule.

The final rule will be on public inspection in the Federal Register today and published on May 19, 2026. A copy of the regulations can be found here.