# Plain Language Summary: Bipartisan Workforce Pell Act

This bill creates a new type of financial aid called "Workforce Pell Grants" that helps people pay for short-term job training programs. Currently, federal Pell Grants—which give money to low-income students that doesn't need to be repaid—only cover traditional college degree programs. This bill expands that to include intensive training programs that last between 8 and 15 weeks and teach specific job skills in high-demand fields like healthcare, construction, information technology, or skilled trades.

To qualify for a Workforce Pell Grant, a training program has to meet strict requirements. It must be between 150 and 600 hours of instruction, teach skills that employers actually need, and lead to a recognized credential that students can use to get hired or advance in their careers. The program also has to prove it works—at least 70 percent of students need to finish the program and find jobs within six months of completing it. Additionally, graduates must earn more money after completing the program than they would have with just a high school diploma, and the program's tuition can't exceed the actual earnings boost students will gain. These requirements ensure that federal money goes to training programs that genuinely help people get better jobs.

The grants would start in July 2025 and work similarly to regular Pell Grants, but with one key difference: students can receive a smaller grant if their training program is shorter than a full academic year. Students can't receive both a Workforce Pell Grant and a traditional Pell Grant at the same time, and the time spent in these programs counts toward the overall limit on how long someone can receive federal student aid. This bill essentially recognizes that not everyone needs a four-year degree to improve their economic situation, and provides federal support for faster, more affordable pathways to good-paying jobs.

Bipartisan Workforce Pell Act

Stefanik, Elise M.

Bipartisan Workforce Pell Act This bill expands student eligibility for Pell Grants by establishing the Workforce Pell Grant Program. The bill also places conditions on certain private educational institutions. Specifically, the bill requires the Department of Education (ED) to award Workforce Pell Grants to students enrolled in eligible workforce programs. Eligible programs are those that provide at least 150 clock hours (but less than 600 clock hours) of instruction during a minimum of 8 weeks (but less than 15 weeks). A state workforce development board must first make a determination that the program (1) provides education aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or occupations; (2) meets the hiring requirements of potential employers; and (3) satisfies any applicable educational prerequisite requirement for professional licensure or certification in the state or states in which the program is offered. Furthermore, an eligible program must lead to a recognized postsecondary credential that is portable across multiple employers and accepted toward requirements for a certificate or degree, as determined by an accrediting agency or association recognized by ED. Next, ED must determine if a program meets verified completion and job placement rates. ED must also collect and publish information regarding eligible workforce programs. The bill also places certain conditions on private educational institutions that are subject to an excise tax (also known as the endowment tax) on their net investment income. For example, the bill prohibits these institutions from awarding federal student loans to eligible students.