ED Projects Nearly 200K Will Receive Workforce Pell

Workforce Pell regulations determine how quickly Pell Grants can reach low-income students in short-term training programs. Programs lasting eight to 15 weeks can qualify if at least 70 percent of enrolled students complete the program and obtain related employment within 180 days. States must also verify that eligible programs are high skill, high wage, or in demand, and eligibility requires time and administrative cost for states and higher education institutions. Department estimates project 100,000 students benefiting in early years, with 184,000 students in fiscal year 2027-28 and 191,000 by 2037-38. The program is projected to have a $3.2 billion net budget impact over a decade, while Pell faces a growing shortfall.

"Programs eight to 15 weeks long are eligible if at least 70 percent of students enrolled complete the program and find a related job within 180 days. State governments also need to determine the programs are high skill, high wage or in demand. Department officials estimated over 100,000 students could benefit in the initial years of the program, though they acknowledged in their final rule that making programs eligible for Workforce Pell will take time and come at some cost for states and higher ed institutions."

"The department projected 184,000 students could take advantage of Workforce Pell in fiscal year 2027-28, the second year of implementing the policy, according to estimates based on an analysis of Integrated Postsecondary Education Data System data. Further, over the next 10 years, the department expects enrollment to increase at least 3 percent to 191,000 by the 2037-38 academic year. Over all, the program is projected to have a net budget impact of $3.2 billion over a decade."

"That's a small fraction of the more than seven million students who receive Pell Grants, costing upward of $35 billion. As Workforce Pell gets started, the Pell Grant is expected to face a $5.5 billion shortfall this year, rising to $11.5 billion in fiscal year 2027. ED also predicted as many as 28,000 existing undergraduate certificate programs could be eligible based on their length, and as many as 2,200 new programs could spring up because of the policy to meet enrollment demand."

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