Workforce Pell Grants Expand Career Training for Young People
Beginning in 2026, thousands more students from low-income families will be able to afford short-term career training programs thanks to a federal expansion of Pell Grant eligibility. The workforce Pell Grant provision of the legislation will enable students to use federal aid for high-quality, short-term programs that prepare them for stable, family-supporting jobs.
What Are Workforce Pell Grants?
Pell Grants are the nation’s primary federal financial aid program for students from low-income backgrounds. Unlike student loans, these grants do not need to be repaid. Traditionally, Pell Grants have been available only to students enrolled in longer-term degree or certificate programs.
The new legislation, passed by Congress in summer 2025, expands Pell Grant eligibility to include shorter-term training programs. Beginning July 1, 2026, eligible learners will be able to use funds for programs that lead directly to good jobs — particularly in the fields such as information technology, health care and skilled trades.
“The increase in the number of short-term programs now eligible for Pell Grants presents a major opportunity for young people joining the workforce,” said Sarah Gonzalez, a senior associate with the Annie E. Casey Foundation. “Greater access to workforce training programs means more young workers who can get good jobs, begin a great career and build financial security.”
What’s Changing in 2026?
Previously, Pell Grants could be applied only to programs that lasted at least 15 weeks and were part of a degree pathway. As a result, many short-term training programs were excluded.
Starting in 2026, students will be able to use workforce Pell Grants of up to $4,310 per year to attend non-degree credentialed programs as short as eight weeks long. These funds cover tuition, books, school supplies, transportation and housing at eligible colleges, universities and trade schools. Any remaining funds can help pay for a computer, internet access or living expenses such as food and child care.
What the Pell Grant Expansion Means for States and Programs
The expansion of workforce Pell Grants could help states, community colleges and training providers better connect young people to in-demand careers. But this effort will require strong coordination among partners and policies that ensure training programs are high quality and lead to good jobs.
To maintain accountability, states will need to define what qualifies as “high-skill, high-wage or in-demand” employment under the new law. Non-degree programs will likely need to:
- align with high-demand occupations;
- place at least 70% of graduates into jobs within 180 days; and
- Demonstrate that graduates’ earnings exceed tuition and fees within one year of completion.
Meeting these standards may require new or expanded data systems to track participant outcomes and show a clear return on investment.
“Young people will need guidance to identify which training programs can help them launch or advance in careers that pay family-sustaining wages,” said Janie McDermott, a senior associate with the Casey Foundation who specializes in policy reform and advocacy. “Implementing the updated requirements around workforce Pell Grants will require collaboration, capacity and partnership among federal and state leaders, programs and the young people they serve.”
How Casey’s Partners Are Supporting Implementation
Several Casey Foundation grantees are helping ensure that workforce Pell Grants fulfill their promise to expand opportunity for young people:
- The National Skills Coalition has led bipartisan advocacy for short-term Pell Grant eligibility for more than a decade.
- The Association of Community College Trustees provides technical assistance and resources to help community colleges prepare for the expansion.
- Jobs for the Future develops resources and shares best practices with states and higher education institutions.
“Not only do workforce Pell Grants benefit workers and businesses, but they also give young people the opportunity to chart their own path to a great career,” said Katie Spiker, chief of federal affairs at the National Skills Coalition. “Our coalition will continue to meet young workers where they are and advocate for policies to help them build the skills they need to stand out in our evolving labor market.”
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