The U.S. Department of Education has concluded the first week of negotiated rulemaking to implement the new Workforce Pell Grant program, created under the One Big Beautiful Bill Act (OBBBA). Beginning July 1, 2026, eligible students will be able to use Pell Grants for certain short-term workforce programs approved by their state.

Expanding access to financial aid for workforce pathways is crucial for our nation’s students; however, with limited Pell Grant resources, strong guardrails are essential to ensuring that students enroll in programs that deliver real value — and that taxpayers are protected.

What We Learned in Week 1

A Rushed Process with Lasting Consequences
The Department compressed what is typically a multi-month rulemaking process into a single week. The Department released its draft proposal less than two business days before negotiations began and cut opportunities for public input.

States Carry Most of the Responsibility
The draft rule leaves key decisions about program approval to Governors, requiring states to design and administer new approval and oversight systems — without additional funding.

Quality Oversight Gaps Remain
Although programs must be offered by accredited institutions, many short-term Workforce Pell programs may never be reviewed by accreditors, raising concerns about program quality and credit transfer.

State-by-State Approval for Online Programs
Workforce Pell Grant programs delivered online must be approved by the Governor in every state where enrolled students live, not just where the institution is located.

Accountability Delayed
A three-year “on-ramp” period postpones earnings-based accountability, allowing programs to receive Pell funds for years before value-added earnings measures take effect.

What’s Next

Because negotiators reached consensus, the Department will publish the draft rule for a 30-day public comment period in early 2026 before finalizing regulations on July 1, 2026. States, institutions, and advocates should begin preparing now to engage in the public comment process and shape how Workforce Pell Grant programs are implemented on the ground.

Download the Brief (PDF)

The rulemaking committee will reconvene on January 5th to address broader accountability issues, including Financial Value Transparency, Gainful Employment, and the new “do no harm” standard for all Title IV programs.

Photo by Allison Shelley/Complete College Photo Library