Workforce Pell Is a Big Step Forward. Now We Must Ensure It Works for Everyone.
By Dr. Lisa Bly Jones, CJC CEO
Workforce Pell is being touted as a big win for workforce development. As a provision of HR 1, Pell Grants may now be used to pay for short-term training for high-demand, high-wage occupations.
But while this change has the potential to significantly expand access to workforce education, if implementation isn't carefully designed, we risk creating new barriers while trying to remove old ones.
Intentional or not, systemic and structural barriers are erected with Workforce Pell. For starters, it’s tied to Title IV accredited higher education institutions. There are inherent incentives to enroll students who are perceived to most likely achieve programmatic performance metrics. For those who have experience navigating higher education systems, they will have an automatic advantage over those who may not have this built-in experience navigating bureaucracies. So, this definitely gives an advantage to individuals who already hold bachelor’s degrees. For the first time, those with bachelor’s degrees, who haven’t completed a master’s degree, can receive a Workforce Pell Grant if they qualify. It can be used to enroll in an eligible short-term workforce program. In our current economy, this could provide another avenue for degree holders looking to reskill or pivot careers.
The 70% completion and placement rates disincentivize enrolling underrepresented and disadvantaged workers. These metrics set up a tough dynamic of high-stakes performance and compliance fear. Institutions will strive to protect their federal funding. Rather than expanding access for those who would benefit most from training, this approach could encourage providers to prioritize participants who are already well-positioned for success—those most likely to complete training quickly, find employment, and meet the required wage threshold, including individuals who already hold bachelor's degrees.
In workforce development, we are far too familiar with “cherry-picking” to screen out those who could most benefit from funding that fully covers employment training. CJC elevates this as a systemic barrier as we continue advocating for individuals who face barriers to employment. Yes, there are individuals who will require additional support to meet performance metrics, and that’s exactly who these federal programs are meant to serve.
Community-based organizations (CBOs) are culturally competent and specialize in providing wraparound services. However, they may not have Title IV accreditation like higher education institutions. With resources getting tighter and clients requiring more services, CBOs are forced to do more with less. If they aren’t able to access this funding stream, those organizations must consistently fundraise or rely on short-term grants to keep their programs accessible. Programs delivered by community organizations that are accustomed to working with populations that require interventions, design their programs with comprehensive coaching models that include supportive services to reduce barriers to completing training programs, and include onboarding support to increase clients’ employment and retention.
Higher education institutions and community-based organizations both have a role in the ecosystem. And this could create an opening for an ideal collaboration. Data and accountability could be a place for community colleges to partner with CBOs that have the experience and expertise in collecting, analyzing, and verifying outcomes related to credential attainment, job placement, and employment wages. This is another collaboration that could benefit from coordinated efforts that could be leveraged in local and state workforce ecosystems.
Governors must formally certify that a program aligns with the state’s high-growth, high-demand economic sectors. A condition of program eligibility is that employers in the relevant sector must affirm that the credential is valuable for hiring or advancement. The intent is to demonstrate alignment with skills and jobs endorsed by employers that offer competitive wages. Once programs are aligned with in-demand industries for our state, those short-term workforce programs are submitted to the U.S. Department of Education for approval, an added layer of approval that will require additional time.
Points for Advocacy
Protect High-Need Populations Through Risk-Adjusted Performance Metrics: Advocate for federal changes to completion and placement rates based on the participant demographics served to ensure institutions are incentivized—rather than penalized—for serving individuals with barriers to employment. Additional funding incentives for institutions that successfully enroll, support, and place individuals with barriers to employment are also needed.
Formalize Community College & CBO Co-Enrollment and Funding Models: Urge policymakers to create clear regulatory channels and funding pass-through mechanisms that allow Title IV institutions to partner with non-Title IV CBOs, leveraging CBO expertise in wrap-around services, coaching, and barrier-reduction.
Invest in Ecosystem Data & Accountability Infrastructure: Secure state and local funding to build shared data systems that enable seamless co-reporting between higher education institutions and CBOs, recognizing CBO contribution to tracking credentials, job placement, and wage gains.
Streamline State & Federal Program Approvals: Push to establish transparent, expedited review processes for program alignment so that critical short-term training can reach communities without unnecessary administrative delay.
This new workforce policy is meant to be a resource for low-income individuals who need free short-term occupational training. As the policy is implemented, we want to advocate for it to reach those who need it the most.