Workforce Pell Should Draw on What Works in Sector-Based Training

States have a central role to play in implementing and administering Workforce Pell when it launches on July 1, and how they do so will determine whether the new policy delivers on its promise. Passed into law in July 2025 as part of H.R. 1, Workforce Pell marks a significant change in workforce development policy by allowing the Pell grant to pay for short-term, workforce-oriented programs. To be eligible for Workforce Pell, short-term programs must:

• Align with high-skill, high-wage, or in-demand industry sectors or occupations;
• Meet the hiring needs of employers in those sectors; and
• Lead to a recognized postsecondary credential that is stackable (that is, ladders up to a more advanced credential such as a certificate or associate’s degree) and valued by more than one employer, unless there is only one recognized credential for an occupation. This means noncredit programs are Workforce Pell-eligible if they can be applied toward higher-level, for-credit credentials.

States should ground Workforce Pell implementation in what the workforce development field has learned over the last decade through rigorous studies on sector-specific job training programs.

Meeting the Hiring Needs of Employers in Key Sectors

Drawing on the evidence from high-performing sector-specific training programs and engaging with sector partnerships is a natural way for states to ensure programs meet Workforce Pell eligibility requirements, strengthen outcomes for learners, and use those dollars effectively. Sector partnerships are employer-led initiatives, bringing together multiple employers in an industry to coordinate with one another and with education and training providers, state and local workforce boards, and community-based organizations to develop talent pipelines for the industry. States have made significant progress in recent years in expanding sector partnerships, and sector-based training programs developed through those partnerships are an evidence-based strategy to connect workers to high-quality, in-demand jobs.

According to J-PAL, the most effective sector-based training programs include occupational skills training targeted to high-wage sectors and leading to an industry-recognized credential, strong connections to employers, and wraparound support services for participants. There is therefore already a great deal of overlap between Workforce Pell’s program eligibility requirements and high-quality sector-based training programs like Project QUEST and Per Scholas. A 2024 randomized controlled trial found Project QUEST participants earned $54,280 more than control group members over a 14-year follow-up period. A 2025 research synthesis found that Per Scholas increased participants’ earnings by $42,000 over a 10-year follow-up period compared to control group members. Engaging with sector partnerships can help states validate qualifying programs, identify gaps in existing talent pipelines where programs need to be created or strengthened, and direct Workforce Pell dollars toward high-quality programs.

Creating Long-Term Career and Credential Pathways

The long-term impact of Workforce Pell will hinge on whether short-term programs lead to high-quality careers. Yet just because Workforce Pell requires short-term credentials be stackable toward higher-level credentials does not mean learners will be in a position to take advantage of this. Credential stacking remains rare, particularly among those earning the non-credit certificates that lower-income students are more likely to pursue. To make credential stacking and career progression more viable, workers will need access to a comprehensive system of services that includes expanded career navigation assistance, financial assistance, tutoring, mentoring, flexible work schedules, and wraparound supports like childcare, transportation, and housing assistance. This is something Workforce Pell does not automatically solve for, and yet J-PAL identifies wraparound supports as key to effective sector-based training. State and federal policymakers and employers will need to invest in supportive services if they want to realize the full potential of Workforce Pell.

It will also be challenging for workers to progress along career pathways if they don’t know what those pathways are. To build long-term talent pipelines in addition to filling employers’ immediate hiring needs, states should work with sector partnerships to develop and publish career pathways for their industries, including the training programs and credentials needed to move along those pathways.

State workforce boards and colleges should make this information available to workers, students, career counselors, and policymakers so they can see how individual training programs fit into a career path. For example, New Jersey has begun integrating information on career pathways and related training programs through My Career NJ, but access to this kind of information remains incomplete across states and industries. By engaging with sector partnerships, states can address this information gap.

Workforce Pell can and should do more than just fund short-term credentials. By leveraging sector partnerships, states can use Workforce Pell to strengthen their workforce systems, enhance coordination, and support long-term outcomes for workers.

Kelsey Berkowitz is an Associate Director with Results for America’s Workforce Development Program, working with state and local workforce development professionals from across the country to help them use evidence-based policy and data to promote economic mobility and drive strong outcomes.