Unpacking Workforce Pell: Learning from the States

Two trainees in a warehouse wearing hard hats and overalls

This blog post was originally published by the Bipartisan Policy Center.

There has been long-standing bipartisan interest in expanding Pell Grants to short-term workforce programs. Now, Workforce Pell is about to become reality: Among its other provisions, the One Big Beautiful Bill Act (OBBB) expands federal Pell Grant eligibility to short-term job training programs that are fewer than 16 weeks in length.

Workforce Pell extends federal financial aid to programs that were not previously eligible, allowing more students to receive assistance and likely increasing demand for short-term training programs. Although the Department of Education must still finalize key details on Workforce Pell implementation, existing state programs — like Virginia’s FastForward — provide useful perspective on how colleges can use Workforce Pell to help learners attain in-demand skills and credentials. Unlike Workforce Pell, FastForward focuses on noncredit training programs. Nevertheless, it provides insight for federal and state policymaker consideration into the learners participating in short-term programs and on the outcomes that well-designed programs can offer.

Understanding Workforce Pell

The past two decades have seen notable growth in nondegree credentials. In fall 2024, undergraduate enrollment in certificate programs increased by nearly 10 percent, compared to a 5 percent increase in undergraduate enrollment overall. Short-term and nondegree credentials can provide a path to upward mobility and higher earnings, especially for working adults without postsecondary credentials. To be eligible for Pell Grants, however, learners have had to enroll in programs that are 16 weeks or longer.

Workforce Pell extends Pell Grant eligibility to programs that are eight to 15 weeks (between 150 and 600 clock hours) in length. States will be required to certify that programs prepare students for high-skill, high-wage, or in-demand industry sectors or occupations. Programs must lead to a recognized postsecondary credential, demonstrate a 70 percent completion and job placement rate, and meet a value-added earnings test (median earnings for program completers minus 150 percent of the Federal Poverty Level must exceed program tuition and fees). Programs must also provide credit that articulates to one or more additional certificates or degree programs. It is still to be determined whether noncredit programs that articulate to credit-bearing credentials will qualify.

Short-Term Training in Action: Virginia’s FastForward Program

States have invested heavily in short-term credential pathways, with 32 states investing more than $5.6 billion in short-term credential initiatives as of late 2024. Louisiana’s MJ Foster Promise Program, for example, provides financial support for credential programs of two years or less aligned to high-demand jobs in growing industry sectors. In Connecticut, CareerConneCT provides learners with career coaching and free access to short-term training programs.

Virginia’s FastForward is another model that offers insights into outcomes from short-term programs. Virginia established FastForward in 2016 to fund noncredit career and technical education programs delivered through the Virginia Community College System. The initiative is specifically designed to address skills gaps and fill open jobs in high-demand industries like healthcare, IT, infrastructure, and other skilled trades. FastForward provides a pay-for-performance model with costs shared by the state, students, and the college, depending on student and institutional performance.

FastForward Outcomes

Since 2022, MDRC, a nonpartisan research organization, along with partners at UC Irvine, the University of Virginia, and the Virginia Community College System, has been studying FastForward to better understand the learners it serves and their academic and labor market outcomes. Initial findings include:

  • Enrollment — More than 80 percent of FastForward enrollees do not hold a degree or certificate; 61 percent have no prior enrollment in credit-bearing postsecondary programs.
  • Completion — 90 percent of learners completed their program and about 67 percent obtained an industry credential.
  • Stackable Credentials — 12 percent of FastForward students pursue subsequent training in credit-bearing programs.

Additionally, UC Irvine’s analysis suggests that FastForward participants who received an industry-recognized credential experienced a small increase in probability of employment and moderate increase in average quarterly earnings, compared to participants who did not earn a credential. These effects varied substantially by field of study, indicating more work needs to be done to identify which workforce programs produce meaningful impacts for economic mobility.

With that caveat, these findings align with results from other studies showing that short-term credentials appear, on average, to produce modest increases in earnings, with significant variation in earnings outcomes. Learners generally receive the strongest career outcomes when they stack credentials as part of a career pathway. Most learners, however, do not stack, and rates of stacking vary by state, field, and learner demographics.

Lessons for Realizing the Promise of Workforce Pell

State programs like FastForward hold lessons for how institutions can take advantage of Workforce Pell to expand access to quality programs and support economic mobility for learners. They also underscore key questions for implementation that federal policymakers will need to resolve, including whether noncredit programs will be eligible.

  • Career advising: MDRC’s FastForward study finds that some learners may see an initial fall in earnings after completing their program, since entry-level earnings in some career pathways may be relatively low. These learners can receive higher earnings as they advance in their field. The challenge, however, is that most learners do not earn the additional credentials required for this career advancement. Career coaching can be critical for helping learners navigate career pathways and build on their initial training to achieve upward mobility.
  • Noncredit eligibility: Noncredit programs play a significant role in providing workforce-aligned training. There is uncertainty, however, as to whether noncredit programs will be eligible for Workforce Pell. If the rulemaking process allows noncredit programs to qualify, access will depend on these programs articulating to credit-bearing credentials. Colleges will need to develop noncredit-to-credit pathways so that learners can receive credit for prior learning and apply noncredit programs toward earning a degree or credit-bearing certificate. Nationally, credential stacking rates remain low, so states and colleges must find ways to help more learners take on these opportunities.
  • Data: Virginia tracks data on outcomes from noncredit programs for FastForward, and other states have made significant progress in collecting data on noncredit programs and linking their education and workforce data systems to track learners’ labor market outcomes. Most states, however, do not collect data on noncredit programs. Strong state data infrastructure will be crucial for enabling programs to demonstrate that they meet the earnings outcomes benchmarks required to qualify for Workforce Pell. If noncredit programs are eligible, states will need to expand data collection on the noncredit side to enable those programs to qualify. Improving data will help ensure that students are offered programs that will support upward economic mobility and fill local labor market needs. These data can also help states and colleges identify other areas for improvement — for instance, if there are programs where students need additional support to be successful in their careers.

Conclusion

State initiatives like FastForward show the potential of short-term training programs to offer a path toward higher-paying jobs and economic mobility, especially for adult and working learners. These examples can also help shape implementation of Workforce Pell to build on the work states have been doing and expand access to programs that pay off for learners.

You can hear more insights on Workforce Pell from BPC’s August 18th event: Short-Term Pell Unpacked.

This post was coauthored by Tristan Stein, Associate Director for Higher Education, Bipartisan Policy Center.