July 1, 2026 marked the beginning of a new era in workforce development. On May 18, 2026, the U.S. Department of Education (ED) issued a Press Release, Final Rule to Create New Workforce Pell Grant Program, to implement the Workforce Pell Grant Program— created under the Working Families Tax Cuts Act.
The Release reads, “Students will be able to receive Pell Grants for enrollment in high-quality, short-term educational programs that prepare them for high-skill, high-wage, and in-demand jobs.
“This new program will help more Americans rapidly enter the workforce with little-to-no student debt while simultaneously strengthening the nation’s talent pipeline…advancing the vision of America’s Talent Strategy, prioritizing career and technical education (CTE), strengthening America’s workforce, and helping students to enter professions quickly through upskilling or reskilling.
“Currently, institutions of higher education award Federal Pell Grants to students with financial need to help them earn undergraduate credentials. Workforce Pell bridges the gap between education and employment by allowing Pell Grants to be used for workforce training programs that prepare individuals for immediate employment in as little as 8 weeks. In addition, Workforce Pell requires colleges to limit their tuition and fees based on the earnings of program graduates, ensuring that programs continue to demonstrate value over time.
“DOL-funded workforce programs—such as local workforce board initiatives—can utilize Workforce Pell for the related technical instruction portion, provided the training partner meets these institutional and program standards. DOL and ED are actively collaborating on this initiative…to help institutions build programs that qualify for Workforce Pell.” Read Entire Press Release Here…
KRA sees Workforce Pell as more than a new funding source—it represents a significant opportunity to expand access to education and strengthen workforce pathways. By aligning Workforce Pell with existing investments like WIOA —Individual Training Accounts— (ITAs), workforce boards can help more individuals access high-quality training, earn industry-recognized credentials, and prepare for in-demand careers while strengthening local talent pipelines.
We look forward to partnering with workforce boards, community colleges, training providers, and employers to maximize the impact of this new opportunity and create stronger outcomes for jobseekers, businesses, and the communities we serve.
Learn about Tennessee’s Workforce Pell Program
July 15 2025 – Education and Labor Workforce Development Partnership Announcement