Labor & Employment Law Daily Wrap Up, AGENCY NEWS—Department of Education issues final rule creating new Workforce Pell Grant, (May 18, 2026)

By WK Editorial Staff

Beginning on July 1, Pell Grants will be available for enrollment in select workforce training programs.

Today, the U.S. Department of Education (the Department) has announced a final rule to implement the Workforce Pell Grant program created under the Working Families Tax Cuts Act (the Act). Beginning on July 1, 2026, 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. Eligibility is limited; students enrolled in or holding graduate credentials are ineligible.

Currently, institutions of higher education award Federal Pell Grants to students with financial need to help them earn undergraduate degrees and certificate credentials programs. 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 eight 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.

Governors, in consultation with state workforce boards, will identify high-demand industries and career fields to determine which workforce programs are eligible to receive Workforce Pell Grant funds. Eligible programs will then be required to meet certain time and length requirements, completion percentages, and employment metrics, and prove they deliver a real return on investment for students as shown by data.

Process before final rule. After the Act was signed into law in July 2025, the Education Department held a public hearing to receive public feedback on implementing the law. It later convened two negotiated rulemaking committees to address the changes made by the Act. The Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee met for five days of negotiations in December 2025. The committee included a range of impacted stakeholders, including higher education institutions, state workforce boards, employers, and organizations representing taxpayers. The Committee addressed the Workforce Pell provisions contained in the Act and reached consensus on the final vote.

Following negotiated rulemaking, the Department published a Notice of Proposed Rulemaking in the Federal Register on March 9, 2026, and invited public comment. The Department received over 500 comments, which were summarized and addressed within the final rule.

The final rule will be published on May 19, 2026, in the Federal Register. A copy of the regulations can be found here.

News: AgencyNews EconomicNews