PELL Act of 2025

The "Promoting Employment and Lifelong Learning Act of 2025" (PELL Act of 2025) establishes a new Workforce Pell Grant program under the Higher Education Act of 1965, effective July 1, 2026. This initiative aims to provide financial assistance to eligible students pursuing short-term, career-focused training programs. Students must meet Federal Pell Grant eligibility criteria but cannot be enrolled in or possess a graduate credential, and cannot receive both a Workforce Pell and a traditional Pell Grant concurrently.

To qualify for these grants, students must enroll in an eligible workforce program, defined as 150-600 clock hours over 8-15 weeks, and not a correspondence course. A State Governor must determine that the program aligns with high-skill, high-wage, or in-demand industry sectors, meets employer hiring needs, and leads to a recognized, stackable, and portable postsecondary credential or prepares for an occupation with a single credential. The Secretary of Education must further verify that eligible programs have been offered for at least one year, demonstrate a 70 percent completion rate and a 70 percent job placement rate.

Additionally, the bill caps program tuition and fees, ensuring they do not exceed the value-added earnings of past students, adjusted for regional price parities. Any period of study covered by a Workforce Pell Grant will count towards a student's overall Pell Grant duration limit. This program expands financial aid access to high-quality, short-term workforce education, with a focus on employment outcomes and affordability.