North Carolina approves state Workforce Pell policy, paving the way for July launch

The NCWorks Commission voted Wednesday to approve a policy establishing North Carolina’s Workforce Pell Grant eligibility requirements and application process ahead of the program’s expected launch on July 1.

Established by the federal budget reconciliation bill in 2025, Workforce Pell is a historic expansion of federal Pell Grants for certain short-term workforce training programs that meet rigorous standards, including strong completion and job placement rates.

“We should pause to note that the Workforce Pell implementation policy statement is one of the most significant that we’ve ever dealt with as a commission,” said Tom Rabon, chair of the NCWorks Commission, before the vote.

The vote then proceeded with no further discussion.

Eligible programs must be between 8-15 weeks, lead to a high-skill, high-wage, or in-demand job, result in a recognized postsecondary credential, and articulate credit into a certificate or degree program, among other requirements. In North Carolina, roughly 4% of short-term workforce training programs are expected to qualify. 

The state’s policy approval came after the U.S. Department of Education (DOE) released proposed Workforce Pell regulations in March, which are now being finalized following a public comment period. Federal law requires governors to identify eligible programs before they are submitted to the federal government for final approval, prompting states to develop their own policies and application processes. 

In North Carolina, Gov. Josh Stein designated the NCWorks Commission, the state’s workforce development board, as the lead agency for Workforce Pell implementation, giving it the authority to determine if a program qualifies for Workforce Pell.

The state’s policy reflects the proposed federal regulations and is “subject to immediate change at any time” if the final regulations for the program, expected later this month, were to change. Once final regulations are published, the NCWorks Commission will begin reviewing applications.

Beginning in July, students will be able to use Workforce Pell Grants — accessed through the Free Application for Federal Student Aid (FAFSA) — to enroll in approved programs. Nationwide, roughly 187,000 students annually are expected to receive the grants, with average awards of roughly $2,200, according to data shared by N.C. Secretary of Commerce Lee Lilley.

How is NC identifying eligible occupations?

To be considered for Workforce Pell Grants, a short-term training program must demonstrate that it leads to employment in an occupation that qualifies as “high-wage, in-demand, or high-skill,” per federal policy.

In North Carolina’s policy, there are three pathways through which an occupation may meet this threshold:

1. High-wage or in-demand: An occupation with a Star Jobs System Rating of three or higher.
2. High-wage or in-demand, regional: An occupation with a state-level Star Jobs System Rating below three that is rated three or more stars in at least one of the state’s 16 sub-prosperity zones. This pathway ensures that occupations significant to a specific locality are not excluded by statewide averages.
3. High-skill: An occupation that requires postsecondary education, state license, or a recognized North Carolina Workforce Credential. This pathway ensures occupations that require “meaningful educational investment, professional credential, or state license” are included, regardless of their Star Jobs System Rating.

The NC Star Job System, which forms the basis for the first two pathways, rates occupations on a scale of one to five stars using a score that integrates wages, projected growth rate, and projected job openings. Occupations with five stars are “considered to have much better career prospects than occupations with fewer stars,” according to the N.C. Department of Commerce website.

For the purpose of being considered high-wage or in-demand for Workforce Pell, a rating of three or more stars indicates “sufficient wage, demand (high number of job openings and/or growth rate), or both,” according to the state’s policy.

A database with all Star Jobs rankings is available here, and data on Star Jobs by region are available here. The state’s policy also includes an appendix of Workforce Pell-eligible occupations in North Carolina, including median wage when available. The list includes 364 occupations, including those in health care, the skilled trades, engineering, and more.

How will the state’s application process work?

Eligible institutions will submit separate applications for each short-term workforce training program they want to be considered for Workforce Pell eligibility.

There are four steps to each application, described in full in the state’s policy:

1. Self-review for basic eligibility: Institutions should first ensure basic Workforce Pell eligibility criteria set by the federal government are met. The state’s policy encourages institutions to start by consulting with their local workforce development boards “on the development and identification of potential Workforce Pell programs needed to meet employer demand.”
2. Eligible Training Provider application and approval: Institutions must then apply for and be approved as an Eligible Training Provider (ETP), meaning they meet requirements to receive federal Workforce Innovation and Opportunity Act (WIOA) Title I funding. ETPs may include community colleges, registered apprenticeship programs, and other training providers. NCWorks maintains a list of current ETPs here.
3. Workforce Pell Grant program approval: Institutions will then submit additional information in the ETP application system to seek Workforce Pell approval, including evidence of the program’s stackability and portability, evidence of program-to-credit articulation, evidence of meeting the high-skill, in-demand, or high-wage requirements outlined above, evidence of employer validation, anticipated median wages, performance data, and more.
4. Federal approval: Following approval at the state level, institutions will be able to submit their programs for approval to the U.S. Department of Education.

According to the policy, the NCWorks Commission plans to review applications on a quarterly basis.

Other workforce updates

The Governor’s Council on Workforce & Apprenticeships also held a meeting Wednesday, where members heard updates on progress toward the 11 workforce development goals and 30 corresponding strategies adopted by the council in 2025.

Updates included:

• NC Career Launch: In February, Stein directed the state’s discretionary WIOA funds to support NC Career Launch, an initiative led by the Office of the Governor and the North Carolina Business Committee for Education that helps businesses develop pre-apprenticeship programs in sectors like child care, health care, advanced manufacturing, and the skilled trades. According to Lilley, the funding will be used to place 600 young people in pre-apprenticeships, contributing to the council’s goal of doubling the number of apprentices and pre-apprentices in the state.
• Workforce Act of 2026: Sen. Eddie Settle, R-Surry, shared a brief update on the Workforce Act of 2026 (House Bill 1163, Senate Bill 986). The legislation includes four pillars put forward in February by myFutureNC and would fund ApprenticeshipNC, NCcareers.org, NC Workforce Credentials, and an expansion of transfer technology. The total cost of the Workforce Act is roughly $9.1 million. “We may have a little adjustment in the bill — maybe a technical correction or two,” said Settle. Both bills have been referred to committees for review.
• ApprenticeshipNC employer events: Jeff Cox, president of the N.C. Community College System, said ApprenticeshipNC recently held 35 events with employers and has 12 more scheduled in the coming months, engaging more than 1,000 people across the state. “These sessions were designed with a simple goal — make registered apprenticeships feel accessible, practical, and achievable for employers of all sizes,” Cox said. “When employers understand the process and see how others are succeeding, the path forward becomes much more tangible.”
• Transfer portal pilot: Cecilia Holden, president and CEO of myFutureNC, shared an update on a transfer portal pilot that includes UNC Pembroke, UNC Wilmington, and Fayetteville Technical Community College. “The goal is to build a connected statewide data ecosystem that would improve transfer for students, reduce credit loss, and accelerate time to degree by aligning education pathways with workforce demand,” Holden said. Last year, the UNC System saw a record number of students transferring from other institutions, including nearly 11,000 students transferring from a local community college, Holden said. The software used in the pilot leverages technology to automate the process of determining which credits will transfer between institutions. So far, 189 reverse transfer credentials have been awarded through the pilot. “If North Carolina gets this right, we will be the first in the nation to be able to do this,” Holden said.
• Employer engagement: The council is asking employers to submit an interest form found on a new employer engagement webpage. The form allows employers to “pledge their partnership with workforce systems, share information about their workforce needs and interests, and get connected to local partners who can assist with hiring and training,” Lilley said. This portal is part of the council’s strategy to meet its goal of engaging 50,000 employers across the state. “I want to especially encourage my fellow small business owners in rural areas to reach out and become a workforce partner so that you can maximize your opportunities, increase your bottom line, and develop your employees,” Settle said in a press release.