Students across the country will soon be able to receive Workforce Pell Grants to use toward tuition and fees for certain short-term workforce training programs.
Established by the federal budget reconciliation bill in 2025, Workforce Pell Grants expand traditional Pell Grant eligibility to programs that are 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 December, the U.S. Department of Education (DOE) held a negotiated rulemaking process to develop new rules for Workforce Pell Grants. In one week, negotiators reached an agreement on draft regulations, which will be used as the basis of DOE’s forthcoming consensus rule. That consensus rule will be open to public comment before a final rule is published.
In the meantime, states are working to identify potentially eligible programs ahead of Workforce Pell’s anticipated launch on July 1, 2026. States play a critical role in implementing Workforce Pell — under the law and proposed regulations, governors must approve any eligible program before a federal approval process takes place.
However, during a Feb. 11 meeting of the Governor’s Council on Workforce and Apprenticeships, Jeff Cox, president of the N.C. Community College System, expressed caution about the number of programs that may ultimately qualify for Workforce Pell in the state due to the program’s federally-established eligibility criteria. Eligible programs must demonstrate a 70% completion rate, a 70% job placement rate within 180 days, and a positive return on investment, demonstrated through a value-added earnings requirement.
“Just out of these initial screens — the number of hours and then the job placement and the completion rates — I think only about 4% or so of our overall short-term credential programs are going to qualify,” Cox said.
Read more about Workforce Pell
The status of Workforce Pell in North Carolina
During its February meeting, the council heard an update on the status of Workforce Pell Grant implementation in North Carolina from Andrea DeSantis, assistant secretary for workforce solutions at the N.C. Department of Commerce.
DeSantis opened with an overview of Workforce Pell Grants, highlighting that they provide a new opportunity to quickly move students into the workforce through short-term training programs, but that eligible programs must meet high standards.
“This is really a huge departure from the way that federal funding happens right now and the accountability measures for institutions,” DeSantis said.
DeSantis then outlined the federal timeline for Workforce Pell, noting that she participated as an alternate negotiator during DOE’ negotiated rulemaking process in December. DOE’s goal is to have a final rule by the spring, and according to statute, the program should launch on July 1.
“That timeline is going to move quick, and that means us as states, we have to move quickly too,” DeSantis said. “What will that mean in July? While we have not heard official dates from the Department of Ed, it means that the Department of Ed intends to be able to start reviewing applications from institutions that have programs that were approved at the state level.”
As states consider potentially eligible programs, DeSantis said that it is not the federal government’s expectation that all short-term training programs will be eligible for Workforce Pell. Instead, she said, “states should take this as an opportunity to say, ‘What are the needs in communities, and what programs are really essential for us to improve and fund?'”
DeSantis then provided an update on where North Carolina stands in Workforce Pell implementation. Since November 2025, staff from the Governor’s Office, Department of Commerce, and higher education agencies have worked with Education Strategy Group, a national consulting firm, to develop the state’s Workforce Pell approach.
This includes:
- Defining what a high-wage, high-skill, or in-demand job is: DeSantis said these definitions will build off assets from the Labor & Economic Analysis Division (LEAD) within the N.C. Department of Commerce. To define in-demand jobs, DeSantis said LEAD has pulled a list of occupations that are in-demand at both the state and local levels. She added that high-skill jobs are those that require a license or additional postsecondary credential, and that no definition has been determined yet for what qualifies as a high-wage job. Importantly, to be eligible for Workforce Pell, a program must lead to a job that meets at least one of these three criteria. For example, a job that is in-demand but low-wage could still be eligible.
- Defining stackability and portability: These are two additional federal requirements for Workforce Pell — programs must result in a recognized credential, and they must articulate credit into a related certificate or degree program.
- Developing an application process: DeSantis said the group will also develop an application process that accounts for the data that a program must report and the high standards it must meet to qualify for Workforce Pell. “How do we leverage existing assets within the Department of Commerce and our eligible training provider list as a potential pathway for institutions to apply?” DeSantis said.
- Determining how Workforce Pell can be leveraged for apprenticeships: DeSantis said that Workforce Pell can be used to cover portions of the cost of related instruction for a Reegistered Apprenticeship Program, which is a component of the policy the group is working on.
In April, the state hopes to have a draft policy and application for Workforce Pell that would be available for public comment. On May 13, the NCWorks Commission, the state’s workforce development board, would review the policy and application.
“Assuming that the federal level has put out their final guidance, we would then plan to have an application available sometime in late May,” said DeSantis. “This would give us enough time to approve initial applications before the July deadline.”
DeSantis also noted that the N.C. Community College System (NCCCS) has already published an initial list of potentially eligible programs, which is part of the system’s Workforce Pell toolkit. This list includes short-term workforce courses and credentials that meet the time limits required by Workforce Pell — but not all of those programs will necessarily meet the grant’s additional eligibility requirements.
“Institutions have received individualized data to see, ‘Okay, which programs do we offer at our own institutions — not just across the state — that we think could be eligible for Workforce Pell,’ based on the hour requirements, as well as that completion and job placement data, which is going to be really important,” said DeSantis.
Although all Workforce Pell programs must have existed in their current format for at least one year, DeSantis said this is an opportunity for community colleges to have conversations with employers and consider what new programs or adjustments to current programs may be needed to meet workforce needs in the coming years.
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“This is expected to be a slow start,” DeSantis said of Workforce Pell’s launch. “This is not intended to approve every program, but to really be about intentional design at the state and local level.”
Cox echoed that sentiment, saying he is “a little bit underwhelmed” by the number of programs that may qualify for Workforce Pell.
“I’m excited about it, but I also want to inject a little bit of caution around the level of impact we’re going to have right out of the gate,” he said.
Updates on the council’s work
In addition to hearing this update on Workforce Pell, the council also reflected on its work in 2025 and discussed other key efforts that will help advance its goals.
In June 2025, the council released a report outlining the state’s goals for workforce development, which are separated into four objectives: increasing attainment, expanding work-based education, focusing on key sectors, and highlighting workforce programs through a public outreach campaign. In December, the council released a second report that outlines 30 strategies to advance those goals.
Then, in January, the council’s co-chairs joined Gov. Josh Stein at an event to announce the state’s ranking as first for workforce development by Site Selection Magazine.
“We now stand at a pivotal moment where strategy development is transitioning into action,” said N.C. Secretary of Commerce Lee Lilley, who is also a council co-chair, at the February meeting. “As we move forward today, our focus shifts toward implementation, accountability, and metrics, translating these strategies into meaningful outcomes for North Carolina’s workforce.”
Read more about the council’s work
The council heard a short presentation on how the NCWorks Commission relates to the work of the council.
Annie Izod, executive director of the NCWorks Commission, shared that as of February, the council and NCWorks Commission had aligned each entities’ four committees. In December 2026, the council committees will sunset, and the NCWorks Commission will continue to monitor progress toward the state’s workforce development goals.
New funding for youth apprenticeships
On Feb. 10, Stein announced that he is directing discretionary funds allotted through the federal Workforce Innovation and Opportunity Act (WIOA) to NC Career Launch to expand youth apprenticeships.
According to a press release, NC Career Launch “helps businesses develop registered apprenticeship programs for students beginning in grades 11 and 12 in high-demand sectors like child care, health care, skilled trades, and advanced manufacturing.”
This investment is connected to one of the council’s workforce development goals: to double the number of apprentices in the state, including both registered apprenticeships and apprenticeships. According to ApprenticeshipNC, youth apprenticeships can begin as early as 16 and are available in more than 1,200 occupations.
During the council’s February meeting, Kindl Detar, policy adviser to Stein, said youth apprenticeships allow employers to grow local talent early before students may drop out of the postsecondary pipeline, and they allow students to earn and learn with pathways to career opportunities in their local communities.
According to Detar, the first year of the investment will focus on expanding existing youth apprenticeship programs that have wait lists and on expanding youth apprenticeships in the western part of the state as it continues to recover from Hurricane Helene.
“We know that making these apprenticeships work will require engagement from our employers,” said Detar. “In his announcement yesterday, the governor had a special call-out to employers to think about how these models of youth apprenticeships … can be beneficial to them, to not only provide opportunity, but to create that local workforce that they need.”
NCCareers.org sees record number of users
First launched in July 2020, NCCareers.org is the state’s career information system. It aggregates key information on jobs, wages, and pathways, providing career exploration tools to help North Carolinians on their education-to-workforce journey.
During the council’s meeting, Jamie Vaughn, senior analyst for market intelligence at the North Carolina Department of Commerce, shared that the website had 1 million users in the last 12 months — representing 95% growth from the previous year.
The website has information on wages and demand across more than 800 occupations that can be sorted by 16 sub-state regions. According to Vaughn, more than half of school districts in the state are using the website’s resources to help meet the state requirement that all middle and high school students complete a career development plan.
Vaughn also previewed new features that will be added to the website, including business listings of local companies that may hire employees in specific occupations, and information to help high school students better understand what CTE courses are available at their school that will lead to CTE pathways.
Cecilia Holden, CEO of myFutureNC, said that one component of myfutureNC’s proposed Workforce Act of 2026 for the legislative short session is $1.5 million for NCCareers.org, which would equate to $1.50 per user based on 1 million annual users.
For more information on NCCareers.org, see this EdExplainer.
The council’s next meeting will be held on May 13 from 10 to 11:30 a.m.
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