ACE has released a detailed summary of the Department of Education’s (ED) proposed rule to implement the new Workforce Pell Grant program, which goes into effect July 1, 2026. The deadline for comments is April 8.On Friday, ED issued draft regulations for the new Workforce Pell Grant program, one of the many provisions enacted in the One Big Beautiful Bill Act (OBBB) that have major implications for higher education.
“With this proposed rule, we take an important step toward building a stronger postsecondary education system – one where the Federal government invests in short-term, high-quality programs aligned with a state’s workforce needs, creating new affordable pathways to upward mobility for America’s students and their families,” Under Secretary of Education Nicholas Kent said in a press release.
In December 2025, negotiators and ED agreed to a set of proposed regulations to implement the Workforce Pell program. In January, negotiators and ED also reached agreement on regulatory text regarding accountability provisions, though that draft rule has not yet been released.
The proposal also establishes the framework for the new Workforce Pell Grant program, intended to expand federal aid to short-term workforce training programs aligned with high-demand industries. The rules describe eligibility requirements for institutions, oversight roles for state leaders, and new measures related to program completion, job placement, and earnings outcomes.
The proposed regulations also outline how ED plans to implement new statutory requirements designed to ensure that workforce programs lead to earnings outcomes above certain benchmarks. Under the law, programs could lose access to the Pell Grant if graduates’ median earnings fall below the required thresholds for multiple years. In addition, the regulations stipulate how institutions are to package the Pell Grant if students receive scholarship or grant aid from non-federal sources.
The release of the Workforce Pell regulations is the latest step in what has been a whirlwind process to implement the many higher education provisions in OBBB. Last week, ACE and more than 40 higher education associations submitted comments to ED on proposed regulations implementing key student loan provisions included in the law.