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- Congress authorized the new Workforce Pell grant program in 2025 and allocated About $1.5 billion in funding for it.
- The program will allow students to use the federal financial aid dollars for short-term career training.
- But the funding comes with restrictions on what programs are eligible, and the federal government left it up to states to figure out which offerings meet the new guidelines.
- Wisconsin officials say it could take years to fully implement the program.
A new kind of federal financial aid is set to become available this week, but it’s not yet clear when Wisconsin students can start using it.
Authorized by Congress in 2025’s controversial budget bill, the new Workforce Pell grant program was widely hailed as a bipartisan victory, opening the door for students to use the largest federal undergraduate grant program for short-term career training.
The roughly $1.5 billion investment could cover the costs for low-income individuals to get training in fields like truck driving and plumbing, which proponents say will help people break into new careers or move up at work.
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But the funds also come with restrictions intended to ensure that students don’t spend their time — or the government’s money — earning credentials that don’t pay off.
The federal government has left it up to states to decide which programs make the cut. In Wisconsin, officials say that process could take years, with aid initially available only to students in a handful of carefully scrutinized programs.
“Wisconsin is approaching the initial rollout thoughtfully, treating it as a pilot phase focused on a limited number of high-quality, high-demand workforce programs,” said Katy Pettersen, spokesperson for the Wisconsin Technical College System.
Wisconsin Watch asked state officials how the rollout will work. Here’s what we learned.
What is Workforce Pell?
Workforce Pell is a new program that allows low-income Americans to use Pell grants — the federal government’s largest financial aid program for undergraduates — to pay for workforce training courses as short as eight weeks.
The grants will be available to people who don’t have a graduate degree. Those who already have bachelor’s degrees are eligible to apply, even though they aren’t eligible for traditional Pell grants. The Department of Education estimates the new grants will support about 190,000 students each year.
The grants will be less than the maximum award for the traditional Pell grant program, according to the national education and workforce nonprofit Jobs for the Future. The exact amounts will be based on the amount of instructional time required.
What programs will be eligible?
That hasn’t been decided yet. Wisconsin colleges will need to submit programs to state officials for consideration. The Department of Workforce Development hopes to open that application in July.
Before then, Wisconsin officials must set the criteria that will determine which programs will be eligible. That includes deciding what it means for a career to be “in-demand” or “high-wage.” One federal guideline: To be eligible, programs must show 70% of their students complete training in a timely manner.
Programs must also be the right length. Workforce Pell dollars can only be used for training that runs for eight and 14 weeks and 150 to 599 clock hours. Some programs that would otherwise be eligible will likely be excluded for this reason.
Several programs, including ones that train truck drivers, dental auxiliary workers and emergency medical technicians, are “strong early candidates, given their alignment with workforce demand and expected performance outcomes,” Pettersen said.
Gov. Tony Evers and the Governor’s Council on Workforce Investment will determine which programs meet the criteria. They’ll submit their selections to the U.S. Department of Education.
Another factor limiting which programs can qualify is a federal requirement that programs must have met the eligibility criteria for at least 12 months. That means that if a college creates or modifies a program to comply with the rules, it won’t qualify for the first year.
“More options will come available over the next 12 to 24 months,” said DWD spokesperson Haley McCoy. “Wisconsin is moving deliberately to collaborate with stakeholders to optimize the opportunities the program offers.”
When will people be able to use Workforce Pell grants in Wisconsin?
State officials have offered no official start date for when people will be able to utilize this financial aid.
When the law passed last year, it said funds would be available “for the award year beginning on July 1, 2026, and each subsequent award year.” Jobs for the Future called that timeline “aggressive,” saying the Department of Education might need more time to implement the program.
Indeed, the department didn’t release the rules governing Workforce Pell until nearly a year later. That, McCoy said, has delayed the process.
“The final rule, which established eligibility and process requirements, was not published by the Department of Education until May 18, 2026, with Workforce Pell set to go into effect less than two months later,” McCoy said, adding that the department “continues to work diligently towards the July 2026 launch date.”
Behind the scenes, college administrators are deciding which of their programs could qualify, said Scott Anderson, associate vice president of academic affairs and workforce development at Northeast Wisconsin Technical College.
Then, they’ll also have to spread the word to students.
“At this point, our financial aid office hasn’t received many questions from students specifically about Workforce Pell,” Anderson said. “We expect awareness and interest will increase as more information becomes available and the program officially launches.”
In the meantime, Wisconsinites interested in these grants can complete the Free Application for Federal Student Aid, which is required for all types of Pell grants. The application is available at www.fafsa.gov.
What’s happening in other states?
Other states are in a similar boat, sprinting to decide which training programs fit the bill.
As of June 26, just 12 states have published an approval process, according to a tracker from the independent research platform Opportunity Data.
In California, state officials say the aid won’t be available for students for weeks or even several months. Lawmakers there are also weighing legislation that would place heavier restrictions on the kinds of programs that qualify, CalMatters reported.
Some Texas college officials have warned that the vetting process may mean students won’t access the funds until 2027.
How can people get help paying for workforce training in the meantime?
People who enroll in short-term certification programs in Wisconsin have options for financial assistance, even if their program isn’t yet eligible for Workforce Pell.
The state offers other forms of tuition assistance, grants and scholarships. For example, students who enrolled in EMT training can now get reimbursed for some of their tuition costs.
To learn about other options, visit the Higher Educational Aids Board website.
Miranda Dunlap reports on pathways to success in northeast Wisconsin, working in partnership with Open Campus. Find her on Instagram and Twitter, or send her an email at mdunlap@wisconsinwatch.org.
Natalie Yahr reports on pathways to success statewide for Wisconsin Watch, working in partnership with Open Campus. Email her at nyahr@wisconsinwatch.org.
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