Beginning July 1, 2026, postsecondary learners will be able to apply for workforce Pell (WFP), an expansion of the federal Pell Grant that covers occupational training programs that run between 8 weeks and 15 weeks and include at least 150 clock hours. With estimates suggesting upward of 100,000 additional Pell recipients per year, many view WFP as an opportunity to transform the short-term credential landscape. While the rules are still being drafted, the federal government has outlined a set of criteria for programs to be considered WFP eligible. Programs must:
- be aligned with high-skill, high-wage, or in-demand sectors or occupations;
- lead to a recognized postsecondary credential that is “stackable” or portable (recognized by different employers) and transfers into degree programs;
- be certified by state workforce boards (under the Workforce Innovation and Opportunity Act, or WIOA) as aligning with employer needs;
- result in a completion rate of at least 70% and with at least 70% of graduates placed in a job within 180 days;
- yield higher median earnings among program completers than the program’s tuition and fees; and
- operate for at least one year before being eligible.
Currently, very few community college occupational training programs meet all of these requirements. States, systems, and colleges are wrestling with how to structure their training programs to meet these requirements so that they maximize the number of students who can receive WFP aid without compromising the flexibility and speed of training that make these attractive options for postsecondary learners. Recognizing the need, the Department of Education recently released a new grant opportunity to support efforts aimed at developing and reforming high-quality short-term programs that meet the WFP requirements.
Among the 32 states investing in short-term credentials, Virginia’s G3 program comes close to representing a real-world example of how WFP is likely to function within institutions. As a last-dollar scholarship program for students enrolling in high-demand training programs, G3 targets short-term, workforce-aligned credentials, operates in community college noncredit and credit programs, and requires colleges to embed stackable credentials. The Commonwealth of Virginia provides robust data for both credit and noncredit programs linked to unemployment insurance data, allowing the system and institutions to track a range of student outcomes related to their participation in the program. An evaluation of G3’s early outcomes shows that the initiative increased total financial aid and grant aid and, similar to other financial aid programs, G3 increased FAFSA completion and enrollment in aid-eligible workforce programs. Findings from a CCRC study of G3’s implementation offer several practical lessons for implementing WFP.
Aligning training programs with high-demand jobs. A notable requirement of WFP is that eligible programs must be aligned with in-demand sectors or occupations and be certified by state workforce boards (under WIOA). G3 similarly restricts funding to those programs that are in designated high-demand fields and have documented labor-market value, and it requires all programs to be approved by the State Board for Community Colleges.
The G3 program approval process was designed to ensure that students receiving G3 funds were enrolling in programs tied to strong labor market demand. While Virginia legislation uses the U.S. Department of Education’s Classification of Instructional Programs (CIP) codes to identify programs eligible for G3 financial aid, it allows institutions to decide which specific programs to submit for approval based on their regional and institutional context. This flexibility enables colleges to remain responsive to local labor-market conditions and employer needs. The G3 approval process also encourages colleges to look beyond immediate job placement and assess whether credentials improve broader employment outcomes, such as higher wages over time. In this way, G3 prompts colleges to align curricula more intentionally with employer needs. For WFP, this shows how colleges can incorporate labor-market outcome reviews into the approval and renewal process.
CCRC’s research found that the G3 program approval process can take a year or more, making it difficult to stand up new programs quickly in response to employer demand. Program leaders noted that the time required to move a credit program through multiple approval levels, from internal curriculum committees to state-level boards, can delay the launch of G3-eligible programs. If colleges require, as part of meeting WFP guidelines, new or modified credit programs to pass through similar multiple approval layers, they may struggle to develop and launch Pell-eligible workforce programs in a timely manner. Colleges may need to build in mechanisms that maintain program quality while streamlining review processes to avoid slowing approvals. This will be all the more important when adding the time needed to receive approval by WIOA.
Connecting short- and long-term pathways. WFP requires eligible programs to lead to recognized, portable, and credit-bearing postsecondary credentials. G3 legislation shares these goals by requiring credentials to build toward longer-term degrees and by funding both credit and noncredit pathways, encouraging colleges to connect short- and long-term training.
Findings from our study revealed several challenges to implementing connected short- and long-term pathways. Similar to other studies, we found that although G3-eligible programs are intended to include stackable credential pathways, many colleges had not fully developed the structures or supports needed for students to use these pathways. Colleges reported that some fields are not well suited to vertical stacking, leading program heads to create stacks primarily to satisfy policy requirements rather than because they meaningfully helped students.
Another major G3 takeaway for WFP is the importance of integrating credit and noncredit divisions and data systems. Several colleges used G3 as a catalyst to begin merging admissions, enrollment, and student supports so that all students access the college through “one door.” This movement toward greater alignment between the two divisions can inform colleges’ efforts to connect short-term programs to longer-term credentials as part of WFP.
Supporting the program enrollment process. Research shows that the multi-step process required to enroll in college and qualify for financial aid can deter students. Workforce Pell will require students to navigate steps similar to those required for G3, which include selecting an eligible program and completing the FAFSA.
A key lesson from G3 is that dedicated advising and navigation staff are essential for helping students understand which programs qualify, complete financial aid requirements, and enroll successfully. A student may enter the enrollment process aware or unaware of G3, having decided on a program of study or not, planning to apply for financial aid or not, and planning to enroll full- or part-time, which makes good information critical to their enrollment. Colleges in our study relied heavily on these staff, funded through state appropriations and grant funding, to serve as the first point of contact for prospective students and make the college application and enrollment process more accessible and student-friendly. Lessons from G3 suggest that offering students proactive advising and guidance on program eligibility and the FAFSA process can help more students access WFP.
Increasing FAFSA completion.WFP students will need to complete the FAFSA, a process that can be confusing and time-consuming, especially for first-generation, low-income learners as well as older students wanting to reskill for high-demand careers. G3 shows that helping students navigate financial aid is critical to program access.
Under G3, VCCS and its colleges increased FAFSA completion by adding staff support, creating student care teams, assigning financial aid counselors to students who started but hadn’t finished their FAFSA, and automating aid packages so funding is applied quickly and in the right order. Colleges also standardized award notifications and made them accessible online. These lessons suggest that students need proactive support, streamlined processes, and clear communication to complete the FAFSA and access funding. Building these supports upfront will help colleges reach more students and reduce delays in awarding WFP.
In sum, G3 offers valuable insights into how states, systems, and colleges can design programs that use the provisions of Workforce Pell to provide meaningful opportunities for students and address the likely challenges and barriers associated with short-term training programs. Other research on G3 provides additional lessons as well. CCRC’s recent findings on the alignment between G3 and Virginia’s Growth and Opportunity (GO) Virginia initiative, which incentivizes regional collaboration between business, education, and government entities to increase access to high-paying jobs, offer additional lessons on how states and systems can strategically coordinate their workforce goals and investments. An upcoming report on the labor-market returns of G3 will provide important evidence on the effects of these types of financial aid programs.
