Workforce Pell Watch — February 25, 2026
State data policy, Federal Student Aid session, and more.
We’re trucking along in our work with states and institutions as Workforce Pell implementation moves from theory to practice. Today’s edition is brief — highlighting a new blog post, an important update from Federal Student Aid, and some concerning developments in state legislatures. And I’ve given a little teaser about a forthcoming publication that will be helpful.
New from me at New America:
Workforce Pell Isn’t Just Federal Aid — It’s a State Data Policy
When Congress created Workforce Pell in last year’s budget reconciliation legislation, it did far more than expand access to federal aid for short-term programs; it fundamentally reshaped how program quality and outcomes are overseen. What Workforce Pell makes clear is this: states will be the central actors in implementation and accountability. Governors are empowered to certify programs, decide whether they align with high-skill, high-wage, or in-demand occupations, and attest — based on state data — that programs meet employment and earnings outcomes. Answering basic questions about who enrolls, who completes, where they work, and what they earn requires robust, linked administrative data systems — a capacity that varies dramatically across states. Workforce Pell will test the limits of some state longitudinal data systems in new ways. States that treat data as an afterthought risk weak accountability; states that invest in data infrastructure can use Workforce Pell as a tool for quality and mobility.
FSA’s Training Conference Spotlights Workforce Pell Implementation
The upcoming Federal Student Aid (FSA) Training Conference — March 4–6, 2026, in Washington, D.C. — underscores how central Workforce Pell is to the evolving aid landscape. The agenda now includes a dedicated session titled “Pell Eligibility for Workforce Programs” on March 5, positioned within Institutional Eligibility discussions for financial aid professionals.
State Legislatures Are Trying to Define “High-Wage” — But Some Bills Miss the Mark
Across statehouses, some lawmakers are beginning to grapple with Workforce Pell’s implementation.
However, bills introduced this session in Missouri and West Virginia are concerning. Under the statute and proposed regulations, programs must demonstrate that they prepare students for “high-wage” occupations and meet other tests, like value-added earnings. Unfortunately, these bills are neither ambitious nor in alignment with the intent of the new federal program. Among other things, such as codifying the state process, here’s how the bills treat the definition of “high-wage”:
In West Virginia, House Bill 4595 would define “high-wage” as earnings above 150 % of the federal poverty level for individual workers. The bill’s language would also direct the governor and workforce board to approve programs that meet at least one of the high-skill, high-wage, or in-demand criteria, giving the state flexibility but also creating ambiguity on what “high-wage” means in practice.
Missouri’s Senate Bill 1196 similarly creates a state process for governing Workforce Pell program approval, emphasizing coordination with workforce development boards and requiring outcomes data, but the bill’s definition of “high-wage” is also set at 150% of the federal poverty line.
Defining “high-wage” at 150 % of the federal poverty line — roughly $23,000–$24,000 per year for an individual in 2026 — is a threshold generally aligned with eligibility for public benefits rather than robust labor market outcomes. Furthermore, earnings at those levels likely wouldn’t meet the federal value-added earnings test once tuition and fees are factored in, and would also risk labeling near-poverty jobs as high-wage. Meaningful wage benchmarks, particularly ones called “high-wage,” are usually positioned well above basic poverty thresholds to protect students and ensure return on investment.
This is also a short-sighted approach to move the needle in a state’s economy.
Teaser: As states move to codify these standards, clarity — and consistency — matter. New America will soon publish a 50-state snapshot of how these definitions vary across the country.
Interested in Supporting Workforce Pell Implementation?
As states move from legislation to implementation, the need for technical assistance, policy analysis, and cross-state learning will only grow.
We’re actively working with partners to support a thoughtful Workforce Pell rollout. If that work aligns with your interests, feel free to reach out. My email is whistle@newamerica.org, or you can message me by clicking below.