How Will Workforce Pell Change Student Decisions About Nondegree Credentials?

In summer 2026, students will have access to a new source of funding for workforce training programs: Workforce Pell, a federal policy that expands the  government’s primary source of grant aid for low-income students, the Pell Grant, to cover short-term programs lasting between eight to 15 weeks that meet certain earnings requirements.

Although it is unclear how many programs will qualify initially, Workforce Pell has the potential to significantly expand access to short-term programs, including nondegree credential (NDC) programs, by making them more financially accessible for students. States will play a key role in determining Workforce Pell’s impact by defining eligible programs, overseeing program providers, and aligning workforce training investments with regional labor market needs.

NDC programs are offered by a wide range of providers that include community colleges; trade schools; and other public, private, or for-profit higher education institutions. Nondegree credentials take many forms, ranging from certificates (such as those needed by nursing assistants and electricians) to licenses (including commercial driving licenses) to registered apprenticeships.

Interest in NDC programs has grown significantly in recent years. Some estimates suggest that approximately one-third of adults in the United States have completed an NDC, while enrollment is down in traditional associate and bachelor’s degree programs. But despite this growth, little is known about how students currently pay for NDC programs or how Workforce Pell may influence their decisions about whether and where to enroll. Adding to the confusion, data is limited on the programs’ return on investment, and there is little consensus about how best to track, define, and evaluate the characteristics of a high-quality NDC program. As a result, states could struggle to distinguish high-value programs from those that leave students worse off, particularly as new federal dollars enter the market. 

In January 2026, The Pew Charitable Trusts launched its quality skills and education pathways project to help states examine these issues. Building on Pew’s extensive past analysis of the federal student loan portfolio, the project’s policy research agenda will analyze how students finance NDC programs and whether investments in such programs pay off. The project will also investigate how NDC programs can meet state and employer workforce needs, as well as how state governments can establish effective safeguards to ensure that NDC programs deliver on their promise. The role of state government is critical, as governors' offices will design the processes to determine which workforce programs are eligible for Workforce Pell funding in their state.

On the question of student financing, research offers limited answers and raises many additional questions. For example, a recent Pew analysis found that over half of students pay for NDCs out of pocket, a concerning finding given evidence from other studies showing that the hourly program costs exceed the minimum wage in many states. This represents only a partial view of how students engage with and finance these programs, however, based on limited available data.

Over the next several years, Pew will pursue several key questions that can help shape how state policymakers approach this issue, including:

• How many students paying out of pocket rely on credit cards or even riskier forms of financing to do so? To what extent are students struggling to repay this debt?
• What defines a “high-quality” nondegree credential, how can we achieve better consensus around this definition, and how can student and employer perspectives inform this definition?
• How can states better collect and use data to track program results, particularly among private providers?
• What lessons can be drawn from veteran experiences paying for NDCs via the Post-9/11 GI Bill? As one of the few groups currently able to use federal aid to pay for short-term NDCs, veterans’ experience gives us insights into financial aid and accountability for these programs.

Answering these questions will require close partnership with state policymakers, who hold the most powerful levers to measure and incentivize data collection and program quality. To date, states have provided $4.5 billion that can be used to support short-term nondegree credentials or workforce training programs. However, states sometimes lack the capacity or data systems to monitor programs. Building clear definitions of quality, improving the data available to develop standards and assess outcomes, and ensuring that students can safely finance NDC programs and avoid predatory lending practices are important steps to making NDCs a reliable pathway for economic mobility.

The Workforce Pell expansion arrives at a pivotal moment as states consider the best path forward for determining how to assess the value of NDC programs. If implemented with a focus on quality outcomes and safe, affordable financing for nondegree programs, Workforce Pell could incentivize investments in high-quality NDCs that help Americans earn better wages and fill significant skill and labor gaps in the workforce. Realizing this potential requires more than money: It needs good data, transparent oversight frameworks, and policymaker willpower to ensure that programs deliver real value to students, employers, and taxpayers. Pew’s quality skills and education pathways project will work with partners to help inform states with the data and evidence needed to support NDC programs’ success.

Phil Oliff directs The Pew Charitable Trusts’ quality skills and education pathways project.

This piece originally published on Work Shift on Feb. 9, 2026.