Workforce Pell Moves Forward: SHRM Supports Employer-Aligned Upskilling

The "Accountability in Higher Education and Access through Demand-driven Workforce Pell" (AHEAD) negotiated rulemaking is the U.S. Department of Education's process to create rules for the new Workforce Pell Grant program, allowing federal aid for short-term, in-demand job training, alongside new accountability measures like Earnings & Gainful Employment rules, aiming to boost skills training for labor shortages.

SHRM supports the U.S. Department of Education’s negotiated rulemaking on Workforce Pell through the AHEAD Committee because the organization sees this process as a critical opportunity to help expand access to education and training that directly aligns with employer needs and workforce realities.

The AHEAD Committee recently completed the first round of negotiations.  Discussions covered program eligibility, state approval processes, and workforce outcome metrics, including placement rates after training. The next round of negotiations in January 2026 will focus on accountability standards, with the Notice of Proposed Rulemaking (NPRM) expected afterward.

SHRM Engagement

SHRM has commented in support of the negotiated rulemaking process in the Federal Register and has been closely monitoring Workforce Pell developments and advocating for policies that align with employer and workforce needs. Key focus areas include:

• Program Approval Delays: After state approval, full eligibility can take up to a year, creating potential gaps in the talent pipeline.
• Data and Reporting Expectations: Programs must meet a 70% training-related placement rate, a metric that may be challenging for some institutions to achieve and report accurately.
• Industry-Recognized Credentials: Industry recognized credentials have a pathway to eligibility for workforce pell funding.

Implications for Employers and Workers

Workforce Pell expansion is expected to enhance opportunities for workers to gain in-demand skills while providing employers access to a more qualified talent pool. States will have significant responsibilities, including defining high-demand occupations, approving programs, and ensuring data systems can accurately report outcomes. Effective implementation will require collaboration between higher education institutions, workforce boards, and employers.

By monitoring developments and advocating for practical policies, SHRM is helping ensure Workforce Pell delivers on its promise: accessible, high-quality, skills-based training that strengthens the workforce and supports business needs.