119-s-1683119th CongressWALLET

PELL Act of 2025

Sponsored By: Senator Budd, Ted [R-NC]

Introduced

Summary

Workforce Pell Grant program would extend Pell-style grants to short, employer-aligned training so more students can afford job-focused certificates that lead to hiring and credit toward further study. It targets programs that are 150–600 clock hours and run 8–15 weeks.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Limit program tuition to earnings

If enacted, program tuition for eligible workforce programs could not exceed a computed "value-added" earnings amount each award year. Value-added would equal the median earnings of students who completed the program three years earlier, adjusted for local prices, minus 150% of the poverty line for a single person. This rule would apply starting July 1, 2026 for the 2026-2027 award year and later years.

New Workforce Pell Grants for Students

If enacted, the bill would create Workforce Pell Grants starting in the award year that begins July 1, 2026. You would be able to get one if you meet Pell rules and are enrolled or accepted in an eligible workforce program. You could not get a Workforce Pell at the same time as a regular Pell grant under section 401(b) or 401(c). Time paid for by a Workforce Pell would count toward your overall Pell duration limit. Short programs could get a prorated Workforce Pell even if the amount is below the regular Pell minimum.

Rules for eligible workforce programs

If enacted, programs must meet detailed rules to qualify for Workforce Pell Grants. Programs would need 150–599 clock hours and run at least 8 but under 15 weeks. They could not be correspondence courses. The State Governor must say the program aligns with in-demand, high-wage sectors and meets employer hiring needs. The Secretary would also require at least 1 year of offering, a 70% completion rate, and a 70% job placement rate measured 180 days after completion. New programs may get up to 3 years of provisional eligibility if they provide rigorous alternate earnings data.

Sponsors & CoSponsors

Sponsor

Budd, Ted [R-NC]

NC • R

Cosponsors

  • Sen. Grassley, Chuck [R-IA]

    IA • R

    Sponsored 5/8/2025

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 5/8/2025

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 5/8/2025

  • Sen. Justice, James C. [R-WV]

    WV • R

    Sponsored 5/8/2025

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 5/13/2025

Roll Call Votes

No roll call votes available for this bill.

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