Negotiators Reach Agreement on Workforce Pell Regulations

 

Washington Update

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December 15, 2025

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Appropriations

House GOP leaders are looking to put at least one appropriations bill, perhaps two, on the floor this week, right before they leave for the holiday recess. Appropriations Interior-Environment Subcommittee Chair Mike Simpson (ID) aims to bring his bill to the House floor this week, though he says formal talks with the Senate have not begun.

 

Also on Thursday, December 11, Democrats on the House Appropriations Committee voted by secret ballot to reinstate Congressman Henry Cuellar as ranking member on the Homeland Security subcommittee following his pardon by President Donald Trump. Some members had raised concerns due to Cuellar’s prior federal indictment.

 

House Appropriations Ranking Member Rosa DeLauro (CT) says Democrats are prepared to negotiate bill details once the majority sets the allocations, noting the importance of receiving totals for all bills, including Labor-HHS-Education. On Wednesday, December 10, House Majority Leader Steve Scalise (LA) had said that action on the FY26 funding bills will occur once House and Senate appropriators finalize a set of bicameral agreements.

 

Last week, top Senate Republican appropriators said they have agreed on funding totals for several remaining FY26 appropriations bills, but Democrats have not yet reviewed the GOP numbers. Senate Appropriations Chair Susan Collins (ME) and House Appropriations Chair Tom Cole (OK) have reached agreement on overall totals for about six of the bills and continue negotiating the totals for the others while working to finalize toplines for the largest measures, including Defense and Labor-HHS-Education. Collins says Senate Republican leaders are still trying to resolve objections from several GOP senators who are preventing debate on a funding minibus, noting that the timeline to act is tightening. 

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Workforce Pell

On Friday, December 12, U.S. Department of Education officials concluded the first week of its Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) negotiated rulemaking, during which the committee reached consensus on regulations to establish a new Workforce Pell Grant program authorized under President Trump’s Working Families Tax Cuts Act. Congress authorized the expansion of Pell Grants to short-term training programs of at least eight weeks through the One Big Beautiful Bill Act, enacted in July. Department staff noted that several components of the initiative are new and require fresh policy development. The Department of Labor, as well as higher education stakeholders, participated alongside Education officials to develop the framework.

 

Over the five-day session, negotiators evaluated more than 80 proposed changes that addressed issues including governor certification requirements, program eligibility standards, data collection, and how long certifications remain valid, including whether a new governor could reverse prior approvals. Department officials emphasized that decisions about certifying programs will rest with governors. Key changes included permitting bilateral agreements among states to replicate high-quality short-term programs and better aligning Workforce Pell with programs administered under the Workforce Innovation and Opportunity Act. Following the conclusion of the session, the Department will begin drafting a Notice of Proposed Rulemaking to implement the consensus decisions.

 

The timing of Workforce Pell Grant disbursements remains uncertain. The Department plans to begin accepting applications on July 1, 2026, as required by statute, but has not determined when funds will first be distributed. Officials anticipate that eligible programs will generally fall into four areas: health care, commercial driving, child care, and career and technical education. The number of qualifying programs is difficult to estimate and will depend on state determinations of high-demand industries and institutional interest, but could range from several hundred to a few thousand.

 

The committee is scheduled to reconvene next month to develop a new accountability framework implementing the statutory “do no harm” standard, requiring most programs to demonstrate that graduates earn more than individuals without postsecondary education. Negotiators will also revisit financial value transparency and gainful employment regulations, with the goal of establishing consistent, systemwide oversight and determining consequences for low performance, including potential loss of federal student aid tied to weak graduate earnings outcomes.

 

With Workforce Pell rulemaking complete, the Department of Education will shift its focus to accountability during a negotiated rulemaking session in January to implement provisions of the One Big Beautiful Bill Act. Under the Biden administration, gainful employment requirements primarily applied to nondegree programs at for-profit institutions and community colleges, while financial value transparency rules applied more broadly but carried no direct financial penalties. For-profit institutions and their representatives criticized that approach as unevenly enforced. Trump Education Department Undersecretary Nicholas Kent has indicated the Department intends to apply accountability standards more uniformly across degree and nondegree programs. The Department aims to finalize a new accountability system by July 1, 2026, with potential implications for Title IV eligibility for persistently low-performing programs.

 

Click here to access the press release.
 

Pell Grant Shortfall

On Wednesday, December 10, the nonpartisan Committee for a Responsible Federal Budget (CRFB) released an analysis that indicated the Pell Grant could face at least a $61 billion ten-year shortfall. CRFB estimates the gap could range from $61 billion to $97 billion between 2026 and 2035, even after Congress provided $10.5 billion in the One Big Beautiful Bill Act to address funding needs. The analysis incorporates the creation of the Workforce Pell Grant and considers scenarios involving inflation adjustments and changes to the maximum award.

 

A separate survey conducted in September by Data for Progress for The Institute for College Access & Success found that federal student loan borrowers report significant financial strain. Respondents said loan debt and repayment have negatively affected housing plans (45 percent), retirement savings (52 percent), and the ability to cover basic needs such as food or housing (42 percent). 

 

Click here to access the CRFB analysis.

 

Click here to access the Data for Progress survey.

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House Education and Workforce Committee

On Thursday, December 11, the House Education and Workforce Committee advanced four bills aimed at increasing transparency in college costs and clarifying student eligibility rules.

 

The Home School Graduation Recognition Act (HR 6392) would amend the Higher Education Act (HEA) to affirm that students completing high school through home schooling or private schooling under state law are considered high school graduates. The bill passed 33–0. Amendments adopted by voice vote clarified terminology regarding nontraditional education settings and ensured home-schooled students’ eligibility for federal student aid.

 

The Territorial Student Access to Higher Education Act (HR 6472), which advanced 32-1, would extend in-state tuition rates — and equivalent fees — to U.S. nationals who reside in territories including Guam, the Northern Mariana Islands, American Samoa, and the U.S. Virgin Islands. 

 

The Student Financial Clarity Act (HR 6498) passed 27–6 and would require updates to the federal College Scorecard to give prospective students clearer information about institutions receiving federal aid. Amendments adopted by voice vote added requirements related to net price calculator information, student notifications, and technical clarifications.

 

The College Financial Aid Clarity Act (HR 6502) advanced 23–10, with three Democrats joining Republicans in support. It would direct the U.S. Department of Education to set standardized formatting rules for financial aid offer letters, including disclosures about factors that could change awards, treatment of outside aid, and federal loan interest rates. An amendment requiring random compliance checks passed by voice vote.

 

During debate, some Democrats questioned assigning new responsibilities to the Department of Education while the Trump Administration is pursuing plans to dismantle the agency. Committee Republicans argued the measures focus on giving students clearer information rather than expanding federal authority.

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House Subcommittee Hearing

On Wednesday, December 10, the House Education and Workforce Subcommittee on Higher Education and Workforce Development held a hearing titled “Building a Talent Marketplace: How LERs Empower Workers and Expand Opportunity.” The hearing examined Learning and Employment Records, which are verified digital records documenting a person’s skills, education, and work experience. Members reviewed how LERs are being piloted and deployed in several states and discussed their potential to improve transparency in the labor market and help workers access new opportunities. The hearing also reflected the subcommittee’s broader interest in advancing LER policy. Witnesses included Western Governors University President Scott Pulsipher, EBSCO Information Services Vice President of Business Development Greg DiDonato, Credential Engine CEO Scott Cheney, and Alex Kaplan, an adviser to the American Association of Collegiate Registrars and Admissions Officers.

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DOL Request for Information

On Tuesday, December 9, the U.S. Department of Labor (DOL) requested input from faith-based organizations on improving access to federal workforce programs. DOL is allowing 60 days for submissions to identify participation barriers, suggest religious accommodations, and propose strategies for outreach and engagement. The Request for Information (RFI) includes example questions for commenters but does not specify current barriers. Earlier this year, DOL established a Center for Faith under a directive from a Trump-era executive order to enhance the inclusion of religious organizations in federal workforce programs.

 

Click here to access Request for Information.

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DOL JOLTS Report

On Tuesday, December 9, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the Job Openings and Labor Turnover Survey (JOLTS) for October. Employers reported about 7.7 million open positions, up roughly 12,000 from September and above the 7.6 million openings in October 2024, with a job openings rate of 4.6 percent. Despite the rise in openings, hiring slowed, with 5.1 million hires in October, down from nearly 5.4 million in September, and a hiring rate of 3.2 percent, indicating modest labor market turnover. Worker separations showed signs of cooling: quits fell slightly to 2.9 million (1.8 percent), suggesting caution among workers, while layoffs and discharges edged up to 1.9 million (1.2 percent) but remained historically moderate. 

 

Economists view these trends as evidence of a gradually cooling labor market, with employers cautious about adding staff and workers hesitant to leave jobs. Sector-specific trends showed stronger openings in healthcare and retail, while other industries declined, reflecting uneven labor demand. The report follows delays from a federal government shutdown, limiting some month-to-month comparisons. Overall, the labor market remains tight but shows early signs of moderation, with implications for hiring strategies, worker confidence, and potential Federal Reserve policy decisions.

 

Click here to access the full JOLTS report.

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Enhanced Visa Screening

 

Beginning Monday, December 15, the State Department will require applicants for H-1B, F, M, and J visas to make their social media accounts public to facilitate enhanced screening. While foreign faculty, researchers, and students already undergo rigorous vetting, including online reviews, higher education groups have raised concerns about how the policy will apply to applicants with little or no social media presence or those who keep accounts private for personal reasons. Guidance to U.S. consular posts directs officers to treat private accounts as cases in which applicants fail to provide requested information. Some universities, including Georgetown, have begun advising foreign workers about the potential implications of the change.

 

The policy comes amid other Trump administration measures, including a new $100,000 H-1B visa fee, prompting institutions to warn that additional scrutiny could complicate efforts to recruit international talent. Advocacy groups have sought clarification on how applicants with no social media will be evaluated, but questions remain unresolved.

 

The State Department has indicated the expanded online review is intended to strengthen national security and public safety, emphasizing that visas are discretionary benefits rather than guaranteed rights.