TL; DR: The bill includes one major win for workforce training—but at a cost.
The House’s reconciliation bill proposes a long-awaited expansion of Pell Grants to short-term training programs – a provision that NSC and our network have spent more than a decade fighting for. But it comes at a steep cost. The bill also proposes sweeping restrictions on student aid that could limit access for low- and middle-income learners, undercutting the promise of an inclusive, equitable higher education system.
Congress is moving forward on a sweeping budget reconciliation package (see key deadlines for workforce advocates here) — a fast-track legislative tool to change federal spending and taxes with just a simple majority vote. While the full picture is still unfolding, workforce advocates should keep a close eye on what’s happening in the House Education and Workforce Committee.
Here are five key takeaways you need to know:
Reconciliation is a special legislative process that allows Congress to bypass the Senate filibuster and pass legislation related to federal spending with a simple majority vote. Used by both parties at different times throughout history, this Congress is focused on a large reconciliation package to address taxes, border security, and other Trump administration priorities.
In March, both the House and Senate passed identical budget resolutions, which is step one. But the proposed cuts outlined in those resolutions differ drastically between the chambers. For example, while the House Education and Workforce Committee is proposing to cut $330 billion in spending, the Senate HELP Committee proposes just a $1 billion cut. That massive gap creates tension as lawmakers try to negotiate a unified package.
Bottom line: The reconciliation process is still in the early stages. The House is the first to begin markup, and the Education and Workforce Committee is the first to propose major policy changes.
In a major victory for skills advocates, the bill includes language that creates a Workforce Pell Grant Program starting in the 2026–2027 award year.
Access to need-based aid is critical because students enrolled in many short-term, non-degree programs are currently ineligible for federal student aid like Pell Grants—even though they often face significant financial barriers and are more likely to be low-income, older, or students of color. Without access to traditional aid, many are unable to cover even the lower cost of these programs or are forced to take on debt to do so.
Key features of the Workforce Pell proposal include:
This proposal builds off the Bipartisan Workforce Pell Act, which passed out of the House Education and Workforce Committee in December 2024 – though it removes some of data measures that were not feasible to collect. NSC and our network have long championed the bipartisan JOBS Act – a similar bill introduced in the Senate earlier this year.
The inclusion of this provision in the reconciliation bill marks a major policy milestone and reflects growing bipartisan recognition that short-term, high-value training programs are essential to today’s economy. However, it’s important not to view this provision in isolation because the broader package would, if enacted, dramatically limit access to higher education for many low- and middle-income students.
Even before the proposed expansion the Pell Grant program was facing a looming shortfall: a gap between what Congress had allocated and what’s needed to cover all eligible students. The reconciliation proposal addresses this with a significant boost in mandatory funding for the Pell program, before leveling out:
These increases can offset the cost of adding Workforce Pell Grants and stabilize funding as more learners seek need-based aid.
While this increase in the Pell shortfall is an important step, it’s not a permanent fix. Future Congresses could once again threaten the stability of the program. And with the growing number of students turning to federal financial aid to upskill, NSC and our partners will continue to call on lawmakers to build a permanent, inclusive, and equitable higher education finance system.
One of the most consequential changes in this legislation is the fundamental restructuring of the federal student loan system in ways that make college and training less accessible for working people. Key changes include:
These limits disproportionately harm students who rely on aid to fund their education. By restricting access to federal borrowing, they make it more difficult for people to return to education multiple times over the course of their lives, a barrier that is increasingly out of step with the needs of today’s labor market. As workers seek to advance along career pathways, continuous upskilling and access to affordable education opportunities are essential to success.
Taken together, these changes would make it harder for working students to achieve economic mobility. The proposal reinforces outdated assumptions about who college is for and how students should access it. The approach risks shutting out the very people our workforce and economy depend on – working adults, parents, and anyone who needs flexible, affordable options to succeed.
The bill proposes creating a high-stakes penalty system for institutions based on their students’ loan repayment rates. If too many students default or fail to repay their loans, institutions face stiff fines—and those that don’t pay could lose access to all forms of federal financial aid for up to a decade.
This policy, if passed, would create dangerous incentives. Instead of investing in supports for low-income or underserved students, colleges may simply enroll fewer of them to avoid penalties. That means less access for students of color, first-generation students, opportunity youth, and others who already face barriers.
In practice, the combined effect is a system that will negatively impact rewards privilege and punishes those serving high-barrier populations. Federal efforts to promote college affordability must avoid reinforcing inequities or disincentivizing the enrollment of students who need the most support and instead focus on changing systems to be more affordable for all students.
This reconciliation bill gives with one hand but takes with the other. Thanks to our shared advocacy over the years, the bill takes meaningful steps toward expanding access to short term training through Pell Grants. It’s our network’s advocacy that has made this proposal a broadly supported reform. Unfortunately, it’s being used as a spoonful of sugar to help advance a partisan bill that otherwise restricts access to education for the very students who need support the most.
As Congress debates this package, advocates must fight to protect low-income students from harmful restrictions while championing forward-thinking reforms like Workforce Pell.
➡️ Join the organizational sign-on letter urging Congressional leaders to protect and expand workforce programs and economic opportunities in a reconciliation package
➡️ Learn more and take action through National Skills Coalition’s Making College Work campaign.
