New grants aim to fill workforce gaps, boost low-income workers

The federal budget bill that passed this month has drawn much attention for polarizing Medicaid work requirements, cuts to food aid and new funding for immigration enforcement. But one item tucked into the lengthy bill has been on bipartisan wish lists for more than a decade. 

It allows eligible Americans to use Pell grants, the federal government’s largest grant program for undergraduates, to pay for shorter workforce training courses than what previously qualified. 

Such courses could train a range of workers, including welders, truck drivers, emergency medical technicians and cybersecurity analysts, though exactly which programs will be eligible for funding hasn’t been decided. 

In Wisconsin, where many such jobs regularly go unfilled, proponents say the grants could set low-income residents on a path to better jobs, while also aiding the employers and the communities that rely on those workers. Meanwhile, a small group of critics say the new program could lead some students down a dead end road of low wages. 

Who qualifies for the grants? 

Like existing grants, the new Workforce Pell grants are available to students who demonstrate “exceptional financial need.” Funding will vary based on the number of hours or credits of the training, hovering below the maximum annual Pell grant of $7,395, according to Jobs for the Future, a national nonprofit focused on education and workforce issues. 

Unlike the existing grants, Workforce Pell is open to people who already have a bachelor’s degree, as well as those without. People who hold graduate or professional degrees are still barred. Students apply by filling out the Free Application for Federal Student Aid (FAFSA).

The grants, which can be used for qualifying courses of eight to 14 weeks and are expected to serve 100,000 students a year, are supposed to be available starting in fall 2026. Jobs for the Future calls that timeline “aggressive” and warns that the Department of Education, which the Trump administration has sought to dismantle, may need more time to implement the program. The U.S. Supreme Court on Monday ruled that the administration may follow through with plans to fire nearly 1,400 education department employees, with plans to assign duties to other agencies.

Leaders at the state’s 16 technical colleges have pushed for such a Pell grant expansion for years, said Layla Merrifield, president of the Wisconsin Technical College System.

“It’s a good idea to expand access to workforce credentials and help entry-level employees who are trying to join a career and get themselves into a better place economically,” Merrifield said. “This could be really important for moving folks into careers.”

Boost for in-demand jobs like truck driving

The funding could allow tech colleges to train more students for in-demand jobs like truck driving, Merrifield said. Wisconsin truck drivers earn a median salary just over $50,000, and Wisconsin employers are projected to hire more than 6,000 of them in each of the next seven years. That puts truck drivers at the top of the state’s “Hot Jobs” list. 

But training those drivers is expensive, Merrifield said, so colleges can’t necessarily afford to enroll more students. 

“You start to see employers starting their own (commercial driver’s license) programs because there’s such a tremendous need for folks with this credential out in the industry,” Merrifield said. 

Roger Stanford saw those challenges during his time as vice president of instruction at Chippewa Valley Technical College, where students had to pay around $5,000 up front for truck driving training, no matter their income. 

Thirty-two states directly fund short-term credential programs by supporting students or schools, but Wisconsin isn’t one of them, according to a report by higher education consulting firm HCM Strategists.

Students in some programs can apply for federal student loans, and all students can apply for scholarships if their college offers them. 

“When you’re coming out of poverty or you’re a single parent, it’s just impossible to come up with the cash. And so we were really limiting how many people could go into that program,” Stanford said. 

Still, some experts worry about using federal aid to fund such programs. A 2016 analysis by the left-leaning think tank New America found two in five adults with a short-term credential didn’t have jobs, and half of those who did earned $30,000 a year or less. 

“Obtaining only a short-term certificate is not a likely vehicle towards economic mobility for the average student,” the authors wrote. Earnings were particularly low for Black and Latino adults. 

The Workforce Pell legislation requires programs to meet wage and employment benchmarks to qualify, but experts disagree about whether that sufficiently protects students and taxpayers. 

More options for working parents and ex-incarcerated

A 2011 experiment previews the potential effects of the new grants. In the pilot program, the U.S. Department of Education offered Pell grants for short-term training for students who wouldn’t otherwise qualify and compared their outcomes to those without grants. The study found people who were offered the grants were more likely to enroll in and complete training, but long-term wages and employment rates were similar across the groups. 

Chippewa Valley Technical College was part of that pilot. Suddenly, Stanford said, more students started signing up to become truck drivers. 

“It makes people go, ‘Oh my gosh, if I can get financial aid for this, I’ll go into truck driving.’ It helps you fill those programs which are all tied to good jobs,” Stanford said. 

Today, Stanford is president of Western Technical College in La Crosse. Western Tech doesn’t train truck drivers, but the college predicts a handful of its programs will be eligible for the new grants. That could include training in welding, emergency medical services, auto repair, advanced manufacturing and dental care.

Workforce Pell grants will be especially helpful for adults returning to school while working or taking care of children, Stanford said.

“We probably all know some people that just can’t commit to a two-year program right now … Or they look at a two-year program and say, ‘I’ll take three credits each term.’ That puts them on a trajectory of five or six years, and they never finish,” Stanford said. Data show that students who attend school part-time are less likely to graduate than their full-time counterparts. 

“If we can put them on a trajectory to get them a credential in eight or 10 weeks, people can get their life around it,’” Stanford said, like by tapping relatives to watch their kids for a couple months. 

“They can say, ‘Wow, this is going to be hard, but I know at the end of it, there’s 24 bucks an hour, and I can do that,’” Stanford said. 

Another group that can benefit from access to shorter courses: recently incarcerated people.

“When you’re coming out of jail, you don’t have two years,” Stanford said. “If we could turn around and say, ‘We can take you right from the jail and give you 10 weeks and put you into a job that has life-sustaining wages, that helps (lower) recidivism.”

Pathways in construction, IT, auto repair and more 

The new grants will encourage colleges to expand their short-term training opportunities to fill other workforce gaps by parceling longer academic programs into stand-alone “stackable” courses, which would let students earn a credential, get a better job and then decide whether to pursue a technical diploma or associate degree, Stanford said. 

That model could work well for most of the building trades, Stanford said. About 15 students finished Western Tech’s yearlong program in building construction and cabinetmaking last year, but local construction companies need about five times that, Stanford said. He estimates a “modularized” approach could prepare 60 to 80 students to start working sooner.

Stanford also sees promise for fields like information technology, where the college could offer stand-alone courses in cybersecurity, programming or networking. The same could apply in machining, auto repair or mechatronics, an automation-related field that combines multiple types of engineering. Colleges could prepare students to start in operator jobs making $40,000 or $50,000 a year, with the potential to double that pay after earning a degree, Stanford said.

“I think in the next decade, you’re going to see probably less emphasis on diplomas and associate degrees and more on direct job credentials and certifications that get people (on the job) quicker, and then pathways to associate degrees,” Stanford said. “This is a really, really big opportunity for us … I think it really will help change the economic mobility of so many people that are struggling.”

Filling rural EMT gaps

The grants could help Wisconsin address some of its most serious labor shortages, including in health care. Rural Wisconsin communities have struggled for years to maintain adequate emergency medical services. 

Western Tech trains students to work as emergency medical technicians, providing life-saving care and transporting patients to hospitals. The median EMT salary in Wisconsin is just over $43,000, according to federal data, though many rural departments rely on volunteers. 

Western Tech’s EMT program trained more than 100 EMTs last year. The region could use far more. 

“Say we offer four sections a year right now. We could easily offer eight, and they would all have work, because there’s just so much demand,” Stanford said. 

Sometimes rural fire departments or hospitals wait months for new recruits to start training because the college can’t afford to run a class for just a couple students. Stanford expects the new grants will encourage more students to join the field.

“That’ll help across the whole country,” Stanford said. “EMT (training) is needed everywhere.”

Wisconsin lawmakers have also sought to fill the gap. The budget Gov. Tony Evers signed earlier this month includes $3.5 million to reimburse tech colleges for emergency medical services training.

Other Pell changes off the table for now

An earlier version of Trump’s bill would have allowed Workforce Pell grants to be used at unaccredited training providers, stirring fears that unscrupulous entities might take advantage. 

Lawmakers removed that provision, leaving existing accreditation requirements in place. 

Meanwhile, other headline-grabbing Pell proposals didn’t make the cut. House Republicans previously proposed raising the credits required to receive the maximum award and making students enrolled less than half-time ineligible.

Merrifield, the Wisconsin Technical College System president, was relieved to see those provisions removed from the final bill. She estimates around 7,000 students would have lost all aid and thousands more would have seen their aid amounts cut. 

“While Workforce Pell would be helpful on the margins, ending part-time Pell would be tremendously harmful to technical colleges and our students,” Merrifield said. 

Natalie Yahr reports on pathways to success in Wisconsin, working in partnership with Open Campus.

This article first appeared on Wisconsin Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.