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ED Releases Proposed Rules on Workforce Pell Grant and Pell Ineligibility; Proposed Rules on Institutional Accountability Metrics Imminent
On March 9, the U.S. Department of Education (ED) released proposed rules for the Federal Pell Grant Program under Title IV of the Higher Education Act (HEA) of 1965. This follows the conclusion of the negotiated rulemaking by the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) committee, the second part of the process of implementing policy changes that were included in the One Big Beautiful Bill Act (OBBBA). As a reminder, ED began its 2025 negotiated rulemaking (neg reg) process to implement major Title IV changes to student financial assistance programs due to the passage of OBBBA. ED organized two rulemaking committees; the Reimagining and Improving Student Education (RISE) committee focused on restructuring student loan programs, which reached consensus late last year and published proposed rules on January 29, and the AHEAD committee, which reached consensus on all of its issues in early January.The proposed regulations establish a new Workforce Pell Grant program that would be aimed at creating alternative pathways beyond a four-year degree by enabling students to attain federal funds that are enrolled in “short-term credential programs.” Additionally, the proposed regulations would prohibit students from receiving Pell Grant funds during an award year in which they also receive grant or scholarship aid from non-Federal sources including States, eligible institutions, or private sources that is equal to or exceeds their cost of attendance (COA). Of particular note, ED emphasized that the provisions on institutional accountability metrics “are outside the scope of this proposed rule” and the Department plans to publish separate proposed rules on these accountability regulations at a later date. For more details on the proposed rules published by ED on Workforce Pell and Pell ineligibility, please see here.
CSWE will continue to monitor any updates to the proposed rules published by ED and will continue to engage with the Department when necessary.