Federal Workforce Pell Grant program: local workforce development boards: participant training requirement

The law conditions access to federal Workforce Pell funds on state authorization and consumer protections. Starting in 2028, it shifts local workforce boards from a training-spending target to a target for actually delivering training to participants.

What the law does ​

• Bars colleges and other postsecondary institutions from disbursing or promoting Workforce Pell funds for short-term programs without California Student Aid Commission authorization and federal approval.
• Denies state authorization to programs involving unaccredited instructional partners, certain private student financing, or tuition and fees above the available Workforce Pell amount, subject to specified exceptions.
• Allows the commission to use the California Priority Programs List to assess whether programs align with high-skill, high-wage, or in-demand jobs and lead to eligible credentials.
• Beginning July 1, 2028, requires local workforce development boards to ensure at least 50% of adult and dislocated-worker program participants receive qualifying workforce training services.
• Requires the Employment Development Department to calculate board compliance, report participant training and spending data annually, and require corrective action plans from local areas that fall short.

Who it affects ​

• Students considering short-term job-training programs supported by federal Workforce Pell Grants.
• Postsecondary institutions and their instructional partners offering short-term programs.
• Local workforce development boards and adults or dislocated workers enrolled in their programs.

Context ​

The new 50% participant-training requirement replaces California's prior minimum percentage-of-funds spending requirement on July 1, 2028.

Breakdown ​

Workforce Pell Grant Authorization ​

The bill requires postsecondary schools to obtain state authorization and meet all U.S. Department of Education requirements before they can give out, promote, or tell students about federal Workforce Pell Grant funds for short-term programs. It also limits authorization for programs connected to entities that lack required accreditation and allows the Student Aid Commission to use California’s Priority Programs List when deciding whether programs qualify.

Key takeaways

• A postsecondary school cannot disburse federal Workforce Pell Grant funds for a short-term program without authorization from the Student Aid Commission on the Governor’s behalf.
• Schools also must obtain required federal approvals and meet all U.S. Department of Education requirements before disbursing or promoting these grants.
• Without the required authorization and federal approvals, schools cannot advertise, market, or inform students that Workforce Pell Grant funds are available.
• The commission cannot authorize a short-term program if the school partners with, contracts with, or is affiliated with certain entities that are not accredited by the specified accrediting agency.
• The commission may use the California Priority Programs List to assess whether a short-term program meets applicable federal Workforce Pell Grant requirements.

Workforce Training Participation Requirement ​

Beginning July 1, 2028, local workforce development boards must ensure that at least 50% of people enrolled in adult and dislocated worker programs receive qualifying workforce training services. This replaces the current requirement to spend a minimum percentage of certain program funds on training. Boards that fall short must submit corrective action plans, and the Employment Development Department must track and annually report compliance, participant training rates, and spending.

Key takeaways

• The bill replaces a minimum training-spending requirement with a requirement that at least 50% of adult and dislocated worker program participants receive qualifying training services beginning July 1, 2028.
• The bill specifies which workforce training services count toward the 50% participant training requirement.
• A local workforce development area that does not meet the requirement must submit a corrective action plan explaining the shortfall and the steps it is taking to address it.
• The Employment Development Department must determine whether each local workforce development board meets the participant training requirement.
• Annual department reports must include participant enrollment, the percentage of participants receiving training, and local boards' training and supportive-service spending.
• If the Commission on State Mandates finds that these new local requirements create reimbursable state-mandated costs, reimbursement must be provided under existing state procedures.