A new grant program created by President Donald Trump’s Working Families Tax Cuts Act could play an important role in changes to higher education funding under consideration in Tennessee this week.¶
Those changes, up for a vote on Thursday by the Tennessee Higher Education Commission (THEC), would update the state’s Outcomes-Based Funding (OBF) formula to more directly target state funding to education programs that lead to in-demand, good-paying jobs, including programs supported by Trump’s new Workforce Pell Grant.¶
What is the OBF
The OBF revolutionized the way higher education was funded in 2010 by creating incentives for schools to award credits, graduate students on time, or, for two-year community colleges, to transfer students to four-year institutions. In 2022, Tennessee added a Workforce Investment Premium to the formula to provide additional incentives for institutions to award degrees with the potential for a greater return on investment, such as STEM and healthcare-related programs.¶
The changes THEC is considering would remove Workforce Investment Premium incentives for programs that aren’t in demand and apply that funding to new fields where jobs are needed, growing, and provide median earnings of at least $43,196. Among the new fields that would qualify are accountants, architects, business administration, and special education.¶
Under the proposal, community college programs that are eligible for the Workforce Pell Grant would also be eligible for the Workforce Investment Premium incentive.¶
What is the Workforce Pell Grant
Trump’s administration created the Workforce Pell Grant program to extend the Pell Grant, previously available only to college students with financial need, to those seeking to enroll in workforce training programs that prepare students for employment in as little as 8 weeks. These could include programs such as nursing assistants, commercial drivers, and welding.¶
The Tennessee Department of Labor and Workforce Development (TDLWD) and THEC jointly announced the launch of the federal Workforce Pell program in Tennessee this month.¶
“The Workforce Pell program represents a significant step forward in expanding educational opportunity and workforce readiness for Tennesseans,” THEC Executive Director Dr. Steven Gentile said in a news release. “By supporting high-quality, short-term credential programs that are closely aligned with employer demand, we can help more students earn valuable skills, enter rewarding careers, and contribute to Tennessee’s continued economic success.”¶
How Does it Work
Before a program qualifies, it must undergo a review process in which state officials evaluate whether the training leads to sufficient job opportunities, is supported by employers, offers industry-recognized credentials that provide good value for students, offers credit transfer opportunities, and more.¶
“As Tennessee’s workforce needs continue to evolve, Workforce Pell creates a new pathway for Tennesseans to access high-quality training that leads directly to in-demand careers,” TDLWD Commissioner Deniece Thomas said. “Workforce Pell gives more Tennesseans access to practical, industry-aligned training that benefits both job seekers and employers across the state.”¶
How Does This Help Tennesseans
Supporters say the Workforce Pell program is designed to help people gain job-specific skills more quickly while also connecting employers with prospective workers who have the training needed for their field.¶
The new funding option could also be helpful for adults considering a career change, learning a new skill, or earning a credential without spending multiple years in school. By making federal aid available for more short-term programs, the state intends to expand access to workforce training more broadly.¶
How Can One Apply?
Those interested can visit the application portal on the Tennessee Workforce Pell webpage, where eligible programs will also be added, giving students an expanding list of opportunities to qualify for financial aid.¶
