Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress

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Pell Grants for Short-Term Programs:
August August 324, 2023 , 2023
Background and Legislation in the
Cassandria Dortch
118th Congress
Specialist in Education Specialist in Education
Policy Policy
The Federal Pell Grant program, authorized by Title IV of the Higher Education Act (HEA), is The Federal Pell Grant program, authorized by Title IV of the Higher Education Act (HEA), is

the single largest source of federal grant aid supporting postsecondary education students. For the single largest source of federal grant aid supporting postsecondary education students. For
Benjamin Collins
several years, Congress and stakeholders in the higher education and workforce training several years, Congress and stakeholders in the higher education and workforce training
Analyst in Labor Policy Analyst in Labor Policy
communities have promoted the possibility of expanding Pell Grants to students enrolled in communities have promoted the possibility of expanding Pell Grants to students enrolled in

short-term programs—educational programs that do not meet the minimum durational short-term programs—educational programs that do not meet the minimum durational
requirements in current law. The possible expansion would be intended to provide prospective requirements in current law. The possible expansion would be intended to provide prospective

students with more educational and career options and employers with more skilled applicants. students with more educational and career options and employers with more skilled applicants.
Concerns about a possible expansion are generally related to historical fraud perpetrated by providers of short-term programs Concerns about a possible expansion are generally related to historical fraud perpetrated by providers of short-term programs
and inconsistent employment returns for short-term programs. and inconsistent employment returns for short-term programs.
The Pell Grant program provides grant aid to financially needy undergraduate students who have not achieved a bachelor’s The Pell Grant program provides grant aid to financially needy undergraduate students who have not achieved a bachelor’s
degree and are enrolled in eligible educational programs at HEA Title IV-participating institutions of higher education degree and are enrolled in eligible educational programs at HEA Title IV-participating institutions of higher education
(IHEs). In general, eligible educational programs are undergraduate degree programs and certificate programs of at least 600 (IHEs). In general, eligible educational programs are undergraduate degree programs and certificate programs of at least 600
clock hours of instruction (or the equivalent) offered over a minimum of at least 15 weeks. Title IV-participating IHEs may clock hours of instruction (or the equivalent) offered over a minimum of at least 15 weeks. Title IV-participating IHEs may
include public, private nonprofit, and proprietary institutions, and they must be authorized to operate a postsecondary include public, private nonprofit, and proprietary institutions, and they must be authorized to operate a postsecondary
educational program by the state in which they are located, accredited by an accrediting agency recognized by the U.S. educational program by the state in which they are located, accredited by an accrediting agency recognized by the U.S.
Department of Education (ED), and certified by ED. Department of Education (ED), and certified by ED.
From 2012 to 2017, ED conducted an experiment allowing select IHEs to award Pell Grants to otherwise Pell-eligible From 2012 to 2017, ED conducted an experiment allowing select IHEs to award Pell Grants to otherwise Pell-eligible
students in educational programs that were at least 150 clock hours of instructional time, were at least eight weeks in students in educational programs that were at least 150 clock hours of instructional time, were at least eight weeks in
duration, were offered by public or private nonprofit IHEs, and met local or regional workforce needs. Over 80% of duration, were offered by public or private nonprofit IHEs, and met local or regional workforce needs. Over 80% of
recipients pursued programs in transportation and materials moving or health professions. Pell-eligible students demonstrated recipients pursued programs in transportation and materials moving or health professions. Pell-eligible students demonstrated
a 10 percentage-point increase in completion when offered a Pell Grant for short-term programs. The average cost of a 10 percentage-point increase in completion when offered a Pell Grant for short-term programs. The average cost of
attendance was $16,900, and the average Pell Grant award was $1,312. attendance was $16,900, and the average Pell Grant award was $1,312.
As of August 2023, three major bills have been introduced in the 118th Congress to expand Pell Grants to short-term As of August 2023, three major bills have been introduced in the 118th Congress to expand Pell Grants to short-term
programs: programs:
• Promoting Employment and Lifelong Learning Act (PELL Act; H.R. 496); • Promoting Employment and Lifelong Learning Act (PELL Act; H.R. 496);
• Jobs to Compete Act (H.R. 1655); and • Jobs to Compete Act (H.R. 1655); and
• Jumpstart Our Businesses by Supporting Students Act (JOBS Act; S. 161) and its companion, the JOBS • Jumpstart Our Businesses by Supporting Students Act (JOBS Act; S. 161) and its companion, the JOBS
Act of 2023 (H.R. 793). Act of 2023 (H.R. 793).
The bills share several provisions. The bills share several provisions. Short-term programs would be defined as educational programs providing 150-599 clock would be defined as educational programs providing 150-599 clock
hours of instruction offered over 8-14 weeks. The programs would have to be in in-demand industries. Student eligibility hours of instruction offered over 8-14 weeks. The programs would have to be in in-demand industries. Student eligibility
would be expanded to otherwise Pell-eligible students who have received a bachelor’s degree but not a postbaccalaureate would be expanded to otherwise Pell-eligible students who have received a bachelor’s degree but not a postbaccalaureate
degree. The proposals would require that IHEs offering Pell-eligible short-term programs be accredited by an accrediting degree. The proposals would require that IHEs offering Pell-eligible short-term programs be accredited by an accrediting
agency for which ED has included within its scope of recognition the ability to assess an IHE’s Pell-eligible short-term agency for which ED has included within its scope of recognition the ability to assess an IHE’s Pell-eligible short-term
education programs. education programs.
Some key provisions differ between the bills. Only public and private nonprofit IHEs could offer Pell-eligible short-term Some key provisions differ between the bills. Only public and private nonprofit IHEs could offer Pell-eligible short-term
programs under S. 161/H.R. 793, while H.R. 496 and H.R. 1655 would not limit HEA Title IV-participating IHEs by programs under S. 161/H.R. 793, while H.R. 496 and H.R. 1655 would not limit HEA Title IV-participating IHEs by
institutional control. S. 161/H.R. 793 and H.R. 1655 would require that short-term programs be on the state’s eligible training institutional control. S. 161/H.R. 793 and H.R. 1655 would require that short-term programs be on the state’s eligible training
provider list as created under the Workforce Innovation and Opportunity Act (WIOA), lead to a provider list as created under the Workforce Innovation and Opportunity Act (WIOA), lead to a recognized postsecondary
credential as defined by WIOA, and provide academic credit toward related degrees and certificates. H.R. 496 and H.R. 1655 as defined by WIOA, and provide academic credit toward related degrees and certificates. H.R. 496 and H.R. 1655
would both establish outcome metrics for the short-term programs: a 70% completion rate, a 70% employment placement would both establish outcome metrics for the short-term programs: a 70% completion rate, a 70% employment placement
rate, and a requirement that the earnings of program completers exceed specified benchmarks. In addition, H.R. 1655 would rate, and a requirement that the earnings of program completers exceed specified benchmarks. In addition, H.R. 1655 would
establish several additional quality assurance requirements for short-term programs that have no corollary in the other bills. establish several additional quality assurance requirements for short-term programs that have no corollary in the other bills.
For example, H.R. 1655 would require that IHEs offering short-term programs have not been subject to specified adverse For example, H.R. 1655 would require that IHEs offering short-term programs have not been subject to specified adverse
actions within the past five years and that the program not be exclusively offered through distance education. actions within the past five years and that the program not be exclusively offered through distance education.
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Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress

Introduction
The Federal Pell Grant program, authorized by Title IV of the Higher Education Act (HEA), is the The Federal Pell Grant program, authorized by Title IV of the Higher Education Act (HEA), is the
single largest source of federal grant aid supporting postsecondary education students.1 In single largest source of federal grant aid supporting postsecondary education students.1 In
FY2023, the Pell Grant program is estimated to make $30 billion available to over 6 million FY2023, the Pell Grant program is estimated to make $30 billion available to over 6 million
students.2 For several years, Congress and stakeholders in the higher education and workforce students.2 For several years, Congress and stakeholders in the higher education and workforce
training communities have promoted the possibility of expanding Pell Grants to short-term training communities have promoted the possibility of expanding Pell Grants to short-term
programs—programs with durations below the current statutory minimum. This report provides programs—programs with durations below the current statutory minimum. This report provides
background on this policy option and compares key provisions of three relevant legislative background on this policy option and compares key provisions of three relevant legislative
proposals introduced in the 118th Congress. The comparison explains, as available, the rationale proposals introduced in the 118th Congress. The comparison explains, as available, the rationale
for these provisions and similar HEA provisions. for these provisions and similar HEA provisions.
Under current law, educational programs must meet or exceed statutory duration requirements for Under current law, educational programs must meet or exceed statutory duration requirements for
enrolled students to qualify for a Pell Grant. Under proposals to expand Pell Grants to short-term enrolled students to qualify for a Pell Grant. Under proposals to expand Pell Grants to short-term
programs, a postsecondary student who is otherwise Pell-eligible but enrolled in a short-term programs, a postsecondary student who is otherwise Pell-eligible but enrolled in a short-term
program would be eligible to receive a Pell Grant award prorated to the duration of the program program would be eligible to receive a Pell Grant award prorated to the duration of the program
((short-term Pell Grants). Generally, the proposals would support students enrolled in educational ). Generally, the proposals would support students enrolled in educational
programs that provide 150-599 clock hours of instruction over 8-14 weeks, meet requirements programs that provide 150-599 clock hours of instruction over 8-14 weeks, meet requirements
under Title IV of the HEA, and meet additional proposed requirements. under Title IV of the HEA, and meet additional proposed requirements.
The meaning of The meaning of short-term throughout this report varies depending on the context, statutory throughout this report varies depending on the context, statutory
provisions, regulations, and U.S. Department of Education (ED) guidance. Every effort is made to provisions, regulations, and U.S. Department of Education (ED) guidance. Every effort is made to
define the term in context. define the term in context.
This report is intended to inform Congress as it considers legislation authorizing short-term Pell This report is intended to inform Congress as it considers legislation authorizing short-term Pell
Grants. The first section discusses current and historical context for HEA Title IV federal student Grants. The first section discusses current and historical context for HEA Title IV federal student
aid and short-term programs. The second section describes three proposals from the 118th aid and short-term programs. The second section describes three proposals from the 118th
Congress that would establish a new type of Pell Grant that would support student enrollment in Congress that would establish a new type of Pell Grant that would support student enrollment in
short-term programs. All references to current law denote the HEA as in effect on or before July short-term programs. All references to current law denote the HEA as in effect on or before July
1, 2024, as a result of amendments by the FAFSA Simplification Act (FSA; Title VII, Division 1, 2024, as a result of amendments by the FAFSA Simplification Act (FSA; Title VII, Division
FF, P.L. 116-260 [Consolidated Appropriations Act, 2021]) and the FAFSA Simplification Act FF, P.L. 116-260 [Consolidated Appropriations Act, 2021]) and the FAFSA Simplification Act
Technical Corrections Act (FSATCA; Division R, P.L. 117-103 [Consolidated Appropriations Act, Technical Corrections Act (FSATCA; Division R, P.L. 117-103 [Consolidated Appropriations Act,
2022]).3 2022]).3
HEA Title IV Aid and Short-Term Educational
Programs
HEA Title IV currently authorizes, and has historically authorized, several federal student aid HEA Title IV currently authorizes, and has historically authorized, several federal student aid
programs, including Pell Grants and student loans. Such aid has been available to postsecondary programs, including Pell Grants and student loans. Such aid has been available to postsecondary
students in variously defined short educational programs. Some have expressed ongoing concerns students in variously defined short educational programs. Some have expressed ongoing concerns
regarding the value and suitability of such programs. regarding the value and suitability of such programs.
After a description of the Pell Grant program, this section briefly reviews the policy arguments After a description of the Pell Grant program, this section briefly reviews the policy arguments
for and against extending Pell Grants to students enrolled in short-term programs and describes for and against extending Pell Grants to students enrolled in short-term programs and describes

1 For a more detailed description of the Pell Grant program, see CRS Report R45418, 1 For a more detailed description of the Pell Grant program, see CRS Report R45418, Federal Pell Grant Program of
the Higher Education Act: Primer. .
2 U.S. Department of Education, 2 U.S. Department of Education, President’s Budget Request FY2024, Student Aid Overview, pp. 3-4. , Student Aid Overview, pp. 3-4.
3 The amendments go into effect on or before July 1, 2024, coinciding with the beginning of the 2024-2025 award year. 3 The amendments go into effect on or before July 1, 2024, coinciding with the beginning of the 2024-2025 award year.
For a description of the amendments, see CRS Report R46909, For a description of the amendments, see CRS Report R46909, The FAFSA Simplification Act. .
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the historical and current use of student loans and Pell Grants for short programs, as well as the historical and current use of student loans and Pell Grants for short programs, as well as
related findings. related findings.
Pell Grant Program Under Current Law
HEA Title IV-eligible students who are HEA Title IV-eligible students who are
financially needy undergraduates may be financially needy undergraduates may be
HEA-Specified Minimum Number of
awarded Pell Grants to defray the cost of their awarded Pell Grants to defray the cost of their
Hours and Weeks of Instruction
postsecondary education while enrolled in postsecondary education while enrolled in
• •
At least 600 clock hours, 16 semester or At least 600 clock hours, 16 semester or
HEA Title IV-eligible undergraduate HEA Title IV-eligible undergraduate
trimester hours, or 24 quarter hours of trimester hours, or 24 quarter hours of
instruction offered over a minimum of at instruction offered over a minimum of at
programs.4 Financial need is determined programs.4 Financial need is determined
least 15 weeks; or least 15 weeks; or
through a combination of the family’s adjusted through a combination of the family’s adjusted
• •
At least 300 clock hours, 8 semester hours, At least 300 clock hours, 8 semester hours,
gross income (AGI) and the student aid index gross income (AGI) and the student aid index
or 12 quarter hours of instruction offered or 12 quarter hours of instruction offered
(SAI). SAI is calculated in accordance with an (SAI). SAI is calculated in accordance with an
over a minimum of 10 weeks for programs over a minimum of 10 weeks for programs
HEA-defined methodology that establishes HEA-defined methodology that establishes
that admit as regular students only individuals that admit as regular students only individuals
how much the student’s family is expected to how much the student’s family is expected to
who have completed the equivalent of an who have completed the equivalent of an
associate’s degree. associate’s degree.
contribute to his or her educational costs. contribute to his or her educational costs.
An HEA Title IV-eligible undergraduate program must be offered by a public, private nonprofit, An HEA Title IV-eligible undergraduate program must be offered by a public, private nonprofit,
or proprietary (private for-profit) HEA Title IV-participating institution of higher education or proprietary (private for-profit) HEA Title IV-participating institution of higher education
(IHE).5 HEA Title IV-participating IHEs must satisfy the requirements of a program integrity (IHE).5 HEA Title IV-participating IHEs must satisfy the requirements of a program integrity
triad—state authorization, accreditation or preaccreditation, and certification by ED—as well as triad—state authorization, accreditation or preaccreditation, and certification by ED—as well as
additional criteria. An HEA Title IV-eligible undergraduate program offered by a public or private additional criteria. An HEA Title IV-eligible undergraduate program offered by a public or private
nonprofit institution must nonprofit institution must
• lead to an associate’s or bachelor’s degree,6 • lead to an associate’s or bachelor’s degree,6
• be a qualifying postbaccalaureate teacher education program, • be a qualifying postbaccalaureate teacher education program,
• be at least one academic year of training that leads to a recognized nondegree • be at least one academic year of training that leads to a recognized nondegree
credential and prepares students for gainful employment in a recognized credential and prepares students for gainful employment in a recognized
occupation (see the occupation (see the “Gainful Employment in a Recognized Occupation” section), section),
or or
• meet or exceed the • meet or exceed the HEA-specified minimum number of hours and weeks of
instruction (see text box) and prepare students for gainful employment in a (see text box) and prepare students for gainful employment in a
recognized occupation. recognized occupation.
If the program is offered by a proprietary HEA Title IV-participating IHE, it must either (1) be a If the program is offered by a proprietary HEA Title IV-participating IHE, it must either (1) be a
qualifying postbaccalaureate teacher education program or (2) meet the HEA-specified number of qualifying postbaccalaureate teacher education program or (2) meet the HEA-specified number of

4 An undergraduate student has not completed the curriculum requirements of a bachelor’s or higher degree. In 4 An undergraduate student has not completed the curriculum requirements of a bachelor’s or higher degree. In
addition, undergraduate students include those enrolled in Pell-eligible postbaccalaureate teacher certificate or licensing addition, undergraduate students include those enrolled in Pell-eligible postbaccalaureate teacher certificate or licensing
programs. Such programs do not lead to a graduate degree, are offered by a school that does not also offer a bachelor’s programs. Such programs do not lead to a graduate degree, are offered by a school that does not also offer a bachelor’s
degree in education, and lead to certification or licensure necessary for employment as an elementary or secondary degree in education, and lead to certification or licensure necessary for employment as an elementary or secondary
school teacher in the state. Students with a bachelor’s degree must be enrolled at least half-time in a postbaccalaureate school teacher in the state. Students with a bachelor’s degree must be enrolled at least half-time in a postbaccalaureate
teacher education program. To be eligible for a Pell Grant, the student enrolled in the postbaccalaureate teacher teacher education program. To be eligible for a Pell Grant, the student enrolled in the postbaccalaureate teacher
education program must be pursuing an initial teacher certification or licensing credential within the state. education program must be pursuing an initial teacher certification or licensing credential within the state.
5 34 C.F.R. §668.8(c), (d), and (h). Only students enrolled in domestic institutions may receive Pell Grants. 5 34 C.F.R. §668.8(c), (d), and (h). Only students enrolled in domestic institutions may receive Pell Grants.
6 At a public or private nonprofit HEA Title IV-participating IHE, eligible programs also include programs of at least 6 At a public or private nonprofit HEA Title IV-participating IHE, eligible programs also include programs of at least
two academic years that are acceptable for full credit toward a bachelor’s degree. two academic years that are acceptable for full credit toward a bachelor’s degree.
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Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress

hours and weeks of instruction (see text box) and prepare students for gainful employment in a hours and weeks of instruction (see text box) and prepare students for gainful employment in a
recognized occupation.7 recognized occupation.7
Gainful Employment in a Recognized Occupation
HEA requires that some educational programs “prepare students for gainful employment in a HEA requires that some educational programs “prepare students for gainful employment in a
recognized occupation.” Prior regulations, which have been rescinded, established recognized occupation.” Prior regulations, which have been rescinded, established gainful
employment rules to operationalize the statutory phrase.8 In May 2023, ED published proposed rules to operationalize the statutory phrase.8 In May 2023, ED published proposed
rules for new gainful employment regulations.9 These regulations would establish program-level rules for new gainful employment regulations.9 These regulations would establish program-level
metrics relating to debt-to-earnings limits and earnings compared to high school graduates, and metrics relating to debt-to-earnings limits and earnings compared to high school graduates, and
the proposed rules would require the disclosure of program-level performance information (e.g., the proposed rules would require the disclosure of program-level performance information (e.g.,
primary occupation, completion rate, program costs) to prospective students. primary occupation, completion rate, program costs) to prospective students.
Short-Term Pell Grant Policy Arguments
Congress and higher education advocacy organizations have generally described several Congress and higher education advocacy organizations have generally described several
justifications for extending Pell Grants to educational programs that are shorter in duration than justifications for extending Pell Grants to educational programs that are shorter in duration than
permitted under current law. In general, the policy is intended to benefit prospective students, permitted under current law. In general, the policy is intended to benefit prospective students,
employers, and the overall economy. Suggested advantages have included the following: employers, and the overall economy. Suggested advantages have included the following:
• support for short-term training may increase workforce participation and lead to • support for short-term training may increase workforce participation and lead to
the filling of vacant positions for employers,10 the filling of vacant positions for employers,10
• not all students are interested in or have the capacity to achieve a degree,11 and • not all students are interested in or have the capacity to achieve a degree,11 and
• some short-term training programs may provide equal or better employment and • some short-term training programs may provide equal or better employment and
earning prospects to completers and federal return on investment than some earning prospects to completers and federal return on investment than some
educational programs that are Pell-eligible under current law.12 educational programs that are Pell-eligible under current law.12
Proponents have also argued that Pell Grants may be an optimal mechanism to support short-term Proponents have also argued that Pell Grants may be an optimal mechanism to support short-term
training because the program is a quasi-entitlement program—for the most part, eligible students training because the program is a quasi-entitlement program—for the most part, eligible students
receive the Pell Grant award amount calculated for them without regard to available receive the Pell Grant award amount calculated for them without regard to available
appropriations—with a stable funding stream.13 appropriations—with a stable funding stream.13

7 At a proprietary HEA Title IV-participating IHE that has been continuously accredited by an ED-recognized 7 At a proprietary HEA Title IV-participating IHE that has been continuously accredited by an ED-recognized
accrediting agency since at least October 1, 2007, and has provided the program continuously since January 1, 2009, accrediting agency since at least October 1, 2007, and has provided the program continuously since January 1, 2009,
eligible programs also include those leading to a bachelor’s degree in liberal arts. eligible programs also include those leading to a bachelor’s degree in liberal arts.
8 U.S. Department of Education, “Program Integrity: Gainful Employment,” 79 8 U.S. Department of Education, “Program Integrity: Gainful Employment,” 79 Federal Register 64889, October 31, 64889, October 31,
2014, as rescinded by U.S. Department of Education, “Program Integrity: Gainful Employment,” 84 2014, as rescinded by U.S. Department of Education, “Program Integrity: Gainful Employment,” 84 Federal Register
31392, July 1, 2019. 31392, July 1, 2019.
9 U.S. Department of Education, Office of Postsecondary Education, “Financial Value Transparency and Gainful 9 U.S. Department of Education, Office of Postsecondary Education, “Financial Value Transparency and Gainful
Employment (GE), Financial Responsibility, Administrative Capability, Certification Procedures, Ability to Benefit Employment (GE), Financial Responsibility, Administrative Capability, Certification Procedures, Ability to Benefit
(ATB),” 88(ATB),” 88 Federal Register 32300-32511, May 19, 2023. 32300-32511, May 19, 2023.
10 Republican Members of the House Committee on Education and the Workforce, “Workforce Pell Opens Pathways to 10 Republican Members of the House Committee on Education and the Workforce, “Workforce Pell Opens Pathways to
Successful Careers,” press release, November 18, 2022; and U.S. Congress, House Committee on Education and the Successful Careers,” press release, November 18, 2022; and U.S. Congress, House Committee on Education and the
Workforce, Workforce, Promoting Real Opportunity, Success, and Prosperity Through Education Reform Act, to accompany H.R. , to accompany H.R.
4508, 115th Cong., 2nd sess., February 8, 2018, H.Rept. 115-550, pp. 203-204. 4508, 115th Cong., 2nd sess., February 8, 2018, H.Rept. 115-550, pp. 203-204.
11 Republican Members of the House Committee on Education and the Workforce, “Workforce Pell Opens Pathways to 11 Republican Members of the House Committee on Education and the Workforce, “Workforce Pell Opens Pathways to
Successful Careers,” press release, November 18, 2022. Successful Careers,” press release, November 18, 2022.
12 Republican Members of the House Committee on Education and the Workforce, “Workforce Pell Opens Pathways to 12 Republican Members of the House Committee on Education and the Workforce, “Workforce Pell Opens Pathways to
Successful Careers,” press release, November 18, 2022. Successful Careers,” press release, November 18, 2022.
13 Wesley Whistle, 13 Wesley Whistle, Short Memories Lead to Long-Term Consequences, New America, January 11, 2021, p. 28. , New America, January 11, 2021, p. 28.
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Opposition to expanding Pell Grants to short-term programs is rooted in historical abuse and Opposition to expanding Pell Grants to short-term programs is rooted in historical abuse and
inconsistent employment returns for these programs.14 For example, federal investigations have inconsistent employment returns for these programs.14 For example, federal investigations have
found various abuses by IHEs across all institutional sectors related to the provision of student found various abuses by IHEs across all institutional sectors related to the provision of student
loans for shorter educational programs (see the loans for shorter educational programs (see the “Student Loans for 300-599 Clock Hour
Programs” section). While completers of some short-term programs have higher wages or section). While completers of some short-term programs have higher wages or
lengthier employment terms than noncompleters, completers of other short-term programs do not lengthier employment terms than noncompleters, completers of other short-term programs do not
realize such benefits.15 The evidence of fraud and inconsistent returns have resulted in some realize such benefits.15 The evidence of fraud and inconsistent returns have resulted in some
advocates of short-term Pell Grants proposing various limitations on the expansion, including, but advocates of short-term Pell Grants proposing various limitations on the expansion, including, but
not limited to, establishing employment and earnings standards for graduates. not limited to, establishing employment and earnings standards for graduates.
Student Loans for 300-599 Clock Hour Programs
Although Pell Grants are not currently available to students in short-term programs, federal Although Pell Grants are not currently available to students in short-term programs, federal
student loans have been since the 1960s. Experience with the administration of student loan student loans have been since the 1960s. Experience with the administration of student loan
programs for postsecondary students enrolled in eligible programs of at least 300 clock hours programs for postsecondary students enrolled in eligible programs of at least 300 clock hours
might inform the short-term Pell Grant policy proposals. The requirements for such student loan might inform the short-term Pell Grant policy proposals. The requirements for such student loan
programs have been modified over time in response to findings of abuse and poor outcomes. programs have been modified over time in response to findings of abuse and poor outcomes.
Pre-1992 Loan Programs and Outcomes
Since at least 1965, and through 1992, student loans were available through various loan Since at least 1965, and through 1992, student loans were available through various loan
programs for postsecondary students for the pursuit of educational programs of at least 300 clock programs for postsecondary students for the pursuit of educational programs of at least 300 clock
hours. These loan programs were intended to provide parallel access to postsecondary education hours. These loan programs were intended to provide parallel access to postsecondary education
for vocational and collegiate students in recognition of diverse student objectives and preferences, for vocational and collegiate students in recognition of diverse student objectives and preferences,
as well as workforce needs.16 The National Vocational Student Loan (NVSL) program was as well as workforce needs.16 The National Vocational Student Loan (NVSL) program was
available to students enrolled in vocational programs of at least 300 clock hours of classroom available to students enrolled in vocational programs of at least 300 clock hours of classroom
instruction (or the equivalent) at public, private nonprofit, and proprietary business, trade, instruction (or the equivalent) at public, private nonprofit, and proprietary business, trade,
technical, and vocational schools.17 The NVSL loan program was merged into the HEA Title IV-B technical, and vocational schools.17 The NVSL loan program was merged into the HEA Title IV-B
student loan program to simplify program administration.18 By 1970, the HEA Title IV-B student student loan program to simplify program administration.18 By 1970, the HEA Title IV-B student
loan program was available for programs of not less than 300 clock hours of classroom loan program was available for programs of not less than 300 clock hours of classroom
instruction (or the equivalent).19 instruction (or the equivalent).19
In the 1970s, shorter educational programs, especially those offered by proprietary institutions, In the 1970s, shorter educational programs, especially those offered by proprietary institutions,
were associated with poor student outcomes and abuses. Employment and wages for program were associated with poor student outcomes and abuses. Employment and wages for program
graduates were generally poor regardless of whether the training was offered by proprietary or graduates were generally poor regardless of whether the training was offered by proprietary or
public institutions. Based on a sample of 2,000 graduates from both proprietary and public public institutions. Based on a sample of 2,000 graduates from both proprietary and public
institutions, 20% of professional and technical graduates were employed in related jobs, and 80% institutions, 20% of professional and technical graduates were employed in related jobs, and 80%

14 Sean Ruddy and Kevin Miller, 14 Sean Ruddy and Kevin Miller, Are Short-Term Pell Grants a Good Idea? The Need for an Expanded Pilot Study, ,
Bipartisan Policy Center, December 2021, p. 4. Bipartisan Policy Center, December 2021, p. 4.
15 Sean Ruddy and Kevin Miller, 15 Sean Ruddy and Kevin Miller, Are Short-Term Pell Grants a Good Idea? The Need for an Expanded Pilot Study, ,
Bipartisan Policy Center, December 2021, p. 4. Bipartisan Policy Center, December 2021, p. 4.
16 U.S. Congress, Senate Committee on Labor and Public Welfare, 16 U.S. Congress, Senate Committee on Labor and Public Welfare, National Vocational Student Loan Insurance Act of
1965, to accompany H.R. 7743, 89th Cong., 1st sess., September 21, 1965, S.Rept. 89-758. , to accompany H.R. 7743, 89th Cong., 1st sess., September 21, 1965, S.Rept. 89-758.
17 NVSL was authorized by the National Vocational Student Loan Insurance Act of 1965 (NVSL; P.L. 89-287) and the 17 NVSL was authorized by the National Vocational Student Loan Insurance Act of 1965 (NVSL; P.L. 89-287) and the
Higher Education Act of 1965 (P.L. 89-329). U.S. Department of Health, Education, and Welfare, Office of Education, Higher Education Act of 1965 (P.L. 89-329). U.S. Department of Health, Education, and Welfare, Office of Education,
“Part 178-Federal, State, and Private Programs of Low-Interest Loans and Direct Federal Loans to Vocational “Part 178-Federal, State, and Private Programs of Low-Interest Loans and Direct Federal Loans to Vocational
Students,” 31Students,” 31 Federal Register 14942, November 26, 1966. 14942, November 26, 1966.
18 The Higher Education Amendments of 1968 (P.L. 90-575). 18 The Higher Education Amendments of 1968 (P.L. 90-575).
19 U.S. Department of Health, Education, and Welfare, Office of Education, “Part 177-Federal, State, and Private 19 U.S. Department of Health, Education, and Welfare, Office of Education, “Part 177-Federal, State, and Private
Programs of Low-Interest Loans to Vocational Students and Students in Institutions of Higher Education,” 35Programs of Low-Interest Loans to Vocational Students and Students in Institutions of Higher Education,” 35 Federal
Register 16888-16896, October 31, 1970. 16888-16896, October 31, 1970.
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of lower-level clerical or service worker graduates, excluding secretaries, barely earned minimum of lower-level clerical or service worker graduates, excluding secretaries, barely earned minimum
wage. Training offered by proprietary institutions was found to be associated with deceptive wage. Training offered by proprietary institutions was found to be associated with deceptive
advertising, predatory recruiting practices, unfair refund policies, low completion rates, poor advertising, predatory recruiting practices, unfair refund policies, low completion rates, poor
curriculum and instructional quality, institutional financial instability and high bankruptcy risk, curriculum and instructional quality, institutional financial instability and high bankruptcy risk,
and improper training for a job that may not exist.20 and improper training for a job that may not exist.20
By the early 1990s, several concerns had been raised regarding vocational programs of 300-599 By the early 1990s, several concerns had been raised regarding vocational programs of 300-599
clock hours and the provision of student loans for such programs. Congressional testimony clock hours and the provision of student loans for such programs. Congressional testimony
provided prior to the enactment of the Higher Education Act Amendments of 1992 by the provided prior to the enactment of the Higher Education Act Amendments of 1992 by the
Secretary of Education and other stakeholders postulated that eliminating loans for shorter Secretary of Education and other stakeholders postulated that eliminating loans for shorter
programs would reduce loan defaults and the use of student aid for programs of poor quality with programs would reduce loan defaults and the use of student aid for programs of poor quality with
poor employment outcomes.21 In addition, congressional testimony in the early 1990s by a poor employment outcomes.21 In addition, congressional testimony in the early 1990s by a
student loan guaranty agency, a state licensing agency, an accrediting agency, and the ED student loan guaranty agency, a state licensing agency, an accrediting agency, and the ED
Inspector General indicated that some IHEs had increased the instructional duration of programs Inspector General indicated that some IHEs had increased the instructional duration of programs
in order for students to be eligible for loans, and such program stretching was associated with in order for students to be eligible for loans, and such program stretching was associated with
increased debt and time to completion.22 Some Members of Congress advocated for greater increased debt and time to completion.22 Some Members of Congress advocated for greater
federal monitoring of these programs rather than eliminating federal student aid for them because federal monitoring of these programs rather than eliminating federal student aid for them because
shorter educational programs provided greater choice among educational program offerings for shorter educational programs provided greater choice among educational program offerings for
students, an opportunity to pursue training for disadvantaged students, and practical training that students, an opportunity to pursue training for disadvantaged students, and practical training that
led to remunerative employment.23 led to remunerative employment.23
Higher Education Amendments of 1992
The Higher Education Amendments of 1992 (1992 amendments; P.L. 102-325), as amended by The Higher Education Amendments of 1992 (1992 amendments; P.L. 102-325), as amended by
the Higher Education Technical Amendments of 1993 (P.L. 103-208), enacted several provisions the Higher Education Technical Amendments of 1993 (P.L. 103-208), enacted several provisions
to address reported problems of fraud and abuse in the HEA Title IV aid programs generally, and to address reported problems of fraud and abuse in the HEA Title IV aid programs generally, and
student loans for shorter programs specifically. For example, the student loan cohort default rate student loans for shorter programs specifically. For example, the student loan cohort default rate
threshold was lowered for all IHEs, making it easier for IHEs to lose HEA Title IV eligibility.24 threshold was lowered for all IHEs, making it easier for IHEs to lose HEA Title IV eligibility.24
The amendments also included student protections. For example, IHEs were required to establish The amendments also included student protections. For example, IHEs were required to establish
a fair and equitable tuition refund policy for HEA Title IV aid recipients. Regarding student loans a fair and equitable tuition refund policy for HEA Title IV aid recipients. Regarding student loans
for shorter programs specifically, the 1992 amendments revised the definition of for shorter programs specifically, the 1992 amendments revised the definition of HEA Title IV
eligible programs and established requirements for shorter programs for which students may and established requirements for shorter programs for which students may
borrow Direct Loans. borrow Direct Loans.

20 U.S. Congress, House Committee on Government Operations, 20 U.S. Congress, House Committee on Government Operations, Reducing Abuses in Proprietary Vocational
Education: Twenty-Seventh Report, committee print, 93rd Cong., 2nd sess., December 30, 1974, H.Rept. 93-1649. , committee print, 93rd Cong., 2nd sess., December 30, 1974, H.Rept. 93-1649.
21 U.S. Congress, House Committee on Education and Labor, 21 U.S. Congress, House Committee on Education and Labor, Higher Education Amendments of 1992, 102nd Cong., 2nd , 102nd Cong., 2nd
sess., February 27, 1992, H.Rept. 102-447, p. 63; U.S. Congress, Senate Committee on Governmental Affairs, sess., February 27, 1992, H.Rept. 102-447, p. 63; U.S. Congress, Senate Committee on Governmental Affairs,
Permanent Subcommittee on Investigations, Permanent Subcommittee on Investigations, Abuses in Federal Student Aid Programs, 101st Cong., 2nd sess., February , 101st Cong., 2nd sess., February
20, 26, 1990, S.Hrg. 101-659 (Washington: GPO, 1990), pp. 488-490; and U.S. Congress, Senate Committee on 20, 26, 1990, S.Hrg. 101-659 (Washington: GPO, 1990), pp. 488-490; and U.S. Congress, Senate Committee on
Governmental Affairs, Permanent Subcommittee on Investigations, Governmental Affairs, Permanent Subcommittee on Investigations, Abuses in Federal Student Aid Programs, Part 2, ,
101st Cong., 2nd sess., September 12, 1990, S.Hrg. 101-659, Pt. 2, p. 122. 101st Cong., 2nd sess., September 12, 1990, S.Hrg. 101-659, Pt. 2, p. 122.
22 U.S. Congress, Senate Committee on Governmental Affairs, Permanent Subcommittee on Investigations, 22 U.S. Congress, Senate Committee on Governmental Affairs, Permanent Subcommittee on Investigations, Abuses in
Federal Student Aid Programs, Part 2, 101st Cong., 2nd sess., September 12, 1990, S.Hrg. 101-659, Pt. 2, pp. 121, 126, , 101st Cong., 2nd sess., September 12, 1990, S.Hrg. 101-659, Pt. 2, pp. 121, 126,
209-211, 443, 553. 209-211, 443, 553.
23 U.S. Congress, House Committee on Education and Labor, Subcommittee on Postsecondary Education, 23 U.S. Congress, House Committee on Education and Labor, Subcommittee on Postsecondary Education, Oversight
Hearing on the Reauthorization of the Higher Education Act of 1965, 99th Cong., 1st sess., May 13, 1985, H.Hrg. 99-33, , 99th Cong., 1st sess., May 13, 1985, H.Hrg. 99-33,
pp. 10-11. pp. 10-11.
24 In general, the cohort default rate is the percentage of an IHE’s qualifying Federal Family Education Loan (FFEL) 24 In general, the cohort default rate is the percentage of an IHE’s qualifying Federal Family Education Loan (FFEL)
program and Direct Loan program borrowers who enter repayment in a given fiscal year and default within three years program and Direct Loan program borrowers who enter repayment in a given fiscal year and default within three years
after entering repayment. after entering repayment.
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Because vocational programs of 300-599 clock hours had been linked to charges of fraud, abuse, Because vocational programs of 300-599 clock hours had been linked to charges of fraud, abuse,
and high default rates, the 1992 amendments established requirements that and high default rates, the 1992 amendments established requirements that
• for purposes of all HEA Title IV aid programs, eligible undergraduate • for purposes of all HEA Title IV aid programs, eligible undergraduate
educational programs be at least 600 clock hours, 16 semester hours, or 24 educational programs be at least 600 clock hours, 16 semester hours, or 24
quarter hours over a minimum of 15 weeks and prepare students for gainful quarter hours over a minimum of 15 weeks and prepare students for gainful
employment in a recognized profession; employment in a recognized profession;
• for purposes of all HEA Title IV aid programs, eligible educational programs be • for purposes of all HEA Title IV aid programs, eligible educational programs be
300-599 clock hours (or the equivalent) over a minimum of 10 weeks and require 300-599 clock hours (or the equivalent) over a minimum of 10 weeks and require
at least an associate’s degree for admission; and at least an associate’s degree for admission; and
• for purposes of providing loans to students enrolled in short programs, eligible • for purposes of providing loans to students enrolled in short programs, eligible
educational programs be 300-599 clock hours and have verified completion and educational programs be 300-599 clock hours and have verified completion and
placement rates of at least 70%.25 placement rates of at least 70%.25
The 1992 requirements for shorter programs remain in current law, but the 1992 definition of The 1992 requirements for shorter programs remain in current law, but the 1992 definition of
eligible program has been expanded to include programs offered through telecommunications and has been expanded to include programs offered through telecommunications and
programs that utilize direct assessment.26 programs that utilize direct assessment.26
Current Requirements for 300-599 Clock Hour Programs Participating in the
Direct Loan Program
Under current law, students in 300-599 clock hour programs may be eligible to borrow a federal Under current law, students in 300-599 clock hour programs may be eligible to borrow a federal
student loan from the William D. Ford Federal Direct Loan (Direct Loan, or DL) program.27 Such student loan from the William D. Ford Federal Direct Loan (Direct Loan, or DL) program.27 Such
educational programs are programs of 300-599 clock hours of instruction that are offered during a educational programs are programs of 300-599 clock hours of instruction that are offered during a
minimum of 10 weeks and have a verified completion rate and placement rate of at least 70%. minimum of 10 weeks and have a verified completion rate and placement rate of at least 70%.
The Secretary may establish additional requirements for 300-599 clock hour programs. Under The Secretary may establish additional requirements for 300-599 clock hour programs. Under
current regulations, the program must current regulations, the program must
• provide undergraduate training that prepares a student for gainful employment in • provide undergraduate training that prepares a student for gainful employment in
a recognized occupation, a recognized occupation,
• admit as regular students some individuals who have not completed the • admit as regular students some individuals who have not completed the
equivalent of an associate’s degree, equivalent of an associate’s degree,
• have been in existence for at least one year, and • have been in existence for at least one year, and
• not be more than 50% longer than the minimum training period required by the • not be more than 50% longer than the minimum training period required by the
state or federal agency (if any) for the occupation for which the program is state or federal agency (if any) for the occupation for which the program is
intended.28 For some occupations, state and federal agencies require that entrants intended.28 For some occupations, state and federal agencies require that entrants
receive a minimum number of hours of instruction on certain subjects.29 receive a minimum number of hours of instruction on certain subjects.29

25 IHEs calculate their program-level completion and placement rates. 25 IHEs calculate their program-level completion and placement rates.
26 The Deficit Reduction Act of 2005 (P.L. 109-171) expanded the 26 The Deficit Reduction Act of 2005 (P.L. 109-171) expanded the eligible program definition to include programs definition to include programs
offered in whole or in part through telecommunications and programs that utilize direct assessment in lieu of credit offered in whole or in part through telecommunications and programs that utilize direct assessment in lieu of credit
hours or clock hours as the measure of student learning. hours or clock hours as the measure of student learning.
27 HEA §481(b)(2). 27 HEA §481(b)(2).
28 38 C.F.R. §668.8(d)(3). 28 38 C.F.R. §668.8(d)(3).
29 For example, the Maryland Department of Labor requires applicants to have completed 150 hours of courses 29 For example, the Maryland Department of Labor requires applicants to have completed 150 hours of courses
approved by the Maryland Commission of Real Estate Appraisers, Appraisal Management Companies and Home approved by the Maryland Commission of Real Estate Appraisers, Appraisal Management Companies and Home
Inspectors and meet other requirements to become a licensed real estate appraiser; see https://www.dllr.state.md.us/Inspectors and meet other requirements to become a licensed real estate appraiser; see https://www.dllr.state.md.us/
license/reahi/ (as available on March 28, 2023). license/reahi/ (as available on March 28, 2023).
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Regardless of program length, students borrowing Direct Loans must be enrolled on at least a Regardless of program length, students borrowing Direct Loans must be enrolled on at least a
half-time basis.30 The Secretary must verify the 300-599 clock hour program meets the half-time basis.30 The Secretary must verify the 300-599 clock hour program meets the
established statutory and regulatory requirements before the first student is eligible to receive a established statutory and regulatory requirements before the first student is eligible to receive a
Direct Loan in the program. Direct Loan in the program.
On April 10, 2019, there were approximately 114 ED-approved 300-599 clock hour programs for On April 10, 2019, there were approximately 114 ED-approved 300-599 clock hour programs for
which a student could borrow a Direct Loan. Public and proprietary IHEs offered most of the which a student could borrow a Direct Loan. Public and proprietary IHEs offered most of the
programs—20% and 76%, respectively. Almost half (46%) of all the programs were in the programs—20% and 76%, respectively. Almost half (46%) of all the programs were in the
cosmetology and related personal grooming services, and an additional 14% were in the health cosmetology and related personal grooming services, and an additional 14% were in the health
professions and related clinical sciences.31 The majority (65%) of programs required 400 or fewer professions and related clinical sciences.31 The majority (65%) of programs required 400 or fewer
clock hours of instruction. Sixty percent of programs reported completion rates over 90%, and clock hours of instruction. Sixty percent of programs reported completion rates over 90%, and
44% of programs reported placement rates above 90%.32 44% of programs reported placement rates above 90%.32
A 2021 analysis by the Brookings Institution of the outcomes for 300-599 clock hour programs A 2021 analysis by the Brookings Institution of the outcomes for 300-599 clock hour programs
for which students may borrow Direct Loans found that earnings of graduates from more than for which students may borrow Direct Loans found that earnings of graduates from more than
two-thirds (70%) of such programs did not exceed the average earnings of high school drop two-thirds (70%) of such programs did not exceed the average earnings of high school drop
outs.33 outs.33
History of Pell Grants for Shorter Programs
As opposed to the student loan programs, Pell Grants have not been available to students enrolled As opposed to the student loan programs, Pell Grants have not been available to students enrolled
in shorter programs. The Pell Grant program (initially known as Basic Educational Opportunity in shorter programs. The Pell Grant program (initially known as Basic Educational Opportunity
Grants) was enacted by the Education Amendments of 1972 (P.L. 92-318). As originally Grants) was enacted by the Education Amendments of 1972 (P.L. 92-318). As originally
implemented, a Pell-eligible educational program had to lead to a degree or certificate, be of at implemented, a Pell-eligible educational program had to lead to a degree or certificate, be of at
least six months in duration, and admit as regular students only high school graduates (or the least six months in duration, and admit as regular students only high school graduates (or the
equivalent).34 equivalent).34
The definition of The definition of HEA Title IV-eligible educational program enacted by the 1992 amendments enacted by the 1992 amendments
applied to the Pell Grant program as well as other HEA Title IV aid programs, except that 300-applied to the Pell Grant program as well as other HEA Title IV aid programs, except that 300-
599 clock hour educational programs that did not require at least an associate’s degree for 599 clock hour educational programs that did not require at least an associate’s degree for
admission were not Pell-eligible.35 The 1992 eligible program requirements (see the admission were not Pell-eligible.35 The 1992 eligible program requirements (see the “Higher
Education Amendments of 1992” section) generally remain in effect under current law. section) generally remain in effect under current law.
ED Pell Grant Experiments with Shorter Educational Programs
Since at least the 1990s, ED has tested various statutory and regulatory changes in an effort to Since at least the 1990s, ED has tested various statutory and regulatory changes in an effort to
improve the integrity of student aid delivery, improve services to students, and reduce improve the integrity of student aid delivery, improve services to students, and reduce
administrative burdens.36 In 2009, ED made a public solicitation for innovative strategies to administrative burdens.36 In 2009, ED made a public solicitation for innovative strategies to

30 To be enrolled half-time, a student must be taking at least half of the course load of a full-time student. For example, 30 To be enrolled half-time, a student must be taking at least half of the course load of a full-time student. For example,
if a school sets 12 semester hours as full-time, 6 semester hours is considered as half-time. if a school sets 12 semester hours as full-time, 6 semester hours is considered as half-time.
31 The program categorization is based on ED’s Classification of Instructional Programs (CIP Codes). The 31 The program categorization is based on ED’s Classification of Instructional Programs (CIP Codes). The
classification provides a taxonomic scheme that supports the accurate tracking and reporting of fields of study and classification provides a taxonomic scheme that supports the accurate tracking and reporting of fields of study and
program completions activity. program completions activity.
32 Email from U.S. Department of Education, Office of Legislation and Congressional Affairs, to CRS, August 7, 2019. 32 Email from U.S. Department of Education, Office of Legislation and Congressional Affairs, to CRS, August 7, 2019.
33 Stephanie Riegg Cellini and Kathryn J. Blanchard, 33 Stephanie Riegg Cellini and Kathryn J. Blanchard, Quick college credentials: Student outcomes and accountability
policy for short-term programs, Brookings, July 22, 2021, https://www.brookings.edu/research/quick-college-, Brookings, July 22, 2021, https://www.brookings.edu/research/quick-college-
credentials-student-outcomes-and-accountability-policy-for-short-term-programs/. credentials-student-outcomes-and-accountability-policy-for-short-term-programs/.
34 45 C.F.R. §190.2 (1975). 34 45 C.F.R. §190.2 (1975).
35 IHEs calculate their program-level completion and placement rates. 35 IHEs calculate their program-level completion and placement rates.
36 Under Section 487A(b) of the HEA, the Secretary of Education has the authority to grant waivers from specific HEA 36 Under Section 487A(b) of the HEA, the Secretary of Education has the authority to grant waivers from specific HEA
Title IV statutory or regulatory requirements to test alternative methods for administering the HEA Title IV programs. Title IV statutory or regulatory requirements to test alternative methods for administering the HEA Title IV programs.
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improve postsecondary student outcomes.37 In partial response to that solicitation, ED conducted improve postsecondary student outcomes.37 In partial response to that solicitation, ED conducted
two Pell Grant experiments from November 2012 to June 30, 2017. Experiment #1 provided Pell two Pell Grant experiments from November 2012 to June 30, 2017. Experiment #1 provided Pell
Grants to students with a bachelor’s degree, and Experiment #2 provided Pell Grants to students Grants to students with a bachelor’s degree, and Experiment #2 provided Pell Grants to students
in short-term programs. The experiments were intended to test whether allowing students to in short-term programs. The experiments were intended to test whether allowing students to
receive a Pell Grant while pursuing shorter vocational training programs would address the receive a Pell Grant while pursuing shorter vocational training programs would address the
unemployed or underemployed status of such individuals.38 The experiments were designed with unemployed or underemployed status of such individuals.38 The experiments were designed with
a random assignment evaluation such that the outcomes might inform potential statutory changes. a random assignment evaluation such that the outcomes might inform potential statutory changes.
Most of the entering participants were over age 30 with an average adjusted gross income of Most of the entering participants were over age 30 with an average adjusted gross income of
$22,176. $22,176.
The outcomes that were evaluated under these experiments focused on program enrollment and The outcomes that were evaluated under these experiments focused on program enrollment and
completion. ED indicated that data related to employment and earnings could not be collected completion. ED indicated that data related to employment and earnings could not be collected
during the study period and the results might not have met statistical requirements for measuring during the study period and the results might not have met statistical requirements for measuring
effects. effects.
Post-Bachelor’s Pell Grant Experiment
The post-bachelor’s experiment (Experiment #1), provided Pell Grants to otherwise Pell-eligible The post-bachelor’s experiment (Experiment #1), provided Pell Grants to otherwise Pell-eligible
students with a bachelor’s degree who were unemployed or underemployed and started the students with a bachelor’s degree who were unemployed or underemployed and started the
educational program for the first time. The program had to educational program for the first time. The program had to
• meet the current law minimum durational requirements, • meet the current law minimum durational requirements,
• be no more than one year in duration, • be no more than one year in duration,
• be Pell-eligible, and • be Pell-eligible, and
• meet local or regional workforce needs as determined by the institution in • meet local or regional workforce needs as determined by the institution in
consultation with employers or state or local workforce agencies. consultation with employers or state or local workforce agencies.
The Pell Grant was limited to one scheduled award over no more than two award years. Actual The Pell Grant was limited to one scheduled award over no more than two award years. Actual
awards were prorated based on the program’s length and number of credits awarded. Experiment awards were prorated based on the program’s length and number of credits awarded. Experiment
#1 had 35 IHEs and 414 students participating. Otherwise Pell-eligible students with a bachelor’s #1 had 35 IHEs and 414 students participating. Otherwise Pell-eligible students with a bachelor’s
degree demonstrated a 20 percentage-point increase in enrollment and completion when offered a degree demonstrated a 20 percentage-point increase in enrollment and completion when offered a
Pell Grant for shorter educational programs. Over 50% of participants enrolled in health Pell Grant for shorter educational programs. Over 50% of participants enrolled in health
professions and related programs. They completed their programs within 30 months, on average, professions and related programs. They completed their programs within 30 months, on average,
as many participants were not enrolled full-time. The average cost of attendance was $19,600.39 as many participants were not enrolled full-time. The average cost of attendance was $19,600.39
Participants received $3,577 in Pell Grants, on average. In addition, one-third of participants Participants received $3,577 in Pell Grants, on average. In addition, one-third of participants
received federal student loans averaging $12,950.40 received federal student loans averaging $12,950.40

37 U.S. Department of Education, “Federal Student Financial Assistance Programs Under Title IV of the Higher 37 U.S. Department of Education, “Federal Student Financial Assistance Programs Under Title IV of the Higher
Education Act of 1965, as Amended,” 74Education Act of 1965, as Amended,” 74 Federal Register 55542-55543, October 28, 2009. 55542-55543, October 28, 2009.
38 U.S. Department of Education, “Postsecondary Educational Institutions Invited to Participate in Experiments Under 38 U.S. Department of Education, “Postsecondary Educational Institutions Invited to Participate in Experiments Under
the Experimental Sites Initiative,” 76the Experimental Sites Initiative,” 76 Federal Register 66698-66707, October 27, 2011. 66698-66707, October 27, 2011.
39 The cost of attendance presented is the total price for in-state students living off campus (but not with family). 39 The cost of attendance presented is the total price for in-state students living off campus (but not with family).
40 U.S. Department of Education, “Postsecondary Educational Institutions Invited to Participate in Experiments Under 40 U.S. Department of Education, “Postsecondary Educational Institutions Invited to Participate in Experiments Under
the Experimental Sites Initiative,” 76the Experimental Sites Initiative,” 76 Federal Register 66698-66707, October 27, 2011; and J. Thomas, N. Gonzalez, 66698-66707, October 27, 2011; and J. Thomas, N. Gonzalez,
A. Wiegand, N. Paxton, and L. Hebbar, A. Wiegand, N. Paxton, and L. Hebbar, The Effects of Expanding Pell Grant Eligibility for Short Occupational
Training Programs: Results from the Experimental Sites Initiative (NCEE 2021–001) (Washington, DC: U.S. (NCEE 2021–001) (Washington, DC: U.S.
Department of Education, Institute of Education Sciences, National Center for Education Evaluation and Regional Department of Education, Institute of Education Sciences, National Center for Education Evaluation and Regional
Assistance, 2021), http://ies.ed.gov/ncee. Assistance, 2021), http://ies.ed.gov/ncee.
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Short-Term Pell Grant Experiment
The short-term Pell Grant experiment (Experiment #2), provided Pell Grants to Pell-eligible The short-term Pell Grant experiment (Experiment #2), provided Pell Grants to Pell-eligible
students in short-term programs. The educational program had to students in short-term programs. The educational program had to
• provide at least 150 clock hours of instructional time, • provide at least 150 clock hours of instructional time,
• be at least eight weeks in duration, • be at least eight weeks in duration,
• be offered by a community college or postsecondary vocational institution, and • be offered by a community college or postsecondary vocational institution, and
• meet local or regional workforce needs as determined by the institution in • meet local or regional workforce needs as determined by the institution in
consultation with employers or state or local workforce agencies. consultation with employers or state or local workforce agencies.
The Pell Grant was prorated for the shorter instructional time.41 Experiment #2 had 28 IHEs and The Pell Grant was prorated for the shorter instructional time.41 Experiment #2 had 28 IHEs and
2,270 participating students participating. Over 80% of these students pursued programs in (1) 2,270 participating students participating. Over 80% of these students pursued programs in (1)
transportation and materials moving or (2) health professions. Pell-eligible students demonstrated transportation and materials moving or (2) health professions. Pell-eligible students demonstrated
a 10 percentage-point increase in enrollment and completion when offered a Pell Grant for short-a 10 percentage-point increase in enrollment and completion when offered a Pell Grant for short-
term programs. The average cost of attendance was $16,900.42 On average, participants received term programs. The average cost of attendance was $16,900.42 On average, participants received
$1,312 in Pell Grants, and 9% received federal student loans averaging $4,021.43 $1,312 in Pell Grants, and 9% received federal student loans averaging $4,021.43
ED’s evaluation has some limitations. The findings may not be generalizable because the sample ED’s evaluation has some limitations. The findings may not be generalizable because the sample
sizes were small, 72% of the participating institutions were public two-year colleges, and almost sizes were small, 72% of the participating institutions were public two-year colleges, and almost
half of the institutions were in the southeastern United States. Although the analysis did not find half of the institutions were in the southeastern United States. Although the analysis did not find
evidence of reduced associate’s degree completion, neither experiment examined employment or evidence of reduced associate’s degree completion, neither experiment examined employment or
wage outcomes, so it is unclear to what extent pursuit and completion of shorter educational wage outcomes, so it is unclear to what extent pursuit and completion of shorter educational
programs would benefit participants in the short- and long-term in the workforce.44 programs would benefit participants in the short- and long-term in the workforce.44
Short-Term Pell Grant Bills in the 118th Congress
Although short-term Pell Grants have bipartisan support in terms of concept, there is salient Although short-term Pell Grants have bipartisan support in terms of concept, there is salient
disagreement in two policy areas—institutional eligibility and program quality assurance disagreement in two policy areas—institutional eligibility and program quality assurance
mechanisms.45 mechanisms.45
This section compares three bills that have been introduced in the 118th Congress: This section compares three bills that have been introduced in the 118th Congress:
~~• The Promoting Employment and Lifelong Learning Act (PELL Act; H.R. 496),~~
~~as introduced on January 25, 2023. This bill is sponsored or co-sponsored by at~~46

41 The Pell Grant was prorated in accordance with 34 C.F.R. §690.63(a)(3). 41 The Pell Grant was prorated in accordance with 34 C.F.R. §690.63(a)(3).
42 The cost of attendance presented is the total price for in-state students living off campus (not with family). 42 The cost of attendance presented is the total price for in-state students living off campus (not with family).
43 Department of Education, “Postsecondary Educational Institutions Invited to Participate in Experiments Under the 43 Department of Education, “Postsecondary Educational Institutions Invited to Participate in Experiments Under the
Experimental Sites Initiative,” 76Experimental Sites Initiative,” 76 Federal Register 66698-66707, October 27, 2011; and J. Thomas, N. Gonzalez, A. 66698-66707, October 27, 2011; and J. Thomas, N. Gonzalez, A.
Wiegand, N. Paxton, and L. Hebbar, Wiegand, N. Paxton, and L. Hebbar, The Effects of Expanding Pell Grant Eligibility for Short Occupational Training
Programs: Results from the Experimental Sites Initiative (NCEE 2021–001) (Washington, DC: U.S. Department of (NCEE 2021–001) (Washington, DC: U.S. Department of
Education, Institute of Education Sciences, National Center for Education Evaluation and Regional Assistance, 2021), Education, Institute of Education Sciences, National Center for Education Evaluation and Regional Assistance, 2021),
http://ies.ed.gov/ncee. http://ies.ed.gov/ncee.
44 J. Thomas, N. Gonzalez 44 J. Thomas, N. Gonzalez~~, A. Wiegand, N. Paxton, and L. Hebbar~~ et al., The Effects of Expanding Pell Grant Eligibility for , The Effects of Expanding Pell Grant Eligibility for
Short Occupational Training Programs: Results from the Experimental Sites Initiative (NCEE 2021–001) (Washington, Short Occupational Training Programs: Results from the Experimental Sites Initiative (NCEE 2021–001) (Washington,
DC: U.S. Department of Education, Institute of Education Sciences, National Center for Education Evaluation and DC: U.S. Department of Education, Institute of Education Sciences, National Center for Education Evaluation and
Regional Assistance, 2021), http://ies.ed.gov/ncee. Regional Assistance, 2021), http://ies.ed.gov/ncee.
45 Jennifer Stiddard, “Skills Blog: Looking Back at Short-Term Pell and Future Prospects,” press release, August 1, 45 Jennifer Stiddard, “Skills Blog: Looking Back at Short-Term Pell and Future Prospects,” press release, August 1,
2022, National Skills Coalition, https://nationalskillscoalition.org/blog/higher-education/making-college-work/looking-2022, National Skills Coalition, https://nationalskillscoalition.org/blog/higher-education/making-college-work/looking-
back-at-short-term-pell-and-future-prospects/. This article reviewed short-term Pell Grant legislation in the 117th back-at-short-term-pell-and-future-prospects/. This article reviewed short-term Pell Grant legislation in the 117th
Congress. Congress.
46 Additional bills to authorize short-term Pell Grants have been introduced in the 118th Congress. See, for example, S. 2442 and H.R. 221. The bills compared herein have several cosponsors who are members of the committee to which the bills were referred or are sponsored by leadership of the committee to which the bills were referred. Congressional Research Service Congressional Research Service

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• The Promoting Employment and Lifelong Learning Act (PELL Act; H.R. 496), as introduced on January 25, 2023. This bill is sponsored or co-sponsored by at least 10 Members of the House Committee on Education and the Workforce least 10 Members of the House Committee on Education and the Workforce
(E&W), including the committee chair. (E&W), including the committee chair.
• The Jobs to Compete Act (H.R. 1655), as introduced on March 17, 2023. This • The Jobs to Compete Act (H.R. 1655), as introduced on March 17, 2023. This
bill is sponsored by the bill is sponsored by the ~~Ranking Member~~ranking member of E&W and has at least one cosponsor of E&W and has at least one cosponsor
on the committee. on the committee.
• The Jumpstart Our Businesses by Supporting Students Act (JOBS Act; S. 161), as • The Jumpstart Our Businesses by Supporting Students Act (JOBS Act; S. 161), as
introduced on January 31, 2023. This bill has at least nine cosponsors on the introduced on January 31, 2023. This bill has at least nine cosponsors on the
Senate Committee on Health, Education, Labor and Pensions.Senate Committee on Health, Education, Labor and Pensions.4647 The companion The companion
legislation, the JOBS Act of 2023 (H.R. 793), was introduced February 2, 2023, legislation, the JOBS Act of 2023 (H.R. 793), was introduced February 2, 2023,
and has at least one cosponsor on E&W. and has at least one cosponsor on E&W.
This section briefly describes some of the major provisions included in these bills, as introduced; This section briefly describes some of the major provisions included in these bills, as introduced;
it does not provide a comprehensive discussion of every provision contained in the bills.it does not provide a comprehensive discussion of every provision contained in the bills.4748 The The
analysis related to S. 161 also applies to H.R. 793.analysis related to S. 161 also applies to H.R. 793. Table 1 provides a summary of key provides a summary of key
characteristics of the proposals. characteristics of the proposals.
Table 1. Comparison of Key Characteristics of Selected Short-Term Pell Grant Bills
in the 118th Congress
Characteristic
H.R. 496
H.R. 1655
S. 161a
General Characteristics
Eligible program Eligible program
150-600 clock hours (or 150-600 clock hours (or
150-599 clock hours (or 150-599 clock hours (or
150-600 clock hours offered 150-600 clock hours offered
duration duration
equivalent credit hours) equivalent credit hours)
offered equivalent credit hours) equivalent credit hours)
offered over 8-15 weeks, subject to over 8-15 weeks, subject to
~~offered~~ over 8-15 weeks over 8-15 weeks
~~offered~~ over 8-14 weeks, over 8-14 weeks,
subject to other limitations other limitations
~~subject to~~ other limitations other limitations
Eligible institutions Eligible institutions
IHEs, including public, privateIHEs, including public, private IHEs, including public, privateIHEs, including public, private Only public and private Only public and private
nonprofit nonprofit, and proprietary nonprofit, and proprietary
nonprofit, and proprietary nonprofit, and proprietary
~~nonprofit~~ IHEs that are IHEs that are
accredited by an (private for-profit) IHEs, (private for-profit) IHEs,
must be (private for-profit) IHEs, must (private for-profit) IHEs, must ~~accredited by an~~
~~must be accredited by an~~
be be institutional accrediting agency accredited by an institutional accredited by an institutional recognized by ED to assess an accrediting agency recognized by accrediting agency recognized by IHE’s Pell-eligible short-term ED to assess an IHE’s Pell- ED to assess an IHE’s Pell-eligible education programs eligible ~~accredited by an~~
~~institutional accrediting~~
~~institutional accrediting~~
~~institutional accrediting~~
~~agency recognized by ED to~~
~~agency recognized by ED to agency recognized by ED to~~
~~assess an IHE’s Pell-eligible~~
~~assess an IHE’s Pell-eligible~~
~~assess an IHE’s Pell-eligible~~
~~short-term education~~
~~short-term education~~
~~short-term education~~
~~programs~~
~~programs~~
~~programs;~~ short-term education short-term education programs; programs and IHEs must not and IHEs must not
have been subject to specified have been subject to specified
adverse actions within the adverse actions within the
past five years past five years
Eligible students Eligible students
Students may have received aStudents may have received a Students may have received aStudents may have received a Students may have received Students may have received
a bachelor’s degree but not a bachelor’s degree but not a
bachelor’s degree but not a bachelor’s degree but not a
a bachelor’s degree but not bachelor’s degree but not
a postbaccalaureate degree postbaccalaureate degree
postbaccalaureate degree postbaccalaureate degree
a postbaccalaureate degree postbaccalaureate degree
Award Rules
Minimum gran Minimum grantb
Maintains current law Maintains current law
minimum Maintains current law Maintains current law
minimum Lowers current law Lowers current law
minimum minimum Pell Grant award ofPell Grant award of ~~minimum Pell Grant award of minimum~~ 10% of the Pell Grant award Pell Grant award
of 10% of the Pell Grant award ~~10% of the total maximum~~
~~10% of the total maximum~~
~~to 5% of the~~ to 5% of the total maximum total maximum
award, but short-award, but short-~~term Pell~~
total maximum award, but short-award, but short-~~term Pell~~
total maximum award, but short-award, but short- term Pell term Pell
Grant awards based on Grant awards based on ~~SAI~~
term Pell Grant awards based on Grant awards based on ~~SAI~~
term Pell Grant awards based on Grant awards based on ~~SAI~~
SAI have no minimum award have no minimum award
SAI have no minimum award have no minimum award
SAI have no minimum award have no minimum award

4647 The bill is similar, although pared down and modified, to Section 90305 of the America Creating Opportunities for The bill is similar, although pared down and modified, to Section 90305 of the America Creating Opportunities for
Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 (America COMPETES Act of 2022; Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 (America COMPETES Act of 2022;
H.R. 4521), as passed by the House. H.R. 4521), as passed by the House.
4748 This report does not specifically outline unique considerations for correspondence programs. This report does not specifically outline unique considerations for correspondence programs.
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Characteristic
H.R. 496
H.R. 1655
S. 161a
Administrative Requirements
WIOA Eligible WIOA Eligible
Training Eligible programs are not Eligible programs are not
Eligible programs must be onEligible programs must be on the Eligible programs must be Eligible programs must be
~~Training Provider~~on the Provider List (ETPL)c
required to be on the WIOA required to be on the WIOA ~~the~~ state’s ETPL created state’s ETPL created
under ~~on the~~ state’s ETPL created state’s ETPL created
~~List (ETPL~~)cunder
ETPL but must be in an in- ETPL but must be in an in-
~~under~~ WIOA; programs on WIOA; programs on
the WIOA ~~under~~ WIOA; programs on WIOA; programs on
the WIOA demand industry or demand industry or
occupation ~~the WIOA~~ ETPL must be in ETPL must be in
~~the WIOA~~ in-demand ETPL must be in in-demand per WIOA and must meet hiring industry sectors or occupations industry sectors ~~ETPL must be in~~
~~occupation per WIOA and~~
~~in-demand industry sectors~~
~~in-demand industry sectors~~
~~must meet hiring~~
~~or occupations~~
or occupations or occupations
requirements of employers in requirements of employers in
in-demand industry sectors in-demand industry sectors
or occupations under WIOA or occupations under WIOA
Other relevant labor Other relevant labor NA
Program must provide Program must provide
training Program must provide Program must provide
~~market~~
~~training in “high-skil , high-~~
~~training in “high-skil , high-~~
~~requirements~~
~~wage, or in-demand industry~~ training Program must provide training market requirements aligned with “in-demand industry aligned with “high-skil , high- aligned with “high-skil , high- sectors or occupations” (see wage, or in-demand industry wage, or in-demand industry row above) sectors or occupations” in the sectors or occupations in the state or local area, as state or local area, as determined by an accrediting determined by an industry or agency; and it must meet sector partnership”; and it must applicable educational meet applicable educational requirements for professional requirements for professional licensure or certification in the ~~wage, or in-demand~~
~~sectors or occupations” in~~
~~industry sectors or~~
~~the state or local area, as~~
~~occupations in the state or~~
~~determined by an accrediting local area, as determined by~~
~~agency; and it must meet~~
~~an industry or sector~~
~~applicable educational~~
~~partnership”; and it must~~
~~requirements for professional meet applicable educational~~
~~licensure or certification in~~
~~requirements for~~
~~the state, if applicable~~
~~professional~~ licensure or licensure or
certification in the certification in the state, if state, if
applicable state, if applicable applicable
Credential Credential
NA NA
Program must lead to a Program must lead to a
Program must lead to a Program must lead to a
recognized postsecondary recognized postsecondary
recognized postsecondary recognized postsecondary
credential, as defined by credential, as defined by
WIOAd credential, as defined by credential, as defined by
~~WIOAd~~
WIOWIOAd
Credit toward a Credit toward a
NA NA
Program must ensure Program must ensure
noncredit Program shall include Program shall include
subsequent subsequent
educational ~~noncredit~~ coursework in a coursework in a
completed institutional credit institutional credit
articulation ~~educational~~ program program
~~completed program provides articulation for a student~~
~~credit toward a related~~
~~enrol ed in a noncredit job~~
program provides credit toward for a student enrol ed in a a related certificate or degree certificate or degree
~~training program that may~~noncredit job training program
program, and must, with program, and must, with
that may be applied to a be applied to a ~~subsequent~~
exceptions, ensure credits exceptions, ensure credits
~~credit-bearing certificate or~~
~~are acceptable toward related degree program upon~~
are subsequent credit-bearing acceptable toward related certificate or degree program certificate or degree certificate or degree
programs upon enrol ment in such program enrol ment in such program
~~programs~~
at such institution at such institution
Other requirements Other requirements NA
NA Program cannot be Program cannot be
NA
~~exclusively~~ exclusively NA online, must have online, must have
been offered for at least one been offered for at least one
year, must provide counseling year, must provide counseling
to students, and must ensure to students, and must ensure
educational spending is at educational spending is at
least 50% of program tuition least 50% of program tuition
and fees revenue and fees revenue
Outcome Metrics
Completion and Completion and
At least 70% completion rateAt least 70% completion rate At least 70% completion rateAt least 70% completion rate NA NA
placement placement
requirements and 70% placement rate and 70% placement rate
and 70% placement rate and 70% placement rate
~~requirements~~Earnings requirement Value-added earnings of program Median earnings of program NA completers must exceed the completers must increase by at published tuition and fees for the least 20%, and must exceed the program median earnings of adults aged 25-34 with only a high school diploma (or equivalent) in the state in which the program is located
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Characteristic
~~H.R. 496~~
H.R. ~~1655~~
~~S. 161a~~
~~Earnings~~
~~Value-added earnings of~~
~~Median earnings of program~~
NA
~~requirement~~
~~program completers must~~
~~completers must increase by~~
~~exceed the published tuition at least 20%, and must exceed~~
~~and fees for the program~~
~~the median earnings of adults~~
~~aged 25-34 with only a high~~
~~school diploma (or~~
~~equivalent) in the state in~~
~~which the program is located~~496 H.R. 1655 S. 161a
Gainful employment Gainful employment
NA NA
Program must “prepare Program must “prepare
NA
~~students~~ students NA for gainful for gainful
employment in a recognized employment in a recognized
occupationoccupation”e
Other Requirements
IHE disclosures to IHE disclosures to
NA NA
IHEs must disclose program IHEs must disclose program
NA NA
enrol ed and enrol ed and
information such as program information such as program
prospective students prospective students
cost, program completion cost, program completion
rate, professional licensure rate, professional licensure
pass rates, and earnings of pass rates, and earnings of
program completers program completers
IHE reporting to ED IHE reporting to ED
NA NA
Annual reporting for each Annual reporting for each
NA NA
program, with information program, with information
such as overall expenditures, such as overall expenditures,
educational expenditures, and educational expenditures, and
tuition and fees revenue tuition and fees revenue
ED reporting to the ED reporting to the
ED must expand the Col egeED must expand the Col ege ED must expand the Col egeED must expand the Col ege NA NA
public public
Scorecard to report data on Scorecard to report data on Scorecard to report data on Scorecard to report data on
Pell- Pell-eligible short-term Pell-eligible short-term
programs ~~Pell-~~eligible short-term eligible short-term
programs programs such as program such as program
duration, ~~programs~~ such as program such as program
duration, duration, completion rates, completion rates,
employment ~~duration,~~ completion rates, completion rates,
~~employment rates, and~~
employment employment rates, and rates, and
earninearningsf
rates, and earnings, disaggregated by earnings, disaggregated by
various demographic various demographic
indicatorindicatorsf
Source: Prepared by CRS based on H.R. 496, H.R. 1655, and S. 161 as introduced in the 118th Congress. Prepared by CRS based on H.R. 496, H.R. 1655, and S. 161 as introduced in the 118th Congress.
Notes:
ETPL = the WIOA eligible training provider list. ETPL = the WIOA eligible training provider list.
NA = not applicable (no relevant requirement). NA = not applicable (no relevant requirement).
SAI = student aid index. SAI = student aid index.
WIOA = the Workforce Innovation and Opportunity Act. WIOA = the Workforce Innovation and Opportunity Act.
a. The companion legislation of S. 161 is the JOBS Act of 2023 (H.R. 793). a. The companion legislation of S. 161 is the JOBS Act of 2023 (H.R. 793).
b. Under current law, to qualify for a Pell Grant award the student must qualify for the minimum grant amount b. Under current law, to qualify for a Pell Grant award the student must qualify for the minimum grant amount
to be eligible for the program. The minimum grant amount is 10% of the maximum award. If a student does to be eligible for the program. The minimum grant amount is 10% of the maximum award. If a student does
not qualify for the maximum Pell Grant award based on adjusted gross income (AGI), the student may not qualify for the maximum Pell Grant award based on adjusted gross income (AGI), the student may
qualify for a calculated award based on SAI, but the calculated award must not be below the minimum grant. qualify for a calculated award based on SAI, but the calculated award must not be below the minimum grant.
If a student does not qualify for a calculated Pell Grant award based on SAI, the student may qualify for the If a student does not qualify for a calculated Pell Grant award based on SAI, the student may qualify for the
minimum grant based on AGI. minimum grant based on AGI.
c. For more information on WIOA, see CRS Report R44252, c. For more information on WIOA, see CRS Report R44252, The Workforce Innovation and Opportunity Act and
the One-Stop Delivery System. For more information on the ETPL, see CRS Report R44252 and DOL Training . For more information on the ETPL, see CRS Report R44252 and DOL Training
and Employment Guidance Letter 08-19, January 2, 2020. and Employment Guidance Letter 08-19, January 2, 2020.
d. For more details on credentials under WIOA, see Section 3(52) of WIOA, and DOL Training and d. For more details on credentials under WIOA, see Section 3(52) of WIOA, and DOL Training and
Employment Notice 25-19, June 8, 2020. Employment Notice 25-19, June 8, 2020.
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e. If the proposed gainful employment rules (U.S. Department of Education, Office of Postsecondary e. If the proposed gainful employment rules (U.S. Department of Education, Office of Postsecondary
Education, “Financial Value Transparency and Gainful Employment (GE), Financial Responsibility, Education, “Financial Value Transparency and Gainful Employment (GE), Financial Responsibility,
Administrative Capability, Certification Procedures, Ability to Benefit (ATB),” 88Administrative Capability, Certification Procedures, Ability to Benefit (ATB),” 88 Federal Register 32300- 32300-
32511, May 19, 2023) are finalized, programs would be required to meet the regulations. 32511, May 19, 2023) are finalized, programs would be required to meet the regulations.
f. f.
Col ege Scorecard is ED’s web portal intended to allow the public to search and compare col eges by their Col ege Scorecard is ED’s web portal intended to allow the public to search and compare col eges by their
fields of study, costs, admissions, results, and other characteristics and to compare fields of study by fields of study, costs, admissions, results, and other characteristics and to compare fields of study by
credential type, salary, WIOA qualification, and other characteristics. It is available at credential type, salary, WIOA qualification, and other characteristics. It is available at
https://col egescorecard.ed.gov. https://col egescorecard.ed.gov.
Congressional Research Service 12 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress General Frameworks of the Legislation
For the most part under current law, HEA Title IV-eligible educational programs are Pell-eligible For the most part under current law, HEA Title IV-eligible educational programs are Pell-eligible
programs as long as they are undergraduate programs. As mentioned earlier, all references to programs as long as they are undergraduate programs. As mentioned earlier, all references to
current law denote the HEA as in effect on or before July 1, 2024, as a result of amendments by current law denote the HEA as in effect on or before July 1, 2024, as a result of amendments by
the FAFSA Simplification Act (FSA; Title VII, Division FF, P.L. 116-260 [Consolidated the FAFSA Simplification Act (FSA; Title VII, Division FF, P.L. 116-260 [Consolidated
Appropriations Act, 2021]) and the FAFSA Simplification Act Technical Corrections Act Appropriations Act, 2021]) and the FAFSA Simplification Act Technical Corrections Act
(FSATCA; Division R, P.L. 117-103 [Consolidated Appropriations Act, 2022]).(FSATCA; Division R, P.L. 117-103 [Consolidated Appropriations Act, 2022]).4849
None of the three bills discussed in this report simply reduce the minimum hours for a program to None of the three bills discussed in this report simply reduce the minimum hours for a program to
be Pell-eligible. Instead, each bill creates a new type of award within the existing authorization be Pell-eligible. Instead, each bill creates a new type of award within the existing authorization
for Pell Grants in HEA Section 401 and then creates supplemental criteria related to the new for Pell Grants in HEA Section 401 and then creates supplemental criteria related to the new
award. Establishing a new type of award within the existing Pell Grant program means that these award. Establishing a new type of award within the existing Pell Grant program means that these
new programs would utilize existing Pell funding streams. The supplemental criteria would new programs would utilize existing Pell funding streams. The supplemental criteria would
modify student eligibility, institutional eligibility, educational program eligibility, and award modify student eligibility, institutional eligibility, educational program eligibility, and award
rules, as well as establish additional requirements. rules, as well as establish additional requirements.
The next sections begin with a comparison of eligibility requirements for students, IHEs, and the The next sections begin with a comparison of eligibility requirements for students, IHEs, and the
short-term programs based on current law and the three bills. This is followed by a description of short-term programs based on current law and the three bills. This is followed by a description of
any procedures the bills would establish for the approval of Pell-eligible short-term programs. any procedures the bills would establish for the approval of Pell-eligible short-term programs.
Subsequent sections describe changes the bills would make to Pell Grant award rules, reporting Subsequent sections describe changes the bills would make to Pell Grant award rules, reporting
and disclosure requirements, and the Direct Loan program. and disclosure requirements, and the Direct Loan program.
H.R. 496 and H.R. 1655 call the new awards the Workforce Pell Grants Program, and S. 161 calls H.R. 496 and H.R. 1655 call the new awards the Workforce Pell Grants Program, and S. 161 calls
them the Job Training Federal Pell Grant Program. This report collectively refers to these new them the Job Training Federal Pell Grant Program. This report collectively refers to these new
proposed awards as proposed awards as short-term Pell Grants. .
Eligible Students
Under current law, individuals with a bachelor’s degree (or the equivalent) are not eligible for a Under current law, individuals with a bachelor’s degree (or the equivalent) are not eligible for a
Pell Grant. Pell Grant.
Under all three bills, students who are enrolled in eligible short-term programs and otherwise Under all three bills, students who are enrolled in eligible short-term programs and otherwise
eligible for a Pell Grant would be eligible for a short-term Pell Grant. All three bills would also eligible for a Pell Grant would be eligible for a short-term Pell Grant. All three bills would also
establish eligibility for short-term Pell Grants to students with a bachelor’s degree but not a establish eligibility for short-term Pell Grants to students with a bachelor’s degree but not a
postbaccalaureate degree.postbaccalaureate degree.49

4850 ED’s short-term Pell Grant Experiment #1 included individuals with a bachelor’s degree because some such students are unemployed or underemployed.51 Approximately 21% of undergraduates seeking an undergraduate certificate in AY2015-2016 had previously earned a degree.52 In AY2019-2020, such pursuit represented approximately 22% of undergraduates with a degree.53 49 The amendments go into effect on or before July 1, 2024, coinciding with the beginning of the 2024-2025 award The amendments go into effect on or before July 1, 2024, coinciding with the beginning of the 2024-2025 award
year. For a description of the amendments, see CRS Report R46909, year. For a description of the amendments, see CRS Report R46909, The FAFSA Simplification Act. .
4950 None of the three bills would change the current law provision that excludes individuals with a bachelor’s degree None of the three bills would change the current law provision that excludes individuals with a bachelor’s degree
from regular Pell Grant eligibility. from regular Pell Grant eligibility.
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~~ED’s short-term Pell Grant Experiment #1 included individuals with a bachelor’s degree because~~
~~some such students are unemployed or underemployed.50 Approximately 21% of undergraduates~~
~~seeking an undergraduate certificate in AY2015-2016 had previously earned a degree.51 In~~
~~AY2019-2020, such pursuit represented approximately 22% of undergraduates with a degree.52~~
51 U.S. Department of Education, Office of Postsecondary Education, “Postsecondary Educational Institutions Invited To Participate in Experiments Under the Experimental Sites Initiative,” 76 Federal Register 66698-66707, October 27, 2011. 52 CRS analysis of U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study: 2016 Undergraduates (NPSAS:UG) using the following variables: DEGPRHIGH, SECTOR4, and UGDEG. 53 CRS analysis of U.S. Department of Education, National Center for Education Statistics, National Postsecondary (continued...) Congressional Research Service 13 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress Among AY2013-2014 bachelor’s degree recipients, 5.8% pursued further education in a two-year Among AY2013-2014 bachelor’s degree recipients, 5.8% pursued further education in a two-year
institution within two years of earning their degree.institution within two years of earning their degree.5354
Eligible Institutions
Under current law, only HEA Title IV-participating IHEs may award Pell Grants to eligible Under current law, only HEA Title IV-participating IHEs may award Pell Grants to eligible
students enrolled in Pell-eligible educational programs.students enrolled in Pell-eligible educational programs.5455 Domestic public, private nonprofit, and Domestic public, private nonprofit, and
proprietary institutions may be HEA Title IV-eligible if they meet several statutory and regulatory proprietary institutions may be HEA Title IV-eligible if they meet several statutory and regulatory
requirements, including being accredited by an ED-recognized accrediting agency. HEA Title IV-requirements, including being accredited by an ED-recognized accrediting agency. HEA Title IV-
eligible IHEs that receive ED certification as HEA Title IV-participating IHEs may disburse Pell eligible IHEs that receive ED certification as HEA Title IV-participating IHEs may disburse Pell
Grants. Grants.
Under current law, there are additional requirements for Title IV-participating IHEs that disburse Under current law, there are additional requirements for Title IV-participating IHEs that disburse
Pell Grants to incarcerated students that are similar to those in the short-term Pell Grant Pell Grants to incarcerated students that are similar to those in the short-term Pell Grant
proposals.proposals.5556 Such IHEs must not be proprietary IHEs and must not have been subject within the Such IHEs must not be proprietary IHEs and must not have been subject within the
preceding five years to the following unfavorable actions by ED, their accrediting agency, or the preceding five years to the following unfavorable actions by ED, their accrediting agency, or the
state: state:
• any suspension, emergency action, or termination of programs under HEA Title • any suspension, emergency action, or termination of programs under HEA Title
IV; IV;
• any adverse action by the institution’s accrediting agency; or • any adverse action by the institution’s accrediting agency; or
• any action by the state to revoke a license or other authority to operate. • any action by the state to revoke a license or other authority to operate.
Under H.R. 496 and H.R. 1655, current HEA Title IV-participating IHEs from all sectors could Under H.R. 496 and H.R. 1655, current HEA Title IV-participating IHEs from all sectors could
offer Pell-eligible short-term programs. S. 161 would restrict eligible institutions to public and offer Pell-eligible short-term programs. S. 161 would restrict eligible institutions to public and
private nonprofit institutions, thus excluding proprietary IHEs. private nonprofit institutions, thus excluding proprietary IHEs.
None of the proposals would expand the types of institutions that could offer short-term programs None of the proposals would expand the types of institutions that could offer short-term programs
compared to current law. For example, the proposals would not include employers or professional compared to current law. For example, the proposals would not include employers or professional
organizations as eligible institutions. organizations as eligible institutions.
While institutions from all sectors would be eligible under H.R. 1655, the bill would exclude While institutions from all sectors would be eligible under H.R. 1655, the bill would exclude
institutions that have been subject during any of the preceding five years to the following adverse institutions that have been subject during any of the preceding five years to the following adverse
actions: actions:

~~50 U.S. Department of Education, Office of Postsecondary Education, “Postsecondary Educational Institutions Invited~~
~~To Participate in Experiments Under the Experimental Sites Initiative,” 76 Federal Register 66698-66707, October 27,~~
~~2011.~~
~~51 CRS analysis of U.S. Department of Education, National Center for Education Statistics, National Postsecondary~~
~~Student Aid Study: 2016 Undergraduates (NPSAS:UG) using the following variables: DEGPRHIGH, SECTOR4, and~~
~~UGDEG.~~
~~52 CRS analysis of U.S. Department of Education, National Center for Education Statistics, National Postsecondary~~
• any suspension, emergency action, or termination of programs under HEA Title IV; • any adverse action by the institution’s accrediting agency; or • any action by the state to revoke a license or other authority to operate. H.R. 496 and S. 161 would not establish similar restrictions related to institutional standing. The proposed accreditation requirements are described below. Student Aid Study: 2020 Undergraduates (NPSAS:UG) using the following variables: DEGPRHIGH, SECTOR4, and Student Aid Study: 2020 Undergraduates (NPSAS:UG) using the following variables: DEGPRHIGH, SECTOR4, and
UGDEGUGDEG. 54
53 National Student Clearinghouse, National Student Clearinghouse, Snapshot Report: Two-Year Enrollment after Bachelor’s Degree, Summer 2016, , Summer 2016,
https://nscresearchcenter.org/snapshotreport-twoyearenrollmentafterbachelors24/. https://nscresearchcenter.org/snapshotreport-twoyearenrollmentafterbachelors24/.
5455 For more information on current law institutional eligibility requirements, see CRS Report R43159, For more information on current law institutional eligibility requirements, see CRS Report R43159, Institutional
Eligibility for Participation in Title IV Student Financial Aid Programs. .
5556 HEA §484(t)(1)(B). HEA §484(t)(1)(B).
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~~• any suspension, emergency action, or termination of programs under HEA Title~~
~~IV;~~
~~• any adverse action by the institution’s accrediting agency; or~~
~~• any action by the state to revoke a license or other authority to operate.~~
~~H.R. 496 and S. 161 would not establish similar restrictions related to institutional standing.~~
~~The proposed accreditation requirements are described below.~~
Role of Accreditation and Accreditors
Under current law, an HEA Title IV-eligible educational program must be evaluated by an ED- Under current law, an HEA Title IV-eligible educational program must be evaluated by an ED-
recognized accrediting agency through one of two options. The IHE offering the Title IV-eligible recognized accrediting agency through one of two options. The IHE offering the Title IV-eligible
educational program may be accredited (or preaccredited if it is a public or private nonprofit IHE) educational program may be accredited (or preaccredited if it is a public or private nonprofit IHE)
by an by an institutional accrediting agency recognized by ED for the purposes of Title IV aid. recognized by ED for the purposes of Title IV aid.
Alternatively, if the IHE is a single-purpose institution (e.g., a stand-alone medical school), the Alternatively, if the IHE is a single-purpose institution (e.g., a stand-alone medical school), the
Title IV-eligible educational program may be accredited by a Title IV-eligible educational program may be accredited by a programmatic accrediting agency
recognized by ED for the purposes of Title IV aid. recognized by ED for the purposes of Title IV aid.
In addition, HEA Title IV-eligible distance or correspondence education programs can only be In addition, HEA Title IV-eligible distance or correspondence education programs can only be
evaluated by those accrediting agencies that ED has recognized as having the evaluation of evaluated by those accrediting agencies that ED has recognized as having the evaluation of
distance or correspondence education programs within their scope of recognition. The IHE may distance or correspondence education programs within their scope of recognition. The IHE may
be accredited by such an institutional accrediting agency, or with respect to a single-purpose be accredited by such an institutional accrediting agency, or with respect to a single-purpose
institution, the program may be accredited by such a programmatic accrediting agency. ED-institution, the program may be accredited by such a programmatic accrediting agency. ED-
recognized accrediting agencies may expand their scope of recognition to include distance recognized accrediting agencies may expand their scope of recognition to include distance
education by notifying ED.education by notifying ED.5657 Accrediting agencies that accredit IHEs offering distance education Accrediting agencies that accredit IHEs offering distance education
programs or individual distance education programs are not required to have separate standards, programs or individual distance education programs are not required to have separate standards,
procedures, or policies for the evaluation of distance education but are required to mandate that procedures, or policies for the evaluation of distance education but are required to mandate that
IHEs have processes in place to verify student identities. IHEs have processes in place to verify student identities.
Regarding the recognition of specific accrediting agencies, ED considers recommendations from Regarding the recognition of specific accrediting agencies, ED considers recommendations from
the National Advisory Committee on Institutional Quality and Integrity (NACIQI). NACIQI the National Advisory Committee on Institutional Quality and Integrity (NACIQI). NACIQI
provides recommendations to ED for accrediting agencies that may relate to the criteria for provides recommendations to ED for accrediting agencies that may relate to the criteria for
agency recognition, the recognition of specific agencies, and other issues. If the enrollment at an agency recognition, the recognition of specific agencies, and other issues. If the enrollment at an
IHE offering distance education increases by 50% or more within the institutional fiscal year, IHE offering distance education increases by 50% or more within the institutional fiscal year,
NACIQI must review at its next meeting any change in scope for the accrediting agency that NACIQI must review at its next meeting any change in scope for the accrediting agency that
accredits such IHE. accredits such IHE.
Each of the three proposals to expand Pell Grants to short-term programs generally would require Each of the three proposals to expand Pell Grants to short-term programs generally would require
that IHEs offering Pell-eligible short-term programs be accredited by an institutional accrediting that IHEs offering Pell-eligible short-term programs be accredited by an institutional accrediting
agencyagency ~~for which ED has included within its scope of recognition the ability to assess an IHE’s~~. ED would have to include within the agency’s scope of recognition the evaluation of IHEs based on standards “for determining if the institution has the capability to effectively offer”
Pell-eligible short-term education programs. Each bill would establish requirements for Pell-eligible short-term education programs. Each bill would establish requirements for
accreditors that seek to include IHEs that offer short-term programs within their scope of accreditors that seek to include IHEs that offer short-term programs within their scope of
recognition. The bills would not authorize ED recognition of programmatic accrediting agencies recognition. The bills would not authorize ED recognition of programmatic accrediting agencies
for purposes of Pell-eligible short-term education programs. for purposes of Pell-eligible short-term education programs.
H.R. 496 would require that accrediting agencies recognized to assess IHEs with Pell-eligible H.R. 496 would require that accrediting agencies recognized to assess IHEs with Pell-eligible
short-term programs ensure the short-term programs meet several requirements. The accrediting short-term programs ensure the short-term programs meet several requirements. The accrediting
agency would be responsible for ensuring the programs are aligned with in-demand industry agency would be responsible for ensuring the programs are aligned with in-demand industry

~~56 Distance education is added to an agency’s scope of recognition upon receipt of the official notification. ED reviews~~
~~an agency’s application of its distance education policies and procedures during the agency’s next renewal of~~
~~recognition.~~
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sectors or occupations, meet hiring requirements for those sectors or occupations, have been sectors or occupations, meet hiring requirements for those sectors or occupations, have been
offered for at least one year, and have verified completion and placement rates of at least 70%. offered for at least one year, and have verified completion and placement rates of at least 70%.
H.R. 1655 would explicitly require that each accrediting agency that is recognized to assess IHEs H.R. 1655 would explicitly require that each accrediting agency that is recognized to assess IHEs
with Pell-eligible short-term education programs ensure the education of the short-term program with Pell-eligible short-term education programs ensure the education of the short-term program
is aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or is aligned with the requirements of high-skill, high-wage, or in-demand industry sectors or
occupations in the state or local area in which the program is provided. The accrediting agency occupations in the state or local area in which the program is provided. The accrediting agency
would have to rely on an appropriate entity (e.g., workforce development board) for determining would have to rely on an appropriate entity (e.g., workforce development board) for determining
57 Distance education is added to an agency’s scope of recognition upon receipt of the official notification. ED reviews an agency’s application of its distance education policies and procedures during the agency’s next renewal of recognition. Congressional Research Service 15 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress such alignment. The accrediting agency would also have to ensure the educational content of the such alignment. The accrediting agency would also have to ensure the educational content of the
short-term program and postsecondary credential satisfy any professional licensure or state short-term program and postsecondary credential satisfy any professional licensure or state
certification standards in the state(s) in which the program is offered. certification standards in the state(s) in which the program is offered.
Upon enactment of H.R. Upon enactment of H.R. 496 or H.R. 1655, ED-recognized accrediting agencies would be given interim 1655, ED-recognized accrediting agencies would be given interim
authority to temporarily expand their scope of recognition to include Pell-eligible short-term authority to temporarily expand their scope of recognition to include Pell-eligible short-term
education programs by notifying ED and explaining within the notification how the agency education programs by notifying ED and explaining within the notification how the agency
intends to meet the additional recognition criteria. The temporary expansion in accreditation intends to meet the additional recognition criteria. The temporary expansion in accreditation
scope would expire within five years of the bill’s enactment date unless ED were to approve the scope would expire within five years of the bill’s enactment date unless ED were to approve the
expansion. expansion.
H.R. H.R. 496 and H.R. 1655 would 1655 would each also establish additional requirements for NACIQI. also establish additional requirements for NACIQI. It They would require NACIQI to would require NACIQI to
hold meetings through 2025 to evaluate the additional criteria in the scope of recognition for hold meetings through 2025 to evaluate the additional criteria in the scope of recognition for
accrediting agencies that accredit IHEs offering Pell-eligible short-term programs. If an accrediting agencies that accredit IHEs offering Pell-eligible short-term programs. If an
accrediting agency so expands its scope of recognition, NACIQI would be required to review at accrediting agency so expands its scope of recognition, NACIQI would be required to review at
its next meeting the addition in scope for such accrediting agency and advise ED on whether the its next meeting the addition in scope for such accrediting agency and advise ED on whether the
agency meets the statutory criteria. agency meets the statutory criteria.
S. 161 would require that accrediting agencies recognized to assess IHEs with Pell-eligible short- S. 161 would require that accrediting agencies recognized to assess IHEs with Pell-eligible short-
term programs ensure the educational content of the short-term program meets hiring term programs ensure the educational content of the short-term program meets hiring
requirements and satisfies the educational prerequisites for relevant licensure or certification. requirements and satisfies the educational prerequisites for relevant licensure or certification.
Characteristics of Programs Eligible for Short-Term Pell Grants
As noted previously, HEA Title IV-eligible educational programs generally are Pell-eligible under As noted previously, HEA Title IV-eligible educational programs generally are Pell-eligible under
current law as long as they are undergraduate programs. Educational programs of 300-599 clock current law as long as they are undergraduate programs. Educational programs of 300-599 clock
hours that are eligible for the Direct Loan program are not Pell-eligible. For prison education hours that are eligible for the Direct Loan program are not Pell-eligible. For prison education
programs (PEPs), the HEA establishes several additional requirements beyond the general HEA programs (PEPs), the HEA establishes several additional requirements beyond the general HEA
Title IV educational program eligibility requirements so that enrolled incarcerated students may Title IV educational program eligibility requirements so that enrolled incarcerated students may
receive Pell Grants.receive Pell Grants.5758 Some of these additional requirements have analogies in the short-term Pell Some of these additional requirements have analogies in the short-term Pell
Grant proposals, which will be described below as appropriate. Grant proposals, which will be described below as appropriate.
Each of the short-term Pell Grant proposals would establish additional requirements for Each of the short-term Pell Grant proposals would establish additional requirements for
educational programs to be eligible under the proposed new program. In many cases, the educational programs to be eligible under the proposed new program. In many cases, the
additional requirements serve to ascertain that the educational programs supported by the new additional requirements serve to ascertain that the educational programs supported by the new
short-term Pell Grant program provide workers with skills that are relevant in the labor market. short-term Pell Grant program provide workers with skills that are relevant in the labor market.
Generally, with the exception of the program duration requirement, these additional requirements Generally, with the exception of the program duration requirement, these additional requirements
can be classified as emphasizing program (administrative) characteristics or participant outcomes can be classified as emphasizing program (administrative) characteristics or participant outcomes
(performance-based metrics). (performance-based metrics).

~~57 HEA §484(t)(1)(B).~~
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Eligible Program Duration
Under current law, a Pell-eligible program is an undergraduate program that requires at least 600 Under current law, a Pell-eligible program is an undergraduate program that requires at least 600
clock hours of instruction or 16 semester hours (or the equivalent) offered during a minimum of clock hours of instruction or 16 semester hours (or the equivalent) offered during a minimum of
15 weeks. Alternatively, if an associate’s degree is required for admission, an eligible program 15 weeks. Alternatively, if an associate’s degree is required for admission, an eligible program
may be an undergraduate program of at least 300 clock hours of instruction or 8 semester hours may be an undergraduate program of at least 300 clock hours of instruction or 8 semester hours
(or the equivalent) offered during a minimum of 10 weeks.(or the equivalent) offered during a minimum of 10 weeks.58
59 58 HEA §484(t)(1)(B). 59 Undergraduate programs are defined as programs designed to lead to a certificate or degree at or below the baccalaureate level and also include qualifying postbaccalaureate teacher certification programs. Students with a (continued...) Congressional Research Service 16 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress H.R. 496, H.R. 1655, and S. 161 would all authorize short-term Pell Grants for otherwise HEA H.R. 496, H.R. 1655, and S. 161 would all authorize short-term Pell Grants for otherwise HEA
Title IV-eligible programs of 150-599 clock hours offered over 8-14 weeks.Title IV-eligible programs of 150-599 clock hours offered over 8-14 weeks.5960 H.R. 496 and H.R. H.R. 496 and H.R.
1655 would permit programs measured in credit hours. Under all three bills, hour and week 1655 would permit programs measured in credit hours. Under all three bills, hour and week
requirements would apply to undergraduate, graduate, and professional programs.requirements would apply to undergraduate, graduate, and professional programs.6061
H.R. 1655 and S. 161 would establish an additional maximum program duration based on state H.R. 1655 and S. 161 would establish an additional maximum program duration based on state
requirements. They would require that the short-term program not exceed by more than 50% the requirements. They would require that the short-term program not exceed by more than 50% the
minimum training period required by the state (if applicable) for such program. This requirement minimum training period required by the state (if applicable) for such program. This requirement
would closely mirror the regulatory requirement for 300-599 clock hour programs that are would closely mirror the regulatory requirement for 300-599 clock hour programs that are
eligible for the Direct Loan program. eligible for the Direct Loan program.
Administrative Requirements for Programs Eligible for Short-Term Pell
Grants
Each of the three bills would establish required components of eligible programs. Generally, these Each of the three bills would establish required components of eligible programs. Generally, these
components would be in addition to existing requirements for HEA Title IV-eligible programs components would be in addition to existing requirements for HEA Title IV-eligible programs
(e.g., they must be offered by a Title IV-participating IHE). (e.g., they must be offered by a Title IV-participating IHE).
Labor Market Relevance
Under current law, with the exception of PEPs, the HEA does not require Pell-eligible educational Under current law, with the exception of PEPs, the HEA does not require Pell-eligible educational
programs to be aligned with specific occupations or to demonstrate labor market relevance.programs to be aligned with specific occupations or to demonstrate labor market relevance.6162
PEPs must satisfy any applicable educational requirements for professional licensure or PEPs must satisfy any applicable educational requirements for professional licensure or
certification in the state where the correctional facility is located or, in the case of a federal certification in the state where the correctional facility is located or, in the case of a federal
correctional facility, in the state in which most of the incarcerated individuals will reside upon correctional facility, in the state in which most of the incarcerated individuals will reside upon
release. release.

~~58 Undergraduate programs are defined as programs designed to lead to a certificate or degree at or below the~~
~~baccalaureate level and also include qualifying postbaccalaureate teacher certification programs. Students with a~~
Each of the three bills has a general directive that the training programs supported by the new grant would meet hiring requirements of employers in in-demand industries. H.R. 496 specifically refers to employer hiring requirements in in-demand sectors under the WIOA.63 H.R. 1655 refers to employer hiring requirements in high-skill, high-wage sectors or in-demand sectors under the WIOA.64 S. 161 includes a more general reference to meeting the hiring requirements bachelor’s degree must be enrolled at least half-time in a postbaccalaureate teacher education program. Half-time bachelor’s degree must be enrolled at least half-time in a postbaccalaureate teacher education program. Half-time
enrollment is at least six credit hours in a standard semester. A postbaccalaureate teacher education program does not enrollment is at least six credit hours in a standard semester. A postbaccalaureate teacher education program does not
lead to a graduate degree, is offered by a school that does not also offer a bachelor’s degree in education, and leads to lead to a graduate degree, is offered by a school that does not also offer a bachelor’s degree in education, and leads to
certification or licensure necessary for employment as an elementary or secondary school teacher in the state. To be certification or licensure necessary for employment as an elementary or secondary school teacher in the state. To be
eligible for a Pell Grant, the student enrolled in the postbaccalaureate teacher education program must be pursuing an eligible for a Pell Grant, the student enrolled in the postbaccalaureate teacher education program must be pursuing an
initial teacher certification or licensing credential within the state. initial teacher certification or licensing credential within the state.
5960 Strictly speaking, the upper bounds for eligible programs under H.R. 1655 would be “less than 600 clock hours” and Strictly speaking, the upper bounds for eligible programs under H.R. 1655 would be “less than 600 clock hours” and
“less than 15 weeks.” The upper bounds in H.R. 496 and S. 161 are specified as “not more than 600” clock hours and “less than 15 weeks.” The upper bounds in H.R. 496 and S. 161 are specified as “not more than 600” clock hours and
“not more than 15” weeks. “not more than 15” weeks.
6061 Students with a bachelor’s degree but not a postbaccalaureate degree would be eligible for short-term Pell Grants; Students with a bachelor’s degree but not a postbaccalaureate degree would be eligible for short-term Pell Grants;
and students in postbaccalaureate programs would be eligible for short-term Pell Grants as long as they did not have a and students in postbaccalaureate programs would be eligible for short-term Pell Grants as long as they did not have a
postbaccalaureate degree. postbaccalaureate degree.
6162 To the extent that the IHE establishes objectives of labor market relevance for a particular program, the accrediting To the extent that the IHE establishes objectives of labor market relevance for a particular program, the accrediting
agency is expected to ensure that the program is of sufficient quality to achieve the program’s stated objective (34 agency is expected to ensure that the program is of sufficient quality to achieve the program’s stated objective (34
C.F.R. §602.17(a)). In addition, accrediting agencies must develop school assessment standards, which could include, C.F.R. §602.17(a)). In addition, accrediting agencies must develop school assessment standards, which could include,
as appropriate, consideration of state licensing examinations and job placement rates, as long as the accrediting as appropriate, consideration of state licensing examinations and job placement rates, as long as the accrediting
agencies apply the standards consistently to all IHEs (34 C.F.R. §602.16(a) and 602.18). agencies apply the standards consistently to all IHEs (34 C.F.R. §602.16(a) and 602.18).
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~~Each of the three bills has a general directive that the training programs supported by the new~~
~~grant would meet hiring requirements of employers in in-demand industries.62 Both H.R. 496 and~~
~~H.R. 1655 specifically refer to employer hiring requirements in in-demand sectors under the~~
~~WIOA.63 S. 161 includes a more general reference to meeting the hiring requirements of~~
~~employers and specifies that eligible programs must provide training in “~~63 H.R. 496 would require the accrediting agency to determine whether the short-term program meets the hiring requirement. 64 H.R. 1655 would require the IHE to determine whether the short-term program meets the hiring requirement after validation of that determination by an appropriate third-party entity (e.g., an industry or sector partnership). Congressional Research Service 17 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress of employers.65 H.R. 1655 and S. 161 each specify that eligible programs must provide training “aligned with the requirements of high-skill, high-wage, or high-skill, high-wage, or
in-demand industry sectors or in-demand industry sectors or ~~occupations~~occupations” in the in the ~~State~~state or local area, or local area, ~~as determined~~but the determination would be made by the accrediting agency under H.R. 1655 and by an industry by an industry
or sector partnershipor sector partnership~~.”64~~ under S. 161.66
Beyond meeting hiring requirements, H.R. 496 does not specify any requirements related to Beyond meeting hiring requirements, H.R. 496 does not specify any requirements related to
licensure. H.R. 1655 and S. 161 both specify that eligible programs would be required to meet licensure. H.R. 1655 and S. 161 both specify that eligible programs would be required to meet
any applicable educational requirement for professional licensure or certification in the state.any applicable educational requirement for professional licensure or certification in the state.6567
Integration with WIOA ETPL
WIOA is the primary federal workforce development legislation and supports job training for WIOA is the primary federal workforce development legislation and supports job training for
eligible workers.eligible workers.6668 The statute authorizes formula grants to states that are administered at the The statute authorizes formula grants to states that are administered at the
federal level by the U.S. Department of Labor (DOL). As a condition of receiving WIOA funds, federal level by the U.S. Department of Labor (DOL). As a condition of receiving WIOA funds,
states must conduct a labor market analysis to identify in-demand industries and occupations, and states must conduct a labor market analysis to identify in-demand industries and occupations, and
eligible training programs under WIOA must be in such industries and occupations. States eligible training programs under WIOA must be in such industries and occupations. States
identify eligible training providers through the development and publication of an ETPL. identify eligible training providers through the development and publication of an ETPL.
Providers on the WIOA ETPL must report on participants’ participation and outcomes.Providers on the WIOA ETPL must report on participants’ participation and outcomes.6769
H.R. 496 would not require that programs be on the ETPL to qualify as an eligible short-term Pell H.R. 496 would not require that programs be on the ETPL to qualify as an eligible short-term Pell
program. The bill requires that programs “provide an education aligned with the requirements of program. The bill requires that programs “provide an education aligned with the requirements of
in-demand industry sectors or occupations” as defined in WIOA. in-demand industry sectors or occupations” as defined in WIOA.
H.R. 1655 and S. 161 would both require an eligible short-term Pell program to be on the ETPL H.R. 1655 and S. 161 would both require an eligible short-term Pell program to be on the ETPL
created under WIOA for the state in which the program is located. Inclusion of a program on the created under WIOA for the state in which the program is located. Inclusion of a program on the
ETPL implies that the state has determined the training program to be in an in-demand industry or ETPL implies that the state has determined the training program to be in an in-demand industry or
occupation. occupation.
Credential Requirements
Under current law, Pell Grants can support programs that lead to a degree or certificate. Under current law, Pell Grants can support programs that lead to a degree or certificate.

~~62 H.R. 496 would require the accrediting agency to determine whether the short-term program meets the hiring~~
~~requirement.~~
~~63 H.R. 1655 and~~ H.R. 1655 and S. 161 would both require an eligible short-term Pell program to lead to a recognized postsecondary credential, as defined by WIOA.70 H.R. 496 does not have a similar requirement. 65 S. 161 would require the IHE to determine whether the short-term program meets the hiring S. 161 would require the IHE to determine whether the short-term program meets the hiring
requirement after validation of that determination by an requirement after validation of that determination by an ~~appropriate third-party entity (e.g., an~~ industry or sector industry or sector
~~partnership)~~partnership. S. 161 would prohibit ED from approving the program without a certification from the state board that it . S. 161 would prohibit ED from approving the program without a certification from the state board that it
meets the requirements. meets the requirements.
6466 S. 161’s subsequent requirement that eligible programs be on the Eligible Training Provider List (ETPL) could S. 161’s subsequent requirement that eligible programs be on the Eligible Training Provider List (ETPL) could
therefore require that the program meet WIOA in-demand industries’ criteria. therefore require that the program meet WIOA in-demand industries’ criteria.
6567 H.R. 1655 and S. 161 would require the IHE to determine whether the short-term program meets licensure or H.R. 1655 and S. 161 would require the IHE to determine whether the short-term program meets licensure or
certification requirements after validation of that determination by an appropriate third-party entity (e.g., an industry or certification requirements after validation of that determination by an appropriate third-party entity (e.g., an industry or
sector partnership). sector partnership).
6668 For more information on WIOA, see CRS Report R44252, For more information on WIOA, see CRS Report R44252, The Workforce Innovation and Opportunity Act and the
One-Stop Delivery System. .
6769 For more information on the ETPL, see CRS Report R44252, For more information on the ETPL, see CRS Report R44252, The Workforce Innovation and Opportunity Act and the
One-Stop Delivery System; and DOL Training and Employment Guidance Letter 08-19, “Workforce Innovation and ; and DOL Training and Employment Guidance Letter 08-19, “Workforce Innovation and
Opportunity Act (WIOA) Title I Training Provider Eligibility and State List of Eligible Training Providers (ETPs) and Opportunity Act (WIOA) Title I Training Provider Eligibility and State List of Eligible Training Providers (ETPs) and
Programs,” January 2, 2020, https://www.dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-Programs,” January 2, 2020, https://www.dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-
08-19. 08-19.
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~~Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress~~

~~H.R. 1655 and S. 161 would both require an eligible short-term Pell program to lead to a~~
~~recognized postsecondary credential, as defined by WIOA.68 H.R. 496 does not have a similar~~
~~requirement.~~70 WIOA defines a recognized postsecondary credential as “a credential consisting of an industry-recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the State involved or Federal Government, or an associate or baccalaureate degree.” See WIOA Section 3(52), 29 U.S.C. §3102(52). Congressional Research Service 18 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress
Articulation Requirements
Under current law and regulations, PEPs must offer credits that may be transferred to at least one Under current law and regulations, PEPs must offer credits that may be transferred to at least one
IHE in the state where the correctional facility is located, or, in the case of a federal correctional IHE in the state where the correctional facility is located, or, in the case of a federal correctional
facility, in the state in which most of the incarcerated individuals will reside upon release. In facility, in the state in which most of the incarcerated individuals will reside upon release. In
addition, PEPs must “be operating in the best interest of students,” as determined by the addition, PEPs must “be operating in the best interest of students,” as determined by the
appropriate correctional agency.appropriate correctional agency.6971 The best interest determination must include, among other The best interest determination must include, among other
requirements, an assessment of whether all formerly incarcerated students are able to fully requirements, an assessment of whether all formerly incarcerated students are able to fully
transfer their credits and continue their programs at any location of the IHE that offers a transfer their credits and continue their programs at any location of the IHE that offers a
comparable program. comparable program.
H.R. 496 would not require that programs eligible for short-term Pell Grants be part of an H.R. 496 would not require that programs eligible for short-term Pell Grants be part of an
articulation agreement. articulation agreement.
S. 161 and H.R. 1655 would both require that short-term Pell programs have mechanisms through S. 161 and H.R. 1655 would both require that short-term Pell programs have mechanisms through
which credits earned can be applied to a subsequent program. S. 161 which credits earned can be applied to a subsequent program. S. 161 and H.R. 1655 would require that eligible would require that eligible
programs include programs include ~~institutional credit articulation through~~means by which noncredit programs may be which noncredit programs may be
applied to credit programs.applied to credit programs.7072 H.R. 1655 H.R. 1655 also has a more general requirement that eligible programs has a more general requirement that eligible programs
ensure “the acceptability of the credits received under the workforce program toward meeting ensure “the acceptability of the credits received under the workforce program toward meeting
[subsequent] certificate or degree program requirements.” H.R. 1655 would establish an [subsequent] certificate or degree program requirements.” H.R. 1655 would establish an
exception to this requirement for a program that “prepares students for employment in an exception to this requirement for a program that “prepares students for employment in an
occupation for which there is only one recognized postsecondary credential.” occupation for which there is only one recognized postsecondary credential.”
Other Requirements
H.R. 1655 would establish several additional requirements for the short-term Pell Grant programs H.R. 1655 would establish several additional requirements for the short-term Pell Grant programs
that may be intended to ensure the quality of the program or improve student outcomes: that may be intended to ensure the quality of the program or improve student outcomes:
• The program could not be offered exclusively through distance education or a • The program could not be offered exclusively through distance education or a
correspondence course except as a temporary response to a disaster or correspondence course except as a temporary response to a disaster or
emergency. emergency.
• The program must have been offered by an IHE for not less than one year prior to • The program must have been offered by an IHE for not less than one year prior to
becoming a short-term Pell program, as determined by the IHE’s accrediting becoming a short-term Pell program, as determined by the IHE’s accrediting

~~68 WIOA defines a recognized postsecondary credential as “a credential consisting of an industry-recognized certificate~~
~~or certification, a certificate of completion of an apprenticeship, a license recognized by the State involved or Federal~~
~~Government, or an associate or baccalaureate degree.” See WIOA Section 3(52), 29 U.S.C. 3102(52).~~
69agency. This provision would be similar to one of the regulatory requirements for 300-599 clock hour programs that are eligible for the Direct Loan program. • One-half of the amount of tuition and fees revenue for the program could not exceed the amount of educational spending for the program for each of the three most recent fiscal years. • The program would have to provide counseling to students to help them achieve their educational and career goals. 71 34 C.F.R. §668.241. The determination must include an assessment of the comparability of the PEP’s instructors, 34 C.F.R. §668.241. The determination must include an assessment of the comparability of the PEP’s instructors,
credits, advising services, and credit transferability to non-PEP programs and may include an assessment of other credits, advising services, and credit transferability to non-PEP programs and may include an assessment of other
relevant factors. relevant factors.
7072 A dichotomy exists between programs made up of credit course(s) and noncredit programs (those structured as a A dichotomy exists between programs made up of credit course(s) and noncredit programs (those structured as a
series of noncredit courses). However, courses in the same field of study with the same vocational objective and series of noncredit courses). However, courses in the same field of study with the same vocational objective and
industry recognition may be offered for credit at one institution and noncredit at another, or even within the same industry recognition may be offered for credit at one institution and noncredit at another, or even within the same
institution. All degree programs are credit programs. Credit programs are most often approved by an accrediting entity institution. All degree programs are credit programs. Credit programs are most often approved by an accrediting entity
and may have more stringent student entrance or prerequisite requirements. Generally, individuals who successfully and may have more stringent student entrance or prerequisite requirements. Generally, individuals who successfully
complete credit courses and programs earn credits that may be transferred or used as currency toward the completion of complete credit courses and programs earn credits that may be transferred or used as currency toward the completion of
other credit programs. Although noncredit programs may offer continuing education units (CEUs) or vocational other credit programs. Although noncredit programs may offer continuing education units (CEUs) or vocational
certificates to program completers, the programs do not generally proffer students currency toward the pursuit of credit certificates to program completers, the programs do not generally proffer students currency toward the pursuit of credit
programs or noncredit programs in other fields. programs or noncredit programs in other fields.
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~~agency. This provision would be similar to one of the regulatory requirements for~~
~~300-599 clock hour programs that are eligible for the Direct Loan program.~~
~~• One-half of the amount of tuition and fees revenue for the program could not~~
~~exceed the amount of educational spending for the program for each of the three~~
~~most recent fiscal years.~~
~~• The program would have to provide counseling to students to help them achieve~~
~~their educational and career goals.~~
• The program would have to provide counseling to students that reveals the • The program would have to provide counseling to students that reveals the
industry sectors and occupations for which the program prepares students, the industry sectors and occupations for which the program prepares students, the
related certificate and degree programs for which the program prepares students, related certificate and degree programs for which the program prepares students,
and sources of financial assistance. and sources of financial assistance.
~~In addition to the administrative requirements described above, S. 161 would establish an~~
~~additional requirement for a short-term Pell program:~~
• The program would have to be a • The program would have to be a career and technical education program program~~, but S.~~
~~161 would not define the term. Under~~ as defined under the Carl D. Perkins Career and Technical the Carl D. Perkins Career and Technical
Education Act (Perkins Education Act (Perkins Act), wherein~~Act),~~ career and technical education is defined as is defined as
organized educational activities that provide technical skills and academic organized educational activities that provide technical skills and academic
content that lead to an industry-recognized credential, a certificate, or an content that lead to an industry-recognized credential, a certificate, or an
associate’s degree, or to further associate’s degree, or to further education. In addition to the administrative requirements described above, S. 161 would establish an additional requirement for a short-term Pell program: • The program would have to be a career and technical education program, but S. 161 would not define the term. ~~education.~~
Outcome Metrics for Programs Eligible for Short-Term Pell Grants
With the exception of 300-599 clock hour programs that are eligible for the Direct Loan program, With the exception of 300-599 clock hour programs that are eligible for the Direct Loan program,
neither HEA Title IV nor regulations establish program-level completion and employment neither HEA Title IV nor regulations establish program-level completion and employment
outcome requirements for Title IV-eligible programs offered at IHEs. The best interest outcome requirements for Title IV-eligible programs offered at IHEs. The best interest
determination for PEPs may include an assessment of whether earnings, completion rates, and job determination for PEPs may include an assessment of whether earnings, completion rates, and job
placement rates exceed established thresholds. ED publishes outcome data on resources like the placement rates exceed established thresholds. ED publishes outcome data on resources like the
College Scorecard, but these outcome metrics, by themselves, have no direct effect on College Scorecard, but these outcome metrics, by themselves, have no direct effect on
institutional or program eligibility for student aid programs. The College Scorecard allows the institutional or program eligibility for student aid programs. The College Scorecard allows the
public to search for and compare colleges by their graduation rates, the median earnings of former public to search for and compare colleges by their graduation rates, the median earnings of former
students, and the median earnings of program completers by field of study and other students, and the median earnings of program completers by field of study and other
characteristics.characteristics.7173 The proposed The proposed gainful employment rules (see the rules (see the “Gainful Employment in a
Recognized Occupation” section) would establish program-level metrics relating to debt-to- section) would establish program-level metrics relating to debt-to-
earnings limits and earnings relative to high school graduates. Some provisions in the short-term earnings limits and earnings relative to high school graduates. Some provisions in the short-term
Pell Grant proposals are similar to some of the proposed gainful employment rules. Pell Grant proposals are similar to some of the proposed gainful employment rules.
In practice, institutions and programs often set their own standards for student learning outcomes, In practice, institutions and programs often set their own standards for student learning outcomes,
depending on a variety of factors such as the level of education offered and the skills and depending on a variety of factors such as the level of education offered and the skills and
competencies required of graduates in different fields, and these standards may be guided by competencies required of graduates in different fields, and these standards may be guided by
accrediting agency policies. Accrediting agencies then evaluate the appropriateness of those accrediting agency policies. Accrediting agencies then evaluate the appropriateness of those
standards and whether institutions and programs use information gained from student learning standards and whether institutions and programs use information gained from student learning
outcomes to improve student learning.outcomes to improve student learning.72

7174 H.R. 496 and H.R. 1655 have distinct earnings requirements but somewhat similar requirements related to completion and placement. In addition, H.R. 1655 would require that Pell-eligible short-term programs meet gainful employment requirements. S. 161 does not include outcome metrics in the program eligibility requirements and is therefore not discussed in this section. 73 The portal is available at https://collegescorecard.ed.gov/. The portal is available at https://collegescorecard.ed.gov/.
7274 See Council for Higher Education Accreditation, See Council for Higher Education Accreditation, The Value of Accreditation, June 2010, p. 5. See also, for example, , June 2010, p. 5. See also, for example,
Higher Learning Commission, “Criteria for Accreditation” CCRT.B.10.010, Criterion 4, Revised September 1, 2020, Higher Learning Commission, “Criteria for Accreditation” CCRT.B.10.010, Criterion 4, Revised September 1, 2020,
https://www.hlcommission.org/Policies/criteria-and-core-components.html. https://www.hlcommission.org/Policies/criteria-and-core-components.html.
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~~H.R. 496 and H.R. 1655 have distinct earnings requirements but somewhat similar requirements~~
~~related to completion and placement. In addition, H.R. 1655 would require that Pell-eligible~~
~~short-term programs meet gainful employment requirements.~~
~~S. 161 does not include outcome metrics in the program eligibility requirements and is therefore~~
~~not discussed in this section.~~
Earnings Requirements
H.R. 496 would establish a “value-added earnings” metric and require that it H.R. 496 would establish a “value-added earnings” metric and require that it ~~exceed~~is equal to or exceeds the published the published
tuition and fees for the program. The metric would be calculated for students who received tuition and fees for the program. The metric would be calculated for students who received
~~federal financial~~HEA Title IV aid and completed the program three years prior. The metric would be calculated aid and completed the program three years prior. The metric would be calculated
as the difference between (1) the median earnings of such students, as adjusted by the state and as the difference between (1) the median earnings of such students, as adjusted by the state and
metropolitan area regional price parities and (2) 150% of the federal poverty line applicable to metropolitan area regional price parities and (2) 150% of the federal poverty line applicable to
single individuals.single individuals.7375
H.R. 1655 would establish two earnings metrics. Eligible programs would be required to meet H.R. 1655 would establish two earnings metrics. Eligible programs would be required to meet
both. both.
• The first metric would be a “median earnings increase requirement” of at least • The first metric would be a “median earnings increase requirement” of at least
20%. This metric would be calculated on the basis of the median earnings of 20%. This metric would be calculated on the basis of the median earnings of
students approximately six months after completing a program compared to the students approximately six months after completing a program compared to the
median earnings of the students prior to enrollment. The bill would establish that median earnings of the students prior to enrollment. The bill would establish that
programs must report these metrics within 18 months of being approved as an programs must report these metrics within 18 months of being approved as an
eligible program. eligible program.
• The second metric involves program completers exceeding the earnings of a • The second metric involves program completers exceeding the earnings of a
comparison group. The bill would specify that the median earnings of program comparison group. The bill would specify that the median earnings of program
completers must exceed the median earnings for adults aged 25-34 with only a completers must exceed the median earnings for adults aged 25-34 with only a
high school diploma (or equivalent) in the state in which the program is located. high school diploma (or equivalent) in the state in which the program is located.
The value-added earnings metric in H.R. 496 would not directly consider a participant’s earnings The value-added earnings metric in H.R. 496 would not directly consider a participant’s earnings
prior to program participation. Instead, it would focus on earnings relative to program cost. prior to program participation. Instead, it would focus on earnings relative to program cost.
S. 161 would not establish an earnings metric that affects program eligibility. S. 161 would not establish an earnings metric that affects program eligibility.
Completion and Placement Rates
H.R. 496 and H.R. 1655 would establish similar requirements for completion and job placement. H.R. 496 and H.R. 1655 would establish similar requirements for completion and job placement.
Both bills would require Both bills would require
• a verified completion rate of at least 70%, calculated so as to ensure that a • a verified completion rate of at least 70%, calculated so as to ensure that a
student would be counted as a completion if the student finished the program student would be counted as a completion if the student finished the program
within 150% of the normal time for completion,within 150% of the normal time for completion,7476 and and
• a job placement rate of at least 70%. • a job placement rate of at least 70%.75

7377 Neither bill defines placement. For example, it is unclear if a program participant who is subsequently employed in a field unrelated to their training would be considered a successful placement. S. 161 would not establish requirements related to completion and placement. ED Approval Procedures for Programs Under current regulations, in most instances, an HEA Title IV-participating IHE may self-certify that a new educational program is an eligible program before disbursing Title IV funds to students 75 In 2023, 150% of poverty for a single individual in the contiguous 48 states and the District of Columbia is $21,870. In 2023, 150% of poverty for a single individual in the contiguous 48 states and the District of Columbia is $21,870.
7476 34 C.F.R. §668.8(f). 34 C.F.R. §668.8(f).
7577 H.R. 1655 would require “a verified employment placement rate of at least 70 percent, as determined in accordance H.R. 1655 would require “a verified employment placement rate of at least 70 percent, as determined in accordance
with the regulations of the Secretary,” while H.R. 496 would require a “verified a job placement rate of at least 70 with the regulations of the Secretary,” while H.R. 496 would require a “verified a job placement rate of at least 70
percent.” percent.”
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~~Neither bill defines placement. For example, it is unclear if a program participant who is~~
~~subsequently employed in a field unrelated to their training would be considered a successful~~
~~placement.~~
~~S. 161 would not establish requirements related to completion and placement.~~
~~ED Approval Procedures for Programs~~
~~Under current regulations, in most instances, an HEA Title IV-participating IHE may self-certify~~
~~that a new educational program is an eligible program before disbursing Title IV funds to students~~
enrolled in it. To self-certify, an IHE must obtain any required state and accrediting agency enrolled in it. To self-certify, an IHE must obtain any required state and accrediting agency
approvals and ensure the program meets all statutory and regulatory requirements. Some Title IV-approvals and ensure the program meets all statutory and regulatory requirements. Some Title IV-
participating IHEs and programs require written approval from ED before disbursing Title IV aid participating IHEs and programs require written approval from ED before disbursing Title IV aid
to students in new educational programs.to students in new educational programs.7678 For example, For example,
• an IHE must await approval if the new educational program is an undergraduate, • an IHE must await approval if the new educational program is an undergraduate,
300-599 clock hour program that is eligible for Direct 300-599 clock hour program that is eligible for Direct ~~Loans77~~Loans79; and ; and
• an IHE must await approval of the first PEP at the first two correctional • an IHE must await approval of the first PEP at the first two correctional
institutions. institutions.7880 Before approving the PEP, ED is to review the approvals granted Before approving the PEP, ED is to review the approvals granted
by the entity overseeing the correctional institution, the state, and the accrediting by the entity overseeing the correctional institution, the state, and the accrediting
agency, and ensure other program requirements are met. agency, and ensure other program requirements are met.
All three short-term Pell Grant proposals would require a Title IV-participating IHE to apply for All three short-term Pell Grant proposals would require a Title IV-participating IHE to apply for
and await ED approval for each new short-term program before disbursing Pell Grants to enrolled and await ED approval for each new short-term program before disbursing Pell Grants to enrolled
students. students.
Under H.R. 496, ED could consider a program that was not previously a Title IV programs to be Under H.R. 496, ED could consider a program that was not previously a Title IV programs to be
an eligible short-term Pell Grant program for a provisional eligibility period of no more than three an eligible short-term Pell Grant program for a provisional eligibility period of no more than three
years. To qualify for the provisional eligibility period, the program would have to meet the hour years. To qualify for the provisional eligibility period, the program would have to meet the hour
and week durational requirements, receive accrediting agency approval, and meet and week durational requirements, receive accrediting agency approval, and meet ~~an earnings~~
~~threshold requirement~~the value-added earnings metric (see the (see the “Earnings Requirements” section). section).7981 If the earnings data were If the earnings data were
determined to be inaccurate, the IHE would be required to return any HEA Title IV aid funds determined to be inaccurate, the IHE would be required to return any HEA Title IV aid funds
received following the provisional approval. H.R. 496 would not establish requirements for received following the provisional approval. H.R. 496 would not establish requirements for
approvals following the provisional approval period. approvals following the provisional approval period.
Under H.R. 1655, ED would be required to approve or disapprove each new short-term program Under H.R. 1655, ED would be required to approve or disapprove each new short-term program
within 120 days of receiving an application. Before approving the program, ED would have to within 120 days of receiving an application. Before approving the program, ED would have to
receive state certification that the program meets three criteria: receive state certification that the program meets three criteria:
1. it aligns with the requirements of high-skill, high-wage, or in-demand industry 1. it aligns with the requirements of high-skill, high-wage, or in-demand industry
sectors or occupations; sectors or occupations;
2. it fulfills the applicable WIOA requirements; and 2. it fulfills the applicable WIOA requirements; and
3. it leads to a recognized postsecondary credential 3. it leads to a recognized postsecondary credential.

~~76 34 C.F.R. §600.20(c); and FSA Handbook 2022-2023, Volume 2, Chapter 5.~~
~~77 34 C.F.R. §600.10(c)(1)(iii).~~
~~78 34 C.F.R. §600.10(c).~~
~~79 The earnings threshold~~ that satisfies employment requirements. H.R. 1655 would establish an initial approval period of two years and subsequent approval periods of three years. If ED were to determine that the program no longer met the approval requirements, ED would be required to deny a subsequent approval application, ensure enrolled students receive transcripts, and prohibit the approval of substantially similar programs. ED could immediately withdraw approval of the program. Under S. 161, ED would be required to approve or disapprove each new short-term program within 60 days of receiving an application. Before approving the program, ED would be required 78 34 C.F.R. §600.20(c); and FSA Handbook 2022-2023, Volume 2, Chapter 5. 79 34 C.F.R. §600.10(c)(1)(iii). 80 34 C.F.R. §600.10(c). 81 The value-added earnings metric for provisional approval would require median earnings of individuals who completed the for provisional approval would require median earnings of individuals who completed the
program three years prior, less 150% of the poverty line for single individuals, to equal or exceed published tuition and program three years prior, less 150% of the poverty line for single individuals, to equal or exceed published tuition and
fees for the program. This threshold would mirror the bill’s fees for the program. This threshold would mirror the bill’s ~~earnings threshold requirement~~value-added earnings metric for Pell-eligible short-term for Pell-eligible short-term
programs except that it measures all program completers rather than program completers who received Title IV aid. programs except that it measures all program completers rather than program completers who received Title IV aid.
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~~H.R. 1655 would establish an initial approval period of two years and subsequent approval~~
~~periods of three years. If ED were to determine that the program no longer met the approval~~
~~requirements, ED would be required to deny a subsequent approval application, ensure enrolled~~
~~students receive transcripts, and prohibit the approval of substantially similar programs. ED could~~
~~immediately withdraw approval of the program.~~
~~Under S. 161, ED would be required to approve or disapprove each new short-term program~~
~~within 60 days of receiving an application. Before approving the program, ED would be required~~
to receive state certification that the program meets all of the short-term program requirements. S. to receive state certification that the program meets all of the short-term program requirements. S.
161 would not establish approval periods or disapproval procedures. 161 would not establish approval periods or disapproval procedures.
Award Rules
Under current law, the amount of an eligible student’s Pell Grant award is determined on the basis Under current law, the amount of an eligible student’s Pell Grant award is determined on the basis
of a set of award rules. A student’s Pell Grant scheduled award—the maximum Pell Grant aid a of a set of award rules. A student’s Pell Grant scheduled award—the maximum Pell Grant aid a
full-time, full-academic-year student can receive—is determined based primarily on either AGI or full-time, full-academic-year student can receive—is determined based primarily on either AGI or
SAI:SAI:8082
• A student whose AGI is below specified thresholds may be eligible for a • A student whose AGI is below specified thresholds may be eligible for a
scheduled award equal to the maximum Pell Grant. scheduled award equal to the maximum Pell Grant.8183
• A student who is not eligible for the maximum Pell Grant based on their AGI • A student who is not eligible for the maximum Pell Grant based on their AGI
being below specified thresholds may be eligible for a scheduled award based on being below specified thresholds may be eligible for a scheduled award based on
SAI as long as the scheduled award is no lower than 10% of the total maximum SAI as long as the scheduled award is no lower than 10% of the total maximum
award, also known as the award, also known as the minimum scheduled award. .
• A student whose AGI is not below specified thresholds and who is not eligible • A student whose AGI is not below specified thresholds and who is not eligible
based on SAI may be eligible for a scheduled award equal to the minimum award based on SAI may be eligible for a scheduled award equal to the minimum award
if their AGI is between specified limits. if their AGI is between specified limits.
Students who are enrolled less-than-full-time, less than a full academic year, or in less-than-full- Students who are enrolled less-than-full-time, less than a full academic year, or in less-than-full-
academic year programs do not receive their scheduled award. Instead, they receive a academic year programs do not receive their scheduled award. Instead, they receive a
proportionally reduced amount. Under the lifetime eligibility limit, a student may receive no more proportionally reduced amount. Under the lifetime eligibility limit, a student may receive no more
than the equivalent of 12 full-time semesters of Pell Grant awards. Each of the proposals would than the equivalent of 12 full-time semesters of Pell Grant awards. Each of the proposals would
use the same general award rules, with some exceptions to the lifetime eligibility limit and use the same general award rules, with some exceptions to the lifetime eligibility limit and
minimum award rule.minimum award rule.8284
H.R. 1655 and S. 161 would address the lifetime eligibility limit, while H.R. 496 would not. H.R. 1655 and S. 161 would address the lifetime eligibility limit, while H.R. 496 would not.
Under H.R. 1655 and S. 161, a student would be eligible for no more than 12 full-time semesters Under H.R. 1655 and S. 161, a student would be eligible for no more than 12 full-time semesters
~~of Pell Grant awards~~ (or the equivalent in part-time educational pursuit)(or the equivalent in part-time educational pursuit) in aggregate of short-term Pell Grants and Pell Grants. H.R. 496 would not . H.R. 496 would not
establish a lifetime eligibility cap for short-term Pell Grants or establish a lifetime eligibility cap for short-term Pell Grants or ~~the combination of~~an interaction between short-term Pell short-term Pell
Grants and Pell Grants. Grants and Pell Grants.
All three proposals would eliminate the minimum award for students whose scheduled award is All three proposals would eliminate the minimum award for students whose scheduled award is
based on SAI if such students are pursuing Pell-eligible short-term programs. In other words, the based on SAI if such students are pursuing Pell-eligible short-term programs. In other words, the
scheduled award for such students could be as small as $1. For a more detailed description and scheduled award for such students could be as small as $1. For a more detailed description and
examples related to the elimination of the minimum award rule, see theexamples related to the elimination of the minimum award rule, see the Appendix. In addition, S. n addition, S.
161 would lower the minimum scheduled award from 10% to 5% of the total maximum award for students who are eligible for • a scheduled Pell Grant award based on SAI and are not pursuing Pell-eligible short-term programs, and • a scheduled award equal to the minimum award because their AGI is between specified limits regardless of the hours and weeks in the educational program. 82
80 SAI, as established by the HEA, is an indicator of what the student’s family is expected to pay for the student’s SAI, as established by the HEA, is an indicator of what the student’s family is expected to pay for the student’s
higher education based on information provided on the Free Application for Federal Student Aid (FAFSA). higher education based on information provided on the Free Application for Federal Student Aid (FAFSA).
8183 For the 2023-2024 award year, the maximum Pell Grant is $7,395, as established by the HEA and the FY2023 For the 2023-2024 award year, the maximum Pell Grant is $7,395, as established by the HEA and the FY2023
appropriations act providing funding for ED. appropriations act providing funding for ED.
8284 For more information, see CRS Report R46909, For more information, see CRS Report R46909, The FAFSA Simplification Act. .
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~~161 would lower the minimum scheduled award from 10% to 5% of the total maximum award for~~
~~students who are eligible for~~
~~• a scheduled Pell Grant award based on SAI and are not pursuing Pell-eligible~~
~~short-term programs, and~~
~~• a scheduled award equal to the minimum award because their AGI is between~~
~~specified limits regardless of the hours and weeks in the educational program.~~
Reporting and Disclosure Requirements
Under current law, to participate in the HEA Title IV aid programs, institutions must disclose Under current law, to participate in the HEA Title IV aid programs, institutions must disclose
various information to the public and report other information to ED.various information to the public and report other information to ED.8385 The information to be The information to be
reported to ED includes, for example, institutional characteristics and operations, student reported to ED includes, for example, institutional characteristics and operations, student
enrollment and completions, financial aid, counseling for students receiving HEA Title IV loans, enrollment and completions, financial aid, counseling for students receiving HEA Title IV loans,
and disclosures for HEA Title IV loans and private education loans. With respect to their and disclosures for HEA Title IV loans and private education loans. With respect to their
educational programs, IHEs must disclose to prospective and enrolled students educational programs, IHEs must disclose to prospective and enrolled students
• whether completion of educational programs meet the educational requirements • whether completion of educational programs meet the educational requirements
for specific licensure or certification needed for employment if the educational for specific licensure or certification needed for employment if the educational
program is designed to meet or is advertised as meeting such educational program is designed to meet or is advertised as meeting such educational
requirements in the applicable states, and requirements in the applicable states, and
• estimated costs associated with educational programs. • estimated costs associated with educational programs.
As mentioned earlier, the proposed gainful employment regulations would require the disclosure As mentioned earlier, the proposed gainful employment regulations would require the disclosure
of program-level performance information (e.g., primary occupation, completion rate, program of program-level performance information (e.g., primary occupation, completion rate, program
costs) to prospective students in applicable programs. If an institution fails to make the required costs) to prospective students in applicable programs. If an institution fails to make the required
disclosures or reports, ED may impose sanctions including limiting the institution’s participation disclosures or reports, ED may impose sanctions including limiting the institution’s participation
in HEA Title IV student aid programs, terminating the institution’s participation in HEA Title IV in HEA Title IV student aid programs, terminating the institution’s participation in HEA Title IV
student aid programs, or imposing monetary civil fines. student aid programs, or imposing monetary civil fines.
IHEs report the aforementioned information to ED through the Integrated Postsecondary IHEs report the aforementioned information to ED through the Integrated Postsecondary
Education Data System (IPEDS) and National Student Loan Data System (NSLDS). ED compiles Education Data System (IPEDS) and National Student Loan Data System (NSLDS). ED compiles
data from IPEDS, NSLDS, and administrative tax records maintained by the Department of the data from IPEDS, NSLDS, and administrative tax records maintained by the Department of the
Treasury into the College Scorecard, which is made available to the public through a web portal Treasury into the College Scorecard, which is made available to the public through a web portal
and downloadable data files. The College Scorecard allows the public to search and compare and downloadable data files. The College Scorecard allows the public to search and compare
colleges by their costs, admissions, results, and other characteristics, as well as their fields of colleges by their costs, admissions, results, and other characteristics, as well as their fields of
study by credential type, salary, WIOA qualification, and other characteristics. The fields of study study by credential type, salary, WIOA qualification, and other characteristics. The fields of study
are categories of programs defined by subject area (e.g., accounting and business/management) are categories of programs defined by subject area (e.g., accounting and business/management)
and credential level (e.g., undergraduate certificates or diplomas).and credential level (e.g., undergraduate certificates or diplomas).8486
While H.R. 496 and H.R. 1655 would increase the reporting and disclosure requirements, S. 161 While H.R. 496 and H.R. 1655 would increase the reporting and disclosure requirements, S. 161
would not establish additional requirements. would not establish additional requirements.
H.R. 1655 would require that IHEs offering Pell-eligible short-term programs provide disclosures about the program to prospective students. The disclosures would include information related to institutional charges, estimates of grant aid, a program’s completion rate, the pass rate for applicable professional licensure or certification examinations, and the employment rate and earnings of program completers. Prospective students would have to sign an enrollment agreement that includes the disclosures. The IHE would also have to publish the disclosures on its website. H.R. 496 and H.R. 1655 would require ED to expand the College Scorecard to report data on Pell-eligible short-term programs. Both bills would require data on each program’s hour and week 85
83 34 C.F.R., Part 668-D. 34 C.F.R., Part 668-D.
8486 The fields of study do not necessarily map directly to educational programs advertised in institutional course The fields of study do not necessarily map directly to educational programs advertised in institutional course
catalogs. The categorization is based on ED’s Classification of Instructional Programs (CIP Codes). The classification catalogs. The categorization is based on ED’s Classification of Instructional Programs (CIP Codes). The classification
provides a taxonomic scheme that supports the accurate tracking and reporting of fields of study and program provides a taxonomic scheme that supports the accurate tracking and reporting of fields of study and program
completions activity. The CIP titles and program descriptions are intended to be general categories into which program completions activity. The CIP titles and program descriptions are intended to be general categories into which program
completions data can be placed, not exact duplicates of specific majors or field of study titles used by individual completions data can be placed, not exact duplicates of specific majors or field of study titles used by individual
institutions. Data are presented in a manner to provide protection for privacy purposes and to reduce the risk of institutions. Data are presented in a manner to provide protection for privacy purposes and to reduce the risk of
disclosure of confidential or identifying information. disclosure of confidential or identifying information.
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link to page 9 link to page 9 link to page 9 link to page 9 Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress

~~H.R. 1655 would require that IHEs offering Pell-eligible short-term programs provide disclosures~~
~~about the program to prospective students. The disclosures would include information related to~~
~~institutional charges, estimates of grant aid, a program’s completion rate, the pass rate for~~
~~applicable professional licensure or certification examinations, and the employment rate and~~
~~earnings of program completers. Prospective students would have to sign an enrollment~~
~~agreement that includes the disclosures. The IHE would also have to publish the disclosures on its~~
~~website.~~
~~H.R. 496 and H.R. 1655 would require ED to expand the College Scorecard to report data on~~
~~Pell-eligible short-term programs. Both bills would require data on each program’s hour and week~~
durational requirements, completion rates, and employment rates. Both bills would require durational requirements, completion rates, and employment rates. Both bills would require
earnings data as well, but the specific presentations would differ. For example, H.R. 496 would earnings data as well, but the specific presentations would differ. For example, H.R. 496 would
require information on the percentage of completers who have earnings above 150% of the require information on the percentage of completers who have earnings above 150% of the
federal poverty line for single individuals within three years of completion.federal poverty line for single individuals within three years of completion.8587 H.R. 1655 would H.R. 1655 would
require information on median earnings of completers within six months of completion. It would require information on median earnings of completers within six months of completion. It would
also require additional data on student demographics and re-enrollment in higher education. also require additional data on student demographics and re-enrollment in higher education.
Under H.R. 1655, ED would be required to coordinate with the Secretary of Labor and IHEs to Under H.R. 1655, ED would be required to coordinate with the Secretary of Labor and IHEs to
provide the requisite data. provide the requisite data.
In addition, H.R. 1655 would require that IHEs offering Pell-eligible short-term programs provide In addition, H.R. 1655 would require that IHEs offering Pell-eligible short-term programs provide
disclosures about the programs to ED. The IHE would be required to provide information disclosures about the programs to ED. The IHE would be required to provide information
annually for each program on overall expenditures, educational expenditures, and tuition and fees annually for each program on overall expenditures, educational expenditures, and tuition and fees
revenue. revenue.
Effect on Direct Loans for Students Pursuing 300-599 Clock Hour
Programs
The Direct Loan program allows eligible students in educational programs of 300-599 clock The Direct Loan program allows eligible students in educational programs of 300-599 clock
hours of instruction over at least 10 weeks to borrow from the HEA Title IV Direct Loan program hours of instruction over at least 10 weeks to borrow from the HEA Title IV Direct Loan program
(see th(see the “Current Requirements for 300-599 Clock Hour Programs Participating in the Direct
Loan Program” section). The DL program supports Title IV-eligible students regardless of family section). The DL program supports Title IV-eligible students regardless of family
income. The Pell Grant program supports lower-income Title IV-eligible students. income. The Pell Grant program supports lower-income Title IV-eligible students.
H.R. 496 and S. 161 would not amend the DL program for students pursuing 300-599 clock hour H.R. 496 and S. 161 would not amend the DL program for students pursuing 300-599 clock hour
programs. Lower-income students would be able to combine the Pell Grant and Direct Loan programs. Lower-income students would be able to combine the Pell Grant and Direct Loan
while pursuing educational programs of 300-599 clock hours over at least 10 weeks. Lower-while pursuing educational programs of 300-599 clock hours over at least 10 weeks. Lower-
income students in shorter programs (i.e., 150-299 clock hours over 8-9 weeks) would only be income students in shorter programs (i.e., 150-299 clock hours over 8-9 weeks) would only be
eligible for Pell Grants. eligible for Pell Grants.
H.R. 1655 would require that 300-599 clock hour programs be Pell-eligible short-term programs H.R. 1655 would require that 300-599 clock hour programs be Pell-eligible short-term programs
for enrolled students to receive Direct Loans. The ability of students in 300-599 clock hour for enrolled students to receive Direct Loans. The ability of students in 300-599 clock hour
programs that meet the current law requirements to receive Direct Loans would sunset within 60 programs that meet the current law requirements to receive Direct Loans would sunset within 60
days of ED approving the first short-term Pell Grant program. days of ED approving the first short-term Pell Grant program.

8587 The applicable poverty line is as determined under Section 673(2) of the Community Services Block Grant Act (42 The applicable poverty line is as determined under Section 673(2) of the Community Services Block Grant Act (42
U.S.C. §9902(2)). U.S.C. §9902(2)).
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Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress

Appendix. Calculation of Pell Grant Award
Amounts for Shorter Clock Hour Programs
The amount of an eligible student’s Pell Grant award is determined on the basis of a set of award The amount of an eligible student’s Pell Grant award is determined on the basis of a set of award
rules. The rules. The scheduled award, based primarily on adjusted gross income (AGI) and student aid , based primarily on adjusted gross income (AGI) and student aid
index (SAI), is the maximum Pell Grant aid a full-time, full-academic-year student can receive.index (SAI), is the maximum Pell Grant aid a full-time, full-academic-year student can receive.8688
The scheduled award is prorated for the student’s enrollment rate (if applicable) and the The scheduled award is prorated for the student’s enrollment rate (if applicable) and the
program’s length (if applicable). The award may not exceed the cost of attendance (COA). program’s length (if applicable). The award may not exceed the cost of attendance (COA).
For clock-hour and credit-hour nonterm programs, For clock-hour and credit-hour nonterm programs,8789 the scheduled award is prorated for the the scheduled award is prorated for the
program’s length (see the text boxes below). The amount of the scheduled award is prorated program’s length (see the text boxes below). The amount of the scheduled award is prorated
based on either the weeks of instruction or clock hours of instruction in comparison to the based on either the weeks of instruction or clock hours of instruction in comparison to the
academic year minimums. The HEA academic year minimum for clock-hour programs is 900 academic year minimums. The HEA academic year minimum for clock-hour programs is 900
clock hours over 26 weeks of instructional time. For credit-hour programs, the academic year clock hours over 26 weeks of instructional time. For credit-hour programs, the academic year
minimum is 24 semester credit hours (or 36 quarter credit hours) over 30 weeks. minimum is 24 semester credit hours (or 36 quarter credit hours) over 30 weeks.
In addition, the Pell Grant award for shorter programs must be paid in a minimum of two In addition, the Pell Grant award for shorter programs must be paid in a minimum of two
installments over the course of the program. Generally, the proration is the lower of either (1) the installments over the course of the program. Generally, the proration is the lower of either (1) the
hours in the payment period divided by the weeks in the academic year or (2) the weeks in the hours in the payment period divided by the weeks in the academic year or (2) the weeks in the
payment period divided by the weeks in the academic year.payment period divided by the weeks in the academic year.8890
Sample Pell Grant Award for
Shorter Clock-Hour or Credit-Hour Nonterm Programs:
Maximum Scheduled Award
Student A has an AGI at the federal poverty guidelines for her family characteristics, a zero SAI, and a COA of Student A has an AGI at the federal poverty guidelines for her family characteristics, a zero SAI, and a COA of
$16,000. She enrol s in a 500 clock-hour program that lasts 14 weeks. The IHE describes a payment period for the $16,000. She enrol s in a 500 clock-hour program that lasts 14 weeks. The IHE describes a payment period for the
program as 250 clock hours and 7 weeks. The IHE defines an academic year as 900 clock hours over 26 weeks. program as 250 clock hours and 7 weeks. The IHE defines an academic year as 900 clock hours over 26 weeks.
The scheduled award for Student A is the maximum Pell Grant award. In AY2023-2024, the maximum Pell Grant The scheduled award for Student A is the maximum Pell Grant award. In AY2023-2024, the maximum Pell Grant
award is $7,395. The amount for each payment period is prorated by the lesser of two fractions: award is $7,395. The amount for each payment period is prorated by the lesser of two fractions:
• •
the hours in the payment period divided by the hours in an academic year (250 / 900 = 0.2777) or the hours in the payment period divided by the hours in an academic year (250 / 900 = 0.2777) or
• •
the weeks in the payment period divided by the weeks in an academic year (7 / 26 = 0.2692). the weeks in the payment period divided by the weeks in an academic year (7 / 26 = 0.2692).
The Pell Grant payment for each payment period is $1,990.73 ($7,395 x 0.2692). Student A may receive a total of The Pell Grant payment for each payment period is $1,990.73 ($7,395 x 0.2692). Student A may receive a total of
$3,981.46 ($1,990.73+ $1,990.73) in Pell Grant funds for the program over the two payment periods. $3,981.46 ($1,990.73+ $1,990.73) in Pell Grant funds for the program over the two payment periods.
For a student whose scheduled award is the minimum Pell Grant award, the scheduled award is For a student whose scheduled award is the minimum Pell Grant award, the scheduled award is
also prorated for the program’s length (see below). also prorated for the program’s length (see below).

8688 The SAI is a metric established in the HEA that synthesizes personal and financial characteristics to estimate the The SAI is a metric established in the HEA that synthesizes personal and financial characteristics to estimate the
ability, as measured in dollars, of a student to pay for postsecondary education. ability, as measured in dollars, of a student to pay for postsecondary education.
8789 In a nonterm academic calendar, classes do not begin and end within a set time frame, such as a term. In a nonterm academic calendar, classes do not begin and end within a set time frame, such as a term.
8890 Generally, the payment period is the academic term. However, for nonterm programs of one academic year or less in Generally, the payment period is the academic term. However, for nonterm programs of one academic year or less in
length, the first payment period is the period in which the student successfully completes half of the credit or clock length, the first payment period is the period in which the student successfully completes half of the credit or clock
hours and half of the weeks of instructional time in the program. The second payment period is the period in which the hours and half of the weeks of instructional time in the program. The second payment period is the period in which the
student completes the remainder of the program. Most HEA Title IV aid disbursements must be made on a payment student completes the remainder of the program. Most HEA Title IV aid disbursements must be made on a payment
period basis. period basis.
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Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress

Sample Pell Grant Award for
Shorter Clock-Hour or Credit-Hour Nonterm Programs:
Minimum Scheduled Award
Student A has an AGI at 250% of the federal poverty guidelines for her family characteristics, an SAI of $6,656, and Student A has an AGI at 250% of the federal poverty guidelines for her family characteristics, an SAI of $6,656, and
a COA of $16,000. She enrol s in a 500 clock-hour program that lasts 14 weeks. The IHE describes a payment a COA of $16,000. She enrol s in a 500 clock-hour program that lasts 14 weeks. The IHE describes a payment
period for the program as 250 clock hours and 7 weeks. The IHE defines an academic year as 900 clock hours period for the program as 250 clock hours and 7 weeks. The IHE defines an academic year as 900 clock hours
over 26 weeks. over 26 weeks.
The scheduled award for Student A is the minimum Pell Grant award. In AY2023-2024, the maximum Pell Grant The scheduled award for Student A is the minimum Pell Grant award. In AY2023-2024, the maximum Pell Grant
award is $7,395 and the minimum award is 10% of the maximum, or $750.award is $7,395 and the minimum award is 10% of the maximum, or $750.8991 The amount for each payment period The amount for each payment period
is prorated by the lesser of two fractions: is prorated by the lesser of two fractions:
• •
the hours in the payment period divided by the hours in an academic year (250 / 900 = 0.2777) or the hours in the payment period divided by the hours in an academic year (250 / 900 = 0.2777) or
• •
the weeks in the payment period divided by the weeks in an academic year (7 / 26 = 0.2692). the weeks in the payment period divided by the weeks in an academic year (7 / 26 = 0.2692).
The Pell Grant payment for each payment period is $201.90 ($750 x 0.2692). Student A may receive a total of The Pell Grant payment for each payment period is $201.90 ($750 x 0.2692). Student A may receive a total of
$403.80 ($201.90 + $201.90) in Pell Grant funds for the program over the two payment periods. $403.80 ($201.90 + $201.90) in Pell Grant funds for the program over the two payment periods.

Author Information

Cassandria Dortch Cassandria Dortch
Benjamin Collins Benjamin Collins
Specialist in Education Policy Specialist in Education Policy
Analyst in Labor Policy Analyst in Labor Policy

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8991 The actual minimum award amount differs from 10% of the maximum award because of rounding rules and because The actual minimum award amount differs from 10% of the maximum award because of rounding rules and because
ED uses midpoints for both the expected family contribution (EFC) and the COA in the annual award rule. ED uses midpoints for both the expected family contribution (EFC) and the COA in the annual award rule.
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