Does the Workforce Pell Grant Program offer a reprieve for US higher education?

The new Workforce Pell Grant Program – known as the “short-term Pell” and signed into US federal law this July as part of the One Big Beautiful Bill, offers a timely opportunity to address the growing crisis in higher education. This is because the policy is designed to support learners who seek to quickly enter the workforce or reskill in response to changing economic demands rather than spend years working towards a traditional degree. 

For decades, the bachelor’s degree has been regarded as the primary pathway to economic mobility. But as student debt rises, enrolment declines and public scepticism grows, the traditional model clearly no longer works for all learners. The advent of short-term Pell grants could now mark a new golden opportunity for realigning education with workforce needs and creating more affordable, accessible pathways to success.

At its core, Workforce Pell extends federal financial aid eligibility to programmes of eight to 15 weeks – so much shorter than the traditional associate degree. This means that students can apply for Pell dollars towards certificate programmes, industry-recognised credentials or technical training that could take months rather than years to complete. Done well, the policy could rebalance our education system towards a more flexible ecosystem, one that meets students where they are and provides employers with the skilled workers they need.

• Making higher education accessible for students with unmet financial need
• How university financial support teams can bolster student mental health
• Is graduate employability a core university priority?

The need for this pivot could not be more urgent. Higher education is siting astride what feels like a national fault line. The data tells a sobering story: since 2000, the US has fallen from third place to ninth among the 38 OECD countries ranked for the proportion of adults aged 25 to 64 who hold a postsecondary degree. NAFSA, the National Association of International Educators, projects a $7 billion (£5.2 billion) revenue shortfall in the US next year, tied to declining international enrolment. And for the first time in American history, more than two-thirds of Americans report believing that higher education is not worth the time or money. Even more striking, 43 million Americans who started college have left without completing a degree so are often burdened with debt but without the credential that was meant to secure their futures.

As someone who has spent 25 years in higher education – as professor, department chair, dean, provost and university president – I have witnessed this reality first-hand. I have listened to countless students express frustration that college is not working for them. They feel caught between escalating costs, rigid curricula and a job market that often does not reward the investment. These students are not disengaged or incapable; rather, they are navigating an education system that too often seems misaligned with their needs and aspirations.

Put simply, higher education today faces a problem of both value and values. On one side are students and families questioning the return on investment; on the other are institutions wrestling with outdated systems, public mistrust and political polarisation. Too often, the sector has focused on internal debates and oppositional politics rather than identifying opportunities for reinvention. Short-term Pell is one such opportunity.

This programme creates space for institutions to collaborate more directly with industry – something for which students and employers have articulated a desperate need. By building apprenticeships and credentialing programmes in partnership with employers, colleges can ensure that students gain not only theoretical knowledge but immediately applicable skills. This approach can strengthen trust between students, institutions and the labour market.

Short-term Pell also invites a rethinking of curriculum design. For decades, higher education has followed a strictly vertical model: general education at the foundation, followed by disciplinary specialisation, capped with a degree. What if we layered this with a horizontal dimension as well – one that prioritises transferable human skills such as communication, collaboration, adaptability and problem-solving? A curriculum that integrates both depth and breadth could better prepare students for a world of constant change.

Finally, short-term Pell challenges us to imagine new types of institutions altogether. Rather than replicating the traditional campus, future models could combine classroom learning with workplace training and community-based mentorship. Education could become a lifelong process rather than a one-time credential, allowing learners to re-engage at different stages of their careers.

The new investment in the workforce through Pell is not without potential pitfalls, however. Institutions must now ensure quality and guard against predatory programmes that offer credentials without value. Faculty might have concerns about balancing rigour with relevance. Employers will need to articulate skill needs clearly and commit to supporting apprenticeships and partnerships. Policymakers must remain attentive to accountability and equity. But these challenges are not insurmountable.

What is clear is that the status quo is no longer sustainable. Declining trust, falling rankings and rising costs all point to the need for new solutions. Short-term Pell is not a panacea but it represents a pragmatic and promising step forward. It is rare to find a policy initiative that aligns the interests of students, employers and institutions. This is one.

The future of higher education depends on whether leaders are willing to seize it.

Pardis Mahdavi is an author, journalist, entrepreneur, coach, keynote speaker and expert on human rights and education policy. She has held senior university leadership roles including dean, provost and president.

If you’d like advice and insight from academics and university staff delivered direct to your inbox each week, sign up for the Campus newsletter.