One Big, Beautiful Bill: How Pell Grant expansions will support millions in workforce training programs starting 2026

Time of India

21-07-2025

(AI Image)
The US government is set to expand Pell Grants to include new workforce training programs as part of the landmark legislation signed by President Donald Trump. The law, known as the "One Big, Beautiful Bill Act," aims to provide financial aid to students enrolled in short-term post-high school training programs lasting between eight and 15 weeks.
This expansion is scheduled to begin in July 2026, marking a significant shift in how federal aid supports non-traditional education paths.
Under this law, the US Department of Education will be responsible for vetting and authorizing schools to receive Pell Grant funding for these new programs. The move is designed to assist millions of Americans seeking quick, targeted training in fields such as cosmetology and welding, thereby expanding access to career-focused education beyond traditional college degrees.
Pell Grant expansion to short-term workforce training programs
The One Big, Beautiful Bill Act establishes a new type of Pell Grant specifically for students enrolled in workforce training programs that are shorter than traditional college semesters. The expansion covers programs lasting from eight to 15 weeks, addressing the growing demand for flexible educational opportunities aligned with labor market needs.
This initiative will allow students in approved programs to qualify for federal financial aid, providing critical support for individuals pursuing skills-based training. The Education Department is tasked with beginning the review and approval of eligible programs by July 2026, ensuring that schools meet federal standards to access Pell funds.
Federal student loan repayment plan overhaul
The legislation also replaces all existing federal student loan repayment programs for new borrowers after July 1, 2026, with two streamlined options: a standard repayment plan and an income-based plan.
This change affects new borrowers, while the over 40 million Americans who currently hold federal student loans will retain access to some legacy repayment plans.
However, around 8 million borrowers enrolled in President Joe Biden's signature repayment program will be required to transition to one of the new plans by 2028. The Federal Student Aid office, a division of the Education Department, will oversee this transition and manage repayment operations.
New accountability rules for colleges
In addition to financial aid changes, the bill mandates the Education Department to enforce new accountability standards on colleges and universities. The so-called "do no harm" test aims to prevent federal loans from being available to programs that fail to deliver a positive return on investment for students.
To implement these rules, the Education Department will need to analyze extensive data from multiple sources, including colleges, the Internal Revenue Service, the Bureau of Labor Statistics, and state agencies.
This data-driven process will assess program outcomes across thousands of schools and tens of thousands of programs over several years.
Department of Education staffing and implementation challenges
The Education Department faces considerable challenges in executing the new law amid significant workforce reductions. Since the beginning of the year, the department's staff has been cut by half, and recent Supreme Court rulings have allowed layoffs of more than 1,000 employees to proceed while legal disputes continue.
Beth Akers, a senior fellow at the American Enterprise Institute, expressed concerns about the department's capacity to implement the legislation effectively. She told
USA Today
during a recent webinar, "I do have significant concerns that the speed of the cuts will have left us with a department that is unable to effectively implement this legislation."
Similarly, Jon Fansmith, senior vice president for government relations at the American Council on Education, warned of upcoming difficulties, as reported by
USA Today
: "You can definitely anticipate a lot of problems."
Previous challenges with federal student aid programs
The department's recent history includes difficulties implementing large-scale changes. For example, the rollout of FAFSA simplification legislation in 2020 experienced significant problems that jeopardized financial aid for millions of students. Staffing shortages and reliance on contractors were among the factors cited for the flawed execution.
Despite this, Education Department officials maintain that the agency is prepared to carry out the One Big, Beautiful Bill Act's mandates.
Jeffrey Andrade, a senior official, released guidance for implementation on July 18, with promises of more detailed information in the following weeks and months.
Deputy press secretary Ellen Keast told
USA Today
, "We will continue to deliver meaningful and on-time results while implementing the President's OBBB ('One Big Beautiful Bill') to better serve students, families, and administrators."
Outlook for students and schools
Financial aid administrators have already raised alarms about the potential for disruption as the department reallocates responsibilities to meet new demands. Melanie Storey, president of the National Association of Student Financial Aid Administrators, stressed to
USA Today
the need for clear plans: "With significantly more work on the horizon to implement the One Big Beautiful Bill Act, we reiterate our concerns that the Trump administration has not shared the details of a plan to redistribute the Department's work in a way that does not cause significant disruption for America's college students."
As the US prepares for these major changes in student aid and workforce training support, both students and educational institutions will be closely watching the department's progress in meeting the ambitious goals set by the new law.
TOI Education is on WhatsApp now. Follow us
here
.
Ready to navigate global policies? Secure your overseas future. Get expert guidance now!