NEFI has filed formal comments with the U.S. Department of Education on a proposed rule that would expand the federal Pell Grant program to include short-term workforce training programs for the first time. The expansion, often referred to as "Workforce Pell," was authorized by the One Big Beautiful Bill Act signed into law by President Trump last July and is scheduled to take effect on July 1, 2026.

Pell Grants are need-based federal grants awarded to low-income students to help pay for education and training. Unlike student loans, they do not require repayment. The program has historically been limited to longer academic programs of at least 600 clock hours and 15 weeks, which excluded most HVAC certification courses and commercial driver license (CDL) training programs.

Under the new Workforce Pell provisions, shorter duration programs lasting 8 to 14 weeks and 150 to 599 clock hours will become eligible for Pell funding, provided they meet a series of requirements including state Governor approval, a 70 percent completion rate, a 70 percent job placement rate, and the award of a recognized, stackable credential. The U.S. government estimates that eligible students could receive up to approximately $4,000 per program, with most awards expected to average around $2,200, depending on program length and the student's financial need.

The expansion is significant for the heating fuels and broader HVAC services industry, which faces persistent shortages of both service technicians and CDL drivers with hazmat and tanker endorsements. In its comments, NEFI expressed strong support for the expansion while recommending improvements in several areas, including raising a proposed 25% cap on partnerships between accredited institutions and industry-operated training providers, ensuring that job placement criteria recognize sector-related employment, and requesting guidance on how CDL programs that incorporate training for hazmat or other endorsements qualify under the minimum duration requirements.

Click here to read NEFI’s full comments to the Department of Education. NEFI also signed on to comments submitted by the Jobs and Careers Coalition (JCC), a Washington-based employer group focused on workforce development policy. Several of NEFI’s recommendations mirror those of the JCC. You can read the coalition’s comments here.

The Department of Education is expected to publish a final rule in the coming weeks. NEFI members with questions about the Workforce Pell expansion or its potential impact on industry training programs should contact NEFI President & CEO Jim Collura at jim.collura@nefi.com.