March, 2022 

Dear Leader Schumer, Speaker Pelosi, Leader McConnell, and Leader McCarthy, 

Thank you for your leadership on workforce and education policy issues throughout the 117th Congress. As you conference the United States Innovation and Competition Act of 2021 (USICA) and the America COMPETES Act of 2022 (COMPETES), the undersigned organizations urge you to include in the final package language to expand Pell Grant eligibility to shorter-term education and training programs. The requested language reflects the bipartisan Levin / Gonzalez amendment which passed as part of COMPETES, as well as the proposed bipartisan amendment to USICA offered by Senators Kaine and Portman that was included as part of the manager's package.  Both amendments were based on language from the JOBS Act (S. 864, H.R. 2037), which has 48 bipartisan cosponsors in the Senate.  

Even before the pandemic, our nation faced a skills mismatch between the existing workforce and job openings, including in sectors such as manufacturing, allied and direct health care, and infrastructure. This situation has only become more acute.  Over the past two years we've seen an acceleration in workforce automation and digital transformation. With the rapid pace of technological change, workers and employers need higher education to help them rapidly re-skill throughout their life. According to a recent report by Deloitte and The Manufacturing Institute the skills required to perform many jobs in the manufacturing sector are transforming with a greater need for workers with technical training and applied skills. Failure to address this need for additional skills training could leave up to 2.1 million manufacturing jobs unfilled, and impact productivity, innovation, and U.S. competitiveness.  As our economy recovers from the pandemic – the most devastating economic crisis since the Great Depression – our recovery will depend (in part) on workers having access to skills training that growing industries desperately need.  

Thousands of community and technical colleges and non-profit career and technical institutions are working to meet the challenges of providing affordable and accessible education and training programs that meet the demands of the 21st century workforce. These programs are aligned with in-demand sectors such as health care, transportation, logistics, and IT. Several states have created initiatives to try and address the immediate and future needs of individuals seeking high-quality shorter-term education and training programs. In Virginia, the FastForward program has awarded 32,700 credentials since 2016 with graduates seeing on average a 55 percent increase in wages. Indiana has had more than 50,000 individuals complete a postsecondary credential under its Workforce Ready Grant. Yet, even with these efforts, the demand for these programs often outpaces available resources. After two years of enrollment drops due to the pandemic, North Carolina's enrollment rose in the Fall 2021 because of individuals seeking short-term training programs. While enrollment in traditional academic programs fell by 3 percent, enrollment in short-term workforce education grew by 22 percent.  

At the federal level there is not a consistent and equitable source of financial assistance for students enrolled in postsecondary education and training programs that fall below 600 clock hours and 15 weeks in length. Many community and technical colleges opted to use formula funding under the temporary Higher Education Emergency Relief Fund (HEERF) to support the expansion of low-cost or no-cost education and training programs that lead to in-demand jobs.  However, this is one-time funding intended to respond to the pandemic. Under the Workforce Innovation and Opportunity Act, individuals who have barriers to employment may qualify for financial assistance, however that is not based solely on financial need and is contingent upon available funding which has declined in recent years adjusting for inflation.  

As a growing number of students balance additional obligations outside of school, high-quality short-term programs provide the flexibility many students need to access strong career paths. For example, military spouses and veterans who may not be eligible for GI Bill benefits, and others looking to return to the workforce post-pandemic often benefit from access to high-quality affordable training to help them find viable employment quickly. Additionally, evidence shows that such assistance helps students access and complete these programs. The Department of Education's evaluation of its short-term Pell Grant Experimental Sites Initiative demonstrated that enrollment and completion rates were higher for students who received aid for these short-term programs than those who did not; program completion increased by nearly 20% when students had access to aid, and students receiving aid were 15% more likely to enroll in additional educational programs.

Expanding Pell Grant eligibility to shorter-term education and training programs will help create affordable and accessible pathways to postsecondary credentials for tens of thousands of students. It does so without requiring additional discretionary appropriations in the coming years, as the cost would be offset by the existing Pell Grant surplus. The COMPETES amendment also includes safeguards for students and taxpayers to ensure that eligible programs are high-quality and in-demand. Eligible programs must be determined as in-demand and demonstrate wage progression for graduates. They must also be aligned with a recognized postsecondary credential, meet employer hiring requirements including for licensure or certification, and articulate for credit to support longer-term career pathways.  

For these reasons, we ask that you retain the Levin / Gonzalez amendment in the final conferenced version of USICA and COMPETES. Access to high-quality education and training opportunities benefits workers, as well as our nation's economy and ability to compete globally. Thank you for your consideration. 

CC: Senator Patty Murray, Chair, Senate Committee on Health, Education, Labor, and Pensions  
Senator Richard Burr, Ranking Member, Senate Committee on Health, Education, Labor, and Pensions  
Representative Bobby Scott, Chair, House Committee on Education and Labor  
Representative Virginia Foxx, Ranking Member, House Committee on Education and Labor 
Senator Tim Kaine 
Senator Rob Portman 
Representative Andy Levin 
Representative Anthony Gonzalez