California is racing to prepare for a new federal financial aid program that could help low-income students enroll in short-term job training programs, but state officials say the money may not reach students when the program officially begins July 1.
The new aid, known as short-term or workforce Pell Grants, expands the long-running federal Pell Grant program, which provides need-based aid to college students for tuition and living costs. For the first time, federal grants will be available for students in certain short-term workforce programs, including fields such as automotive technology and computer training, many of which last about 10 weeks.
Both public and private institutions may qualify. Federal officials have not finalized all details, but the average student is expected to receive between $1,000 and $3,000.
The change could have significant implications for California community colleges, including those across Southern California and the Inland Empire, where many students pursue career technical education in health care, skilled trades, technology and public safety. But state officials say California does not yet have the systems in place to administer the new aid smoothly.
Daisy Gonzales, executive director of the California Student Aid Commission, has said in legislative hearings and in an interview with CalMatters that students likely will not receive the grants until weeks or possibly months after the federal start date. She described financial aid systems as “extremely complex” and said California lacks the infrastructure needed to meet the federal timeline.
Creating a new financial aid program requires coordination between federal officials, the state, colleges and local districts. California must build new administrative systems, enter into agreements with schools and ensure programs meet federal requirements before students can receive funds.
The grants are part of a bipartisan national push to better connect higher education with workforce needs. Supporters say the money could help students quickly train for jobs without taking on debt. But critics and policy experts warn that short-term job training programs have produced uneven results, especially when public dollars flow to programs that lead to low wages or unstable work.
In 2024, CalMatters reported on how California job centers used federal funds to help low-income and unemployed adults attend short-term training programs, including at for-profit schools. Public subsidies supported training for truck drivers and nursing assistants, occupations that can involve low pay, difficult working conditions and high turnover. Some for-profit schools were under investigation for various violations while enrolling students. CalMatters also found that most truck-driving schools had little oversight, and some nursing assistants earned less than $30,000 after completing their programs.
The new short-term Pell Grants include federal rules intended to limit those risks. Eligible programs must show that graduates earn more than the federal poverty level in a high-demand occupation, and only certain accredited schools will qualify. California lawmakers are also weighing a proposal that would further narrow which programs can receive the new funding.
Because neither the state nor the federal government closely tracks short-term workforce training programs, it remains unclear how many programs exist or how many students could benefit. The California Community Colleges Chancellor’s Office told CalMatters in an email that it is too early to provide estimates.
Gonzales pointed to Cal Grant C, a state program for students enrolled in career training programs that last at least 15 weeks, as one indication of potential demand. This year, about 225,000 students were potentially eligible for Cal Grant C. But the program has a relatively small budget and serves just under 7,800 students annually. The new federal Pell expansion could eventually bring billions of dollars in federal spending nationally.
In San Diego County, Southwestern College President Mark Sanchez said the grants could be especially important for students who work full time but still struggle to cover basic living expenses. At the Chula Vista campus, he said, some students, including U.S. citizens, live in Tijuana because housing is more affordable and cross the border each day to attend classes in California.
Sanchez has promoted the new Pell Grants to state and local officials, arguing they could help students move into better-paying careers. Southwestern College estimated that about 1,500 students could qualify across roughly 50 programs, ranging from music to accounting.
To participate, schools will have to work with state and federal agencies to prove that at least 70% of graduates from eligible programs are employed and earning wages above the federal poverty threshold. But education and workforce data are often scattered, incomplete or not collected at all, said Su Jin Jez, executive director of California Competes, an education policy nonprofit.
State records may show, for example, that a college graduate works for a school district and how much that person earns, Jez said. But the data may not show whether the graduate is working as a teacher, secretary, attorney or custodian.
“Our state invests billions in aligning higher education with the labor market, and we don’t have a good way of knowing whether those investments are paying off,” Jez said.
California Competes is sponsoring two bills this year. One, by state Sen. Christopher Cabaldon, D-Napa, would require state workforce agencies to collect more data. The other, by Assemblymember Jacqui Irwin, D-Thousand Oaks, would regulate which programs qualify for the new short-term Pell Grants. Assemblymember Juan Alanis, R-Modesto, is a co-author of Irwin’s bill, and the Institute for College Access & Success is a co-sponsor.
The governor’s office has separately drafted emergency legislation that includes proposed regulations for the new grants. The California Student Aid Commission does not take formal positions on pending bills, but Gonzales has publicly praised Irwin’s legislation and criticized the governor’s proposal, saying it risks creating a fragmented system.
State officials are also looking to avoid the mistakes of a recent financial aid program that failed to gain traction. During the COVID-19 pandemic, Gov. Gavin Newsom and the Legislature created the Learning-Aligned Employment Program, intended to provide millions of dollars in aid to working students and help them secure jobs related to their fields of study.
Gonzales, who was then vice chancellor of the community college system, said the program fell short. It relied on one-time funding and had only three years to succeed, she said, but lacked the professional development and technical assistance needed to help colleges and students use it effectively.
“You can’t just introduce a new tool and say, ‘Students, apply,’” Gonzales said.
By the end of the three-year period, few students had applied, and state lawmakers chose to cancel the program. Nicole Kangas, a spokesperson for the Student Aid Commission, said in an email to CalMatters that the Learning-Aligned Employment Program should serve as a warning as California implements the new Pell Grants.
Congress approved the Pell expansion last summer, but the U.S. Department of Education did not finalize its rules until last month, leaving states less than two months before the July 1 launch. California now must complete a long list of administrative and regulatory steps, including agreements between the state and each participating college district or university.
When the Student Aid Commission created similar agreements with colleges for the Middle Class Scholarship, the contracts ran 60 to 120 pages and took about nine months to complete, Gonzales said.
“We are really behind,” she said, adding that several other states have already passed legislation related to the new grants. Measures such as Irwin’s bill, she said, could give California “an opportunity to catch up.”
For Sanchez at Southwestern College, the challenge will not end once the grants are available. Colleges will still have to make sure current and prospective students know the aid exists and are encouraged to apply.
Many community college students face financial hardship, including some who are homeless, but large numbers either are unaware of financial aid, hesitate to apply or submit incomplete applications. Fewer than half of California community college students applied for financial aid last year, and state data show that even fewer received it.
Original source: CalMatters
