Federal aid to begin covering short job-training programs starting July 1

Federal student aid will cover short, hands-on training programs for the first time in more than 50 years beginning July 1. The change opens grants to courses such as 12-week welding classes that lead directly to employment. The Education Department described the shift as one of the largest changes to the grant program in its history.

Employers facing shortages of welders, electricians, and HVAC technicians have long said the lack of federal support limited the supply of trained workers.

Approval and performance requirements A program must first receive approval from the governor after consultation with the state workforce board, then obtain a second review from the U.S. Secretary of Education. At least 70 percent of students must finish within 150 percent of the scheduled time, and at least 70 percent of those graduates must be employed by the second quarter after completion.

Tuition cannot exceed the amount graduates earn above 150 percent of the poverty line, a calculation that will first be performed in 2030. Programs missing the completion or placement thresholds face a two-year shutdown and cannot restart a similar course.

Background on the legislation The underlying law passed in July 2025 after support from members of both parties and endorsements from business groups. An 85-page regulatory framework followed the legislation. Four-year degree programs face only a single earnings check under the same law, with no completion or placement requirements.

Officials at some higher-education associations have described the new rules as heavy enough to treat the short-term program as a pilot. Implementation begins July 1 across the states, where governors will decide which programs advance.