Workforce Pell Negotiated Rulemaking Set to Begin Next Week

This week, the U.S. Department of Education published new details ahead of next week’s negotiated rulemaking sessions on Workforce Pell Grant programs. Elsewhere, appropriations efforts are inching toward the new year; new developments emerged regarding recent Interagency Agreements at ED; a House subcommittee discussed student privacy; and a public comment period opens regarding federal scholarship tax credits.

Workforce Pell Negotiated Rulemaking Set to Begin Next Week

This week, the U.S. Department of Education published new details ahead of next week’s negotiated rulemaking sessions on Workforce Pell Grant programs. Elsewhere, appropriations efforts are inching toward the new year; new developments emerged regarding recent Interagency Agreements at ED; a House subcommittee discussed student privacy; and a public comment period opens regarding federal scholarship tax credits.

Public Policy
• December 5, 2025

U.S. Department of Education Releases Draft Materials for Workforce Pell Negotiations

This week, the U.S. Department of Education (ED) released new details regarding an upcoming negotiated rulemaking session held by the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee. The agenda for committee sessions next week is primarily focused on Workforce Pell, in accordance with rules established in portions of the One Big Beautiful Bill Act (OBBBA) passed earlier this year. Committee members are tasked with negotiating rules for Workforce Pell and other postsecondary eligibility and accountability considerations to inform future ED regulations.

The AHEAD Committee will consider an initial draft proposal for discussion that outlines ED’s vision for implementing Workforce Pell in the future, with official implementation for states taking effect on July 1, 2026. The proposal envisions implementing the new program through processes largely overseen and defined by state Governors.

The AHEAD Committee will convene again in January to discuss further rulemaking. Advance CTE will continue to closely monitor these negotiations and subsequent materials as these efforts continue to take shape.

Federal Funding Progress Slows

The next funding deadline for Congress is January 30, 2026. Earlier this week, Senate Majority Leader John Thune (R-SD) indicated that the Senate likely won’t have time to pass the remaining fiscal year 2026 (FY26) appropriations bills before the holiday recess. Senate efforts continue to demonstrate a desire to package several spending measures together for floor consideration, but progress towards much-needed FY26 funding has slowed considerably this week. As a result, large portions of the federal government remain under temporary funding from the continuing resolution (CR) included in the agreement to end the federal government shutdown last month.

Advance CTE will continue to monitor the FY26 outlook and advocate for greater investments in Career Technical Education (CTE) and other federal education and workforce development efforts. View the current appropriations status table here.

Interagency Agreements Under Close Scrutiny

As previously reported, ED announced six new Interagency Agreements (IAAs) to transfer day-to-day administrative responsibilities for a range of major education programs to other agencies. Under these agreements, the U.S. Department of Labor (DOL) – which already entered into an IAA earlier this year to administer CTE and adult education grants – will now also handle other K-12 and postsecondary grant programs managed by ED. The administration continues to frame the shift as an effort to “streamline” federal education functions and reduce bureaucracy for state education agencies.

A recent internal memo at ED raised concerns about migrating large grant portfolios, including potential disruptions, loss of adequate program oversight, and confusion for grantees supporting learners, educators, and state education systems. Today, ED shared an update about the IAA regarding the administration of CTE at DOL in a press release.

On Wednesday, Senate Democrats sent a letter to Secretary of Education Linda McMahon, urging that the IAAs be reversed, warning that shifting the fundamental responsibilities of ED undermines federal law, jeopardizes funding for learners, and creates new bureaucratic burdens for states, districts, and schools. Click here to read the letter.

Notably absent from the IAAs were larger ED programs such as the Individuals with Disabilities in Education Act (IDEA), Impact Aid, the Office of Civil Rights (OCR), and Student Financial Aid. However, this week, Secretary McMahon indicated more IAAs may be in store for the department in the near future.

Advance CTE will continue to monitor these developments closely and more as these efforts continue to take shape.

Odds and Ends

The House Education and the Workforce Subcommittee held a hearing to review how federal student privacy laws protect student records and parental access to information. Lawmakers and witnesses discussed broader implications for parental rights, educator roles, and sensitive issues such as transgender student safety and immigration. Click here to access hearing materials.
The Treasury Department and Internal Revenue Service are soliciting feedback for a new federal scholarship tax credit created by OBBBA, which would allow taxpayers to claim up to $1,700 for contributions to scholarship organizations starting in 2027, with states opting in beginning in 2026. Treasury and IRS opened public comment on the program’s implementation, which closes on December 26, 2025.