Opportunities for Success Act of 2025

Bill Number

H.R. 6606

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-12-11: Referred to the House Committee on Education and Workforce.

Last Updated

2026-01-03T05:53:15Z

AI-Generated Summary

Purpose

The Opportunities for Success Act of 2025 reauthorizes and reforms the Federal Work-Study program under the Higher Education Act of 1965. Its main goal is to expand access to paid work opportunities for college students, especially those with financial need, by increasing funding, prioritizing career-aligned jobs (like internships and apprenticeships), and improving program administration to boost student completion rates and career preparation.

Key Provisions

• Funding Authorization: Allocates increasing amounts for the program—$1.5 billion in fiscal year (FY) 2027, rising to $2.5 billion in FY 2031 and beyond—to support student wages in eligible jobs.
• Expanded Eligible Activities: Includes child development (e.g., Head Start programs), literacy training, and new "work-based learning" options such as internships, apprenticeships, research assistantships, and teacher residencies. Work-based learning is defined as hands-on experiences in real workplaces that align with a student's field of study, including on-campus opportunities.
• Allocation Formula:
• Reserves up to 20% of funds above $700 million (capped at $150 million) for "improved institutions"—those with high completion rates for Pell Grant recipients (low-income students), at least 50% Pell Grant students, and improving graduation rates. Each gets at least $5,000.
• Reserves $30 million annually for a pilot grant program to develop work-based learning positions.
• Shifts to a "fair share" formula by FY 2031, based on 100% of undergraduate student financial need and 25% of graduate need, calculated using costs like tuition, living expenses, and student aid index (a measure of financial need). Institutions with low Pell Grant enrollment (<7% undergraduates or <5% for graduate-only schools) become ineligible after two of three prior years.
• Allows reallocation of unused funds to institutions prioritizing work-based learning or non-enrollment jobs (up to 6 months between terms).
• Institution Requirements:
• Starting FY 2028, at least 7% of funds for work-based learning jobs, 7% for community service (including tutoring/literacy), and 3% for jobs during non-enrollment periods for students with exceptional need (very low-income students).
• Up to 25% (or 50% with waiver) of funds for off-campus jobs; prioritizes homeless or foster youth.
• Institutions must reimburse reasonable travel costs (not vehicle purchases) and use feedback from new surveys to improve programs.
• Increases flexibility: Students can carry over unearned awards into new terms if in work-based roles; institutions can retain up to 20% of unused funds (up from 10%).
• Pilot Grant Program: Up to $1 million per institution for 4 years (renewable 2 years) to create work-based jobs in high-demand sectors (e.g., via partnerships with employers). Requires tracking outcomes like completion rates and employment post-graduation; prioritizes low-income students with at least 15-30 hours/week and career coaching.
• Job Location and Development: Doubles funding allowance to 20% or $150,000; focuses on creating work-based jobs for needy students.
• Community Service and Work Colleges: Allows up to 10% of administrative funds for service-learning programs; updates work college eligibility to require 4-year degrees and 2 years of operation.
• Department of Education Activities:
• Develops surveys for students, employers, and institutions every 4 years to assess satisfaction, job alignment, and improvements (e.g., training quality, work hours).
• Provides technical assistance for compliance, partnerships, and aligning jobs with career goals.
• Requires notifications to work-study students about potential eligibility for SNAP (food assistance), including application guidance.
• Authorizes $2 million for surveys and reporting to Congress.
• Study and Report: Directs the Government Accountability Office to study best practices for connecting students to jobs, balancing work/school, and supporting low-income students; report due in 2 years.
• Effective Date: Applies to FYs starting October 1, 2026.

Significant Changes to Existing Law

• Funding and Allocation Shift: Replaces flat authorizations with escalating amounts and a needs-based "fair share" formula (phased in over 5 years), reducing reliance on prior-year allocations (e.g., down to 20% of 2026 levels by FY 2031). Introduces penalties for low low-income enrollment and bonuses for high-performing schools.
• Work-Based Learning Emphasis: Adds definitions and mandates (e.g., minimum fund percentages, non-enrollment eligibility up to 6 months with $2,500 earnings cap before affecting aid). Expands cooperative education to full-time for ≤6 months, including non-consecutive periods.
• Equity and Flexibility Enhancements: Raises off-campus job cap, travel reimbursement to $500, and job development limits. Adds 100% federal share for certain minority-serving institutions (Titles III/V). Prioritizes exceptional-need students and integrates SNAP outreach.
• Accountability Measures: New surveys, public reporting on improved institutions, and pilot program evaluations replace vague assurances with data-driven improvements. Allows waivers for hardships but requires outcome tracking.

Potential Impacts

• On Citizens: Low-income students (especially Pell recipients) gain more career-relevant jobs, potentially improving graduation rates, earnings during breaks, and post-grad employment in high-demand fields. Could reduce reliance on loans or extra jobs, but increased work hours might strain academic balance without proper support.
• On Government Agencies: Department of Education faces higher administrative costs for surveys, grants ($30 million/year pilot), technical assistance, and allocations; requires interagency coordination (e.g., with Agriculture for SNAP). Increased overall spending (up to $2.5 billion/year) strains federal budget but promotes workforce development.
• On International Relations: No direct impact; focuses on domestic higher education.

Main Stakeholders Affected

• Students: Primarily undergraduates and graduates with financial need (e.g., Pell Grant recipients, exceptional-need individuals like homeless or foster youth), who benefit from more jobs, career alignment, and SNAP access.
• Institutions of Higher Education: Public and private colleges must adapt allocations, prioritize certain jobs, and report data; "improved" schools gain extra funds, while low-enrollment ones risk ineligibility.
• Employers: On- and off-campus partners (e.g., nonprofits, businesses) involved in work-based learning, providing feedback via surveys and gaining student workers with coaching needs.
• Government Entities: Department of Education (administration, surveys); Secretary of Agriculture (SNAP collaboration); Congress (receives reports); states/local boards (high-demand job identification).

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens program integrity through data collection and waivers, but adds enforcement (e.g., fund reductions for unused allocations >10%). Aligns with existing aid laws (e.g., Pell Grants, SNAP exemptions for work-study participants). No challenges to student privacy noted, as survey data is redacted.
• Constitutional: Falls under Congress's spending power (Article I) for education; promotes equal protection by targeting underserved students without discriminating against groups.
• Political: Emphasizes equity and workforce readiness, potentially bipartisan appeal amid rising college costs, but could spark debate over funding increases and mandates on institutions. Pilot program and GAO study enable future refinements without major overhauls.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Bonamici, Suzanne [D-OR-1]

Cosponsors (2)

Rep. Adams, Alma S. [D-NC-12], Rep. Craig, Angie [D-MN-2]

Recent Actions

• 2025-12-11: Referred to the House Committee on Education and Workforce.
• 2025-12-11: Introduced in House
• 2025-12-11: Introduced in House

Bill Versions

• Opportunities for Success Act of 2025 — issued 2025-12-11 — PDF (48 pages)