JOBS Act of 2025
- Bill Number
- S. 383
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-02-04: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-04-08T15:18:44Z
AI-Generated Summary
Purpose
The Jumpstart Our Businesses by Supporting Students Act of 2025 (JOBS Act of 2025) aims to expand access to federal financial aid by making certain short-term job training programs eligible for Federal Pell Grants. This supports students pursuing quick, practical training in high-demand careers, helping to build a skilled workforce and address labor market needs.
Key Provisions
- Job Training Federal Pell Grant Program: Establishes a new program under the Higher Education Act of 1965 (HEA) allowing Pell Grants for "eligible job training programs." These are short-term career and technical education courses (150–600 clock hours over 8–15 weeks) at institutions of higher education (IHEs), including community colleges and vocational schools.
- Programs must align with high-skill, high-wage, or in-demand jobs, as verified by industry partnerships.
- Upon completion, students receive a recognized postsecondary credential (e.g., a certificate valued by employers) that meets hiring or licensure requirements.
- Programs can include integrated education and training (combining job skills with basic academics) and must offer credit articulation (allowing non-credit completion to count toward future degree programs).
- Eligibility requires Secretary of Education approval within 60 days, plus certification from a state workforce board.
- Student Eligibility: Available to students without a post-baccalaureate degree (advanced degree beyond a bachelor's) who are enrolled in an eligible program at an IHE and meet standard Pell Grant criteria (e.g., financial need). Part-time enrollment is allowed, with grants prorated accordingly.
- Grant Awards: Grants follow the same calculation and terms as regular Pell Grants but ensure a minimum award even for students qualifying for less than the full amount if enrolled full-time in an eligible program. Usage counts toward a student's lifetime Pell eligibility limit (typically 12 semesters).
- Accreditation Standards: Amends HEA to require accrediting agencies (bodies that approve schools for federal aid) to evaluate the quality of these job training programs, ensuring they meet employer needs and credential standards.
- Data Sharing: Requires the Department of Education to partner with the Department of Labor for annual access to workforce program performance data (e.g., job placement rates) from the Workforce Innovation and Opportunity Act (WIOA).
- Minimum Grant Adjustment: Lowers the minimum Pell Grant percentage from 10% to 5% of the maximum award, making smaller grants available to more low-income students.
- Effective Date: Takes effect July 1, 2025, for the 2025–2026 award year and beyond.
Significant Changes to Existing Law
- Adds a new subsection (401(k)) to the HEA, creating the first dedicated Pell Grant track for short-term, non-degree job training programs (previously, Pell Grants were mainly for longer degree programs).
- Expands IHE definitions to explicitly include postsecondary vocational institutions.
- Introduces mandatory industry validation and state board certification for program eligibility, tying aid more closely to WIOA and the Carl D. Perkins Career and Technical Education Act.
- Modifies accrediting agency rules to prioritize workforce outcomes over traditional academic metrics.
- Establishes interagency data sharing, a new coordination mechanism not previously required.
- Reduces the minimum Pell Grant threshold, broadening access for partial awards.
Potential Impacts
- On Citizens: Increases affordable access to job training for low- and middle-income individuals, potentially leading to faster employment in growing sectors like healthcare, technology, or trades. Could reduce skills gaps and unemployment, especially for non-traditional students (e.g., adults re-entering the workforce).
- On Government Agencies: Department of Education gains new administrative duties (e.g., program approvals, data reviews), while coordination with Labor Department may improve oversight of aid effectiveness. Could increase federal spending on Pell Grants (estimated billions annually) but promote efficient use through performance tracking.
- On International Relations: Minimal direct impact, though it may indirectly strengthen U.S. economic competitiveness by bolstering domestic workforce skills.
Main Stakeholders Affected
- Students and Workers: Primary beneficiaries, gaining financial aid for quick credentialing to enter or advance in jobs.
- Institutions of Higher Education: Community colleges and vocational schools can expand offerings to attract more students and federal funds, but must meet stricter quality standards.
- Employers and Industry Partnerships: Involved in validating programs; benefit from a pipeline of qualified workers with recognized credentials.
- Government Entities: U.S. Department of Education (administers grants), Department of Labor (provides data), and state workforce boards (certify programs).
- Accrediting Agencies: Must update evaluation processes to include job training metrics.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances equity in federal aid by aligning it with modern workforce needs, but introduces enforcement challenges (e.g., timely approvals, data privacy in sharing). Ties into existing laws like WIOA without overriding them, promoting integrated federal education-workforce policy.
- Constitutional: Supports the Spending Clause (Congress's power to fund public welfare) by expanding education aid, with no apparent free speech or due process issues.
- Political: Bipartisan support (introduced by 28 senators from both parties) reflects consensus on vocational training amid debates over higher education costs and student debt. May face scrutiny over costs and program quality, potentially influencing future budget or reauthorization debates for the HEA.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (41)
Sen. Collins, Susan M. [R-ME], Sen. Smith, Tina [D-MN], Sen. Marshall, Roger [R-KS], Sen. Baldwin, Tammy [D-WI], Sen. Blumenthal, Richard [D-CT], Sen. Blunt Rochester, Lisa [D-DE], Sen. Booker, Cory A. [D-NJ], Sen. Boozman, John [R-AR], Sen. Capito, Shelley Moore [R-WV], Sen. Coons, Christopher A. [D-DE], Sen. Cortez Masto, Catherine [D-NV], Sen. Cramer, Kevin [R-ND], Sen. Daines, Steve [R-MT], Sen. Duckworth, Tammy [D-IL], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Hassan, Margaret Wood [D-NH], Sen. Heinrich, Martin [D-NM], Sen. Hickenlooper, John W. [D-CO], Sen. Hoeven, John [R-ND], Sen. Hyde-Smith, Cindy [R-MS], Sen. Kelly, Mark [D-AZ], Sen. King, Angus S., Jr. [I-ME], Sen. Klobuchar, Amy [D-MN], Sen. Merkley, Jeff [D-OR], Sen. Ossoff, Jon [D-GA], Sen. Peters, Gary C. [D-MI], Sen. Rosen, Jacky [D-NV], Sen. Shaheen, Jeanne [D-NH], Sen. Sullivan, Dan [R-AK], Sen. Tillis, Thomas [R-NC], Sen. Tuberville, Tommy [R-AL], Sen. Van Hollen, Chris [D-MD], Sen. Warner, Mark R. [D-VA], Sen. Wicker, Roger F. [R-MS], Sen. Wyden, Ron [D-OR], Sen. Ricketts, Pete [R-NE], Sen. Risch, James E. [R-ID], Sen. Husted, Jon [R-OH], Sen. Justice, James C. [R-WV], Sen. Luján, Ben Ray [D-NM], Sen. Barrasso, John [R-WY]
Recent Actions
- 2025-02-04: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2025-02-04: Introduced in Senate
Bill Versions
- Jumpstart Our Businesses by Supporting Students Act of 2025 — issued 2025-02-04 — PDF (11 pages)