A decade ago, Americans felt positively about higher education — over 95% of parents (across political parties) said they expected their kids to go to college. Today, these feelings have shifted. Fewer young adults believe college is important, only about one-third of the American public has confidence in higher education, and, in contrast to the college-oriented parents of 10 years ago, almost half now say they’d prefer their children pursue something other than a bachelor’s degree upon their high school graduation.
So, what has changed in the last decade? A recent study from Pew Research Center revealed that Americans are increasingly concerned about affordability, access, and the overall payoff of a college degree. Meanwhile, technological advances and AI have begun to change the world of work, altering the credentials and skills needed for success. Many Americans have come to believe that traditional degree programs do not meet these new industry demands.
Additionally, a half-century ago, many workers could earn a family-sustaining wage with just a high school diploma. Today, most workers need at least some postsecondary education or specified skill set to succeed in our economy. According to an analysis from the National Skills Coalition, 52% of jobs today require more education and training than high schools provide, but less than typically included with a four-year college degree. Unfortunately, only 43% of workers have access to the skills training needed to fill those jobs.
Public policy has not kept up with these changing demands. While dramatically expanding financial support for college students, Washington has chronically underinvested in workforce development and the ability for non-degree workers and learners to acquire in-demand skills. Left in the lurch are individuals who need and want workforce training that does not require two- or four-year degrees, as well as U.S. employers trying to fill skills gaps. In essence, federal policy has opened a chasm between the educational establishment and the nation’s labor market.
PPI believes “Super Pell” grants aimed at helping future and current workers acquire valuable in-demand skills can help bridge that gap.
The federal Pell Grant program, authorized by Title IV of the Higher Education Act (HEA), is the single largest source of federal grant aid supporting postsecondary students from low-income families. Total federal spending on the program last year was around $27.6 billion and in 2021/22, the number of Pell Grant recipients grew to 6.1 million or 34% of undergraduate students. But Pell Grants can’t be used for all postsecondary programs. The aid can only be used in educational institutions that are accredited and approved by the Department of Education (ED) and for programs that meet certain seat time and credit criteria. These requirements exclude many shorter-term, workforce-oriented programs — limiting the postsecondary opportunities individuals can choose from.
In 2014, PPI scholar Paul Weinstein proposed reforming Pell to establish a single higher education grant that would be more generous, easier to access, and financed by folding the myriad of existing tax incentives and higher education spending programs into one offering.10 He later renamed it “Super Pell” and PPI added to the idea in 2019 in our progressive budget for equitable growth.11 The proposal not only ensures more Americans can draw down on this aid but also includes high-quality workforce programs — giving America’s current and future workers the opportunity to use federal aid for educational opportunities best poised to meet their needs and the needs of the labor market. This policy brief dives into why Super Pell is needed now, why this proposal is different than what’s out there and action that has been done to date.
