Major funding increase and focus on career-aligned work for Federal Work-Study.
This Act significantly boosts funding for the Federal Work-Study program, reaching $2.5 billion annually by 2029, making it easier for students with exceptional financial needs to gain professional experience. It introduces new allocation rules that reward institutions with high completion rates for Pell Grant recipients and mandates a strong focus on work-based learning opportunities like internships and apprenticeships. Students will also be eligible for reimbursement of reasonable travel costs related to their work-study jobs and can work during non-enrollment periods, improving their financial stability and career prospects.
Key points
Funding Increase: The Federal Work-Study budget will gradually increase from $1.5 billion in 2025 to $2.5 billion in 2029 and subsequent years.
Mandatory Work-Based Learning: Institutions must use at least 7% of their funds to compensate students in work-based learning positions (internships, research assistantships, etc.).
Support for High-Need Students: Funds are reserved for 'improved institutions' that successfully graduate Pell Grant recipients, and priority is given to employing students with exceptional financial need.
Flexible Employment: Students with exceptional need can work during qualified periods of non-enrollment (up to 6 months), and up to $2,500 of their earnings during this time will not count against their cost of attendance for the next term.
SNAP Notification: Institutions must notify eligible students about their potential eligibility for the Supplemental Nutrition Assistance Program (SNAP) and provide necessary documentation for application.
Expired
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