Sponsors (3)
The bill substantially expands paid work‑based learning and funding—improving access and job readiness for many low‑income students—but does so by redirecting and increasing federal funds and imposing new compliance requirements that could disadvantage smaller institutions and reduce local flexibility.
Millions of students — especially low-income and Pell recipients — gain substantially expanded paid work-based learning opportunities and supports (internships, apprenticeships, residencies, travel reimbursements, SNAP outreach, and wage-funded positions), improving ability to afford college and career readiness.
The bill sharply increases dedicated federal funding for work-study and work-based learning (multi-year increases starting FY2027, new grant programs and per-grant caps), giving colleges predictable resources to expand placements, employer partnerships, and student wages.
Funding and formula changes target institutions that improve outcomes: supplemental Pell-linked allocations and ‘‘fair share’’ transitions tie more resources to Pell completion and student need, potentially directing aid to institutions serving needy students.
Taxpayers will face materially higher federal spending obligations (multi-year increases, a $30M annual reservation, and other earmarks), raising the program’s budgetary cost.
Some colleges — particularly smaller, two‑year, rural, or otherwise low‑resourced institutions — could lose allocations or become less competitive for funds as resources shift toward institutions that meet ‘‘improved’’ or new eligibility thresholds, reducing local access and program diversity.
The bill imposes substantial new administrative, compliance, and reporting burdens on institutions (surveys, assurances, data reporting, grant applications, tracking outcomes), which will divert staff time and local resources away from direct student services.
Based on analysis of 12 sections of legislative text.
Reforms Federal Work‑Study: raises authorized funding, defines work‑based learning, requires surveys/reporting, sets institutional set‑asides, and creates a $1M pilot grant program.
Introduced December 11, 2025 by Suzanne Bonamici · Last progress December 11, 2025
Creates a major update to the Federal Work‑Study (FWS) program that raises and authorizes new funding levels, defines and expands work‑based learning, requires electronic surveys and regular reporting from students, employers, and institutions, sets new institutional rules and minimum set‑asides for specific student populations and activities, directs a GAO study on best practices, and establishes a new competitive pilot grant program to expand wage‑paying work‑based learning positions. Most changes take effect for fiscal years beginning October 1, 2026, and the law adds new data, accountability, and program design requirements while reserving new funding streams for targeted purposes.