CTE Policy Watch: A blog for CTE advocates

Research Roundup: Middle-skills Gap, Career Academies, Career Readiness, Postsecondary Retention

Bridging the Middle-skills Gap: A report from the Georgetown University Center on Education and the Workforce (CEW) examines the gaps between high-paying jobs that require postsecondary credentials such as certificates and associate degrees, categorized in the literature as high-paying middle-skills jobs, and the projected size of the middle-skills workforce. CEW further defines high-paying middle-skills jobs as ones where early-career workers have annual earnings above $55,000 and mid-career workers have median annual earnings of $83,300.

The researchers analyzed national education and workforce data and made several findings: 

• Annually, the nation faces a shortage of nearly 712,000 certificates and associate degrees aligned with high-paying middle-skills jobs in four occupational groups: skilled trades, management, STEM and protective services. These shortages are expected to persist until at least 2032. 
• Health care is the only occupational group not projected to face shortages of certificates and associate degrees aligned with high-paying middle-skills jobs. 
• Men, Asian and white individuals are more likely to earn high-paying middle-skills credentials compared to women, Black and Hispanic individuals. In addition, white men hold more high-paying middle-skills jobs in the skilled trades, management, STEM and protective services occupational groups, while white women hold more of these jobs in the health care group. 

Examining the NAF Academy: An article by Edward C. Fletcher Jr., In Heok Lee, Tong Xing Tan and Gen Li in Innovative Higher Education studied the college matriculation rates of students who attended a National Academy Foundation (NAF) career academy.  

The researchers analyzed data from the 2019 graduates of over 400 NAF academies nationwide and found that NAF academy students who engaged in some combination of NAF course completion, internships and/or dual enrollment were significantly more likely to matriculate into college compared to NAF academy students who did not participate in those activities. Male, white and Asian NAF students were more likely to matriculate into college than other racial/ethnic groups, and students enrolled in engineering or finance-focused academies were more likely to matriculate into college than students in hospitality-focused academies.  

The researchers also examined the levels of stress in communities surrounding the academies (stress related to economic, education, health, housing and crime-related issues) and found that students who matriculated into college attended academies in communities with lower stress levels than students who did not matriculate into college. 

Making Career Readiness Count: A report from Advance CTE and the College in High School Alliance examines how states have developed and implemented career-focused indicators in their state and federal accountability systems.  

The analysis found that, as of 2024, 43 states include at least one career-focused indicator in their state or federal accountability system. This represents a slight increase from 2019 and a substantial increase from 2014. Indicators that states utilize the most are dual enrollment success (32), industry-recognized credential attainment (26), achievement on an academic career readiness assessment (21), CTE completion (21) and experiential/work-based learning (16). Of the 43 states that use a career-focused indicator, 35 publicly report college and career readiness data but only 13 disaggregate that data for each indicator in their accountability systems.  

Postsecondary Persistence and Retention: The National Student Clearinghouse Research Center released new data on the rates of persistence (i.e., remaining enrolled at any institution) and retention (i.e., remaining enrolled at their starting institution) for beginning postsecondary students, tracking persistence and retention in the students’ first spring and second fall in college. Major takeaways from the data include: 

• Among students who entered postsecondary education in fall 2023, the national persistence rate for fall 2024 was 77.6% and the national retention rate was 69.5%. These represent slight increases compared to the fall 2022 cohort. 
• While public and private four-year institutions saw increased persistence and retention rates for both first spring and second fall, community colleges held steady for first spring but saw small declines in second fall. 
• Trades-related certificate programs, such as precision production and construction, made up four of the top five certificate programs with the highest second fall persistence rates.  
• Part-time students fell far behind full-time students for both persistence and retention. 
• Younger students (aged 20 or below) were more likely to persist and be retained than older students.  
• Hispanic, Black and Native American students have retention rates lower than the national average and have mixed persistence rates.  

DC Digest June 28-July 4

Almost all attention in Congress this week was focused on the budget reconciliation bill, which was passed by the Senate on July 1 and then sent back to the House for final passage. After a very long vote, the House passed the bill 218-214 on July 3 and the President signed it into law on July 4. While most of the debate was focused on Medicaid and tax changes, the final bill includes a number of provisions impacting postsecondary education, including student loan changes, new accountability indicators for colleges, and an expansion of short-term Pell. There are also new school-voucher provisions on the K-12 side. We’ll have full analysis of each of these areas over the next week. The House will now be in recess for a week due to the extended session. In other news this week:

• Department of Education (ED) Withholds Approximately $7 Billion from States: On July 1, ED was scheduled to release FY 2025 formula grant funding to states. However, despite statutory requirements related to this funding, grants were not released for adult education and several programs under the Every Student Succeeds Act, totaling almost $7 billion to states. While Perkins funds were released, many schools use the withheld funds to support CTE teachers and students as well. The Committee for Education Funding, of which ACTE is a member, sent a letter to Congress urging them to weigh in to ensure funds are distributed.
• ED Restores Access to Some COVID Funds: The Department of Education sent a letter to states and issued a new FAQ document announcing that they were returning to the original COVID-related funding extension process. This now allows extensions of some COVID-related Education Stabilization Fund spending in all states to create uniformity in how states were treated considering ongoing litigation.
• Department of Labor (DOL) Awards Apprenticeship State Grants: On June 30, DOL awarded approximately $84 million in grants to all 50 states to expand Registered Apprenticeships. This funding was from the State Apprenticeship Expansion Formula and you can view how much each state received at the link above.
• ED Wraps Up Negotiated Rulemaking Session: From June 30-July 2, the ED held a session discussing potential changes to the Public Service Loan Forgiveness Program. The panel discussed changes to the definition of a qualifying employer. While no consensus was reached, the discussions will be used to inform draft regulatory changes that will be published in the federal register for public comment.
• Private Sector Orgs Sign White House Pledge to Invest in AI: On June 30, the White House released a list of almost 70 organizations and companies that have signed a pledge to “provide resources that foster early interest in AI technology, promote AI literacy and proficiency, and enable comprehensive AI training for educators.” The pledge supports the Administration’s priority to establish public-private partnerships in this space.

Senate Passes Reconciliation Bill

This week, the Senate passed its budget reconciliation bill in a 50-50 vote. Sens. Susan Collins (R-ME), Thom Tillis (R-NC) and Rand Paul (R-KY) joined all Senate Democrats in opposing the bill. Vice President J.D. Vance served as the tie-breaking vote.

This vote came after an intensive review from the Senate Parliamentarian, Elizabeth MacDonough. The Senate Parliamentarian reviews every provision to ensure it complies with the Byrd Rule, which is named after former Senator Robert Byrd (D-WV). The Byrd Rule is designed to keep unrelated measures out of budget reconciliation bills. Under this rule, provisions can be removed if they don’t directly impact federal spending or revenue, if their budgetary effect is considered “merely incidental,” or if they increase the deficit beyond the timeframe set by the budget resolution.

During this review, the parliamentarian initially ruled that the provisions on workforce Pell and private school vouchers did violate the Byrd Rule. In response, the Senate Republicans slimmed down these provisions to ensure that they were compliant with the Byrd Rule.

Initially, the parliamentarian ruled that the expansion of Pell Grant access violated the Byrd Rule because of the provision that gave access to unaccredited programs. Lawmakers reinserted the section and removed the ability for unaccredited programs to be eligible for Pell Grants.

Additionally, the parliamentarian ruled that the provision creating a $5,000 tax for K-12 private school vouchers violated the Byrd Rule. The revised bill language limits the credit to states that currently authorize Scholarship Granting Organizations (SGO) and makes a few other changes.

The bill now moves back to the House where lawmakers will either vote on the Senate bill, amend the bill and send it back to the Senate, or move to a conference committee to reconcile the differences between the two chambers.

ACTE will continue to monitor the progress of the budget reconciliation process and provide regular updates to our membership. If you have any questions, please contact ACTE’s Government Relations Manager, Jimmy Koch ([email protected]).

DC Digest June 21-27

This week, Congress continued work on the budget reconciliation package following the Senate Parliamentarian’s rulings on several relevant provisions. Meanwhile, several Trump Administration nominees for the Department of Education (ED) and Department of Labor (DOL) were advanced by the Senate Health, Education, Labor and Pensions (HELP) Committee. Keep reading for details! 

• Senate HELP Committee Advances Education and Labor Nominees: The Senate HELP Committee voted this week to advance eight Trump Administration nominees at ED and DOL and the Equal Employment Opportunity Commission.  This includes Penny Schwinn, who has been nominated to serve as Deputy Secretary of Education. 

• Parliamentarian Rules on Key Education Provisions: This week, the Senate Parliamentarian made several rulings on education provisions lawmakers are hoping to include in the final reconciliation package, including provisions for the expansion of Pell Grant access for short-term job training programs. This is a very fluid situation as the bill moves forward.  

• Supreme Court Upholds Universal Funding Mechanism in Federal Communication Commission (FCC) v. Consumers’ Research: In a decision on the FCC v Consumers’ Research case, the Supreme Court voted to uphold the constitutionality of the Universal Service Funding Mechanism. This ensures the continued operation of the E-Rate program, which provides support for broadband access and Wi-Fi connectivity in schools.  

• Senate Appropriations Committee Holds Hearing on President’s Rescission Request: The Senate Appropriations Committee held a hearing on the President’s Rescission Request, which would rescind $9.4 billion in enacted funding in FY 2025. While most of the funding in the current recission package is related to foreign aid and public broadcasting, this has the potential to set a precedent for the recission of other funding.   

Reconciliation Update: Parliamentarian Rules on Key Education Provisions

Monday, June 30 Update: Over the weekend, changes were constantly being made to the reconciliation bill, and versions of short-term Pell and school voucher tax credits were reinserted. The situation is still very fluid, so we'll have more updates as the text of the bill is finalized in the Senate. 

 

This week, the Senate Parliamentarian made a number of rulings on education provisions lawmakers are hoping to include in the final reconciliation package.

When the Senate takes up a budget reconciliation bill, the Senate Parliamentarian, Elizabeth MacDonough, reviews all provisions to ensure that it complies with the Byrd Rule, a process commonly known as the “Byrd Bath.” The Byrd Rule, named after former Sen. Robert Byrd (D-WV), aims to prevent extraneous measures from being included in reconciliation bills. Under the Byrd Rule, provisions can be struck if they do not affect federal spending or revenue, if their impact is "merely incidental" budgetary goals, or if they increase the deficit outside the time period covered by the budget resolution. A senator can raise a point of order to challenge such provisions, but it takes 60 votes to override it.

During this Byrd Bath, the parliamentarian made several rulings on the various education provisions included in the text the Senate Committee on Health, Education, Labor and Pensions (HELP) submitted for consideration.

Most notably, she ruled that the expansion of Pell Grant access for short-term training programs be subject to the 60-vote threshold because of the provision that gave access to unaccredited programs and for-profit institutions. As of now, it is not known if lawmakers will reinsert a slimmed down provision that does not include unaccredited programs and for-profit institutions.

The parliamentarian also ruled that the changes to student loan repayments are in violation of the Byrd Rule. This provision would limit repayment options to the standard plan with fixed payments (over 10-25 years) or a new income-based repayment plan.

In addition to the HELP rulings, the parliamentarian also ruled on a key provision in the Senate Finance Committee bill. She ruled that the creation of $5,000 tax credit for K-12 private school vouchers violates the Byrd Rule.

The parliamentarian is still set to rule on many other provisions, including provisions that would permanently restrict the Secretary of Education from issuing regulations that are “economically significant,” meaning their annual effect on the economy is at least $100 million or they “adversely” affect the economy. The Byrd Bath process must be completed before the Senate can begin consideration of the legislation.

ACTE will continue to monitor the progress of the budget reconciliation process and provide regular updates to our membership. If you have any questions, please contact ACTE’s Government Relations Manager, Jimmy Koch ([email protected]).

Research Roundup: High-earning CTE Pathways, Returning College Students, Non-college Pathways

Who takes High-earning CTE Pathways?: A report from the Career and Technical Education Policy Exchange examines which students enroll in high-earning CTE pathways.

The researchers analyzed data on CTE concentrators from five school districts across the country to find that gender is the strongest predictor of earnings potential. Across all five school districts, female CTE students were more likely to enroll in Career Clusters associated with lower earnings such as Education & Training and Human Services as well as the higher earning Health Science Cluster. Meanwhile, male students were more represented in high-paying Clusters such as IT, STEM and Finance. 

Smaller but noteworthy differences were also found between racial/ethnic groups. Black and Hispanic CTE students tend to enroll in Clusters that are associated with slightly lower earnings than white students, but the researchers noted that these gaps are much smaller than the national pay gaps between Black, Hispanic and white workers. CTE students from low-income households enroll in Clusters with similar wages compared to high-income students, and differences by disability status were mixed. 

Some College, No Credential Outcomes: A report and data dashboard from the National Student Clearinghouse Research Center examines the current population of some college, no credential (SCNC) individuals. Major takeaways from the report include: 

• At the start of the 2023-24 academic year, the total SCNC population under 65 years of age was 37.5 million, a 2.2% increase from the previous year. 
• Most institutions saw reductions in the number of students leaving postsecondary education; notably, community colleges saw a 10.7% reduction in the number of stopouts compared to the previous year. 
• More than one million SCNC students re-enrolled in postsecondary education in 2023-24, and the share of re-enrollees who earned a credential in their first year of re-enrollment increased by 4.7%.  
• Community colleges are the primary destination for returning SCNC students, with nearly three in five re-enrolling in a community college. 
• Approximately one-quarter of SCNC credential earners attained a credential without re-enrolling, possibly owing to state/institutional policies aimed at awarding credentials to learners who had previously stopped out. 
• Although white and Asian students earned credentials at higher rates compared to other SCNC re-enrollees, all racial/ethnic groups saw gains in re-enrollment and credential attainment. 

Gen Z's Limited Awareness of Non-college Pathways: A report from Gallup, the Walton Family Foundation and Jobs for the Future surveyed over 1,900 Gen Z high school students and their parents/guardians as well as adults nationwide to better understand Gen Z’s experiences and awareness of non-college pathways. 

The researchers found that: 

• Fewer than three in 10 students feel very prepared to pursue any pathway after high school. Apprenticeship programs rank the lowest, with only 8% of students feeling very prepared to pursue them. 
• Only 15% of Gen Z students received information from their schools on career pathways that do not require a college degree, only 24% reported being prepared for an apprenticeship program, and only 39% reported that their schools prepared them to pursue an internship.  
• Gen Z students and their parents know very little about pathways other than college. Despite this, nearly half of all high school students reported interest in pursuing a pathway other than a job or a bachelor’s degree. 
• Students are much more likely to express interest in a pathway if their parents have talked with them about that pathway. For instance, students are 37 percentage points more likely to express interest in pursuing an apprenticeship if their parents have talked to them about apprenticeship. 

2025 Post-graduation Readiness Report: A report from YouScience examines the pathways high school graduates from the class of 2024 pursued and the career guidance that they received. 

The report finds that graduates are increasingly pursuing non-baccalaureate pathways – from 2019 to 2024, the percentage of graduates who pursued a bachelor’s degree dropped by 20 percentage points. Over the same period, graduates were 15 percentage points more likely to be working toward a specific career goal, reflecting a shift toward more skills-based pathways. 

Despite this, 70% of graduates reported lacking confidence in their post-graduation career plans. In addition, students reported the following:  

• 50% said that their schools could have offered more work-based learning opportunities. 
• 39% wished that they had participated in more CTE courses. 
• 38% wished that they had participated in an internship, job shadow or part-time work.  
• 27% wished they had done more research on other postsecondary options. 

DC Digest June 14-20

This week, Democratic Members of Congress addressed the interagency agreement (IAA) to transfer administration of CTE funding from the Department of Education (ED) to the Department of Labor (DOL). In other Capitol Hill news, the Senate continued to work on the confirmation process for Trump Administration appointees while the House took recess. Keep reading for more details! 

• Democratic Leadership Calls on ED to Cease IAA with DOL: Sens. Patty Murray (D-WA) and Tammy Baldwin (D-WI), and  Reps. Rosa DeLauro (D-CT) and Robert C. “Bobby” Scott (D-VA) sent a letter to ED Secretary Linda McMahon opposing the efforts to transfer responsibility over CTE programs to DOL.  

• Senate Health, Education, Labor and Pensions Committee Held Hearing on DOL Nominees: The Senate HELP Committee held a hearing on several Trump Administration nominations for DOL and the Equal Employment Opportunity Commission.  

• Senate HELP Committee to Consider Trump Administration Nominees: Next week, the Senate HELP Committee is voting on several nominations at ED, DOL and the EEOC. This includes the Nomination of Penny Schwinn to serve as Deputy Secretary of Education at ED. ACTE will share any relevant updates! 

• Appropriations Process Slows: This week, House Appropriations Committee leaders announced the postponement of several appropriations bills originally scheduled for next week. While the Labor, Health and Human Services, and Education Appropriations bill is still on the schedule for July 21, but could be pushed back as well. The Senate process has also been delayed, and markups of their bills will not start before the week of July 7.   

 

Senate Releases Reconciliation Package

Following the House passage of their budget reconciliation bill (H.R. 1, the One Big Beautiful Bill Act) in May, work has now shifted to the Senate, where each relevant committee is preparing legislative text to be combined into a comprehensive bill

Last week, the Senate Committee on Health, Education, Labor and Pensions (HELP) released it portion of the budget reconciliation package. While the Senate bill builds on many of the provisions included in the House-passed bill, including significant changes to student loans, it removes the provision that would eliminate Pell Grant eligibility for students enrolled less than half time. It also maintains the current definition of full-time status for the purpose of Pell grants at 12 credit hours per semester, rather than shifting it to 15 credit hours as in the House bill. The Senate bill would provide $10.5 billion in funding to the Pell Grant program, in light of a predicted shortfall.

Like in the House bill, the Senate bill also includes language that would expand Pell Grant access for short-term training programs. Programs between 150 and 599 clock hours in length that are at least eight weeks would be eligible for Pell Grants. Senators included some additional guardrails to ensure program quality. Programs must meet key completion, job placement and earning metrics to maintain eligibility, including verifying that program completion leads to “value added earnings,” meaning that the amount that earnings exceed 150% of the poverty standard, with regional adjustments.

In addition to the HELP Committee bill, the Senate Committee on Finance released its text last night. The Finance Committee is the final Senate committee to release its legislative text.

Similar to the House bill, included in the text is the creation of $5,000 tax credit for K-12 private school vouchers. Students who benefit from the vouchers must be members of a household with an income not greater than 300% of the area median gross income and be eligible to enroll in a public elementary or secondary school. ACTE opposes any proposal that would take resources away from public education.

The Senate reconciliation package will now go directly to the floor to be considered by the full Senate. If the bill passes, it will be sent back to the House for its approval or the creation of a Conference Committee to reconcile the differences between the two bills.

ACTE will continue to monitor the bill and communicate the latest developments as they occur. If you have any questions, please don’t hesitate to reach out to ACTE’s Government Relations Manager, Jimmy Koch ([email protected]). 

DC Digest June 7-13

Last week, Congress worked on appropriations and the budget reconciliation process, hallmarked by the Senate Health, Education, Labor and Pensions (HELP) Committee releasing text for its reconciliation bill. Meanwhile, court injunctions stopped an Interagency Agreement (IAA) between the Department of Education (ED) and the Department of Labor (DOL), which would have transferred administration of CTE funding from ED to DOL. Keep reading for more details. 

• ACTE and Advance CTE’s Statement in Response to ED and DOL’s IAA: ACTE and Advance CTE strongly oppose any efforts to move CTE administration away from ED given the disruption this would cause to Perkins legislation’s implementation and services to students in schools across the country. Urge your Members of Congress to oppose the agreement and protect Perkins funding!  

• Senate HELP Committee Releases Reconciliation Bill Text: The Senate HELP Committee released its higher education budget proposal earlier this week. Similar to the House version, which passed late last month, the bill would expand Pell grant availability to short-term job training programs. There are several differences in the Senate’s bill though. Notably, it does not include a limit on Pell grant eligibility that would have excluded part-time students.  

• Senate HELP Committee to Hold Hearing on Labor Nominees: Next Wednesday, the Senate HELP Committee will hold a hearing to review several Trump administration nominees for DOL and one for the Equal Employment Opportunity Commission.  

• Senate Democrats Send Letter to Labor Secretary Lori Chavez-DeRemer on Job Corps Program: 39 senators joined Senator Bernie Sanders (I-VT) to urge Secretary Chavez-DeRemer to reverse cuts made to the Job Corps program, which offers free career training, support and education assistance for younger Americans. The program was indefinitely paused last month by the Administration, although temporary court order has been issued limiting the pause.  

• Trump Administration Terminates Higher Ed Data System Training: The Administration eliminated a contract to train college officials on how to report data to the Integrated Postsecondary Education Data System (IPEDS) that is used to track trends in higher ed enrollment, completion, financial aid usage and other characteristics.  

 

ACTION ALERT: Urge your Members of Congress to Oppose Moving Perkins Funds to the Department of Labor!

The Departments of Education (ED) and Labor (DOL) recently signed an Interagency Agreement (IAA) to transfer administration of career and technical education (CTE) funding through the Carl D. Perkins Career and Technical Education Act from ED to DOL. While the IAA is paused temporarily due to court injunctions related to operations of ED, if enacted, this agreement would have far-reaching negative impacts on CTE programs and learners across the country.  

ACTE is strongly opposed to any efforts to move CTE administration away from ED and is concerned about the disruption this would cause to Perkins implementation and services provided to students nationwide.  

CLICK HERE to contact your Members of Congress and urge them to oppose any transfer of Perkins funding to the Department of Labor! 

Transferring Perkins funding from ED to Labor as outlined in the IAA would create significant administrative confusion and unnecessary layers of bureaucracy, increasing the risk of funding delays or disruptions in program delivery. Several states have already reported significant challenges in receiving timely funding allocations in recent weeks likely due to the IAA.  

This effort would also shift the focus of Perkins and disrupt the critical connection between CTE and the broader education system, posing a threat to the development of programs of study, integration of rigorous academic standards, alignment with graduation requirements that are critical to CTE student success, and potentially disrupt connections between high school and postsecondary CTE—as called for in the President’s FY 2026 budget request. Protect your Perkins funding and the integrity of CTE by telling your Members of Congress to oppose this transfer!