Higher Education - Workforce Pell Grant Program - Implementation, the official text

WES MOORE, Governor                                       Ch. 724

Chapter 724

                   (Senate Bill 509)

AN ACT concerning

Higher Education – Workforce Pell Grant Program – Implementation

FOR the purpose of implementing the federal Workforce Pell Grant Program in the State;
         requiring the Governor, after consultation with certain entities, to determine
         whether to approve certain short–term programs as eligible for Pell Grant funds
         subject to certain requirements; requiring a certain registered apprenticeship
         program to include certain components in the curriculum; prohibiting institutions of
         postsecondary education from using certain funds subject to a certain exclusion;
         prohibiting institutions of postsecondary education from operating short–term
         programs in a certain manner; and generally relating to the Workforce Pell Grant
         Program.

BY repealing and reenacting, without amendments,
         Article – Education
         Section 10–101(a), (c), and (i)
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

BY adding to
         Article – Education
         Section 11–212
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                                                Article – Education

10–101.

(a) In this division the following words have the meanings indicated.

(c) “Commission” means the Maryland Higher Education Commission.

         (i) (1) “Institution of postsecondary education” means a school or other
institution that offers an educational program in the State for individuals who are at least
16 years old and who have graduated from or left elementary or secondary school.

             (2) “Institution of postsecondary education” does not include:

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Ch. 724                  2026 LAWS OF MARYLAND

                           (i) Any adult education, evening high school, or high school
equivalence program conducted by a public school system of the State; or

                           (ii) Any apprenticeship or on–the–job training program subject to
approval by the Apprenticeship and Training Council.

11–212.

        (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

                (2) “PROGRAM” MEANS THE FEDERAL WORKFORCE PELL GRANT
PROGRAM BY WHICH PELL GRANTS MAY BE AWARDED TO STUDENTS ENROLLED IN
A SHORT–TERM PROGRAM IN ACCORDANCE WITH SECTION 83002 OF THE ONE BIG
BEAUTIFUL BILL ACT, AS AMENDED.

                (3) “REGISTERED APPRENTICESHIP” MEANS AN APPRENTICESHIP
PROGRAM THAT IS REGISTERED WITH, AND APPROVED BY, THE U.S. DEPARTMENT
OF LABOR OR THE MARYLAND APPRENTICESHIP AND TRAINING COUNCIL.

                (3) (4)  “SHORT–TERM PROGRAM” MEANS A PROGRAM OF STUDY
THAT IS:

         (I) AT LEAST 150 HOURS OF INSTRUCTION;

         (II) LESS THAN 600 HOURS OF INSTRUCTION;

         (III) AT LEAST 8 WEEKS;

         (IV) LESS THAN 15 WEEKS; AND

                         (V) NOT A CORRESPONDENCE COURSE AS DEFINED IN TITLE
34, SUBTITLE B, CHAPTER VI, PART 600 OF THE CODE OF FEDERAL REGULATIONS
IN EFFECT ON JULY 1, 2021.

        (B) THE PURPOSE OF THIS SECTION IS TO IMPLEMENT THE WORKFORCE
PELL GRANT PROGRAM IN THE STATE.

        (C) (1) THE GOVERNOR, AFTER CONSULTING WITH THE GOVERNOR’S
WORKFORCE DEVELOPMENT BOARD AND THE COMMISSION, SHALL DETERMINE
WHETHER:

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           WES MOORE, Governor  Ch. 724

                         (I) A A SHORT–TERM PROGRAM OFFERED AT AN INSTITUTION

OF POSTSECONDARY EDUCATION MEETS THE REQUIREMENTS OF THIS SECTION AND

FEDERAL LAW FOR WORKFORCE PELL GRANTS; AND

                         (II) TO APPROVE THE SHORT–TERM PROGRAM AS ELIGIBLE FOR
THE PROGRAM.

                (2) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, AN
INSTITUTION OF POSTSECONDARY EDUCATION, REGARDLESS OF HAVING A
PHYSICAL PRESENCE IN THE STATE, MAY NOT:

           1. DISBURSE PROGRAM FUNDS TO A STUDENT IN THE

STATE; OR

                                 2. ADVERTISE, MARKET, OR INFORM STUDENTS IN THE
STATE ABOUT THE AVAILABILITY OF PROGRAM FUNDS FOR A SHORT–TERM
PROGRAM.

                         (II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DOES NOT APPLY
IF AN INSTITUTION OF POSTSECONDARY EDUCATION, REGARDLESS OF HAVING A
PHYSICAL PRESENCE IN THE STATE, OBTAINS:

                                 1. THE APPROVAL OF THE GOVERNOR UNDER THIS
SECTION FOR EACH SHORT–TERM PROGRAM FOR WHICH THE INSTITUTION OF
POSTSECONDARY EDUCATION SEEKS TO DISBURSE PROGRAM FUNDS; AND

                                 2. A DETERMINATION FROM THE SECRETARY OF THE
U.S. DEPARTMENT OF EDUCATION THAT THE INSTITUTION OF POSTSECONDARY
EDUCATION MEETS THE REQUIREMENTS OF THE PROGRAM FOR EACH SHORT–TERM

PROGRAM FOR WHICH THE INSTITUTION OF POSTSECONDARY EDUCATION SEEKS TO

DISBURSE PROGRAM FUNDS.

                (3) FOR THE APPROVAL TO REMAIN EFFECTIVE, EVERY 2 YEARS AN

INSTITUTION OF POSTSECONDARY EDUCATION SHALL PROVIDE INFORMATION

VERIFYING THE SHORT–TERM PROGRAM REMAINS IN COMPLIANCE WITH THIS
SECTION AND THE PROGRAM.

                (4) IF THE ATTORNEY GENERAL OR COURT OF APPROPRIATE

JURISDICTION FINDS THE INSTITUTION OF POSTSECONDARY EDUCATION ENGAGED

IN UNFAIR, DECEPTIVE, OR ABUSIVE TRADE PRACTICE UNDER TITLE 13 OF THE
COMMERCIAL LAW ARTICLE RELATED TO THE PROGRAM, THE GOVERNOR SHALL
REVOKE AN APPROVAL.

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Ch. 724  2026 LAWS OF MARYLAND

        (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, A
SHORT–TERM PROGRAM SEEKING APPROVAL UNDER THIS SECTION SHALL:

                         (I) PROVIDE AN EDUCATION ALIGNED WITH THE
REQUIREMENTS OF:

                                 1. A HIGH–SKILL, HIGH–SKILL OR HIGH–WAGE
OCCUPATION AS IDENTIFIED BY THE STATE UNDER THE CARL D. PERKINS CAREER
AND TECHNICAL EDUCATION ACT; OR

                                 2. AN IN–DEMAND INDUSTRY SECTOR OR OCCUPATION;

                         (II) MEET THE HIRING REQUIREMENTS OF EMPLOYERS IN THE
SECTORS OR OCCUPATIONS IDENTIFIED UNDER ITEM (I) OF THIS PARAGRAPH;

                         (III) 1. LEAD TO A RECOGNIZED POSTSECONDARY

CREDENTIAL THAT IS STACKABLE AND PORTABLE ACROSS MORE THAN ONE

EMPLOYER; OR

                                 2. PREPARE STUDENTS ENROLLED IN THE SHORT–TERM

PROGRAM FOR EMPLOYMENT IN AN OCCUPATION FOR WHICH THERE IS ONLY ONE
RECOGNIZED POSTSECONDARY CREDENTIAL AND THAT AWARDS STUDENTS WITH

THE CREDENTIAL ON COMPLETION OF THE SHORT–TERM PROGRAM; AND

                         (IV) PREPARE STUDENTS TO PURSUE ONE OR MORE

CERTIFICATES OR DEGREES AT AN INSTITUTION OF POSTSECONDARY EDUCATION

BY ENSURING THAT:

                                 1. ON COMPLETION OF THE SHORT–TERM PROGRAM
AND ENROLLMENT IN A RELATED CERTIFICATE OR DEGREE PROGRAM, A STUDENT

WILL RECEIVE ACADEMIC CREDIT THAT AN INSTITUTION OF POSTSECONDARY

EDUCATION WILL ACCEPT TOWARD THAT CERTIFICATE OR DEGREE; AND

                                 2. THE ACADEMIC CREDIT DESCRIBED UNDER ITEM 1 OF

THIS ITEM WILL BE ACCEPTED TOWARD MEETING THE CERTIFICATE OR DEGREE

PROGRAM REQUIREMENTS.

                (2) THERE IS A REBUTTABLE PRESUMPTION THAT THE THE RELATED

TECHNICAL INSTRUCTION COMPONENT OF A FEDERALLY REGISTERED OR

STATE–REGISTERED REGISTERED APPRENTICESHIP PROGRAM OFFERED AT AN

INSTITUTION OF POSTSECONDARY EDUCATION SATISFIES THE REQUIREMENTS OF

PARAGRAPH PARAGRAPHS (1)(I), (II), AND (III) AND (3)(III) OF THIS SUBSECTION.

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                    WES MOORE, Governor  Ch. 724

                (3) IN ADDITION TO THE REQUIREMENTS OF PARAGRAPHS (1) AND (2)
OF THIS SUBSECTION, AN INSTITUTION OF POSTSECONDARY EDUCATION SEEKING
APPROVAL UNDER THIS SECTION SHALL PROVIDE:

                         (I) DOCUMENTATION THAT, FOR THE 12 MONTHS PRECEDING

THE DATE ON WHICH THE INSTITUTION OF POSTSECONDARY EDUCATION APPLIED

FOR APPROVAL, THE INSTITUTION OFFERED THE SHORT–TERM PROGRAM AND THE
SHORT–TERM PROGRAM MET ALL REQUIREMENTS OF THIS SECTION;

                         (II) DOCUMENTATION THAT THE SHORT–TERM PROGRAM HAS A
COMPLETION RATE OF AT LEAST 70% WITHIN 150% OF THE NORMAL TIME FOR
COMPLETION FOR EACH FEDERAL AID AWARD YEAR;

                         (III) DOCUMENTATION THAT THE SHORT–TERM PROGRAM HAS A
JOB PLACEMENT RATE OF AT LEAST 70% AFTER 180 DAYS OF COMPLETION FOR
EACH FEDERAL AID AWARD YEAR;

                         (IV) DOCUMENTATION THAT THE TUITION AND FEES FOR THE
SHORT–TERM PROGRAM ARE IN COMPLIANCE WITH THE REQUIREMENTS OF THE
PROGRAM; AND

                         (V) ANY INFORMATION THE GOVERNOR’S WORKFORCE
DEVELOPMENT BOARD OR THE COMMISSION REQUESTS TO VERIFY COMPLIANCE
WITH THIS SECTION AND THE PROGRAM.

                (4) THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD, THE
COMMISSION, OR ANY OTHER AUTHORIZED ENTITY MAY COLLECT AN APPLICATION
FEE TO COMPLETE THE EVALUATION.

        (E) A REGISTERED APPRENTICESHIP PROGRAM APPROVED FOR
WORKFORCE PELL GRANTS SHALL INCLUDE IN THE CURRICULUM BOTH
ON–THE–JOB LEARNING AND CLASSROOM LEARNING, INCLUDING ARTIFACTS AND
DEMONSTRATED PERFORMANCE OR COMPETENCY ASSESSMENT, UNDER THE
GENERAL SUPERVISION OF THE FACULTY.

(E) (F)  IN THE OPERATION OF A SHORT–TERM PROGRAM THAT IS

AUTHORIZED UNDER THIS SECTION, AN INSTITUTION OF POSTSECONDARY

EDUCATION MAY NOT:

                (1) PARTNER, CONTRACT, OR AFFILIATE WITH AN ENTITY,
INSTITUTION, OR ORGANIZATION OTHER THAN A JOINT APPRENTICESHIP
COMMITTEE REGISTERED APPRENTICESHIP, TO OFFER INSTRUCTION FOR THE

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SHORT–TERM PROGRAM THAT IS NOT ACCREDITED BY AN ACCREDITING AGENCY
RECOGNIZED AND APPROVED BY THE U.S. DEPARTMENT OF EDUCATION; UNLESS
THE CONTRACTING ENTITY, INSTITUTION, OR ORGANIZATION:

                         (I) CLEARLY AND PROMINENTLY DISCLOSES THAT THE

CONTRACTING ENTITY IS A COMPANY THAT IS SEPARATE FROM THE INSTITUTION OF
POSTSECONDARY EDUCATION AND DESCRIBES ALL OF THE SERVICES THAT THE
CONTRACTING ENTITY IS CONTRACTED TO PROVIDE FOR THE INSTITUTION IN THE

FOLLOWING PLACES:

                                 1.  ON THE INSTITUTION OF POSTSECONDARY
EDUCATION’S WEBSITE;

              2. IN MARKETING MATERIALS ABOUT THE SHORT–TERM

PROGRAM; AND

                                 3. IN ORAL COMMUNICATIONS WITH PROSPECTIVE
STUDENTS OF THE SHORT–TERM PROGRAM; AND

                         (II) IS NOT PAID USING INCENTIVE COMPENSATION OR TUITION
SHARING WITH THE INSTITUTION OF POSTSECONDARY EDUCATION; AND

                         (III) (II) IS NOT INVOLVED WITH THE INSTITUTION OF
POSTSECONDARY EDUCATION’S GOVERNANCE, DECISION MAKING OVER THE
DESIGN OR DEVELOPMENT OF COURSE CURRICULUM OR INSTRUCTION, SETTING OF
SHORT–TERM PROGRAM ADMISSION STANDARDS, DETERMINING ENROLLMENT
TARGETS, OR CREATION OF NEW SHORT–TERM PROGRAMS;

                (2) UNLESS A LOAN IS 0% INTEREST, PARTNER OR AFFILIATE WITH
AN ENTITY THAT OFFERS STUDENT LOANS, LINES OF CREDIT, OR INCOME SHARING
AGREEMENTS FOR THE SHORT–TERM PROGRAM;

                (3) CHARGE TUITION AND FEES TO ANY STUDENT ENROLLED IN THE
SHORT–TERM PROGRAM THAT ARE GREATER THAN THE MAXIMUM AMOUNT OF PELL
GRANT FUNDS AVAILABLE FOR ANY STUDENT IN THAT SHORT–TERM PROGRAM, AS
ESTABLISHED BY THE SECRETARY OF EDUCATION, FOR THE PERIOD OF TIME THAT
THE SHORT–TERM PROGRAM IS OFFERED; OR

         (4) OFFER                   THE  SHORT–TERM        PROGRAM  USING

NON–CREDIT–BEARING COURSES UNLESS THOSE COURSES WILL TRANSFER TO AT

LEAST ONE INSTITUTION OF POSTSECONDARY EDUCATION REGARDLESS OF

PROGRAM COMPLETION.

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               WES MOORE, Governor                   Ch. 724

        (F) (1) ON OR BEFORE JUNE 30 EACH YEAR, FOR EACH SHORT–TERM
PROGRAM APPROVED UNDER THIS SECTION, THE INSTITUTION OF POSTSECONDARY
EDUCATION SHALL REPORT TO THE COMMISSION ON:

                         (I) THE NUMBER OF STUDENTS ENROLLED IN SHORT–TERM
PROGRAMS APPROVED UNDER THIS SECTION;

                         (II) THE NUMBER OF STUDENTS WHO COMPLETED A
SHORT–TERM PROGRAM APPROVED UNDER THIS SECTION;

                         (III) IF THE INSTITUTION OF POSTSECONDARY EDUCATION IS
NOT PHYSICALLY LOCATED IN THE STATE, THE NUMBER OF STATE RESIDENTS WHO:

               1. ENROLLED IN THE SHORT–TERM PROGRAM; AND

               2. COMPLETED THE SHORT–TERM PROGRAM;

                         (IV) THE TOTAL COST OF ATTENDANCE, THE TOTAL TUITION
AND FEES, AND THE AVERAGE NET PRICE OF THE SHORT–TERM PROGRAM; AND

                         (V) DEMOGRAPHIC AND FINANCIAL AID INFORMATION OF
STUDENTS ENROLLED IN THE SHORT–TERM PROGRAM.

        (G) (1) (I) THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD

SHALL REQUEST AND COLLECT RELEVANT DATA FROM EACH INSTITUTION OF

POSTSECONDARY EDUCATION OFFERING AN APPROVED SHORT–TERM PROGRAM.

                         (II) THE DATA COLLECTED UNDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH MAY INCLUDE:

               1. INFORMATION       REGARDING  EMPLOYER

PARTNERSHIPS;

               2. JOB PLACEMENT SECTORS; AND

                                 3. THE ALIGNMENT OF SHORT–TERM PROGRAM
CURRICULA WITH THE HIRING REQUIREMENTS OF IN–DEMAND INDUSTRY SECTORS.

                         (III) EACH INSTITUTION OF POSTSECONDARY EDUCATION
OFFERING AN APPROVED SHORT–TERM PROGRAM SHALL PROVIDE THE DATA
REQUESTED BY THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD UNDER
THIS PARAGRAPH IN THE FORM AND MANNER REQUIRED BY THE BOARD.

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                (2) ON OR BEFORE SEPTEMBER 30 EACH YEAR, THE GOVERNOR’S
WORKFORCE DEVELOPMENT BOARD AND THE COMMISSION SHALL REPORT TO THE
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE, A SUMMARY OF THE REPORTS REQUIRED INFORMATION COLLECTED
UNDER PARAGRAPH (1) OF THIS SUBSECTION AND THE DEMOGRAPHIC AND
FINANCIAL AID INFORMATION OF STATE STUDENTS WHO ENROLLED IN
SHORT–TERM PROGRAMS APPROVED UNDER THIS SECTION.

(G) (H)  THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD AND THE

COMMISSION MAY ADOPT REGULATIONS NECESSARY TO CARRY OUT THIS SECTION.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2026.

Approved by the Governor, May 26, 2026.

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