HR6606-119

What This Bill Does

The Opportunities for Success Act of 2025 substantially rewrites part C of title IV of the Higher Education Act governing Federal Work-Study. It authorizes $1.5 billion for fiscal year 2027, rising to $2.5 billion for fiscal year 2031 and each later fiscal year, and expands program purposes to include child development and early learning, work-based learning, and career-aligned experience. It revises the allocation formula by reserving funds for institutions that serve Pell recipients and improve Pell completion, reserving $30 million for a new pilot grant program, and changing how returned funds are reallocated. Beginning in fiscal year 2028, institutions must use minimum shares of Work-Study funds for students with exceptional need in work-based learning during nonenrollment periods, for work-based learning positions generally, and for community service. The bill increases flexibility to carry over work-study awards, doubles job location and development limits from 10 percent or $75,000 to 20 percent or $150,000, rewrites community service-learning authority, revises work-college eligibility and application timing, creates work-based learning pilot grants up to $1 million for up to four years with a possible two-year renewal, requires employer partnerships and outcome reporting, directs the Department of Education to build student and employer surveys, a public data portal, technical assistance, and reports, and directs GAO to study best practices for connecting students to off-campus and career-aligned work.

Who Benefits and How

Students with exceptional need, Pell Grant recipients, college students, universities, work colleges, community colleges, nonprofit employers, public agencies, and participating employers benefit from more Work-Study funding, paid work-based learning during qualified periods of nonenrollment, career coaching, minimum work hours, community service-learning compensation, and pilot-grant positions tied to in-demand sectors. Employers benefit from structured partnerships that connect them to students and allow feedback on programs.

Who Bears the Burden and How

The Department of Education, Government Accountability Office, universities, work colleges, community colleges, employers, and federal taxpayers bear the burdens. The Department must recalculate allocations, reserve funds, administer pilot grants, review waivers, develop surveys, build a public portal, provide technical assistance, and report to Congress. Universities and work colleges must comply with new spending shares, assurances, application timing, student-priority rules, job-quality requirements, tracking, reporting, and sustainability plans. Employers must provide coaching, feedback, schedules compatible with coursework, and outcome data. Federal taxpayers bear the increased authorization from $1.5 billion in 2027 to $2.5 billion annually by 2031 and later years.

Key Provisions

• Authorizes Federal Work-Study funding from $1.5 billion in fiscal year 2027 to $2.5 billion in fiscal year 2031 and each succeeding fiscal year.
• Revises the allocation formula to reserve funds for improved Pell-serving institutions and $30 million for work-based learning pilot grants.
• Requires institutions beginning in fiscal year 2028 to devote minimum Work-Study shares to exceptional-need students, work-based learning, and community service.
• Expands job location and development limits to 20 percent or $150,000 and rewrites community service-learning and work-college rules.
• Creates pilot grants up to $1 million for work-based learning positions with employer partnerships, career coaching, wage support, outcome reporting, and sustainability plans.
• Requires Department surveys, a public data portal, technical assistance, congressional reports, and a GAO study on best practices for off-campus and career-aligned Work-Study employment.