Policy note · Workforce Pell

California Has Moved on Workforce Pell: Takeaways for Colleges

At full-time hours, not one of the 546 matched occupations on California's new Workforce Pell list would fail the federal earnings test that is supposed to backstop it. The test's arithmetic is public: 150 percent of the single-person poverty guideline plus tuition, so even a $9,000 program passes wherever completers earn above $15.84 per hour, below the median of every occupation on the list. Meanwhile 51 percent of all California employment sits in occupations that are both on the list and below what a single adult needs to live there. The 2026-27 list, published October 15 with the institution portal opening October 21, names 571 occupations covering 85 percent of the state's jobs.

0 of 546
matched listed occupations would fail the federal earnings test at full-time hours
$15.84
hourly wage that passes the earnings test with $9,000 tuition; the list's lowest median is $16.92
51%
of all California employment is in occupations that are both Workforce Pell-listed and below the living wage
571
occupations on the 2026-27 list (distinct SOC codes, counted from the published PDF)
85%
of all California employment (15.5 of 18.2 million jobs) is in listed occupations
47%
of listed occupations pay a median wage below the MIT living wage for a single adult ($30.48 per hour)

The earnings backstop passes everything

At full-time hours, the federal earnings test passes all of California's list, and the list covers almost all of California's jobs.

Where the earnings test bites, and where the list's wages sit Where the earnings test bites, and where the list's wages sit 546 matched occupations in $5 wage bands. All sit above the earnings-test thresholds; 259 sit below the living wage, 287 at or above. $15-20 per hour: 47 occupations 47 $20-25 per hour: 120 occupations 120 $25-30 per hour: 82 occupations 82 $30-35 per hour: 58 occupations 58 $35-40 per hour: 68 occupations 68 $40-45 per hour: 34 occupations 34 $45-50 per hour: 31 occupations 31 $50-55 per hour: 27 occupations 27 $55-60 per hour: 10 occupations 10 $60-65 per hour: 28 occupations 28 $65-70 per hour: 14 occupations 14 $70-75 per hour: 2 occupations 2 $75-80 per hour: 7 occupations 7 $80-85 per hour: 8 occupations 8 $85-90 per hour: 4 occupations 4 $90-95 per hour: 2 occupations 2 $100+ per hour: 4 occupations 4 $12.95 passes with $3,000 tuition $15.84 passes with $9,000 tuition $28.63 state median wage $30.48 living wage, one adult Home Health and Personal Care Aides · $16.92 Fast Food and Counter Workers · $20.84 Medical Assistants · $24.48 Electricians · $37.61 Firefighters · $41.96 Police and Sheriff's Patrol Officers · $58.60 Dental Hygienists · $61.74 Registered Nurses · $69.33 Air Traffic Controllers · $78.64 Chief Executives · $106.86 $20 $40 $60 $80 $100 Bar length = occupations per $5 wage band (longest bar 120). Labeled occupations are examples at their median. Wages: EDD OEWS, California statewide, May 2025. Thresholds: 150 percent of the 2026 single-person poverty guideline ($23,940) plus tuition, at 2,080 annual hours. Living wage: MIT, one adult.
The earnings test, in annual dollars The earnings test, in annual dollars From award year 2030-31, tuition may not exceed median completer earnings minus the floor; failing programs lose eligibility (34 CFR 690.95, 690.96). $23,940 the floor: 150% of the $15,960 guideline (2026) $26,940 passes with $3,000 tuition $32,940 passes with $9,000 tuition $35,194 lowest median on the list $2,254 gap fails at any tuition all 546 listed occupations $20,000 $40,000 Annual wages: EDD OEWS, California, May 2025, at 2,080 hours. Poverty guideline: HHS, 2026. The list's lowest median clears the $9,000 bar by $2,254.
Pass rate
100% · 100%
546 of 546 matched occupations pass at full-time hours, and with them all 15.5 million listed jobs, at both tuition levels.
Where it binds
1,365 hours
What a completer at the childcare median ($19.73), the largest certificate field colleges run, needs to work annually to pass with $3,000 tuition. The test screens hours, not wages.

Two caveats, both documented in Methods: occupation medians overstate early-career completer earnings, which makes these estimates generous to programs, and the Census Bureau's Post-Secondary Employment Outcomes, the one public program-level earnings series, does not yet include California institutions, so no public check against actual completer earnings exists.

The mechanism is one word

Education Code section 69871, added by California's Workforce Pell statute, directs the Labor Market Information Division of the Employment Development Department to identify occupations that are high-skill, high-wage, or in-demand. One criterion suffices. The published list states this standard in its own closing line and carries no per-occupation flags, thresholds, or methodology: an occupation appears or it does not.

That design choice is lawful and deliberate, and California is not alone in it. Oregon's flag table qualifies any occupation meeting one of its criteria. Colorado requires two of three. The District of Columbia requires all three and lists 31 occupations; Pennsylvania lists 19. The framework comparison tracks all twenty-four published lists side by side. What distinguishes California is the combination of an any-one-criterion screen with the country's largest labor market, which produces a list where in-demand, on its own, admits the state's biggest low-wage occupations. The result covers 15.5 million of California's 18.2 million jobs, 85 percent of all employment in the state: as an occupation screen, the list excludes less than a sixth of the labor market.

All 18.2 million jobs on one footing

The bar below is every California job, split by whether its occupation is on the Workforce Pell list and whether the occupation's median wage clears the MIT living wage for one adult ($30.48 per hour). The list covers 85 percent of the state's jobs, and 51 of those 85 points are occupations paying below the living wage.

California employment and Workforce Pell California employment and Workforce Pell Listed, below living wage: 9.3 million jobs (51 percent) Listed, at or above living wage: 6.2 million jobs (34 percent) Not on the list: 2.7 million jobs (15 percent) 51% 34% 15% Listed, below living wage 9.3M jobs Listed, at or above 6.2M jobs Not on the list 2.7M jobs Source: CSAC 2026-27 Workforce Pell Occupational List (571 occupations) joined to EDD OEWS May 2025 on six-digit SOC; MIT living wage, one adult, $30.48 | opportunitydata.org

What the list looks like in the state's own wage data

Of the 571 listed occupations, 546 match an occupation with a published median hourly wage in the Employment Development Department's Occupational Employment and Wage Statistics file for California (May 2025 estimates). The benchmark throughout is the MIT Living Wage Calculator's wage for one adult with no children in California, $30.48 per hour.

By occupation count, 259 of the 546 matched occupations (47 percent) pay a median below $30.48. Those 259 occupations hold 9,299,240 jobs, and that one number is the numerator of both employment shares on this page. Divided by the 15.5 million jobs in listed occupations, it is 60 percent of what the list covers. Divided by all 18.2 million jobs in the state, it is 51 percent of California employment. The 60 and the 51 measure the same jobs; only the denominator changes.

Two in five listed occupations (218, or 40 percent) also pay below California's all-occupation median of $28.63, which means the high-wage arm of the standard is doing no work for them; they are on the list because of demand volume alone. The largest listed occupations below the living wage:

SOCOccupationMedian hourly wageCalifornia employmentShare of all CA jobs
31-1120Home Health and Personal Care Aides$16.92970,1505.3%
35-3023Fast Food and Counter Workers$20.84449,8402.5%
41-2031Retail Salespersons$18.65376,4602.1%
53-7062Laborers and Freight, Stock, and Material Movers, Hand$21.97355,5002.0%
41-2011Cashiers$18.00336,1101.8%
43-9061Office Clerks, General$23.85311,4901.7%
53-7065Stockers and Order Fillers$21.06310,8701.7%
37-2011Janitors and Cleaners, Except Maids and Housekeeping Cleaners$20.25234,2401.3%
35-3031Waiters and Waitresses$17.79229,9701.3%
53-3032Heavy and Tractor-Trailer Truck Drivers$29.59205,0901.1%
33-9032Security Guards$21.32199,4801.1%
43-4051Customer Service Representatives$24.39176,8501.0%

Wages and employment are May 2025 statewide estimates from EDD's OEWS file. These twelve occupations alone account for 27 percent of all employment in listed occupations and 23 percent of all California employment.

What a living-wage screen would have cost colleges

In January, the California EDGE Coalition, a statewide workforce coalition, recommended limiting Workforce Pell to programs with "earnings that meet or move toward regional living-wage benchmarks." The published list takes the opposite approach, and the cost of the stricter one is measurable against what community colleges already teach. In 2023-24, California's public two-year colleges awarded 54,863 certificates of less than one year, the credential length closest to Workforce Pell's program window. Matched to occupations through the federal CIP-SOC crosswalk and to the same May 2025 wage data, 46,795 of those certificates have a wage match, and 18,744 of them, 40 percent, are in fields whose occupations pay below the living wage. In enrollment terms: those are 18,744 completers in a single year, and at the 70 percent completion rate the federal rule itself requires of every Workforce Pell program, they imply roughly 27,000 students enrolled in those fields in any given year, every one of whom a living-wage screen would have placed outside the program.

40 percent of short-term certificates are in below-living-wage fields 40% of short-term certificates are in below-living-wage fields The 46,795 under-one-year certificates with a wage match, California public two-year colleges, 2023-24. Would have been struck Would have remained Below living wage: 18,744 certificates, 40 percent At or above living wage: 28,051 certificates, 60 percent 40% 60% 18,744 certificates · roughly 27,000 enrolled students 28,051 certificates California adopted no wage screen: all of these certificates stay Workforce Pell-eligible. Another 8,068 certificates have no wage match through the crosswalk and are excluded from the split. Source: IPEDS 2023-24 completions, EDD OEWS May 2025, MIT living wage ($30.48) | opportunitydata.org
The certificate fields a living-wage screen would have struck The certificate fields a living-wage screen would have struck Ten largest below-living-wage fields as a share of all 54,863 under-one-year certificates, California public two-year colleges, 2023-24. California adopted no such screen: every one of these fields stays Workforce Pell-eligible. The ten account for 15,012 of the 18,744. Child care providers $19.73 median Child care providers: 6,158 certificates, 11.2 percent of all under-one-year certificates 11.2% · 6,158 Emergency medical technicians $22.92 median Emergency medical technicians: 2,542 certificates, 4.6 percent of all under-one-year certificates 4.6% · 2,542 Accounting and bookkeeping technicians $29.15 median Accounting and bookkeeping technicians: 1,851 certificates, 3.4 percent of all under-one-year certificates 3.4% · 1,851 Welders $28.55 median Welders: 1,188 certificates, 2.2 percent of all under-one-year certificates 2.2% · 1,188 Nursing assistants $23.48 median Nursing assistants: 868 certificates, 1.6 percent of all under-one-year certificates 1.6% · 868 Cosmetologists $19.06 median Cosmetologists: 701 certificates, 1.3 percent of all under-one-year certificates 1.3% · 701 Culinary arts $22.88 median Culinary arts: 673 certificates, 1.2 percent of all under-one-year certificates 1.2% · 673 Medical assistants $24.48 median Medical assistants: 465 certificates, 0.8 percent of all under-one-year certificates 0.8% · 465 Electrical equipment installers $25.33 median Electrical equipment installers: 288 certificates, 0.5 percent of all under-one-year certificates 0.5% · 288 Fitness technicians $28.59 median Fitness technicians: 278 certificates, 0.5 percent of all under-one-year certificates 0.5% · 278 Certificates: IPEDS 2023-24, 98 colleges. Wages: each field's occupations via the CIP-SOC crosswalk, EDD OEWS May 2025, employment-weighted median. Living wage: $30.48 per hour (MIT, one adult).

Two in five, not all: a living-wage screen would leave most certificate fields standing. What it would strike is the essential-services core of what community colleges teach. The largest excluded field by a wide margin is child care, followed by emergency medical response and the clinical support occupations, nursing assistants and medical assistants among them. These are the same occupations the earnings-test estimate above shows passing the federal backstop, which means an occupation-level wage screen would remove fields that federal accountability would keep. By declining the screen, the published list keeps all of these fields open to Workforce Pell and leaves the sorting to the completion and placement tests, which operate at the program level, where a weak program and an essential field can actually be told apart. On this evidence, that is the better design.

Home Health and Personal Care Aides: largest on the list, almost no pipeline

The hardest case on the list is also its largest, and it turns out to be a case about the list, not about colleges. Home Health and Personal Care Aides hold 970,000 California jobs at a median of $16.92 per hour: the occupation anchors the wage statistics on this page. But it barely exists in the college pipeline. California's public two-year colleges awarded 39 home-care certificates statewide in 2023-24, one for every 25,000 jobs, so the occupation that dominates the list generates almost no Workforce Pell exposure, and the program-level exposure to low-wage fields is concentrated in child care, emergency medical response, and nursing assistance instead.

970,150 jobs. 39 certificates. 970,150 jobs. 39 certificates. Home Health and Personal Care Aides in California: jobs (May 2025) against under-one-year home-care certificates awarded by public two-year colleges (2023-24), drawn at true scale. Jobs in the occupation 970,150 jobs 970,150 Certificates awarded, 2023-24 39 certificates 39 one certificate for every 25,000 jobs; at this scale the bar is thinner than a line Source: EDD OEWS May 2025 (SOC 31-1120); IPEDS 2023-24 completions, CIP 51.2602 | opportunitydata.org

The missing pipeline is not because the work takes no training. California certifies home health aides at a minimum of 75 hours (Health and Safety Code 1736.1), and Workforce Pell funds programs of 150 to 599 clock hours: the standard credential is half the length the grant can pay for. An occupation on the list is not a program in a catalog, and here the gap between the two is written into the hour requirements themselves.

The standard home-care credential is too short to fund The standard home-care credential is too short to fund Clock hours of instruction. A program qualifies for Workforce Pell at 150 to 599 hours; California certifies home health aides at 75. Workforce Pell fundable range 150 to 599 clock hours (34 CFR 690.92) 75 hours California certified home health aide minimum (Health and Safety Code 1736.1) too short 0 300 600 Source: California Health and Safety Code 1736.1; 34 CFR 690.92 (91 FR 29254) | opportunitydata.org
The equity argument

In the federal labor force survey, 86 percent of home health aides and 80 percent of personal care aides are women (Current Population Survey, 2025 annual averages). A 75-hour credential below the fundable floor leaves that workforce, 970,000 jobs in California alone, effectively outside both higher education and federal Workforce Pell dollars. The current higher ed design keeps it that way.

A potential solution

The occupation has almost no one training for it, and nothing in California's design stands in the way of changing that. A home-care program built past the 150-hour floor and enriched to connect into the clinical ladder, toward certified nursing assistant, medical assistant, and licensed vocational nurse, would make the certificate a first rung rather than a dead end. Demand all but meets the placement test on its own; completion, the test of program quality, is the one such a program would have to earn.

How to read these numbers

An occupation's median wage is not a program graduate's wage, and a broad list is not a broken one. In practice, a list this wide means the occupation screen decides almost nothing: nearly any short-term program a California institution offers can point to a listed occupation, so the real filtering happens program by program, at the application stage and after. A curated list screens occupations before anyone applies; a broad list admits applications and relies on program-level tests to sort them. Both are defensible readings of the same federal text. The difference is where the screening happens, and how much Pell eligibility students can spend before it does.

The program-level tests every Workforce Pell program must clear, whatever its occupation:

With the earnings arm estimated to pass everything, the completion and placement thresholds carry the accountability load, and the placement test does not require a job in the trained occupation until award year 2029-30.

The observation this note supports is narrower: under an any-one-criterion standard, the published California list labels as Workforce Pell-eligible a set of occupations in which most of the state's actual jobs pay below what one adult needs to live there, the federal earnings backstop as applied to this list screens hours rather than wages, and a student's limited lifetime Pell eligibility can now be spent on short-term training aimed at those occupations. Whether the completion and placement tests catch what the list and the earnings test do not is the implementation question the next two award years will answer.

Methods and sources

Occupation list: 2026-27 Workforce Pell Occupational List (California Student Aid Commission, October 2026), 571 distinct six-digit SOC codes counted from the PDF on October 20, 2026. Wages and employment: EDD Occupational Employment and Wage Statistics, California statewide file, May 2025 estimates (published June 2026), matched on six-digit SOC; 546 of 571 listed occupations have a published median hourly wage; total California employment (18,213,700) is the same file's all-occupations row, and listed-occupation employment sums to 15,520,300, 85 percent of the total. Employment in the 259 matched occupations below the living wage sums to 9,299,240: 60 percent of the 15,520,300 jobs in listed occupations and 51 percent of the 18,213,700 jobs in the state. Five matched occupations carry no published employment estimate and count as zero in these sums, which cannot raise either share. The 25 unmatched codes are mostly teaching occupations, for which OEWS publishes annual rather than hourly wages, plus Legislators, which the statewide file omits; excluding them cannot raise the sub-living-wage share. Living wage: MIT Living Wage Calculator for California, one adult with no children, $30.48 per hour, accessed October 22, 2026; results against the state's own all-occupation median ($28.63) are reported alongside it. Earnings-test estimates: 150 percent of the 2026 federal poverty guideline for one person ($15,960, so a floor of $23,940; HHS, 48 contiguous states, applied nationally including California) plus tuition, divided by 2,080 annual hours, compared with each occupation's OEWS median; annual figures are the OEWS hourly medians at 2,080 hours, which makes the lowest listed annual median $35,194 and the pass bars $26,940 and $32,940, cleared by all 546 matched occupations and by 100 percent of the 15,520,300 jobs in them; the test itself uses actual completer earnings from federal records (34 CFR 690.95), which part-year work and early-career wages can place well below occupation medians. Workforce share by sex: BLS Current Population Survey, 2025 annual averages, Table 11 (employed persons by detailed occupation and sex): Home Health Aides 86.1 percent women, Personal Care Aides 79.8 percent, 81.6 percent across the two occupations weighted by employment; national figures, as the CPS does not publish state-by-occupation detail at this granularity. Statutory standard: California Education Code section 69871. Federal program-level tests: 34 CFR 690.92 through 690.96 (91 FR 29254, May 19, 2026). The full join is published as a CSV. Community college certificate analysis: IPEDS 2023-24 completions (C2024, first majors, award levels 20 and 21, certificates of less than one year) at California public two-year institutions (sector 4, 98 institutions), with each field mapped to occupations through the NCES CIP 2020 to SOC 2018 crosswalk and classified by the California-employment-weighted median of its mapped occupations’ median hourly wages against the same $30.48 benchmark; 46,795 of 54,863 certificates (85 percent) have a wage match, the enrolled-student figure divides completions by the 70 percent completion threshold of 34 CFR 690.94 (18,744 / 0.70, about 26,800, stated as roughly 27,000) as a lower-bound-rate implication rather than a measured headcount; the home-care field (CIP 51.2602, 39 certificates) sits among the unmatched because EDD publishes the combined SOC 31-1120 rather than the detailed codes the crosswalk uses, and assigning it the combined median would move the below-living-wage share from 40.1 to 40.2 percent; the hours figure uses the Childcare Workers statewide median (SOC 39-9011, $19.73, May 2025): (23,940 + 3,000) / 19.73 is about 1,365; the field-level join is published as a CSV. Cite as: Opportunity Data, "California Has Moved on Workforce Pell: Takeaways for Colleges," October 2026.

Released October 2026