U.S. Department of Education and U.S. Department of Labor Make Historic Grant Investments in Programs that Bolster Postsecondary Outcomes

Today, the U.S. Departments of Education (ED) and Labor (DOL) announced that the agencies will make a historic, one-time investment in the Fiscal Year (FY) 2026 competition for the Strengthening Institutions Program. This new competition will support workforce readiness, advance the responsible use of artificial intelligence, and help institutions develop high-quality, short-term programs ahead of the implementation of the new Workforce Pell Grant program. The agencies are using existing flexibilities in discretionary grant programs to advance President Trump's priorities and target resources to help students enter the workforce.

This one-time investment is financed by discretionary funding that previously supported unlawful Minority-Serving Institutions Grant programs, which conferred government benefits exclusively to institutions based on racial or ethnic criteria. This announcement marks the second year that ED has reinvested dollars to support high-quality education that bolsters student outcomes as opposed to allocating federal resources to unconstitutional programs.

"The Trump Administration is investing in the future of higher education and ensuring that all students have access to high-quality programs," said Assistant Secretary for Postsecondary Education Dr. David Barker. "Through our partnership with the Department of Labor, we are creating a modernized system that will be more responsive to labor market needs and bridge the gap between employment and education."

"Gone are the days of dead-end degrees that come with burdensome debt and few job prospects. The Strengthening Institutions Program and its accompanying grant awards will equip eligible colleges and universities with the resources they need to prepare students for real-world, in-demand, high-wage careers," said U.S. Department of Labor Assistant Secretary for Employment and Training Dr. Henry Mack. "I am especially excited by this year's emphasis on equipping our nation's institutions with the resources they need to educate for responsible use of artificial intelligence. The reindustrialization agenda cannot happen without it."

This competition further strengthens ED and DOL's Postsecondary Education Partnership and aligns the federal government's education and workforce development programs.

Background:

Since 2025, ED has announced ten new Interagency Agreements (IAAs) with five agencies to break up the federal education bureaucracy, ensure efficient delivery of funded programs, and move closer to fulfilling the President's promise to return education to the states. Learn more about the efforts to return education to the states here.

The ED-DOL partnership follows a common format of an IAA, a tool routinely utilized by government agencies to procure services, share resources, and ensure efficient service delivery. Under this partnership, DOL is managing grant funds, providing technical assistance, and integrating ED's postsecondary programs with the suite of programs that DOL already administers in accordance with 31 U.S.C. § 1535.

ED's administration of programs authorized under the Higher Education Act streamlines postsecondary education programs in partnership with DOL and connects ED and DOL to create a better coordinated federal approach to postsecondary education.

For more information on this year's Strengthening Institutions Program grant competition, see here.

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