More Generation Z are choosing trade school. Here’s how the government plans to support them

More young Americans are choosing to skip traditional college to obtain a trade degree or certificate, and the Department of Education has plans to support this shift.

University enrollment numbers have fallen since the outbreak of Coronavirus (Covid-19), with university costs rising and becoming too expensive for some. Instead of college, many Gen Z high school graduates are choosing to work straight out of school or choosing a trade or vocational school instead of a traditional four-year bachelor’s degree.

In the spring 2025 semester, enrollment in undergraduate programs increased by 2.1%. Meanwhile, the number of students enrolled in a two-year vocational program rose 11.7%, according to research by the National Student Clearinghouse Research Center, a higher education research organization.

The Ministry of Education is working on programs to support business schools.

President Donald Trump issued an executive order in April that his administration would invest in and improve America’s workforce and job training programs. In response, the Department of Education announced in May that it would partner with the Department of Labor to help states create more trade school programs.

The partnership recently announced that it will launch a “Content Management System” to help states develop a four-year plan to develop and manage workforce, adult education, and family literacy programs. The Ministry of Education said the system is still being implemented and the mandates will be updated when it is officially launched.

“The Trump Administration is committed to ensuring that all Americans are prepared for a fulfilling and meaningful career,” Education Secretary Linda McMahon said in a press release. “Thanks to our workforce development partnership, states will now be able to manage their programs more easily and efficiently.”

This summer, Congress passed the “Big, Beautiful Bill,” which introduced the Workforce Pell Grant Program. This new program will begin during the 2026-27 academic year, expanding the Pell Grant program to include students in certificate or licensure programs for eight to 15 weeks.

While students in longer-term eligible workforce programs have always been able to receive Pell grants, students enrolled in short-term certificate or license programs at an accredited institution of higher education will now be able to receive these grants. These shorter programs can lead to trade apprenticeships and jobs as HVAC technicians or medical assistants.

However, this grant program may be delayed until the 2027-28 school year, said Megan Walter, senior policy analyst at the National Association of Student Financial Aid Administrators.

The new Pell Grant program must go through a negotiated rulemaking process before it becomes official. Many higher education experts say hearings to determine the official language for the Workforce Pell Grant program must end by November 1 for it to be ready for the 2026 semester. However, the hearings are currently scheduled for December and January.

Once the hearings are complete, it will take at least two months to create a final rule, which is likely not a reasonable amount of time to implement the program by next year, Walter said.

“In the best case scenario, they can turn around [Negotiating Rulemaking] “They will have to deliver it by the end of March, and then they will have to deliver it to the schools and state governments to find a way to implement this,” Walter said. “I can’t imagine the implementation going smoothly over a four-month period.”