Education At Work

Connecting Education Funding to Career Outcomes

Written by Jane Swift, CEO of Education at Work

As the daughter of a teacher, I was born with the “education bug.” When I shipped off to a private competitive college, I became an education equity warrior having discovered I was nowhere near as well prepared as my peers from elite private schools or wealthier Massachusetts public schools. Education excellence was an area of intense focus of my tenures as a state Senator and governor of Massachusetts. 

One policy area that was just emerging during my tenure as Governor was expanding access to programs that connected education and work—initiatives like early college. Coming from a family of plumbers and with my mom’s experience at what was then called State Teachers College of North Adams, I was drawn to the partnerships between employers and colleges focused on career outcomes. I saw firsthand how aligning learning with real career opportunities could change lives and strengthen communities across the Commonwealth.

Thanks to Pell Grants and Federal Work-Study, I was able to attend and graduate from a prestigious liberal arts college in New England. Those federal programs didn’t just make college possible; they gave me purpose and direction, linking what I was learning in the classroom to the dignity and opportunity of work. After completing an internship in the Massachusetts Senate, a body I would be elected to a few years later, I shared real-world examples in my Administration and Public Policy class at Trinity College

That’s why I believe so strongly that public funding must do more than expand access to a system of higher education that too often falls short. It must create real opportunity by helping learners build careers, increase their earning potential, and achieve lasting economic mobility. 

It was encouraging to see that in late September, the U.S. Department of Education (ED) issued two notices on how in upcoming competitive grant cycles it will prioritize applications that advance “Meaningful Learning Opportunities” and “Career Pathways and Workforce Readiness.”

Using Grant Funding to Incentivize Stronger Education and Career Pathways

In both notices, ED is proposing to give preference to grant applicants that support workforce development programs that align with state priorities, promote greater awareness of the range of postsecondary educational and career options, and/or provide career-connected learning through work-based learning or other pathways.

This policy shift reflects a growing urgency among state and federal policymakers to strengthen the connection between education and employment—a connection that has always existed for families like mine, but one that has been missing until now in programs receiving federal funds. Today, 52% of college graduates are underemployed a year after graduation, and the unemployment rate for recent college grads (4.8% as of June) is nearly a point higher than the national average for all workers. This relative lack of good job outcomes for recent college graduates has eroded the public’s confidence in higher education’s promise as the surest route to opportunity, particularly among working adults, learners pursuing nontraditional paths, and students like me who rely on financial aid and work to pay for college. 

Even as ED indicates its preference for programs that align education and work, a single grant cycle by itself won’t lead to sustained improvements. What’s needed to turn the tide are new programs with additional and ongoing federal support. The most important thing to watch will be the actual grants that ED awards and how states partner with organizations to drive increased access to work-based learning, apprenticeships, and the full range of pathways leading to economic independence and a fulfilling career.

Why This Matters

We can’t afford to let this moment pass. The economy is changing rapidly, and education must change with it. We need to design programs that prepare students not just for their first job, but for a lifetime of advancement. To do that, we need to align public investment with economic development, ensuring that opportunity is created by design—not by geography or by luck. Just as improving K-12 excellence enabled broader access to postsecondary schools, higher education  must expand access to better career outcomes.

We must build a system that honors multiple pathways to success—one where education and employment are seamlessly connected, and where learners of every age and background are able to use the skills they gain to find careers that allow them to thrive.