Message from Executive Director Ben Cannon
This month’s newsletter contains updates on preparing for the new Workforce Pell Grant, setting a vision for college credit in high school, the impact of the historic Future Ready Oregon investment, a grant to support pathways for adults in custody, and our ASPIRE program, which is now reaching all rural counties with college and career planning. We are starting the process of policy and budget proposals for the next biennium and embarking on new strategies arising from our strategic plan.
In addition, we are preparing for a potentially high-impact legislative session, beginning February 2. A centerpiece of this short session will be adjustments to the current 2025-27 budget, as the state currently faces a revenue shortfall and other pressures on its budget as a whole. HECC continues to stress the importance of sufficient and sustained state investment in higher education and workforce training, even as we know that legislators have many needs to balance. At a time when Oregon postsecondary institutions are already facing strained budgets, reductions in state funding would be deeply challenging and would hamper efforts to drive opportunity for Oregon learners. In the event that legislators consider reducing funding to postsecondary education, we will attempt to illustrate the impact of these difficult decisions.
At the direction of the 2025 Legislature, HECC recently concluded an examination of spending and cost efficiency at Oregon public universities. While we found that Oregon’s universities operate relatively efficiently, we note they are likely to face continuing fiscal pressures. We identify opportunities for the universities, with support from the state, to strengthen inter-institutional partnerships and undertake other systemwide strategies that could help address these issues head on.
Finally, I am optimistic that more Oregonian students and working adults who are seeking short-term training in high-demand fields will soon qualify for financial support through the new Workforce Pell Grant. Oregon is well positioned to implement the program requirements because of our already close partnership between workforce development and higher education at the state level, and we are pleased to update you on progress with this work. Once implemented, this program could help more Oregonians launch quickly into higher paying careers.
Thank you, as always, for your engagement as we work to serve all Oregonians.
Preparing for the 2026 Legislative Short Session
During each legislative session, the HECC presents to legislative committees and advises the Oregon Legislature and the Governor on topics of critical concern to Oregon postsecondary education and training. On our legislative resources web page, you can stay informed on HECC legislative activity in the 2026 legislative session, which begins February 2 and may run through March 9.
We expect that legislators will focus this session on any adjustments to the current biennial budget, with attention on a funding shortfall in the state’s transportation budget and on the outcomes of the February 4 revenue forecast. The Legislature will decide whether reductions to the 2025-27 Legislatively Approved Budget (LAB) are needed, and HECC is prepared to advise and inform legislators on the impact of any that are proposed for higher education. In fall 2025, the HECC responded to the Legislative Fiscal Office’s request to model potential budget reductions, in the event they are needed this session. HECC’s response presented specific options as required, while focusing on preserving vital programs and services for postsecondary education and training.
Given the short timeframe of Oregon’s short sessions, they tend to be light on significant postsecondary policy issues, but we will be reviewing higher education and workforce related bills that are proposed. Several bills have been proposed by legislators and legislative committees, focused on the following:
- A bill (HB 4124) elevating the recommendations of the HECC’s “Spending and Efficiency in Oregon’s Public Universities,” a report developed in response to requirements in a legislative budget note. View the report here and the press release here.
- A bill (HB 4079) requiring student notification in cases of federal immigration enforcement presence on school and public college/university campuses.
- A bill (HB 4122) to provide student governments with increased formal recognition and rights within their institutions.
- A bill (SB 1512) updating the goals of the Prosperity 10,000 workforce development program which is administered by Oregon’s nine local workforce development boards and supported by the HECC Office of Workforce Investments.
- A bill (HB 4033) transferring the Oregon Volunteers in Disaster (ORVID) system from HECC to the Oregon Department of Emergency Management (ODEM).
Preparing for the Workforce Pell Grant in Oregon
State leaders are working on program eligibility guidelines to prepare for implementation of the Workforce Pell Grant
With recent federal changes, Oregonians pursuing short-term workforce training programs to prepare for high demand jobs could qualify soon for financial assistance through an expansion of the federal Pell Grant called the Workforce Pell Grant.
The Pell Grant is a financial need-based federal grant and is the single largest source of federal grant aid supporting postsecondary education students. The federal government is expanding the existing Pell Grant program to support individuals pursuing short-term, industry-recognized workforce education programs. We are pleased to report that HECC staff and the Workforce and Talent Development Board (WTDB) are working on guidance for Oregon program eligibility for the Workforce Pell in accordance with federal requirements.
Background: Workforce Pell became law as a part of the federal budget reconciliation bill, H.R. 1, on July 4, 2025. The reconciliation bill also included $10.5 billion added funding to address a shortfall in Pell Grant funding. While the Workforce Pell Grant program officially goes into effect on July 1, 2026, federal regulations and state processes that are essential to program implementation are still being finalized. Under the provisions of H.R. 1, each state’s Governor, in consultation with the State Workforce Board—which, for Oregon, is the WTDB—is expected to determine the programs that meet the following Workforce Pell eligibility criteria:
- Be aligned with requirements of high-skill, high-wage, or in-demand occupations or industries;
- Meet the hiring requirements of employers of those occupations or in those industries;
- Lead to an industry-recognized credential; and
- Be stackable and portable.
After states determine eligible programs, based on final federal rules, the U.S. Department of Education will validate state program approvals. Programs will need to meet a number of additional eligibility criteria described here; the process of determining that eligibility is still being clarified at the federal level. The U.S. Department of Education is in the process of finalizing federal rules for the program, after concluding a negotiated rulemaking process in December. Publication of proposed final rules is expected soon.
Oregon Program Eligibility Process: Julia Pontoni, director of the HECC Office of Workforce Investments, is leading an internal HECC staff workgroup responsible for the HECC agency’s role in Workforce Pell implementation, and she presented to the HECC on this work at its December 11 public meeting. HECC staff are developing definitions for program eligibility criteria for the WTDB to consider for approval at its March 2026 meeting, and if approved, to recommend to Governor Kotek. Public comments are welcomed at public meetings of the HECC and WTDB. The HECC will keep partners informed of the timeline for implementation in Oregon.
Also in December, HECC Executive Director Ben Cannon joined other state leaders in a national panel on “Why Implementation Matters: Ensuring Quality in the New Workforce Pell Program,” hosted by New America. Learn more at the link below.
HECC Adopts Report on Spending and Efficiency at Oregon Public Universities, Recommends Changes to Protect Student Access and Success
On January 6, the HECC voted to adopt a report on Spending and Efficiency in Oregon Public Universities and to transmit its findings to the Oregon Legislature for the 2026 session. A summary of the report can be found in our recent press release. The report analyzes trends in student costs, university spending, staffing, and efficiency across Oregon’s seven public universities and proposes targeted recommendations to help ensure long-term vitality and affordability.
The report responds to a directive to the HECC from the Oregon Legislature to assess cost efficiency at the universities in conjunction with the passage of the 2025-27 biennium higher education budget bill (Senate Bill 5525, 2025). In a letter to the Commission on January 2, 2026, Governor Tina Kotek cited challenging budget realities and encouraged the HECC to provide clear and coordinated leadership to Oregon colleges and universities. The Commission emphasized five actions for legislative consideration that would significantly improve efficiency while protecting access and student success.
The report recommends that the Legislature:
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Plan for targeted institutional integration by January 2027. Direct the HECC, in consultation with public universities and community colleges, to develop proposals ranging from deeper shared services to formal affiliations or mergers—prioritizing institutions that signal interest and ensuring academic access is maintained or enhanced.
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Establish periodic program review and renewal. Require public university degree programs to demonstrate value, mission alignment, non duplication, minimum enrollment/financial sustainability, and equitable impacts—paired with clear guardrails and ample time for corrective action.
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Create a separate salary pool for essential compensation increases. Appropriate a biennial state fund to support reasonable, predictable compensation adjustments across institutions.
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Prioritize replacement of major IT infrastructure in capital planning. Use state-backed bonding where appropriate to modernize core systems, strengthen cybersecurity, and enable interoperable platforms that reduce administrative costs.
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Continue funding targeted sustainability and integration initiatives. Building on the $25 million investment made during the 2023-25 biennium aimed at improving the long-term financial sustainability of the Technical and Regional Universities (TRUs) and Portland State University, expand one-time investments that help universities streamline programs, improve student success, and share administrative functions—scaling evidence-based projects statewide.
Read the press release and full report at the links below.
Higher Education and K-12 Support a Joint Vision for College Credit in High School
At its December public meeting, the HECC voted to commit to a state vision for college credit in high school in Oregon. In close partnership with the Oregon Department of Education, the vision was created with engagement statewide, including a survey that received more than 600 responses from teachers, faculty, program coordinators and community members, among others.
With this vote, Oregon commits to prioritizing equitable access to college credit opportunities for all high school students.
Vision for College Credit in High School:
In support of the state’s education and workforce goals, every student in Oregon will have access to college credit in high school.
In these courses, students will build skills, gain confidence, and get a head start on their path after high school.
Through intentional partnerships, high schools, colleges, and universities will create purposeful career and college experiences that reduce the cost of college and encourage students to imagine and plan for their future.
The vision was presented by HECC and ODE staff as part of their work on a two-year policy development project through the College in High School Alliance. Oregon is one of seven states in this multi-state initiative working to advance state-level policy. This work builds on an already close partnership between ODE, HECC and postsecondary institutions on policy pursuant to ORS 340.310 and OAR 715-017-0005.
Oregon agencies intend to work to achieve the new vision by focusing on affordability, sustainable funding, credits with a purpose, and shared responsibility between K-12 and higher education. Stay tuned for news on further implementation of this work in our future communications!
Future Ready Oregon Annual Report Shows Greater Economic Stability and Equity for Participants
The HECC Office of Research and Data has prepared the fourth annual report on Future Ready Oregon. This report provides a comprehensive evaluation of the ongoing implementation and impact of all eight Future Ready Oregon programs. The report includes findings on participation, workforce program completion, and participants’ employment outcomes; compares participation and outcomes to statewide economic and education trends; and makes recommendations for the coming years.
Overall, the findings are positive. In its first three years, Future Ready Oregon has served 27,434 participants and offered more than 82,670 services, which include workforce education and training programs and support services that reduce barriers to participation. Virtually all participants are low-income, and 90 percent also identified as a member of one or more additional priority populations identified in Senate Bill 1545 (2022) (among those who reported their identities). Among participants who were not employed at the start of services, 74 percent became employed after services, and most found jobs within one or two quarters. Those who were employed at the start experienced wage gains. Their median hourly wage rose from $18.10 to $21.36. Finally, the focus industries of healthcare and manufacturing saw gains, with 1,360 new workers joining the healthcare workforce and 341 new workers entering the manufacturing sector. Results could be much higher, but a lack of social security numbers for 42 percent of participants limits the results.
The report concludes with key findings and recommendations to continue providing wraparound support services, improve outreach to Oregonians 40 years and older, improve participant data collection, and use Future Ready strategies as a model for future investments in equitable and innovative workforce development.
ASPIRE Program Now Serves Students in Every Oregon County
ASPIRE—a statewide program dedicated to helping Oregon students become college and career ready—has accomplished a significant milestone. For the first time since its founding in 1998, ASPIRE now has an active site in each of Oregon’s 36 counties, building towards its long-standing goal of serving all Oregon students.
ASPIRE provides students with education, resources, and opportunities that focus on college and career exploration, research, and support applying for college admissions, scholarships, and financial aid. ASPIRE activities available to students include one-on-one and group mentoring, trainings, and college and career fairs, to name just a few examples. The program aims to ensure that all students, including those in rural and underserved communities, can access the tools and guidance to successfully pursue their college and career goals.
HECC’s Office of Student Access and Completion, which administers ASPIRE, reached this objective in 2025 with the addition of new ASPIRE sites in five rural/frontier schools across Central Oregon: Wheeler County High School, Sherman County High School, Lakeview High School, Condon High School, and Arlington High School. Their addition brings the total number of current ASPIRE sites to 215. Of these, 54 percent are located in rural or frontier regions, and 69 percent serve low-income communities.
Kerry Thomas, interim director of OSAC, says, “We’re excited to have achieved this milestone in our effort to support students statewide. Expanding into Oregon’s most remote regions is critical to ensuring equitable access to higher education and career opportunities.”
Oregon Joins National Effort to Expand Education and Workforce Pathways for Justice-Impacted Individuals
On January 14, the HECC, in partnership with the Oregon Department of Corrections (DOC) and the Oregon Employment Department (OED), announced that Oregon has officially joined the inaugural cohort of Jobs for the Future’s (JFF) Fair Chance to Advance (FC2A) State Action Networks, a new initiative to help states expand high-quality postsecondary education and workforce pathways for individuals with histories of incarceration. Read our press release here.
As one of four states selected for the initial cohort, Oregon’s cross-agency team, led jointly by HECC, DOC, and OED, will bring together leaders in Oregon who will work with JFF’s Center for Justice & Economic Advancement to address persistent barriers that limit economic opportunities for Oregonians with records and their families. Oregon plans to unify inter agency data systems to guide decisions, strengthen reporting, and expand education to employment pathways, including sustaining and growing in prison WorkSource Oregon reentry centers as a core bridge from custody to community.
The grant builds on several years of work to create an integrated education-to-employment system for adults in custody. Guided by Senate Bill 234 (2021) and Senate Bill 269 (2023), state agencies and local partners are building a continuum of services so adults in custody can move smoothly from adult basic skills to college and career training, and into reentry-focused career and employment services.
Recent Legislative Reports
The 2027-29 higher education budget bill (SB 5525, 2025) directed the HECC to assess cost efficiencies at Oregon's public universities. In January, the HECC released its report on spending and efficiency. See the HECC press release, also linked above, for highlights.
In December, the HECC released its annual report on Future Ready Oregon. Future Ready Oregon is a comprehensive investment package in Oregon's workforce, education, and training systems (SB 1545, 2022). See the article on this topic above for details.
In December, HECC also released its annual report on Credit for Prior Learning. Credit for Prior Learning (CPL) enables Oregonians to earn academic credit for college-level knowledge gained through work, military experience, and other professional experiences. In 2024-25, Oregon community colleges and public universities awarded CPL to thousands of students, converting prior learning into more than 180,000 academic credits. Notably, in 2024–25, Oregon reached an important milestone: all public universities and 16 of 17 community colleges reported standardized CPL data, establishing a systemwide baseline for participation and credit awards. Read more findings in the full report.
Save the Date for the Oregon Talent Summit on May 19, 2026
We are excited to announce that the Oregon Talent Summit, hosted by the Workforce & Talent Development Board (WTDB) in collaboration with the HECC, will be held on May 19, 2026, at the Salem Convention Center. Since 2018, the Talent Summit has been a cornerstone event for shaping and advancing Oregon’s workforce and education strategies, bringing together leaders from business, education, community-based organizations, state agencies, policymakers, and others from across the state. Please save the date and share this with your networks to encourage statewide participation. You can also join the Talent Summit mailing list, available on the WTDB website, to stay informed on this event.
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