Education-to-Career Pathways

Tennessee’s economy needs more skilled workers, and forecasts predict that by 2031 most jobs will require some form of postsecondary education. Beginning in 2026, Workforce Pell — the new federal expansion of the Pell Grant program — will provide financial aid for high‑quality short‑term training programs that help Tennesseans quickly gain skills, earn credentials aligned to employer needs, and access high‑wage, in‑demand careers.

Tennessee’s outcomes-based funding formula rewards colleges and universities based on student outcomes. The high-need premium, a newer component of the formula, is designed to incentivize institutions to prepare graduates for careers that meet the state’s economic needs. However, the premium’s current definition relies on broad program categories and does not consistently reward credentials that lead to high-wage, in-demand careers. This memo outlines our recommendation to replace the existing high-need premium with a tiered impact credential bonus grounded in actual labor-market outcomes. 

Tennessee has made significant investments in preparing all students for postsecondary education and a career. Research suggests that work-based learning (WBL) is one opportunity that can provide students with the confidence, skills, and social capital to succeed in college and the workplace. However, for these positive impacts to be realized, work-based learning must be high quality, providing students with valuable learning that sets them up for later career success. To gain a better understanding of the current state of work-based learning in Tennessee, the SCORE team analyzed data from several sources and produced this series of memos.