Recent state postsecondary policymaking has been shaped by a mix of affordability concerns, uneven enrollment recovery and persistent labor market demand in high-demand fields. As states work to fortify talent pipelines, policymakers are also paying closer attention to how programs produce employment and earnings outcomes for students. Our bill tracker, which monitors education legislation across all 50 states, shows that postsecondary policymaking is already very active in the 2026 legislative cycle. Governors are reinforcing that activity; ECS’ review of State of the State Addresses indicates that postsecondary policy ranks among the most frequently cited education priorities.
Early legislative activity point to states concentrating on five primary trends:
- Student debt relief as a workforce strategy.
- Access and affordability expansion.
- Outcome-based funding and return on investment.
- Credentials and labor market demand connections.
- Degree and non-degree program accountability.
Student Debt Relief and Workforce Development
States are facing persistent labor shortages in high-demand sectors, such as healthcare, education and social services. Many states are responding with targeted loan repayment and reimbursement programs. Our bill tracking indicates that loan repayment and forgiveness programs were the most active postsecondary policy intervention in 2025.
In Montana, lawmakers enacted H.B. 509, which expands eligibility for the state’s Quality Educator Loan Assistance Program to include all newly hired quality educators in Montana public schools. The bill prioritizes newly hired educators in schools with educator shortages.
Access and Affordability Expansion
In the 2025 legislative session, financial aid was one of the most common categories of postsecondary legislation — reflecting an intense focus on the costs for students. Some states expanded eligibility within existing need-based aid programs while others increased award amounts to keep pace with tuition and cost-of-living pressures.
States are also pairing affordability measures with workforce goals by targeting financial aid to specific student populations — particularly adult learners and students pursuing high-demand fields. These policies reflect a strategy to reduce cost barriers for learners who can quickly fill labor market gaps.
New York’s Opportunity Promise Scholarship is one example. The scholarship covers tuition, fees, books and supplies for adult learners ages 25-55 without a prior degree. Likewise, Washington’s S.B. 6217 would expand eligibility for the Washington College Grant to students enrolled in eligible postsecondary non-degree credential programs.
Outcomes-Based Funding and Return on Investment
States continue to refine outcomes-oriented funding structures with an emphasis on return on investment (ROI). In practice, this means states are using data on completion, employment, and earnings to inform funding formulas, program approvals and credential lists. ECS' recent research on postsecondary education funding shines a light on the factors states are using in their funding formulas.
Texas offers one example of ROI through S.B. 1786, which defines “credentials of value” and requires the Texas Higher Education Coordinating Board to designate credentials that demonstrate a positive return on investment, which is measured through earnings outcomes and related indicators. These designations are built into Texas’ performance-based funding formula, so community colleges receive funding in part based on the number of credentials of value they award.
Credentials and Nondegree Pathways
States are also legislating more directly on what programs can be offered and which credentials are encouraged. As such, bills often mandate inclusion of specific competencies that promote the state’s economic and workforce development priorities. Much of the activity has clustered around teacher preparation, dual credit and early postsecondary pathways, and workforce-aligned academic and nondegree credentials.
Oregon’s S.B. 784 shows how states are using dual credit policy to boost economically relevant credentials and require the inclusion of agriculture, forestry and natural resource programs in dual credit standards.
Accountability
Finally, a cross-cutting trend to watch for is the push to strengthen accountability around short-term programs, particularly those with low completion rates or weak labor market outcomes. States are relying on enhanced data systems and program-level requirements to support this work.
Hawaiʻi’s H.B. 2383 reflects this direction through building infrastructure for program-level reports via wage record data sharing between the state labor agency and the University of Hawaiʻi; the state plans to use these records to report outcomes.
Early 2026 State of the State addresses and bill activity suggest states will continue to focus postsecondary policy around workforce alignment, affordability and measurable value. ECS will continue to monitor state actions in these areas and report on emerging trends and policy developments to keep you informed.
