PURPOSE OF THIS REPORT

During the 2016 session, the General Assembly and Governor established the New Economy Workforce Grant Program (WCG). This grant program, the first of its kind in the nation, provides a pay-for-performance model for funding noncredit workforce training that leads to a credential in a high-demand field. The program also includes requirements for students to complete the program to avoid paying additional costs. A summary of the major components of the program is included below. The establishing statutes appear in Article 4.1 of Title 23.1 of the Code of Virginia.

The purpose of this report is to provide to the General Assembly and the Virginia Board for Workforce Development a review of FY 2025 enrollments, completions, costs and outcomes of the New Economy Workforce Credential Grant program, as outlined in § 23.1-627.7.

Summary of Findings for FY 2025

In FY 2025, the Virginia Community College System (VCCS), the Southern Virginia Higher Education Center (SVHEC), and New College Institute (NCI) offered training aligned to high-demand occupational fields as identified by the Virginia Board for Workforce Development (VBWD). Observations from FY 2025 include:

• Institutions offered training in 12 high-demand occupational fields.

• Collectively, institutions reported 18,858 enrollments in FY 2025, a 16% increase from FY 2024 and the most since the inception of the program.

• Of the 18,858 enrollments included in this report, 17,751 completed training. Among program completers, 13,165 went on to earn a credential. The completion rate remained relatively stable at 94% and the credential rate improved from 69% in FY 2024 to 70% in FY 2025.

• The average tuition paid by students was $997. The average state cost per credential attained was $2,046.

• The program with the highest enrollments was Commercial Driver’s License with more than 15.5% of enrollments. Clinical Medical Assistant had the second highest enrollments, accounting for 7.6% of all enrollments in FY 2025.

• For records SCHEV has been able to match with VEC UI wage data, on average participants see a 39% improvement in their wages after graduation.

• 61% of enrollments were individuals entering a postsecondary training program in Virginia for the first time. The median age was 32 years old.