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Policy scan

Career-Connected Education: 2026 State Policy Refresh

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About this refresh

This refresh brings the July 2026 state policy scan up to October 2026. It covers federal Perkins V administration and funding, the seven states S4IS tracks (Michigan, Virginia, North Carolina, Arizona, Pennsylvania, Missouri and Hawaii), and three comparison states from the July scan (Ohio, Indiana and Texas).

Each item carries one of three labels:

  • : checked against an official source on Oct. 3, 2026.
  • : not checked against an official source; ask the agency named before you rely on it.
  • : active (a pending bill, an appropriation, a lawsuit or a new program) and may move after Oct. 3, 2026.

State details follow the S4IS state modules corrected on Oct. 3, 2026. Where the July scan and the modules disagreed, the modules govern.

The national picture

Advance CTE and ACTE counted 172 CTE-related policies enacted in 49 states in 2025, 20 more than in 2024 and the most since before the pandemic. Funding and industry partnerships/work-based learning tied as the top categories, with 67 enactments each. Texas enacted the most, with 15. (; Advance CTE, Feb. 25, 2026)

State 2025 example highlighted by Advance CTE
Alabama Districts must allow students to enroll in community college dual enrollment courses
Michigan Added cost (vocational education) reimbursement increase
Nevada CTE measures added to the statewide accountability system
New Hampshire Regional CTE agreements updated to widen program access
Utah First Credential Program for industry-recognized credentials

Two patterns run through the states in this refresh:

  • Graduation redesign on a class-of-2029 clock. Indiana’s new diploma and Missouri’s new credential system both become mandatory for the class of 2029.
  • Work-based learning tied to graduation. Indiana sets work-based learning hours for its diploma seals, and Virginia counts high-quality work-based learning as one of three ways to meet its readiness requirement.

Federal: Perkins V administration and funding

Who runs Perkins. The U.S. Department of Education (ED) and the U.S. Department of Labor (DOL) signed an interagency agreement on May 21, 2025. DOL’s Employment and Training Administration handles day-to-day administration of Perkins V state grants. ED keeps its statutory authority, policy authority and oversight. Perkins V itself did not change: uses of funds, the 5% administration cap, supplement-not-supplant, programs of study and accountability stay the same. Perkins did not “move” to DOL by law. ()

What Congress said. The full-year FY2026 appropriations law, completed in early February 2026, did not block the agreements. Its explanatory statement, which is not binding, said ED cannot transfer its core responsibilities to other agencies and required biweekly briefings on the agreements. ( through K-12 Dive reporting)

Oversight and litigation. On Feb. 19, 2026, Senators Warren, Sanders, Murray and Baldwin asked the Government Accountability Office to review the ED-DOL agreements, including Perkins. A lawsuit, Somerville v. Trump (consolidated with New York v. McMahon), challenges the agreements; the amended complaint filed Nov. 25, 2025 names the CTE agreement. The Supreme Court stayed an earlier injunction in July 2025, so the agreements stay in effect while the case continues. (; current court status not found on Oct. 3, 2026)

Year Perkins state grants Status
FY2026 $1,439,848,000 (level with FY2025) Enacted Feb. 2026 ()
FY2027 President’s request $1,439,848,000 Proposed ( through National Skills Coalition)
FY2027 House committee bill $1,449,848,000 (+$10 million) Committee-approved June 2026; Senate had not acted ()
FY2027 to date Continuing resolution (H.R. 6500) funds agencies through Dec. 11, 2026 Signed Sept. 2, 2026 ()

Plan your 2026-27 Perkins budget on the FY2026 level, expect your state CTE office to route some questions through DOL systems, and recheck after Dec. 11, 2026.

The seven S4IS states

State Biggest change since July 2025 Status
Michigan $70M Section 61v CTE expansion fund ran one grant round; FY2026-27 budget sets it to $0 and adds $40M for dual enrollment
Virginia High-quality work-based learning is one of three routes to the readiness graduation requirement; new state leadership in part
North Carolina First state budget since 2023 (signed July 7, 2026); Governor’s workforce council goals
Arizona No new CTE statute found; CTED funding rules clarified in part
Pennsylvania $10M CTE increase in the 2026-27 budget; new teacher certificate
Missouri New credential system mandatory for the class of 2029; A+ Scholarship opened to CTE certificates
Hawaii No enacted CTE change confirmed; two 2026 bills unresolved

Michigan

  • Section 61v CTE expansion fund. 2025 PA 15 (effective Oct. 7, 2025) put $70 million into Section 61v for 2025-26 only: $68.5 million in competitive grants for districts in a “CTE desert” or with a documented CTE opportunity gap, and $1.5 million for a CTE awareness campaign run by an ISD or ISD consortium. Round 1 made 87 grants totaling $24.2 million (Apr. 8, 2026). Round 2 closed July 1, 2026. Unspent 2025-26 funds carry forward as a work project through Sept. 30, 2030. ()
  • FY2026-27 school aid budget. P.A. 25 of 2026 (HB 5630), signed July 21, 2026, sets Section 61v to $0. It raises Section 61a CTE added cost to $45,985,000, sets Section 61b CTE middle college to $9,220,400, adds a one-time $2.9 million Section 61w for CTE virtual reality programs and adds a one-time $40 million Section 21b for dual enrollment reimbursement. (; Confirm with MDE whether 21b covers CTE dual enrollment)
  • Participation. LEO reported 114,997 secondary CTE students and a record 55,444 completers in 2024-25, about 10,800 more completers (24%) than three years earlier. CTE students graduated at about 96%, against about 82% statewide. These are descriptive figures; they do not show that CTE caused the difference. ()
  • Ongoing. A state-approved formal CTE program can replace Algebra II, the third science credit, world language or arts credit under the Michigan Merit Curriculum (MCL 380.1278a/b). Use the S4IS CTE Crosswalk prototype (Product A) as interim guidance where you need a crosswalk; its Health Sciences to Biology entry is an illustrative draft. Youth work permits moved to LEO’s Youth Employment Permit Portal on Oct. 2, 2026.

Virginia

  • Readiness graduation requirement. A student meets it with an AP, IB or dual enrollment course, a high-quality work-based learning experience, or a board-approved CTE credential. A CTE credential is one option, not a requirement for every graduate. The regulation (8VAC20-132-51) leaves the list of work-based learning types to Board guidance. ( for the three options; Confirm with VDOE for the current type list)
  • Accountability link. The July scan said high-quality work-based learning feeds the Readiness indicator in the School Performance and Support Framework. (Confirm with VDOE)
  • Leadership. Governor Spanberger named Jenna Conway Superintendent of Public Instruction (announced Jan. 13, 2026). ( through Virginia Mercury)
  • 2026 session. Two 2026 chapters (HB 478, Chapter 152; SB 439, Chapter 807) surfaced in a search on CTE and work-based learning, but their text could not be read. (Confirm with the Division of Legislative Services)

North Carolina

  • Budget. North Carolina enacted no comprehensive budget in 2025. Governor Stein signed S257 on July 7, 2026, the state’s first budget since 2023. It has a “CTE Modernization” section; the conference report shows $2 million recurring to continue grants for a digital CTE learning platform and $4.5 million recurring for SparkNC labs. It also funds teacher apprenticeships. The July scan’s figures ($2.5 million and $2 million nonrecurring) came from the House plan and did not become law. (; Confirm with DPI for final grant terms)
  • Governor’s Council on Workforce and Apprenticeships. Executive Order 11 (March 25, 2025) created the council. Its June 2025 report set goals including: by graduation, every high school student completes coursework that leads to transferable credit or a credential; double the number of registered apprentices; and double the number of high school students in work-based learning. Its December 2025 report added 30 strategies. The baseline was 9,698 registered apprentices and pre-apprentices in FY2023-24. ()
  • Career and College Promise. Session Law 2025-56 and NCCCS memo CC25-073 open some workforce continuing education pathways to grades 9 and 10. (Confirm with NCCCS for the areas and start term)
  • Computer science. Students who entered grade 9 in 2024-25 must take computer science. HB 415, which would let computer science count as math, passed the House in May 2025 and sits in Senate Rules. ()

Arizona

  • Legislation. No 2025 or 2026 CTE statute was identified. (Confirm against Advance CTE’s next tracker)
  • CTED funding. The regional in-demand program list gates CTED funding only for grade 9 students and for the year after graduation (A.R.S. 15-393(X), (Z)); grades 10 to 12 are not gated. A CTED course cannot be a course required for graduation (A.R.S. 15-391). The 2026-27 list was posted in December 2025. ()
  • FY2027 state lines. State Block Grant for Vocational Education, $11,939,100; CTED Certification Exam Fee Reimbursement, CTED Completion Grants and CTED Soft Capital and Equipment, $1 million each. ()
  • Ended stream. The SB 1209 career exploration fund received $5 million one time in FY2024 and $0 in FY2025, and was repealed and swept July 1, 2025. ()
  • Industry Credential Incentive Program. Current status is open. (Confirm with ADE)

Pennsylvania

  • 2026-27 budget. Signed July 12, 2026, with a $10 million increase for CTE. ()
  • Equipment grants. The Supplemental Equipment Grant is about $20 million for 2026-27 (applications closed Sept. 17, 2026). The CTE Competitive Equipment Grant offered up to $85,000 in 2025-26, with the local match waived for that year only. (; Confirm with PDE for the 2026-27 competitive round)
  • Teacher certification. Act 47 of 2025 created the Experience-Based (Type 24) certificate, valid five calendar years and not renewable, alongside the Act 55 of 2024 routes. ()

Missouri

  • Credential system for the class of 2029. DESE’s new industry-recognized credential, stackable credential and technical skill attainment guidance (Nov. 4, 2025) is mandatory for 2029 graduates; the classes of 2026 to 2028 may use the new or the previous system. DESE updated its credential rubric on Mar. 19, 2026. ()
  • Application window. DESE’s credential page lists May 1 to 31 for 2026 and April 1 to 30 for 2027; another DESE page lists April 1 to May 30 for 2027. (Confirm with DESE)
  • Legislation. SB 150, signed July 9, 2025, lets students use the A+ Scholarship for CTE certificates offered outside traditional higher education starting in 2026-27. No 2026 CTE bill was found. ()

Hawaii

  • 2026 bills. HB 1068 would extend the State’s workers’ compensation coverage for work-based learning students to new graduates through July 31 of the graduation year. SB 440 is a CTE teacher scholarship bill. Final outcomes were not confirmed. (; Confirm with the Legislative Reference Bureau)
  • Ongoing. The diploma requires two credits in one of world language, fine arts or CTE (a two-course CTE program of study sequence, or JROTC); CTE is not required of every graduate. HTSB licenses 13 CTE fields as of July 1, 2025. ()

Comparison states: Ohio, Indiana and Texas

Texas and the decision to track it

The July scan recommended adding Texas as an eighth tracked state, because Texas enacted the most CTE policies of any state in 2025. Decision (Oct. 3, 2026): Texas stays a comparison state for now. S4IS continues to track seven states, and the verified 2025 Texas laws below remain here for comparison and for a later decision.

  • HB 2 (school finance, signed June 2025). About $8.5 billion in new public education funding. CTE items: JROTC courses now count as career and technology education for funding; the P-TECH allotment rises from $50 to $150 per student in average daily attendance; the Rural Pathway Excellence Partnership (R-PEP) cap rises to $20 million a year; and the New Instructional Facilities Allotment rises from $100 million to $150 million a year. (; Legislative Budget Board fiscal note)
  • HB 20 (Applied Sciences Pathway Program, Texas Education Code 29.914). Students in grades 11 and 12 earn a diploma while completing a postsecondary certificate in a high-wage field. The commissioner may approve substituting a graduation credit with a college-level CTE course that substantially covers the state standards, one credit per course; end-of-course exams still apply. Applications ran Jan. 15 to May 15, 2026, and programs may start in 2026-27. The program expires Sept. 1, 2031. Approved programs have not been announced. (; for approvals)
  • HB 120 (college, career and military readiness). Raises state-paid certification exams per student from one to two, caps exam reimbursements at $20 million a year, and has the Texas Workforce Commission report employment and earnings data for advising. ()
  • 2026. The State Board of Education adopted new CTE standards for an occupational safety lab and fire science courses on Jan. 27, 2026. The Legislature next meets in regular session in January 2027. ()

Adding Texas later would mean a state module and a 12-pathway inventory on the same template as the seven states.

Indiana

The State Board approved a new Indiana Diploma in December 2024. It is mandatory for the class of 2029 and requires at least 42 credits, including 12 personalized electives. Schools may opt students in earlier, but there is no formal process and early adopters must earn an honors seal. (; IDOE FAQ, Mar. 27, 2026)

Work-based learning hours attach to the readiness seals: 150 hours and 650 hours on the employment track, and 75 hours for the Enrollment Honors Plus seal. IDOE’s FAQ and its one-page summary label the 150-hour and 650-hour tiers differently. Enrollment Honors Plus graduates receive automatic admission to all Indiana public institutions. (; Confirm with IDOE for the tier labels) Career Scholarship Accounts continue. (Confirm with IDOE for current amounts)

Ohio

The July scan described CTE provisions of HB 96, the FY2026-27 budget: Tech Prep regional center funding, an “OTC Plus” option for students on CTE waitlists, a higher-education co-op and internship program with JobsOhio, and consideration of work experience and credentials in public university admissions. The Legislative Service Commission analysis could not be read on Oct. 3, 2026. (Confirm with the Ohio Department of Education and Workforce)

What this means for your school or district

  • Budget on known money. Plan Perkins at the FY2026 level until Congress finishes FY2027. In Michigan, do not plan on a new round of Section 61v; look at Section 61a, Section 61b and the new Section 21b. In North Carolina, check the S257 CTE sections with DPI. In Pennsylvania, watch for the 2026-27 competitive equipment round.
  • Use the class-of-2029 deadline. If you serve Missouri students, align your credential offerings to the new DESE list now; students who entered grade 9 in fall 2025 graduate in 2029.
  • Treat work-based learning as a graduation lever where it is one. Virginia counts it toward the readiness requirement, and Indiana counts hours toward seals. Transportation, supervision and child labor rules then become part of graduation planning; see the S4IS work-based learning logistics guide.
  • Protect college eligibility. Credit substitution routes, such as Michigan’s formal-program replacement and Texas’s Applied Sciences Pathway, can affect university admission. Check each target university’s course expectations before a student swaps a core course.

Review status and sources

Status: Revised from the July 2026 draft and checked Oct. 3, 2026 (66 claims: 21 confirmed, 14 corrected, 13 new findings, 16 unconfirmed, 2 removed). Last checked Oct. 3, 2026.

Open question Who to ask
Current status of Somerville v. Trump / New York v. McMahon and any later change to the ED-DOL agreement U.S. Department of Education, Office of Career, Technical, and Adult Education
FY2027 Perkins level after the Dec. 11, 2026 continuing resolution Advance CTE federal policy team
Whether Section 21b dual enrollment money covers CTE dual enrollment Michigan Department of Education, Office of Career and Technical Education
Current high-quality work-based learning type list and its role in the School Performance and Support Framework Virginia Department of Education, Office of CTE
Content of 2026 Chapters 152 (HB 478) and 807 (SB 439) Virginia Division of Legislative Services
Final S257 terms for CTE Modernization, teacher bonuses and teacher apprenticeships North Carolina DPI, CTE Division
Industry Credential Incentive Program status Arizona Department of Education, CTE
2026-27 Competitive Equipment Grant round and match Pennsylvania Department of Education, Bureau of CTE
2027 credential application window (April 30 or May 30) Missouri DESE, Career Education
Outcomes of HB 1068 and SB 440 (2026) Hawaii Legislative Reference Bureau
Seal tier labels for the 150 and 650 work-based learning hours; Career Scholarship Account amounts Indiana Department of Education
HB 96 CTE provisions as enacted Ohio Department of Education and Workforce
Applied Sciences Pathway programs approved for 2026-27 Texas Education Agency, CTE
Decided Oct. 3, 2026: Texas stays a comparison state for now; revisit later Stephen Best, S4IS

Sources

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