The next great American innovation is in the trades

For decades, America has told a singular story about success, suggesting that the only acceptable path to success is a four-year degree. Any other trajectory was treated as a detour. Fortunately, that story is changing with new, acceptable ways to achieve success.

At both the federal and state levels, the U.S. is gradually reinventing its education system to value skills, not just diplomas. From new federal initiatives like Workforce Pell to state-led Education Savings Accounts (ESAs), policy is beginning to catch up to what the economy has been signaling for years. As a country, we need electricians, plumbers, welders, and builders as much as we need white-collar workers.

A handful of states now have ESA programs. The main purpose of ESAs is to give parents flexibility with school choice. While ESAs are most widely used for private school tuition, some schools and school networks are now exploring using trades programs, including technical courses, apprenticeships, or industry certifications, as a differentiator to attract parents.

There have also been changes to 529 college savings plans, and those funds can be used for short-term credentials and trade-related certificates. These small shifts mark a turning point and are building momentum towards career paths for many, rather than college for all.

HANDS-ON EDUCATION

For students, the shift can be life-changing. A report from the Southern Regional Education Board found that high school students who take three or more career technical education (CTE) credits had a reduced risk of dropping out. Students who don’t always thrive in traditional classroom settings are starting to see that the education system not only values them, but is welcoming them.

I’ve seen the power of hands-on education at one of our customers, Oklahoma-based Pryor High School Innovation Center, which is utilizing interactive training to drive its HVAC pre-apprenticeship program. The program takes students from zero industry skills to job-ready through a curated pathway of online and in-person trades training.

Learning should be more like a set of Lego blocks, and students can build their own pathway by stacking short-term credentials, apprenticeships, and hands-on training programs to suit their strengths. The ability to have a modular, customizable model of learning is emerging in real-time as states like Florida, Arizona, and Texas expand ESAs and workforce grants to fund job-specific education. The flexibility also means faster, stronger pipelines from high school to high-wage work.

GOVERNMENT INITIATIVES CAN HELP

Career pathways go beyond education and directly translate into national competitiveness. The Inflation Reduction Act and CHIPS and Science Act created significant momentum for the U.S. manufacturing industry, but we need a skilled workforce to make that happen.

The new Workforce Pell initiative can help. The rules now expand eligibility to short-term programs, typically just eight to 15 weeks, and directly lead to jobs. The impact could be transformative. The Workforce Pell expansion is expected to bring roughly 100,000 new students into short-term credentialing programs that were previously ineligible for aid.

According to the Congressional Budget Office, about $300 million in new Pell funding will flow through the program, with average awards projected at $2,200 per student. The program is slated to take effect in July 2026.

Last year, the U.S. Department of Labor announced over $86 million in Industry-Driven Skills Training Fund grants awarded to 14 states, designed to boost innovation, enhance domestic manufacturing and help meet workforce demands nationwide. Of the funding, $20 million will directly support training workers in marine electrical, manufacturing, welding, plus other skilled trades.

WHO BENEFITS?

While these programs benefit students by providing access to affordable, focused education that leads directly to employment, they also help businesses. Businesses will have access to a stronger, qualified talent pipeline to fill their gaps and replace retiring workers.

The programs also help to power a cultural shift we’re seeing in the perception of skilled trades. For too long, education other than a four-year degree carried a stigma. Fortunately, that mindset is changing. In a recent Harris Poll, 91% of respondents agreed that trade jobs are just as vital to society as white-collar jobs, and 90% said skilled trades offer a faster and more affordable path to a good career. 

Gen Z has shown an increased interest in the trades, and this year alone, TikTok has virally turned trades like blacksmithing and horseshoeing into career paths. The Skilled Careers Coalition and SkillsUSA partnered with TikTok to influence students’ interest in trade schools, apprenticeships, and high-demand CTE careers. More exposure will go a long way to encourage the next generation of workers to explore and pursue skilled trades.

A MORE COMPETITIVE ECONOMY

If the federal and state governments continue to align policy and funding with workforce demand, we could see a future where students are able to pursue education tailored to their ambitions and natural aptitudes. Enabling this will do wonders for the economy and deliver a happier, more respectful and proud community. If you ever need a reminder of why this matters, go talk to an electrician or an HVAC technician. You will rarely meet anyone more proud of the role they play in keeping our world running.

Forming a new ecosystem that treats education as a lifelong, adaptable tool that is built around outcomes will create, by extension, a more competitive economy.

Doug Donovan is CEO and founder of Interplay Learning.