A 2025 Update of State Investments in Short-term Credential Pathways
State investments in short-term, nondegree credential pathways continue to expand. HCM’s latest and most comprehensive analysis identifies 111 active state-funded initiatives across 34 states. Over the past year alone, states have committed approximately $511 million to launch 26 new short-term credential initiatives.
Of the 111 active initiatives, 69 exclusively fund short-term nondegree credentials or short-term, skills-based workforce training programs. These represent a total investment of at least $4.5 billion to date. An additional $3.6 billion supports initiatives that can be applied to short-term nondegree programs, though not exclusively. Combined, these active investments amount to at least $8.1 billion in state funding.
States also invested an estimated $986.41 million in 22 now-inactive initiatives that previously supported short-term nondegree programs. In total, states have invested nearly $10 billion in initiatives that directly or indirectly support short-term nondegree education and training.
This report updates HCM Strategists’ 2023 and 2024 typology and landscape analyses of state investments in short-term credential initiatives across the United States.
Note: The findings in this report are based on the most complete data available through our research as of December 2025. Due to the lack of consistent and comprehensive systems for tracking short-term credential programs, some state-funded initiatives may not be reflected here. To share information about additional initiatives that may not have been captured in this study, please contact Stephanie Murphy, HCM’s Director of State Policy and Research, at stephanie_murphy@hcmstrategists.com.
