When Lumina Foundation launched the FutureReady States initiative in 2025, we went in with more questions than answers.
But a new report released this month by HCM Strategists offers a few insights and tells us what states are learning. The findings make one thing clear: states are making real progress in developing the policies and data systems needed to ensure the value of short-term credentials, challenging the idea that this space is a “Wild West.”
Maybe this shouldn’t be surprising. States were rapidly increasing investments in short-term workforce credentials—nearly $5 billion in state programs in recent years, including $500 million in new investments in the last year alone, according to HCM. At the same time, many were developing quality assurance mechanisms, including “credential of value” definitions and lists, and strengthening data systems to better understand outcomes for learners and employers.
But while states were making significant investments and policy changes, we lacked a overarching picture of how these efforts fit together or how emerging patterns could guide stronger policy and practice. So, we invited 12 states to join the FutureReady States learning journey to landscape their investments, define success, and strategize for future growth.
The new HCM report synthesizes our early findings and offers one of the first cross-state views of how these investments are taking shape. It’s worth a full read. But as we reflect on the findings and on the conversations at our November 2025 convening, a few themes stand out.
States are further along than many assume, signaling a promising future.
The national narrative often suggests that short-term credentials lack structure or oversight. But what we’re seeing is states engaging in serious, intentional policy work. They’re developing credential of value definitions, investing in dedicated tuition assistance for workforce credentials, and strengthening data systems to track outcomes. No one would claim the work is finished. But states are shifting from experimentation to alignment, positioning themselves to benchmark results and evaluate which policies truly drive results.
States may end up having more than one definition of “success,” and that’s OK.
As noted above, we asked states what success would look like—specifically, why their state invests in short-term workforce credentials and how they will measure whether those investments work. States have shared a range of answers. Some view these credentials as entry points to longer-term career pathways. Others aim to address specific workforce gaps in their economy and increase labor force participation. All are looking at how credentials increase economic prosperity for workers and learners. There isn’t necessarily one “right” answer, but what’s important is that state leaders evaluate the return on investment and build policies and practices that align with their goals.
There’s still plenty of work ahead.
Workforce Pell’s July 2025 passage has accelerated and complicated efforts to develop short-term workforce credential development in FutureReady States. With implementation starting July 1, states and institutions are hurrying to align new federal funding with existing investments and quality frameworks.
But if there’s one takeaway from this moment, it’s this: states are not starting from zero. They are building on real foundations—definitions, data systems, funding strategies, and cross-agency partnerships that reflect thoughtful policymaking. The HCM report makes clear that while questions remain, states are outpacing expectations, and we can’t underestimate their efforts.
That progress matters. It means the conversation can focus on refining and strengthening existing short-term workforce credentials. Through FutureReady States, we will continue supporting state leaders as they move from building to benchmarking—and from promising practice to proven results.