Student loan debt is now the second-largest source of household debt in the U.S., topping $1.65 trillion. More families are asking a simple question: does every student really need a four-year degree?
States are answering with investment. Career and technical education (CTE)—programs that blend classroom instruction with hands-on training in fields like information technology, engineering, construction, and healthcare—is getting its biggest funding push in years. Research shows that CTE students are more likely to graduate, earn postsecondary credentials, and earn more as adults—with the strongest benefits for low-income students, students with disabilities, and students from underrepresented groups.
Five States, One Trend: CTE Investment Is Accelerating
Ohio has grown CTE participation from about 128,000 students in 2020–21 to roughly 141,000 in 2023–24. The state spent $718 million on CTE in 2023–24, including a $300 million commitment to expand facilities and upgrade equipment. The budget also provides additional per-student funding for high-priority career fields. Ohio lets students use industry credentials or career readiness demonstrations to fulfill graduation requirements, and incentivizes businesses to partner with schools to build workforce pipelines. A remaining challenge: urban districts and charter schools received less than 4% of the state’s CTE expansion funding, despite serving the highest concentrations of low-income students.
Michigan’s governor proposed $90 million for CTE as part of broader education investments, a year after the State Board of Education passed a resolution calling for increased CTE funding, particularly in districts where participation is low. The investment aligns with the state’s goal that 60% of working-age Michiganders earn a postsecondary degree or credential. Meanwhile, researchers find that Black and low-income students have more limited access to CTE, and that districts with dedicated property-tax funding for CTE offer more programs—pointing to a need for state support in districts with lower tax bases.
Missouri’s governor acknowledged that while Missouri “gets a lot right” on CTE, gaps remain. His administration convened a working group that surveyed over 5,000 Missourians and issued recommendations to build stronger business-CTE pipelines, expand career counseling starting in early grades, and promote CTE as a viable student pathway. The state directed $11 million toward CTE facilities and $1 million for career counseling. However, the FY2026 budget pledged only $5 million for CTE programs—a gap between rhetoric and investment that many states face.
Indiana is pushing CTE into apprenticeship territory. The state’s Career Apprenticeship Pathway (INCAP) launches in fall 2026, combining classroom instruction with paid on-the-job training for high school students. The coalition behind INCAP includes more than 300 representatives from business, K–12 and higher education, government, nonprofits, and philanthropy. The Indiana Department of Education modified graduation requirements in 2023 to emphasize employable skills and practical experience alongside academics. Industry Talent Associations define the skills employers need, and educators work with employers to develop curriculum. The goal is to make INCAP available to every Indiana high school student by 2034. Craft Education is leading a study of apprenticeship in Indiana to explore how high school apprenticeship fits into the state’s broader workforce development landscape.
New York City provides one of the broadest models of urban CTE access, with over 260 CTE programs across 130 schools, 37 of which are dedicated CTE high schools. The district partners with City and State University systems to offer college credit to CTE students. An ongoing study shows consistently high student interest, with over 60% showing moderate or high interest across ten years of data. Students at CTE-focused schools are more likely to stay on track for diplomas, have better attendance, and are just as likely to enroll in college. Work is ongoing to determine CTE’s impact on long-term employment and earnings, but NYC’s model of broad access—through dedicated schools and programs within traditional high schools—can serve as a framework for other urban districts.
The Funding Is Growing, but It’s Not Reaching Everyone
Across these five examples, a pattern emerges: CTE investment is accelerating, but access remains uneven. In Ohio, urban districts received less than 4% of $300 million in expansion funding. In Michigan, districts that rely on local property taxes for CTE funding offer more programs—which means wealthier communities get richer offerings while districts with lower tax bases fall behind. Black and low-income students consistently have more limited access to CTE programs than their peers.
Missouri’s example adds another dimension: even when a statewide survey shows broad public support for CTE, that support doesn’t always translate into proportional funding. The gap between what working groups recommend and what budgets deliver is one of the most persistent challenges in CTE policy.
Outcomes Data Is Driving the Next Round of Funding
As states invest more in CTE, the expectations around accountability are rising. Ohio provides additional funding for each student who earns a credential in a high-demand field. Indiana’s redesigned graduation pathways now allow CTE completion to satisfy diploma requirements. New York City’s multi-year research is building the most detailed evidence base of any urban CTE system—tracking students from enrollment through college and eventually into the labor market.
For programs looking to demonstrate impact, that kind of tracking is difficult to manage through spreadsheets or disconnected systems. Craft Connect is an apprenticeship data management platform that helps programs centralize learner data, generate audit-ready reports, and connect instruction to career outcomes in one system.
From Ohio’s $718 million investment to Indiana’s 300-member apprenticeship coalition to New York City’s research-backed CTE expansion, the trend is clear: CTE is moving from the periphery of K–12 policy to the center. The states building the strongest programs are the ones pairing funding with employer partnerships, equity-focused access, and rigorous outcomes data. For training organizations, colleges, and workforce leaders, the window to build on this momentum is open now.
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