What housing assistance is available for ex-felons?

Housing assistance for ex-felons includes: HUD Section 8 (eligibility varies by housing authority — most allow rental assistance for non-violent felons after a waiting period), public housing (similar variable rules), HUD Reentry Housing Pilot Program, transitional housing through The Doe Fund, Volunteers of America, and Salvation Army, state-funded reentry housing, and specific programs like Hope House and Father Anthony Brown's Program. Sex offenders and people convicted of producing methamphetamine face permanent restrictions in some federal housing.

Where can ex-felons get job training and workforce funding?

WIOA (Workforce Innovation and Opportunity Act) provides federally funded job training through American Job Centers nationwide — including specific reentry tracks. The Federal Bonding Program offers free fidelity bonding to make formerly incarcerated workers more attractive to employers. Work Opportunity Tax Credit (WOTC) gives employers tax credits up to $2,400 for hiring qualified ex-felons. Programs like Defy Ventures, The Last Mile, Center for Employment Opportunities (CEO), and Goodwill Industries offer reentry-specific job training. Apprenticeship programs through the Department of Labor are also broadly accessible.

Grants for Felons (2026) — Pell Grants, Reentry & Business Funding

Q: Can felons get Pell Grants?

Yes. As of July 1, 2023, the FAFSA Simplification Act restored full Pell Grant eligibility to all incarcerated and formerly incarcerated individuals, regardless of conviction type. The 1994 ban on Pell Grants for incarcerated students was permanently lifted. Both currently incarcerated students enrolled in approved Prison Education Programs (PEPs) and formerly incarcerated students can receive up to $7,395/year (2026 maximum) for college.

Q: Are there free money programs for ex-felons?

Yes, though "free money" usually means specific need-based programs rather than no-strings cash. Real programs include: Pell Grants for college, federal Workforce Innovation and Opportunity Act (WIOA) funds for job training, Second Chance Pell, the Federal Bonding Program (free fidelity bond for hiring), state reentry assistance funds, the Returning Home Iowa program (and similar state programs), nonprofits like Defy Ventures and The Last Mile, and faith-based reentry support through Catholic Charities, Salvation Army, and Lutheran Social Services.

Reentering society after incarceration carries enormous financial barriers. Background checks block jobs, housing applications get rejected, and traditional financing is often out of reach. The good news: in the past five years, federal policy has dramatically expanded grant access for incarcerated and formerly incarcerated individuals — including the historic 2023 restoration of full Pell Grant eligibility. This guide covers every major grant and free money program available to felons in 2026.

Pell Grants for Felons (Including Currently Incarcerated)

The most significant funding change in decades: as of July 1, 2023, the FAFSA Simplification Act restored full Pell Grant eligibility to all incarcerated and formerly incarcerated individuals, ending the 1994 ban that had blocked over 700,000 incarcerated students from federal aid.

What Pell Grant Eligibility Means in 2026

Currently incarcerated students can receive Pell Grants if enrolled in an approved Prison Education Program (PEP). Maximum award: $7,395 in 2026.
Formerly incarcerated students have full Pell Grant eligibility regardless of conviction type.
No conviction-type exclusions. Drug convictions, violent crimes, sex offenses — all are eligible for Pell Grants under current law.

How to Apply

File the FAFSA at studentaid.gov. Currently incarcerated students apply through their facility's education office. Formerly incarcerated students apply normally. There is no special application — Pell Grants flow through the standard FAFSA process.

Other Federal Education Aid

FSEOG — Federal Supplemental Educational Opportunity Grant ($100–$4,000)
Federal Work-Study — Available to formerly incarcerated students
State need-based grants — Eligibility varies by state; many state grants now mirror Pell eligibility

Workforce Development and Job Training Funding

WIOA — Workforce Innovation and Opportunity Act

The largest federal funding stream for job training, including specific reentry tracks. WIOA-funded services include:

Job search assistance and resume help
Vocational training (trucking, welding, healthcare, IT, construction)
Apprenticeships
Occupational licensing fees
Transportation and child care subsidies during training

Apply through your local American Job Center (formerly One-Stop Career Center). Find yours at careeronestop.org.

Federal Bonding Program

Provides free fidelity bonding (insurance against employee theft/dishonesty) for at-risk job seekers including ex-felons. Removes a major employer hesitation. The bond is provided at no cost for the first six months, after which the employer can purchase continued coverage at standard rates. Apply through your American Job Center.

Work Opportunity Tax Credit (WOTC)

Tax credit of up to $2,400 ($9,600 for veterans) for employers who hire qualified ex-felons within one year of release or conviction. Not a direct grant to the formerly incarcerated person, but a powerful tool to share with prospective employers — many will hire knowing they qualify for the credit.

Trade Adjustment Assistance (TAA)

For workers (including formerly incarcerated) whose jobs were affected by trade. Provides retraining, job search allowances, and relocation assistance.

Reentry-Specific Federal Programs

Second Chance Act Reentry Programs

The Department of Justice administers Second Chance Act funding to support reentry services nationwide. Funded programs provide housing assistance, employment services, mental health and substance abuse treatment, and family reunification support. Find local providers through the DOJ's Reentry Resource Locator.

HUD Reentry Housing Pilot Program

HUD funds reentry housing demonstration programs in select communities. Programs combine rental assistance with supportive services for formerly incarcerated individuals.

VA Programs for Justice-Involved Veterans

Veterans Justice Outreach (VJO) and Health Care for Reentry Veterans (HCRV) connect justice-involved veterans with VA healthcare, housing assistance, and other benefits. Apply through your local VA medical center.

Nonprofit Reentry Programs

The Doe Fund — Ready, Willing & Able

New York–based program providing transitional housing, paid work training, and reentry services. Participants earn paychecks while in the program.

Center for Employment Opportunities (CEO)

National program providing immediate transitional employment and full-time job placement for formerly incarcerated individuals.

Defy Ventures

Entrepreneurship training program for currently and formerly incarcerated individuals. Participants develop business plans and pitch for startup capital.

The Last Mile

Provides software development training in prisons across multiple states. Graduates earn well-paying tech jobs after release.

Goodwill Industries

Job training, GED preparation, and supportive services. Many Goodwill locations have specific reentry programs.

Catholic Charities, Salvation Army, Lutheran Social Services

Faith-based reentry support including emergency housing, food assistance, case management, and employment programs. Available regardless of religion.

Business Grants for Felons (Second-Chance Entrepreneurs)

Felony convictions do not automatically disqualify entrepreneurs from grants. Most grant programs do not ask about criminal history. Specific opportunities:

Inmates to Entrepreneurs

Free entrepreneurship training and seed funding for formerly incarcerated business owners. Network of mentors and investors.

Defy Ventures Entrepreneurship in Prison Program

Provides business plan development, pitch competitions, and post-release startup support.

SBA Reentry Resources

The SBA actively encourages second-chance entrepreneurship. SBA Microloans (up to $50,000) and SBA-funded SBDCs provide free business consulting. Note: most SBA-backed loans require character review, but felony convictions are not automatic disqualifiers.

Hello Alice Grants

Hello Alice provides corporate-funded grants to small businesses. No felony exclusions. See current grant rounds at helloalice.com.

State Economic Development Programs

Many state economic development grants do not exclude formerly incarcerated entrepreneurs. Browse our directory for state-specific opportunities.

Microloans Without Credit Checks

Kiva U.S. provides 0% interest microloans up to $15,000 with no credit check. See our no-money-down startup loans guide for the full list of credit-flexible options.

Housing Assistance

Section 8 and Public Housing

Eligibility varies by housing authority. Most allow rental assistance for non-violent felons after a waiting period (typically 5–10 years post-release). Sex offenders subject to lifetime registration and people convicted of producing methamphetamine on federal property are permanently barred from federally subsidized housing. All other felons should apply — many are approved.

Transitional Housing

Programs include The Doe Fund, Volunteers of America, Salvation Army, and Oxford Houses. Most major cities have multiple transitional housing options for formerly incarcerated individuals.

State Reentry Housing Programs

Most states fund some form of reentry housing, often through partnerships with nonprofit providers. Contact your state Department of Corrections or Office of Reentry.

Education and Vocational Programs Beyond Pell

Apprenticeships

Department of Labor registered apprenticeships pay you while you learn. Apprenticeship.gov maintains a national database. Construction trades, manufacturing, healthcare, and IT all have apprenticeship pathways with no felony exclusions.

Trade and Vocational School Funding

Federal student aid (Pell, FSEOG) covers approved trade and vocational programs. WIOA funds also pay for vocational training including occupational licensing fees.

State Reentry Education Programs

Many states fund tuition assistance for formerly incarcerated students at community colleges. Examples: California's Project Rebound, New York's College Initiative, Washington's Postsecondary Education Inside.

Mental Health and Substance Use Treatment Funding

SAMHSA (Substance Abuse and Mental Health Services Administration) funds treatment programs nationwide. Medicaid covers mental health and substance use treatment in expansion states. State opioid response grants fund medication-assisted treatment, recovery housing, and peer support services. Most reentry programs include or refer to treatment funding.

Legal Aid for Record Expungement

Clearing or sealing your record dramatically expands employment, housing, and funding access. Legal Services Corporation–funded legal aid organizations provide free help with expungement. Clean Slate laws in many states automatically clear eligible records — but you may need to file a petition. Search "[your state] expungement legal aid."

Avoiding Scams

"Free money for felons" is a common scam target. Real programs do not charge fees, do not call you out of the blue offering money, and do not require Social Security numbers or bank account information before you have applied. The legitimate sources are listed above — federal, state, and well-known nonprofits. Anyone else asking for money or sensitive information is likely a scam.

Combining Programs for Maximum Support

The strongest reentry plans combine multiple programs:

Pell Grant for community college + WIOA-funded occupational license + Federal Bonding Program when applying for jobs
Transitional housing through The Doe Fund + Inmates to Entrepreneurs business training + Kiva microloan for startup capital
Section 8 voucher + state reentry job placement + SAMHSA-funded mental health treatment
VA reentry services (for veterans) + VA healthcare + WIOA-funded retraining

Frequently Asked Questions

Can felons get Pell Grants?
Yes. As of July 1, 2023, all incarcerated and formerly incarcerated individuals have full Pell Grant eligibility regardless of conviction type.

Are there free money programs for ex-felons?
Yes — Pell Grants, WIOA job training, Federal Bonding, state reentry funds, and many nonprofit programs.

Can a felon start a business and get a grant?
Yes. Felony convictions do not disqualify entrepreneurs from most grants.

What housing assistance is available?
Section 8 (variable rules), public housing, transitional housing through The Doe Fund and others, state reentry housing programs.

Where can ex-felons get job training?
WIOA through American Job Centers, Federal Bonding Program, Defy Ventures, The Last Mile, CEO, and Goodwill.

For broader hardship support, see our hardship grants for individuals guide. For business startup funding, see our starting a small business guide.