The COVID-19 pandemic has decimated the United States economy and left a record number of individuals unemployed. In slightly under five months, more than 54 million people applied for unemployment for the first time, while the economy contracted by 33 percent, the largest dip in history. While the impact will likely be short-term for some career fields, for others, hastened automation will restructure the economy and permanently eliminate many jobs. In other fields, such as hospitality, COVID-19 dealt such a harsh blow that recovery is not expected until 2023 or beyond. For states, an investment in building quality short-term credential pathways will pay dividends. States have gradually increased their investment in short-term credentials, but it remains a complex area of state policy, and the sheer number of credential types and providers complicates efforts to ensure transparency regarding program quality and outcomes. That said, the current crisis should lead states to wade further into these murky waters. Short-term credentials are not the only solution, but if appropriately leveraged, they can play a key role in recovery by aligning workers to jobs. Their affordability and short-term nature make them particularly useful tools as states grapple with the enormous economic and social impacts of COVID-19. This report provides high-level guiding principles for states, policy questions state policymakers and institutional leaders can use to guide and assess ongoing efforts with credential programs, examples of states' efforts as valuable guidance to navigate ongoing changes, and state and institutional data to assess progress and consider programs' equity implications.