Workforce development is one of the top issues for state higher education executives today. Employers are actively looking for ways to address skill gaps and labor shortages in their companies. To address these talent gaps, states are aligning their academic program approval process with state workforce needs. Minimal research has explored the regulatory and policy role of states in approving academic degree programs or the role governing boards and coordinating boards have over academic programs at public institutions. This comparative case study of policy changes in Georgia and Tennessee provides insights into how higher education systems have used their academic program approval authority to respond to employer calls to improve academic program alignment and address the lack of skills employers see in graduates. Findings from this dissertation indicate that states are using new program approval to advance their economic goals and governance structure impacts the tactics states can use to align programs to the talent needs of a whole industry or an employer's specific need. Policy change frameworks such as the multiple streams framework and the ecology of higher education policy change are helpful in understanding the factors influencing policy changes made in Georgia and Tennessee. State-level requirements for new program proposals have remained fairly consistent for decades; however, changes made in the two states in this case study indicate an increase need for data-informed justification of program demand and employer support and engagement. Developing programs quickly to meet market demand for talent is putting political and economic pressure on state systems to revisit their new academic program requirements and processes while balancing the responsibility states have to maintain quality programs that are financially viable. This study affirms the central role of faculty in the development of new programs. The study outlines five ways state systems can support employers and faculty in the development of new programs. This dissertation adds context to why governance matters in a state's ability to address workforce needs and how academic program approval is an effective tool for states in aligning programs with state economic needs. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]