1.1 	A bill for an act
1.2 	relating to higher education; modifying certain state grant provisions; setting a 
1.3 	tuition and fees maximum for certain students;amending Minnesota Statutes 2024, 
1.4 	section 136A.121, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2024, section 136A.121, subdivision 6, is amended to read:
1.7 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of: (1) an 
1.8 	allowance specified in law for living and miscellaneous expenses, and (2) an allowance for 
1.9 	tuition and fees equal to the lesser of the average tuition and fees charged by the institution, 
1.10 	or a tuition and fee maximum if one is established in law. If no living and miscellaneous 
1.11 	expense allowance is established in law, the allowance is equal to 115 percent of the federal 
1.12 	poverty guidelines for a one person household in Minnesota for nine months. If no tuition 
1.13 	and fee maximum is established in law, the allowance for tuition and fees is equal to the 
1.14 	lesser of: (1) the average tuition and fees charged by the institution, and (2) for two-year 
1.15 	programs, an amount equal to the highest tuition and fees charged at a public two-year 
1.16 	institution Minnesota state college, or for four-year programs, an amount equal to the highest 
1.17 	tuition and fees charged at a public Minnesota state university.
1.18 	(b) For a student registering for less than full time, the office shall prorate the cost of 
1.19 	attendance using the ratio of the number of credits the student is enrolled in to the number 
1.20 	of credits for full-time enrollment.
1.21 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
1.22 	correctional institution shall consist of the tuition and fee component in paragraph (a), with 
1.23 	no allowance for living and miscellaneous expenses.
2.1 	(d) For the purpose of this subdivision, "fees" include only those fees that are mandatory 
2.2 	and charged to full-time resident students attending the institution. Fees do not include 
2.3 	charges for tools, equipment, computers, or other similar materials where the student retains 
2.4 	ownership. Fees include charges for these materials if the institution retains ownership. Fees 
2.5 	do not include optional or punitive fees.

2.6 	EFFECTIVE DATE. This section is effective July 1, 2026, for the 2026-2027 school 
2.7 	year and later.

2.8 	Sec. 2. TUITION AND FEES MAXIMUM FOR PREVIOUSLY ENROLLED 
2.9 	STUDENTS.
 2.10 	Notwithstanding Minnesota Statutes, section 136A.121, subdivision 6, for fiscal years 
2.11 	2027 through 2032, the tuition and fee maximum for a four-year program for a student who 
2.12 	was enrolled in an eligible institution in the 2025-2026 school year or before equals the 
2.13 	highest tuition and fees charged at a public university for the current school year.