1.1 	A bill for an act
1.2 	relating to higher education; increasing the default living and miscellaneous 
1.3 	expenses allowance for the state grant program; establishing a new State Grant 
1.4 	Plus scholarship to supplement state grant awards; creating grant programs within 
1.5 	the Office of Higher Education; creating working groups; requiring reports; 
1.6 	appropriating money;amending Minnesota Statutes 2024, sections 136A.121, 
1.7 	subdivision 6; 136A.1465, subdivision 5; proposing coding for new law in 
1.8 	Minnesota Statutes, chapter 136A.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

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

2.9 	Sec. 2. [136A.1212] STATE GRANT PLUS SCHOLARSHIP.
2.10 		Subdivision 1.Establishment. A scholarship program, known as the State Grant Plus 
2.11 	scholarship, is established for students eligible under this section. The commissioner shall 
2.12 	administer this program and may establish guidelines and procedures necessary for the 
2.13 	program's implementation.
2.14 		Subd. 2.Eligibility. In an academic term, a student is eligible for a scholarship under 
2.15 	this section if the student:
2.16 	(1) is eligible for and receives a state grant award under section 136A.121 for the same 
2.17 	academic term;
2.18 	(2) is enrolled in at least one credit at a Minnesota public, Tribal, or private nonprofit 
2.19 	postsecondary institution that is an eligible institution under section 136A.101, subdivision 
2.20 	4; and
2.21 	(3) is not eligible to receive a North Star Promise scholarship under section 136A.1465.
2.22 		Subd. 3.Award amount. (a) The amount of an eligible student's scholarship award 
2.23 	under this section is 25 percent of the amount of the student's state grant award under section 
2.24 	136A.121.
2.25 	(b) If the commissioner determines that the amount appropriated for scholarships under 
2.26 	this section is insufficient to make full awards to all eligible students, the percentage under 
2.27 	paragraph (a) may be uniformly reduced.
2.28 	(c) The commissioner must fully allocate the entire appropriation for scholarships under 
2.29 	this section. If the commissioner determines that the amount appropriated is more than 
2.30 	sufficient to make full awards to all eligible students, the percentage under paragraph (a) 
2.31 	may be uniformly increased. The increase may be made in either year of the biennium and 
2.32 	may be made one or more times. In making the determination that there are more than 
3.1 	sufficient funds, the office shall balance the need for sufficient resources to meet the projected 
3.2 	demand for scholarships with the requirement of fully allocating the appropriation for 
3.3 	scholarships under this section.
3.4 		Subd. 4.Administration; duration of scholarship. (a) The commissioner shall make 
3.5 	scholarship awards to eligible students who apply for and receive a state grant award under 
3.6 	section 136A.121.
3.7 	(b) Each scholarship is for a period of one semester. A scholarship may be renewed if 
3.8 	the eligible student continues to meet the conditions of eligibility.
3.9 	(c) Scholarships may be provided to an eligible student for up to the equivalent of four 
3.10 	full-time semesters of enrollment for the completion of a certificate or an associate degree 
3.11 	and up to the equivalent of eight full-time semesters of enrollment for the completion of a 
3.12 	bachelor's degree.
3.13 	(d) The maximum total time a student is eligible to receive the scholarship under this 
3.14 	section is a total of eight full-time semesters of enrollment or the equivalent. A semester, 
3.15 	or equivalent term, in which the student earns a North Star Promise scholarship under section 
3.16 	136A.1465 counts toward the maximum time for which a student is eligible for a scholarship 
3.17 	under this section. In addition, the commissioner may determine a time frame by which the 
3.18 	recipient of a scholarship under this section must complete the degree program for which 
3.19 	the recipient has received the scholarship.
3.20 	(e) The scholarship must be paid directly to the eligible institution where the student is 
3.21 	enrolled.
3.22 		Subd. 5.Report required. By February 15 each year, the commissioner must submit a 
3.23 	report to the chairs and ranking minority members of the legislative committees with 
3.24 	jurisdiction over higher education on the details of the State Grant Plus scholarship, including 
3.25 	summary data on scholarship awards at each eligible Minnesota postsecondary institution 
3.26 	showing:
3.27 	(1) the total number of students who received a scholarship in the prior academic year 
3.28 	and this number as a percentage of the institution's total undergraduate enrollment;
3.29 	(2) average and total scholarship award amounts;
3.30 	(3) relevant demographic data on scholarship recipients, including but not limited to 
3.31 	race and ethnicity, first generation college student status, and gender; and
3.32 	(4) enrollment, retention, degree completion, and other relevant student outcome data 
3.33 	on scholarship recipients.

4.1 	EFFECTIVE DATE. This section is effective the day following final enactment. 
4.2 	Scholarships under this section shall be awarded beginning in the 2025-2026 academic year.

4.3 	Sec. 3. Minnesota Statutes 2024, section 136A.1465, subdivision 5, is amended to read:
4.4 		Subd. 5.Duration of scholarship authorized; scholarship paid to institution. (a) 
4.5 	Each scholarship is for a period of one semester. A scholarship may be renewed provided 
4.6 	that the eligible student continues to meet the conditions of eligibility.
4.7 	(b) Scholarships may be provided to an eligible student pursuing the completion of a 
4.8 	certificate or an associate degree who has not previously received the scholarship for four 
4.9 	full-time semesters or the equivalent. Scholarships may be provided to an eligible student 
4.10 	pursuing the completion of a bachelor's degree who has not previously received the 
4.11 	scholarship for eight full-time semesters or the equivalent. The maximum for which a student 
4.12 	is eligible is a total of eight full-time semesters or the equivalent. A semester, or equivalent 
4.13 	term, in which the student earns a State Grant Plus scholarship under section 136A.1212 
4.14 	counts toward the maximum for which a student is eligible for a scholarship under this 
4.15 	section. Courses taken that qualify as developmental education or below college-level shall 
4.16 	be excluded from the limit.
4.17 	(c) A student is entitled to an additional semester or the equivalent of grant eligibility 
4.18 	if the student withdraws from enrollment:
4.19 	(1) for active military service because the student was ordered to active military service 
4.20 	as defined in section 190.05, subdivision 5b or 5c;
4.21 	(2) for a serious health condition, while under the care of a medical professional, that 
4.22 	substantially limits the student's ability to complete the term; or
4.23 	(3) while providing care that substantially limits the student's ability to complete the 
4.24 	term to the student's spouse, child, or parent who has a serious health condition.
4.25 	(d) The scholarship must be paid directly to the eligible institution where the student is 
4.26 	enrolled.

4.27 	Sec. 4. APPROPRIATION; FAFSA COMPLETION GRANTS.
 4.28 	(a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the 
4.29 	general fund to the commissioner of the Office of Higher Education for competitive grants 
4.30 	to nonprofit organizations to increase the percentage of Minnesota's high school seniors 
4.31 	completing the Free Application for Federal Student Aid (FAFSA). This is a onetime 
4.32 	appropriation.
5.1 	(b) No later than December 15, 2026, and no later than December 15, 2027, the 
5.2 	commissioner must report to the chairs and ranking minority members of the legislative 
5.3 	committees and divisions with jurisdiction over higher education and E-12 education on 
5.4 	grants awarded by this appropriation. The report must include the applicants receiving grants 
5.5 	under this section, the amount of each grant, and the purposes for which the grant funds 
5.6 	were used. The report must also include any relevant findings, results, and outcomes of the 
5.7 	grant program, the program's impact on the FAFSA completion goal under Minnesota 
5.8 	Statutes, section 136A.096, and other information which the commissioner deems significant 
5.9 	or useful.

5.10 	Sec. 5. APPROPRIATION; COMPETITIVE GRANTS TO INCREASE PELL 
5.11 	GRANT ELIGIBLE STUDENT RETENTION AND GRADUATION RATES.
 5.12 	(a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the 
5.13 	general fund to the commissioner of the Office of Higher Education for competitive matching 
5.14 	grants to eligible institutions under Minnesota Statutes, section 136A.101, subdivision 4, 
5.15 	to increase retention and graduation rates of federal Pell grant eligible students. This is a 
5.16 	onetime appropriation.
5.17 	(b) In awarding grants under paragraph (a), the commissioner shall give preference to 
5.18 	applications from institutions with the highest rates of federal Pell grant eligible students 
5.19 	enrolled, and shall prioritize applications providing faculty and student support staff with 
5.20 	professional development opportunities centered on culturally validating pedagogy and 
5.21 	leadership.
5.22 	(c) No later than December 15, 2026, and no later than December 15, 2027, the 
5.23 	commissioner must report to the chairs and ranking minority members of the legislative 
5.24 	committees and divisions with jurisdiction over higher education and E-12 education on 
5.25 	grants awarded by this appropriation. The report must include the institutions receiving 
5.26 	grants under this section, the amount of each grant, and the purposes for which the grant 
5.27 	funds were used. The report must also include any relevant findings, results, and outcomes 
5.28 	of the grant program, the program's impact on the retention and graduation rates of federal 
5.29 	Pell grant eligible students, and other information that the commissioner deems significant 
5.30 	or useful.

6.1 	Sec. 6. APPROPRIATION; MULTILINGUAL AND CULTURALLY RELEVANT 
6.2 	COMMUNICATIONS AND MATERIALS.
 6.3 	$....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general 
6.4 	fund to the commissioner of the Office of Higher Education to increase access to the office's 
6.5 	communications, materials, and other resources by non-English-speaking people in 
6.6 	accordance with Minnesota Statutes, section 15.441, and to create or expand the office's 
6.7 	culturally relevant communications, materials, and other resources for diverse populations 
6.8 	in the state. This is a onetime appropriation.

6.9 	Sec. 7. APPROPRIATION; MINNESOTA EDUCATION EQUITY PARTNERSHIP.
 6.10 	$90,000 in fiscal year 2026 and $90,000 in fiscal year 2027 are appropriated from the 
6.11 	general fund to the commissioner of the Office of Higher Education for the Minnesota 
6.12 	Education Equity Partnership (MnEEP).

6.13 	Sec. 8. APPROPRIATION; WORKING GROUP ON HIGHER EDUCATION 
6.14 	FINANCIAL STABILITY.
 6.15 	(a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner 
6.16 	of the Office of Higher Education to establish a working group to make recommendations 
6.17 	to the legislature regarding comprehensive, long-term strategies for sustainable and successful 
6.18 	state funding of higher education financial aid programs and public postsecondary institutions 
6.19 	in Minnesota.
6.20 	(b) The working group shall consist of: the commissioner of the Office of Higher 
6.21 	Education or a designee; the executive director of the P-20 education partnership or a 
6.22 	designee; student representatives nominated by the Student Advisory Council under 
6.23 	Minnesota Statutes, section 136A.031; the executive director of the Minnesota Education 
6.24 	Equity Partnership (MnEEP) or a designee; the president of the Minnesota Private College 
6.25 	Council or a designee; the chancellor of the Minnesota State College and Universities system 
6.26 	or a designee; the president of the University of Minnesota or a designee; a representative 
6.27 	selected by the Tribal Nations Education Committee; and any other P-20 partnership members 
6.28 	the commissioner considers relevant for the working group.
6.29 	(c) The commissioner of the Office of Higher Education shall convene the first meeting 
6.30 	of the working group by July 1, 2025. The members of the working group shall elect one 
6.31 	member to serve as chair. The working group shall meet with a frequency sufficient to 
6.32 	complete the report required under paragraph (d).
7.1 	(d) By July 1, 2026, the working group must report to the chairs and ranking minority 
7.2 	members of the legislative committees and divisions with jurisdiction over higher education 
7.3 	with recommendations for how the legislature can best provide stable, sustainable financing 
7.4 	of state higher education programs and institutions for the foreseeable future. The working 
7.5 	group expires upon completion of the report.

7.6 	Sec. 9. APPROPRIATION; P-20 EDUCATION PARTNERSHIP WORKING GROUP 
7.7 	ON HIGHER EDUCATION ATTAINMENT GOAL.
 7.8 	(a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner 
7.9 	of the Office of Higher Education for the P-20 education partnership to establish a working 
7.10 	group to recommend updates to the legislature regarding the state's higher education 
7.11 	attainment goal under Minnesota Statutes, section 135A.012.
7.12 	(b) The working group shall consist of: the commissioner of the Office of Higher 
7.13 	Education or a designee; the executive director of the P-20 education partnership or a 
7.14 	designee; student representatives nominated by the Student Advisory Council under 
7.15 	Minnesota Statutes, section 136A.031; the executive director of the Minnesota Education 
7.16 	Equity Partnership (MnEEP) or a designee; the president of the Minnesota Private College 
7.17 	Council or a designee; the chancellor of the Minnesota State College and Universities system 
7.18 	or a designee; the president of the University of Minnesota or a designee; a representative 
7.19 	selected by the Tribal Nations Education Committee; and any other P-20 partnership members 
7.20 	the commissioner considers relevant for the working group.
7.21 	(c) The commissioner of the Office of Higher Education shall convene the first meeting 
7.22 	of the working group by August 15, 2025. The members of the working group shall elect 
7.23 	one member to serve as chair. The working group shall meet with a frequency sufficient to 
7.24 	complete the report required under paragraph (d).
7.25 	(d) By January 15, 2026, the working group must report to the chairs and ranking minority 
7.26 	members of the legislative committees and divisions with jurisdiction over higher education 
7.27 	with recommendations for updating the state's higher education attainment goal under 
7.28 	Minnesota Statutes, section 135A.012. The working group expires upon completion of the 
7.29 	report.

7.30 	Sec. 10. APPROPRIATION; STATE GRANT PLUS SCHOLARSHIP.
 7.31 	(a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the 
7.32 	general fund to the commissioner of the Office of Higher Education for the State Grant Plus 
7.33 	scholarship program under Minnesota Statutes, section 136A.1212.
8.1 	(b) The base for this appropriation for fiscal year 2028 and later is $......., plus an 
8.2 	additional percentage of that amount equal to the annual percentage increase, if any, in the 
8.3 	resident undergraduate tuition and fees charged at the Minnesota public postsecondary 
8.4 	institution with the highest resident undergraduate tuition and fees among all Minnesota 
8.5 	public postsecondary institutions.