SF 2518

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/14/2025 10:50 a.m.

A bill for an act
relating to higher education; modifying workforce development scholarship program
parameters; appropriating money for various needs of the Minnesota State Colleges
and Universities; amending Minnesota Statutes 2024, section 136F.38, subdivisions
1, 2, 3, 4, 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 136F.38, subdivision 1, is amended to read:

Subdivision 1.

Program established.

The board shall develop a scholarship program
to incentivize new students and students returning from the workforce to enter high-demand
occupations upon graduation new text begin , with an emphasis on skill-based outcomes, stackable
credentials, and credit for prior learning pathways new text end .

Sec. 2.

Minnesota Statutes 2024, section 136F.38, subdivision 2, is amended to read:

Subd. 2.

Scholarship awards.

new text begin (a) new text end The program shall award scholarships deleted text begin at the beginning
of an academic term, in the amount of $2,500, to be distributed evenly between two terms deleted text end new text begin
to support student participation in eligible credit-based and noncredit programs new text end .

new text begin (b) For credit-based programs, a student in a two-year college in the Minnesota State
Colleges and Universities system is eligible for up to $2,500 per academic year, which may
be distributed flexibly across terms based on the student's enrollment and program
requirements.
new text end

new text begin (c) For noncredit programs, a student in a two-year college in the Minnesota State
Colleges and Universities system is eligible for up to $1,500 per eligible program, not to
exceed the total cost of tuition, fees, required materials, and industry-recognized certification
exams.
new text end

new text begin (d) For credit-based programs, a student in a four-year university in the Minnesota State
Colleges and Universities system is eligible for annual scholarships of up to $3,500 each.
new text end

new text begin (e) Scholarship money may be used flexibly throughout the academic year to
accommodate variations in enrollment intensity or academic calendar structures, such as
accelerated or modular programs; seasonal or program-specific costs, including tools,
equipment, transportation, and uniforms; support for stackable credentials and transitions
from noncredit to credit-based pathways; and payment of fees for credit for prior learning
assessments that award academic credit based on a student's demonstrated knowledge, skills,
or competencies.
new text end

new text begin (f) Money may roll over within an academic year and, where applicable, may be applied
to subsequent terms or programs.
new text end

Sec. 3.

Minnesota Statutes 2024, section 136F.38, subdivision 3, is amended to read:

Subd. 3.

Program eligibility.

(a) Scholarships shall be awarded only to a student eligible
for resident tuition, as defined in section 135A.043, who is enrolled in any of the following
programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health
care services; (4) information technology; (5) early childhood; (6) transportation; (7)
construction; (8) education; (9) public safety; (10) energy; or (11) a program of study under
paragraph (b).

(b) Each institution may add one additional area of study or certification, based on a
workforce shortage for full-time employment requiring postsecondary education that is
unique to the institution's specific region, as reported in the most recent Department of
Employment and Economic Development job vacancy survey data for the economic
development region in which the institution is located. A workforce shortage area is one in
which the job vacancy rate for full-time employment in a specific occupation in a region is
higher than the state average vacancy rate for that same occupation. The institution may
change the area of study or certification based on new data once every two years.

(c) The student must be enrolled for at least nine credits in a two-year college in the
Minnesota State Colleges and Universities system to be eligible for first- and second-year
scholarships new text begin for credit programs new text end .

deleted text begin (d) The student is eligible for a one-year transfer scholarship if the student transfers from
a two-year college after two or more terms, and the student is enrolled for at least nine
credits in a four-year university in the Minnesota State Colleges and Universities system.
deleted text end

new text begin (d) Students pursuing noncredit programs that lead to industry-recognized credentials
or certifications aligned with high-demand occupations are eligible for scholarships.
Noncredit program participants may apply unused money toward credit-bearing programs,
stackable credentials, or credit for prior learning assessments.
new text end

Sec. 4.

Minnesota Statutes 2024, section 136F.38, subdivision 4, is amended to read:

Subd. 4.

Renewal; cap.

A student who has received a scholarship may apply again but
total lifetime awards are not to exceed deleted text begin $7,500 deleted text end new text begin $8,500 new text end per student new text begin , which may include a
combination of awards for credit and noncredit programs new text end . Students may only be awarded
a second scholarship upon completion of two academic terms new text begin or a corresponding noncredit
program new text end . Students may new text begin only new text end be awarded a third scholarship if the student transfers to a
corresponding new text begin four-year new text end program at a Minnesota state university new text begin or is already in a four-year
program at a Minnesota state university new text end .

Sec. 5.

Minnesota Statutes 2024, section 136F.38, subdivision 5, is amended to read:

Subd. 5.

Administration.

(a) The board shall establish an application process and other
guidelines for implementing this program new text begin , including procedures for flexible distribution of
money new text end .

(b) The board shall give preference to students in financial need.

new text begin (c) Up to one and one-half percent of the money appropriated for this program may be
used for the administration of this program, including outreach to students and promotion
of programs where graduates and certificate holders are currently most needed.
new text end

new text begin (d) Institutions may allocate scholarships across terms or programs to support variations
in student enrollment, unexpected life circumstances, or unique program needs. Institutions
are also authorized to use scholarship money for nontuition costs such as certification exams,
tools, transportation, and credit for prior learning assessments.
new text end

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin (a) $237,958,000 in fiscal year 2026 and $236,958,000 in fiscal year 2027 are
appropriated from the general fund to the Board of Trustees of the Minnesota State Colleges
and Universities for operations and maintenance of the Minnesota State Colleges and
Universities. The base for this appropriation is $236,958,000 in fiscal year 2028 and later.
Of the amounts appropriated in this paragraph:
new text end

new text begin (1) $50,000,000 in fiscal year 2026 is for repair or replacement of existing on-campus
buildings and infrastructure;
new text end

new text begin (2) $25,000,000 in fiscal year 2026 is for demolition of obsolete buildings and
infrastructure and restoration of the vacant sites;
new text end

new text begin (3) $25,000,000 in fiscal year 2026 is for development and implementation of the
Workday Student information system;
new text end

new text begin (4) $19,408,000 in fiscal year 2026 and $19,408,000 in fiscal year 2027 are to expand
student support services;
new text end

new text begin (5) $1,050,000 in fiscal year 2026 and $1,050,000 in fiscal year 2027 are to develop and
expand the availability of free course materials;
new text end

new text begin (6) $93,000,000 in fiscal year 2026 and $192,000,000 in fiscal year 2027 are to address
personnel and nonpersonnel cost increases, maintain academic programs, and limit tuition
changes to instances where there is compelling need to better align rates with costs;
new text end

new text begin (7) $4,250,000 in fiscal year 2026 and $4,250,000 in fiscal year 2027 are to support the
maintenance of high-cost and high-demand career and technical, baccalaureate, and graduate
programs;
new text end

new text begin (8) $6,750,000 in fiscal year 2026 and $6,750,000 in fiscal year 2027 are to upgrade
college and university equipment and learning environments and to enhance applied research
laboratories;
new text end

new text begin (9) $6,750,000 in fiscal year 2026 and $6,750,000 in fiscal year 2027 are to develop and
expand industry sector programming to build capacity and support new and redesigned
curricular options with an emphasis on offering students work-based learning experiences;
and
new text end

new text begin (10) $6,750,000 in fiscal year 2026 and $6,750,000 in fiscal year 2027 are to expand
the workforce development scholarship program under Minnesota Statutes, section 136F.38.
new text end

new text begin (b) $5,000,000 in fiscal year 2026 and $5,000,000 in fiscal year 2027 are appropriated
from the general fund to the commissioner of the Office of Higher Education for emergency
grants to students of the Minnesota State Colleges and Universities to meet immediate needs
that could interfere with the student completing the term or their program.
new text end