SF 3754
Introduction - 94th Legislature (2025 - 2026)
Posted on 02/24/2026 09:49 a.m.
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A bill for an act
relating to higher education; increasing the maximum income eligibility condition
for the North Star Promise scholarship program; increasing a required transfer of
money; amending Minnesota Statutes 2025 Supplement, section 136A.1465,
subdivision 2; Laws 2025, First Special Session chapter 5, article 1, section 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2025 Supplement, section 136A.1465, subdivision 2, is
amended to read:
Subd. 2.
Conditions for eligibility.
A scholarship may be awarded to an eligible student
who:
(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
aid application by 30 days after the start of the term for which a scholarship is being awarded;
(2) has a family adjusted gross income below deleted text begin $80,000deleted text end new text begin $100,000new text end ;
(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over
and has met all requirements for admission as a student to an eligible college or university;
(4) has not completed the degree requirements for the first baccalaureate degree at the
time the scholarship is awarded;
(5) is enrolled in at least one credit per fall, spring, or summer semester;
(6) is enrolled in a program or course of study that applies to a degree, diploma, or
certificate;
(7) is not in default, as defined by the office, of any federal or state student educational
loan;
(8) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages;
(9) has not been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
new text begin title 34, new text end subtitle B, chapter VI, part 668, subpart C; and
(10) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
10.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning in the fall 2026 academic
term.
new text end
Sec. 2.
Laws 2025, First Special Session chapter 5, article 1, section 5, is amended to read:
Sec. 5. TRANSFERS.
(a) The commissioner of the Office of Higher Education, in consultation with the
commissioner of management and budget, must transfer $2,500,000 in fiscal year 2026 and
$2,500,000 in fiscal year 2027 from the general fund to the spinal cord and traumatic brain
injury grant account in the special revenue fund under Minnesota Statutes, section 136A.901,
subdivision 1. The commissioner of the Office of Higher Education may use up to ten
percent of the amounts transferred under this paragraph to administer the program. The
commissioner of management and budget must include a transfer of $2,500,000 each year
from the general fund to the spinal cord and traumatic brain injury grant account in the
special revenue fund in each forecast prepared under Minnesota Statutes, section 16A.103,
from the effective date of this section through the February 2027 forecast.
(b) The commissioner of the Office of Higher Education, in consultation with the
commissioner of management and budget, must transfer $3,132,000 in fiscal year 2026 and
$3,132,000 in fiscal year 2027 from the general fund to the dual training account in the
special revenue fund under Minnesota Statutes, section 136A.246, subdivision 10. The
commissioner of the Office of Higher Education may use up to five percent of the amounts
transferred under this paragraph to administer the program. Of the amounts transferred
under this paragraph, $132,000 each year is for transfer to the Department of Labor and
Industry to support identification of competency standards and development of dual training
programs in the transportation and child care industries as required under Minnesota Statutes,
section 175.45. The commissioner of management and budget must include a transfer of
$3,132,000 each year from the general fund to the dual training account in the special
revenue fund in each forecast prepared under Minnesota Statutes, section 16A.103, from
the effective date of this section through the February 2027 forecast.
(c) The commissioner of the Office of Higher Education, in consultation with the
commissioner of management and budget, must transfer $325,000 in fiscal year 2026 and
$325,000 in fiscal year 2027 from the general fund to the large animal veterinarian loan
forgiveness program account in the special revenue fund under Minnesota Statutes, section
136A.1795, subdivision 2. The commissioner of management and budget must include a
transfer of $325,000 each year from the general fund to the large animal veterinarian loan
forgiveness program account in the special revenue fund in each forecast prepared under
Minnesota Statutes, section 16A.103, from the effective date of this section through the
February 2027 forecast.
(d) The commissioner of the Office of Higher Education, in consultation with the
commissioner of management and budget, must transfer $45,000 in fiscal year 2026 and
$45,000 in fiscal year 2027 from the general fund to the agricultural education loan
forgiveness account in the special revenue fund under Minnesota Statutes, section 136A.1794,
subdivision 2. The commissioner of management and budget must include a transfer of
$45,000 each year from the general fund to the agricultural education loan forgiveness
account in the special revenue fund in each forecast prepared under Minnesota Statutes,
section 16A.103, from the effective date of this section through the February 2027 forecast.
(e) The commissioner of the Office of Higher Education, in consultation with the
commissioner of management and budget, must transfer $750,000 in fiscal year 2026 and
$750,000 in fiscal year 2027 from the general fund to the inclusive higher education grant
account in the special revenue fund under Minnesota Statutes, section deleted text begin 135A.162deleted text end new text begin 136A.922new text end ,
subdivision 4. The commissioner of the Office of Higher Education may use up to five
percent of the amounts transferred under this paragraph to administer the program. The
commissioner of management and budget must include a transfer of $750,000 each year
from the general fund to the inclusive higher education grant account in the special revenue
fund in each forecast prepared under Minnesota Statutes, section 16A.103, from the effective
date of this section through the February 2027 forecast.
(f) The commissioner of the Office of Higher Education, in consultation with the
commissioner of management and budget, must transfer $49,500,000 in fiscal year 2026
and deleted text begin $49,500,000deleted text end new text begin $.......new text end in fiscal year 2027 from the general fund to the account in the special
revenue fund for North Star Promise scholarships under Minnesota Statutes, section
136A.1465, subdivision 8. The commissioner of management and budget must include a
transfer of deleted text begin $49,500,000deleted text end new text begin $.......new text end each year from the general fund to the account in the special
revenue fund for North Star Promise scholarships in each forecast prepared under Minnesota
Statutes, section 16A.103, from the effective date of this section through the February 2027
forecast.