1.1 	A bill for an act
1.2 	relating to higher education; modifying provisions relating to parental contributions; 
1.3 	modifying cost of attendance provisions; eliminating certain tuition and fee 
1.4 	maximums;amending Minnesota Statutes 2025 Supplement, sections 136A.101, 
1.5 	subdivision 5a; 136A.121, subdivision 6; Laws 2025, First Special Session chapter 
1.6 	5, article 1, section 2, subdivision 2.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2025 Supplement, section 136A.101, subdivision 5a, is 
1.9 	amended to read:
1.10 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means the 
1.11 	amount of a family's contribution to a student's cost of attendance, as determined by a federal 
1.12 	need analysis. For dependent students, the assigned family responsibility is 95 percent of 
1.13 	the parental contribution. If the parental contribution is between $0 and negative $1,500, 
1.14 	the assigned family responsibility is 50 percent of the parental contribution. If the parental 
1.15 	contribution is less than negative $1,500, the recognized parental contribution is negative 
1.16 	$1,500. For independent students with dependents other than a spouse, the assigned family 
1.17 	responsibility is 71 percent of the student contribution. For independent students without 
1.18 	dependents other than a spouse, the assigned family responsibility is 35 percent of the student 
1.19 	contribution. If the student contribution is between $0 and negative $1,500, the assigned 
1.20 	family responsibility is 50 percent of the student contribution. If the student contribution is 
1.21 	less than negative $1,500, the recognized student contribution is negative $1,500. For a 
1.22 	student registering for less than full time, the office shall prorate the assigned family 
1.23 	responsibility 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 	Sec. 2. Minnesota Statutes 2025 Supplement, section 136A.121, subdivision 6, is amended 
2.2 	to read:
2.3 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of: (1) an 
2.4 	allowance specified in law for living and miscellaneous expenses, and (2) an allowance for 
2.5 	tuition and fees equal to the lesser of the average tuition and fees charged by the institution, 
2.6 	or a tuition and fee maximum if one is established in law. If no living and miscellaneous 
2.7 	expense allowance is established in law, the allowance is equal to 106 percent of the federal 
2.8 	poverty guidelines for a one person household in Minnesota for nine months. If no tuition 
2.9 	and fee maximum is established in law, the allowance for tuition and fees is equal to the 
2.10 	lesser of: (1) the average tuition and fees charged by the institution, and (2) for two-year 
2.11 	programs, an amount equal to the highest tuition and fees charged at a public Minnesota 
2.12 	state two-year institution, or for four-year programs, an amount equal to the highest tuition 
2.13 	and fees charged at a public Minnesota state university.
2.14 	(b) For a student registering for less than full time, the office shall prorate the cost of 
2.15 	attendance using the ratio of the number of credits the student is enrolled in to the number 
2.16 	of credits for full-time enrollment.
2.17 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
2.18 	correctional institution shall consist of the tuition and fee component in paragraph (a), with 
2.19 	no allowance for living and miscellaneous expenses.
2.20 	(d) For the purpose of this subdivision, "fees" include only those fees that are mandatory 
2.21 	and charged to full-time resident students attending the institution. Fees do not include 
2.22 	charges for tools, equipment, computers, or other similar materials where the student retains 
2.23 	ownership. Fees include charges for these materials if the institution retains ownership. Fees 
2.24 	do not include optional or punitive fees.

2.25 	Sec. 3. Laws 2025, First Special Session chapter 5, article 1, section 2, subdivision 2, is 
2.26 	amended to read:

2.27	Subd. 2.State Grants
 		247,300,000
		247,300,000
	
2.28 	(a) If the appropriation in this subdivision for 
2.29 	either year is insufficient, the appropriation 
2.30 	for the other year is available for it. This 
2.31 	appropriation is available until June 30, 2029.
2.32 	(b) For purposes of Minnesota Statutes, 
2.33 	section 136A.121, subdivision 6, a tuition and 
3.1 	fee maximum is established for four-year 
3.2 	programs that is the lesser of: (1) the average 
3.3 	tuition and fees charged by the institution; or 
3.4 	(2) an amount equal to the highest tuition and 
3.5 	fees charged at a public university in the 
3.6 	2024-2025 academic year plus two percent 
3.7 	for fiscal year 2026, plus an additional two 
3.8 	percent for fiscal year 2027.
3.9 	(c) (b) The base for this appropriation is 
3.10 	$238,467,000 in fiscal year 2028 and 
3.11 	thereafter.