SF 2495

as introduced - 94th Legislature (2025 - 2026) Posted on 03/14/2025 10:40am

A bill for an act
relating to higher education; increasing the default living and miscellaneous
expenses allowance for the state grant program; establishing a new State Grant
Plus scholarship to supplement state grant awards; creating grant programs within
the Office of Higher Education; creating working groups; requiring reports;
appropriating money; amending Minnesota Statutes 2024, sections 136A.121,
subdivision 6; 136A.1465, subdivision 5; proposing coding for new law in
Minnesota Statutes, chapter 136A.

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

Section 1.

Minnesota Statutes 2024, section 136A.121, subdivision 6, is amended to read:

Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of: (1) an
allowance specified in law for living and miscellaneous expenses, and (2) an allowance for
tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
or a tuition and fee maximum if one is established in law. If no living and miscellaneous
expense allowance is established in law, the allowance is equal to deleted text begin 115 deleted text end new text begin 121 new text end percent of the
federal poverty guidelines for a one person household in Minnesota for nine months. If no
tuition and fee maximum is established in law, the allowance for tuition and fees is equal
to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for
two-year programs, an amount equal to the highest tuition and fees charged at a public
two-year institution, or for four-year programs, an amount equal to the highest tuition and
fees charged at a public university.

(b) For a student registering for less than full time, the office shall prorate the cost of
attendance using the ratio of the number of credits the student is enrolled in to the number
of credits for full-time enrollment.

(c) The recognized cost of attendance for a student who is confined to a Minnesota
correctional institution shall consist of the tuition and fee component in paragraph (a), with
no allowance for living and miscellaneous expenses.

(d) For the purpose of this subdivision, "fees" include only those fees that are mandatory
and charged to full-time resident students attending the institution. Fees do not include
charges for tools, equipment, computers, or other similar materials where the student retains
ownership. Fees include charges for these materials if the institution retains ownership. Fees
do not include optional or punitive fees.

Sec. 2.

new text begin [136A.1212] STATE GRANT PLUS SCHOLARSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A scholarship program, known as the State Grant Plus
scholarship, is established for students eligible under this section. The commissioner shall
administer this program and may establish guidelines and procedures necessary for the
program's implementation.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin In an academic term, a student is eligible for a scholarship under
this section if the student:
new text end

new text begin (1) is eligible for and receives a state grant award under section 136A.121 for the same
academic term;
new text end

new text begin (2) is enrolled in at least one credit at a Minnesota public, Tribal, or private nonprofit
postsecondary institution that is an eligible institution under section 136A.101, subdivision
4; and
new text end

new text begin (3) is not eligible to receive a North Star Promise scholarship under section 136A.1465.
new text end

new text begin Subd. 3. new text end

new text begin Award amount. new text end

new text begin (a) The amount of an eligible student's scholarship award
under this section is 25 percent of the amount of the student's state grant award under section
136A.121.
new text end

new text begin (b) If the commissioner determines that the amount appropriated for scholarships under
this section is insufficient to make full awards to all eligible students, the percentage under
paragraph (a) may be uniformly reduced.
new text end

new text begin (c) The commissioner must fully allocate the entire appropriation for scholarships under
this section. If the commissioner determines that the amount appropriated is more than
sufficient to make full awards to all eligible students, the percentage under paragraph (a)
may be uniformly increased. The increase may be made in either year of the biennium and
may be made one or more times. In making the determination that there are more than
sufficient funds, the office shall balance the need for sufficient resources to meet the projected
demand for scholarships with the requirement of fully allocating the appropriation for
scholarships under this section.
new text end

new text begin Subd. 4. new text end

new text begin Administration; duration of scholarship. new text end

new text begin (a) The commissioner shall make
scholarship awards to eligible students who apply for and receive a state grant award under
section 136A.121.
new text end

new text begin (b) Each scholarship is for a period of one semester. A scholarship may be renewed if
the eligible student continues to meet the conditions of eligibility.
new text end

new text begin (c) Scholarships may be provided to an eligible student for up to the equivalent of four
full-time semesters of enrollment for the completion of a certificate or an associate degree
and up to the equivalent of eight full-time semesters of enrollment for the completion of a
bachelor's degree.
new text end

new text begin (d) The maximum total time a student is eligible to receive the scholarship under this
section is a total of eight full-time semesters of enrollment or the equivalent. A semester,
or equivalent term, in which the student earns a North Star Promise scholarship under section
136A.1465 counts toward the maximum time for which a student is eligible for a scholarship
under this section. In addition, the commissioner may determine a time frame by which the
recipient of a scholarship under this section must complete the degree program for which
the recipient has received the scholarship.
new text end

new text begin (e) The scholarship must be paid directly to the eligible institution where the student is
enrolled.
new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin By February 15 each year, the commissioner must submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over higher education on the details of the State Grant Plus scholarship, including
summary data on scholarship awards at each eligible Minnesota postsecondary institution
showing:
new text end

new text begin (1) the total number of students who received a scholarship in the prior academic year
and this number as a percentage of the institution's total undergraduate enrollment;
new text end

new text begin (2) average and total scholarship award amounts;
new text end

new text begin (3) relevant demographic data on scholarship recipients, including but not limited to
race and ethnicity, first generation college student status, and gender; and
new text end

new text begin (4) enrollment, retention, degree completion, and other relevant student outcome data
on scholarship recipients.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
Scholarships under this section shall be awarded beginning in the 2025-2026 academic year.
new text end

Sec. 3.

Minnesota Statutes 2024, section 136A.1465, subdivision 5, is amended to read:

Subd. 5.

Duration of scholarship authorized; scholarship paid to institution.

(a)
Each scholarship is for a period of one semester. A scholarship may be renewed provided
that the eligible student continues to meet the conditions of eligibility.

(b) Scholarships may be provided to an eligible student pursuing the completion of a
certificate or an associate degree who has not previously received the scholarship for four
full-time semesters or the equivalent. Scholarships may be provided to an eligible student
pursuing the completion of a bachelor's degree who has not previously received the
scholarship for eight full-time semesters or the equivalent. The maximum for which a student
is eligible is a total of eight full-time semesters or the equivalent. new text begin A semester, or equivalent
term, in which the student earns a State Grant Plus scholarship under section 136A.1212
counts toward the maximum for which a student is eligible for a scholarship under this
section. new text end Courses taken that qualify as developmental education or below college-level shall
be excluded from the limit.

(c) A student is entitled to an additional semester or the equivalent of grant eligibility
if the student withdraws from enrollment:

(1) for active military service because the student was ordered to active military service
as defined in section 190.05, subdivision 5b or 5c;

(2) for a serious health condition, while under the care of a medical professional, that
substantially limits the student's ability to complete the term; or

(3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.

(d) The scholarship must be paid directly to the eligible institution where the student is
enrolled.

Sec. 4. new text begin APPROPRIATION; FAFSA COMPLETION GRANTS.
new text end

new text begin (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the commissioner of the Office of Higher Education for competitive grants
to nonprofit organizations to increase the percentage of Minnesota's high school seniors
completing the Free Application for Federal Student Aid (FAFSA). This is a onetime
appropriation.
new text end

new text begin (b) No later than December 15, 2026, and no later than December 15, 2027, the
commissioner must report to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over higher education and E-12 education on
grants awarded by this appropriation. The report must include the applicants receiving grants
under this section, the amount of each grant, and the purposes for which the grant funds
were used. The report must also include any relevant findings, results, and outcomes of the
grant program, the program's impact on the FAFSA completion goal under Minnesota
Statutes, section 136A.096, and other information which the commissioner deems significant
or useful.
new text end

Sec. 5. new text begin APPROPRIATION; COMPETITIVE GRANTS TO INCREASE PELL
GRANT ELIGIBLE STUDENT RETENTION AND GRADUATION RATES.
new text end

new text begin (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the commissioner of the Office of Higher Education for competitive matching
grants to eligible institutions under Minnesota Statutes, section 136A.101, subdivision 4,
to increase retention and graduation rates of federal Pell grant eligible students. This is a
onetime appropriation.
new text end

new text begin (b) In awarding grants under paragraph (a), the commissioner shall give preference to
applications from institutions with the highest rates of federal Pell grant eligible students
enrolled, and shall prioritize applications providing faculty and student support staff with
professional development opportunities centered on culturally validating pedagogy and
leadership.
new text end

new text begin (c) No later than December 15, 2026, and no later than December 15, 2027, the
commissioner must report to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over higher education and E-12 education on
grants awarded by this appropriation. The report must include the institutions receiving
grants under this section, the amount of each grant, and the purposes for which the grant
funds were used. The report must also include any relevant findings, results, and outcomes
of the grant program, the program's impact on the retention and graduation rates of federal
Pell grant eligible students, and other information that the commissioner deems significant
or useful.
new text end

Sec. 6. new text begin APPROPRIATION; MULTILINGUAL AND CULTURALLY RELEVANT
COMMUNICATIONS AND MATERIALS.
new text end

new text begin $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
fund to the commissioner of the Office of Higher Education to increase access to the office's
communications, materials, and other resources by non-English-speaking people in
accordance with Minnesota Statutes, section 15.441, and to create or expand the office's
culturally relevant communications, materials, and other resources for diverse populations
in the state. This is a onetime appropriation.
new text end

Sec. 7. new text begin APPROPRIATION; MINNESOTA EDUCATION EQUITY PARTNERSHIP.
new text end

new text begin $90,000 in fiscal year 2026 and $90,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of the Office of Higher Education for the Minnesota
Education Equity Partnership (MnEEP).
new text end

Sec. 8. new text begin APPROPRIATION; WORKING GROUP ON HIGHER EDUCATION
FINANCIAL STABILITY.
new text end

new text begin (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
of the Office of Higher Education to establish a working group to make recommendations
to the legislature regarding comprehensive, long-term strategies for sustainable and successful
state funding of higher education financial aid programs and public postsecondary institutions
in Minnesota.
new text end

new text begin (b) The working group shall consist of: the commissioner of the Office of Higher
Education or a designee; the executive director of the P-20 education partnership or a
designee; student representatives nominated by the Student Advisory Council under
Minnesota Statutes, section 136A.031; the executive director of the Minnesota Education
Equity Partnership (MnEEP) or a designee; the president of the Minnesota Private College
Council or a designee; the chancellor of the Minnesota State College and Universities system
or a designee; the president of the University of Minnesota or a designee; a representative
selected by the Tribal Nations Education Committee; and any other P-20 partnership members
the commissioner considers relevant for the working group.
new text end

new text begin (c) The commissioner of the Office of Higher Education shall convene the first meeting
of the working group by July 1, 2025. The members of the working group shall elect one
member to serve as chair. The working group shall meet with a frequency sufficient to
complete the report required under paragraph (d).
new text end

new text begin (d) By July 1, 2026, the working group must report to the chairs and ranking minority
members of the legislative committees and divisions with jurisdiction over higher education
with recommendations for how the legislature can best provide stable, sustainable financing
of state higher education programs and institutions for the foreseeable future. The working
group expires upon completion of the report.
new text end

Sec. 9. new text begin APPROPRIATION; P-20 EDUCATION PARTNERSHIP WORKING GROUP
ON HIGHER EDUCATION ATTAINMENT GOAL.
new text end

new text begin (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
of the Office of Higher Education for the P-20 education partnership to establish a working
group to recommend updates to the legislature regarding the state's higher education
attainment goal under Minnesota Statutes, section 135A.012.
new text end

new text begin (b) The working group shall consist of: the commissioner of the Office of Higher
Education or a designee; the executive director of the P-20 education partnership or a
designee; student representatives nominated by the Student Advisory Council under
Minnesota Statutes, section 136A.031; the executive director of the Minnesota Education
Equity Partnership (MnEEP) or a designee; the president of the Minnesota Private College
Council or a designee; the chancellor of the Minnesota State College and Universities system
or a designee; the president of the University of Minnesota or a designee; a representative
selected by the Tribal Nations Education Committee; and any other P-20 partnership members
the commissioner considers relevant for the working group.
new text end

new text begin (c) The commissioner of the Office of Higher Education shall convene the first meeting
of the working group by August 15, 2025. The members of the working group shall elect
one member to serve as chair. The working group shall meet with a frequency sufficient to
complete the report required under paragraph (d).
new text end

new text begin (d) By January 15, 2026, the working group must report to the chairs and ranking minority
members of the legislative committees and divisions with jurisdiction over higher education
with recommendations for updating the state's higher education attainment goal under
Minnesota Statutes, section 135A.012. The working group expires upon completion of the
report.
new text end

Sec. 10. new text begin APPROPRIATION; STATE GRANT PLUS SCHOLARSHIP.
new text end

new text begin (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
general fund to the commissioner of the Office of Higher Education for the State Grant Plus
scholarship program under Minnesota Statutes, section 136A.1212.
new text end

new text begin (b) The base for this appropriation for fiscal year 2028 and later is $......., plus an
additional percentage of that amount equal to the annual percentage increase, if any, in the
resident undergraduate tuition and fees charged at the Minnesota public postsecondary
institution with the highest resident undergraduate tuition and fees among all Minnesota
public postsecondary institutions.
new text end