Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2192 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to higher education; eliminating the North Star Promise scholarship
3	3	1.3 program; appropriating unencumbered balances in the North Star Promise special
4	4	1.4 revenue fund account to the state grant program; amending Minnesota Statutes
5	5	1.5 2024, sections 136A.053; 136A.84, subdivision 3; repealing Minnesota Statutes
6	6	1.6 2024, section 136A.1465.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2024, section 136A.053, is amended to read:
9	9	1.9 136A.053 CONSOLIDATED STUDENT AID REPORTING.
10	10	1.10 (a) The commissioner of the Office of Higher Education shall report annually beginning
11	11	1.11February 15, 2026, to the chairs and ranking minority members of the legislative committees
12	12	1.12with jurisdiction over higher education, on the details of programs administered under
13	13	1.13sections 136A.091 to 136A.1276, 136A.1465, and 136A.231 to 136A.246, including the:
14	14	1.14 (1) total funds appropriated and expended;
15	15	1.15 (2) total number of students applying for funds;
16	16	1.16 (3) total number of students receiving funds;
17	17	1.17 (4) average and total award amounts;
18	18	1.18 (5) summary demographic data on award recipients;
19	19	1.19 (6) retention rates of award recipients;
20	20	1.20 (7) completion rates of award recipients;
21	21	1.21 (8) average cumulative debt at exit or graduation; and
22	22	1Section 1.
23	23	REVISOR VH/ES 25-0308103/03/25
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 2192
29	29	NINETY-FOURTH SESSION
30	30	Authored by Schultz, Allen, Lawrence, Altendorf, Bakeberg and others03/12/2025
31	31	The bill was read for the first time and referred to the Committee on Higher Education Finance and Policy 2.1 (9) average time to completion.
32	32	2.2 (b) Data must be disaggregated by program, institution, aid year, race and ethnicity,
33	33	2.3gender, income, family type, dependency status, and any other factors determined to be
34	34	2.4relevant by the commissioner. The commissioner must report any additional data and
35	35	2.5outcomes relevant to the evaluation of programs administered under sections 136A.091 to
36	36	2.6136A.1276, 136A.1465, and 136A.231 to 136A.246 as evidenced by activities funded under
37	37	2.7each program.
38	38	2.8 EFFECTIVE DATE.This section is effective March 1, 2026.
39	39	2.9 Sec. 2. Minnesota Statutes 2024, section 136A.84, subdivision 3, is amended to read:
40	40	2.10 Subd. 3.Information.The commissioner shall provide information about the Minnesota
41	41	2.11state grant program and the North Star Promise and encourage students to determine their
42	42	2.12eligibility for financial aid based on FAFSA and state financial aid application completion.
43	43	2.13 EFFECTIVE DATE.This section is effective the day following final enactment.
44	44	2.14 Sec. 3. UNENCUMBERED NORTH STAR PROMISE FUNDS; APPROPRIATION.
45	45	2.15 On July 1, 2025, any unencumbered balance in the special revenue fund account under
46	46	2.16Minnesota Statutes, section 136A.1465, subdivision 6, is transferred to the general fund
47	47	2.17and appropriated to the commissioner of the Office of Higher Education in fiscal year 2026
48	48	2.18for the state grant program under Minnesota Statutes, section 136A.121. By August 1, 2025,
49	49	2.19the commissioner of the Office of Higher Education and the commissioner of the Office of
50	50	2.20Management and Budget shall report to the chairs and ranking minority members of the
51	51	2.21legislative committees with jurisdiction over higher education regarding the closing
52	52	2.22transactions for the special revenue fund account and certify that the account has been closed
53	53	2.23with a $0 balance.
54	54	2.24 EFFECTIVE DATE.This section is effective the day following final enactment.
55	55	2.25 Sec. 4. REPEALER.
56	56	2.26 Minnesota Statutes 2024, section 136A.1465, is repealed.
57	57	2.27 EFFECTIVE DATE.This section is effective the day following final enactment and
58	58	2.28affects scholarship awards beginning in the fall 2025 term.
59	59	2Sec. 4.
60	60	REVISOR VH/ES 25-0308103/03/25 136A.1465 NORTH STAR PROMISE.
61	61	Subdivision 1.Definitions.The following terms have the meanings given:
62	62	(1) "eligible student" means a resident student under section 136A.101, subdivision 8, who is
63	63	enrolled in any public postsecondary educational institution or Tribal college and who meets the
64	64	eligibility requirements in subdivision 2;
65	65	(2) "gift aid" includes:
66	66	(i) all federal financial aid that is not a loan or pursuant to a work-study program;
67	67	(ii) state financial aid, unless designated for other expenses, that is not a loan or pursuant to a
68	68	work-study program;
69	69	(iii) institutional financial aid, including a grant, scholarship, tuition waiver, fellowship stipend,
70	70	or other payment, unless designated for other expenses, that is not a loan or pursuant to a work-study
71	71	program; and
72	72	(iv) all private financial aid that is not a loan or pursuant to a work-study program.
73	73	Financial aid from the state, public postsecondary educational institutions, and Tribal colleges that
74	74	is specifically designated for other expenses is not gift aid for purposes of the North Star Promise
75	75	scholarship.
76	76	(3) "other expenses" includes books, required supplies, child care, emergency assistance, food,
77	77	and housing;
78	78	(4) "public postsecondary educational institution" means an institution operated by this state,
79	79	or the Board of Regents of the University of Minnesota;
80	80	(5) "recognized cost of attendance" has the meaning given in United States Code, title 20, chapter
81	81	28, subchapter IV, part F, section 1087ll;
82	82	(6) "Tribal college" means a college defined in section 136A.1796, subdivision 1, paragraph
83	83	(c); and
84	84	(7) "tuition and fees" means the actual tuition and mandatory fees charged by an institution.
85	85	Subd. 2.Conditions for eligibility.A scholarship may be awarded to an eligible student who:
86	86	(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state aid
87	87	application;
88	88	(2) has a family adjusted gross income below $80,000;
89	89	(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over and has
90	90	met all requirements for admission as a student to an eligible college or university;
91	91	(4) has not earned a baccalaureate degree at the time the scholarship is awarded;
92	92	(5) is enrolled in at least one credit per fall, spring, or summer semester;
93	93	(6) is enrolled in a program or course of study that applies to a degree, diploma, or certificate;
94	94	(7) is not in default, as defined by the office, of any federal or state student educational loan;
95	95	(8) is not more than 30 days in arrears in court-ordered child support that is collected or enforced
96	96	by the public authority responsible for child support enforcement or, if the applicant is more than
97	97	30 days in arrears in court-ordered child support that is collected or enforced by the public authority
98	98	responsible for child support enforcement, but is complying with a written payment agreement
99	99	under section 518A.69 or order for arrearages;
100	100	(9) has not been convicted of or pled nolo contendere or guilty to a crime involving fraud in
101	101	obtaining federal Title IV funds within the meaning of Code of Federal Regulations, subtitle B,
102	102	chapter VI, part 668, subpart C; and
103	103	(10) is meeting satisfactory academic progress as defined in section 136A.101, subdivision 10.
104	104	Subd. 3.Scholarship.(a) Beginning in the fall term of the 2024-2025 academic year, scholarships
105	105	shall be awarded to eligible students in an amount not to exceed 100 percent of tuition and fees
106	106	after gift aid is deducted.
107	107	1R
108	108	APPENDIX
109	109	Repealed Minnesota Statutes: 25-03081 (b) For the 2024-2025, 2025-2026, and 2026-2027 academic years, if funds remain after
110	110	scholarships are awarded under paragraph (a), supplemental grants shall be awarded to eligible
111	111	students in an amount up to 50 percent of the amount of a Pell grant the student would receive based
112	112	on household size, family adjusted gross income, and results of the federal needs analysis, not to
113	113	exceed the student's recognized cost of attendance. The commissioner may adjust the supplemental
114	114	grant amount based on the availability of funds.
115	115	Subd. 4.Maintain current levels of institutional assistance.(a) Commencing with the
116	116	2024-2025 academic year, a public postsecondary educational institution or Tribal college shall
117	117	not reduce the institutional gift aid offered or awarded to a student who is eligible to receive funds
118	118	under this program unless the student's gift aid exceeds the student's annual recognized cost of
119	119	attendance.
120	120	(b) The public postsecondary educational institution or Tribal college may reduce the institutional
121	121	gift aid offer of a student who is eligible to receive funds under this program by no more than the
122	122	amount of the student's gift aid that is in excess of the student's annual recognized cost of attendance.
123	123	(c) The public postsecondary educational institution or Tribal college shall not consider receipt
124	124	or anticipated receipt of funds under this program when considering a student for qualification for
125	125	institutional gift aid.
126	126	(d) To ensure financial aid is maximized, a public postsecondary educational institution or
127	127	Tribal college is encouraged to implement efforts to avoid scholarship displacement through
128	128	consultation with the Office of Higher Education.
129	129	Subd. 5.Duration of scholarship authorized; scholarship paid to institution.(a) Each
130	130	scholarship is for a period of one semester. A scholarship may be renewed provided that the eligible
131	131	student continues to meet the conditions of eligibility.
132	132	(b) Scholarships may be provided to an eligible student pursuing the completion of a certificate
133	133	or an associate degree who has not previously received the scholarship for four full-time semesters
134	134	or the equivalent. Scholarships may be provided to an eligible student pursuing the completion of
135	135	a bachelor's degree who has not previously received the scholarship for eight full-time semesters
136	136	or the equivalent. The maximum for which a student is eligible is a total of eight full-time semesters
137	137	or the equivalent. Courses taken that qualify as developmental education or below college-level
138	138	shall be excluded from the limit.
139	139	(c) A student is entitled to an additional semester or the equivalent of grant eligibility if the
140	140	student withdraws from enrollment:
141	141	(1) for active military service because the student was ordered to active military service as
142	142	defined in section 190.05, subdivision 5b or 5c;
143	143	(2) for a serious health condition, while under the care of a medical professional, that substantially
144	144	limits the student's ability to complete the term; or
145	145	(3) while providing care that substantially limits the student's ability to complete the term to
146	146	the student's spouse, child, or parent who has a serious health condition.
147	147	(d) The scholarship must be paid directly to the eligible institution where the student is enrolled.
148	148	Subd. 6.Termination of scholarship authorized.A scholarship is terminated upon occurrence
149	149	of:
150	150	(1) failure to meet satisfactory academic progress as defined in section 136A.101, subdivision
151	151	10; or
152	152	(2) substantial noncompliance by the eligible student with the requirements of the program.
153	153	Subd. 7.Institutions administering certain financial aid programs.Public postsecondary
154	154	institutions and Tribal colleges administering institutional financial aid programs for students with
155	155	a family adjusted gross income below $80,000 that provide student awards for up to or more than
156	156	100 percent of tuition, 100 percent of tuition and fees, or 100 percent of the cost of attendance, shall
157	157	provide the Office of Higher Education with student level data on the recipients of those awards
158	158	and the program funds awarded per term. The information under this subdivision is necessary for
159	159	the office to accurately complete reporting requirements under section 136A.121, subdivision 19.
160	160	Subd. 8.Account established; appropriation.An account is created in the special revenue
161	161	fund for receiving money to provide scholarship awards. Money deposited in the account is
162	162	appropriated to the commissioner of the Office of Higher Education for scholarship awards.
163	163	2R
164	164	APPENDIX
165	165	Repealed Minnesota Statutes: 25-03081 Subd. 9.Office administration.The office is authorized to administer the program. If funds
166	166	are insufficient, the office shall determine the scholarship amount or number of scholarships awarded.
167	167	If a student withdraws or is no longer enrolled during a semester in which a scholarship was awarded,
168	168	the office may determine how this will affect the scholarship.
169	169	Subd. 10.Report.The commissioner of higher education shall submit a preliminary report by
170	170	September 1, 2025, and an annual report beginning February 15, 2026, to the chairs and ranking
171	171	minority members of the legislative committees with jurisdiction over higher education, on the
172	172	details of the program, including the:
173	173	(1) status of the scholarship fund; and
174	174	(2) North Star Promise participation data aggregated for each eligible institution to show the:
175	175	(i) number of eligible students who received scholarships in the prior academic year;
176	176	(ii) average and total award amounts;
177	177	(iii) summary demographic data on award recipients;
178	178	(iv) total number of students enrolled in eligible institutions in the prior academic year;
179	179	(v) retention rates of participating students; and
180	180	(vi) number of eligible students who graduated with a degree and, for each eligible student, the
181	181	number of consecutive semesters and nonconsecutive semesters attended prior to graduation.
182	182	3R
183	183	APPENDIX
184	184	Repealed Minnesota Statutes: 25-03081