1.1 A bill for an act
1.2 relating to higher education; increasing the default living and miscellaneous
1.3 expenses allowance for the state grant program; establishing a new State Grant
1.4 Plus scholarship to supplement state grant awards; creating grant programs within
1.5 the Office of Higher Education; creating working groups; requiring reports;
1.6 appropriating money; amending Minnesota Statutes 2024, sections 136A.121,
1.7 subdivision 6; 136A.1465, subdivision 5; proposing coding for new law in
1.8 Minnesota Statutes, chapter 136A.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2024, section 136A.121, subdivision 6, is amended to read:
1.11 Subd. 6.Cost of attendance.(a) The recognized cost of attendance consists of: (1) an
1.12allowance specified in law for living and miscellaneous expenses, and (2) an allowance for
1.13tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
1.14or a tuition and fee maximum if one is established in law. If no living and miscellaneous
1.15expense allowance is established in law, the allowance is equal to 115 121 percent of the
1.16federal poverty guidelines for a one person household in Minnesota for nine months. If no
1.17tuition and fee maximum is established in law, the allowance for tuition and fees is equal
1.18to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for
1.19two-year programs, an amount equal to the highest tuition and fees charged at a public
1.20two-year institution, or for four-year programs, an amount equal to the highest tuition and
1.21fees charged at a public university.
1.22 (b) For a student registering for less than full time, the office shall prorate the cost of
1.23attendance using the ratio of the number of credits the student is enrolled in to the number
1.24of credits for full-time enrollment.
1Section 1.
25-02942 as introduced02/25/25 REVISOR VH/KR
SENATE
STATE OF MINNESOTA
S.F. No. 2495NINETY-FOURTH SESSION
(SENATE AUTHORS: PUTNAM)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/13/2025
Referred to Higher Education 2.1 (c) The recognized cost of attendance for a student who is confined to a Minnesota
2.2correctional institution shall consist of the tuition and fee component in paragraph (a), with
2.3no allowance for living and miscellaneous expenses.
2.4 (d) For the purpose of this subdivision, "fees" include only those fees that are mandatory
2.5and charged to full-time resident students attending the institution. Fees do not include
2.6charges for tools, equipment, computers, or other similar materials where the student retains
2.7ownership. Fees include charges for these materials if the institution retains ownership. Fees
2.8do not include optional or punitive fees.
2.9 Sec. 2. [136A.1212] STATE GRANT PLUS SCHOLARSHIP.
2.10 Subdivision 1.Establishment.A scholarship program, known as the State Grant Plus
2.11scholarship, is established for students eligible under this section. The commissioner shall
2.12administer this program and may establish guidelines and procedures necessary for the
2.13program's implementation.
2.14 Subd. 2.Eligibility.In an academic term, a student is eligible for a scholarship under
2.15this section if the student:
2.16 (1) is eligible for and receives a state grant award under section 136A.121 for the same
2.17academic term;
2.18 (2) is enrolled in at least one credit at a Minnesota public, Tribal, or private nonprofit
2.19postsecondary institution that is an eligible institution under section 136A.101, subdivision
2.204; and
2.21 (3) is not eligible to receive a North Star Promise scholarship under section 136A.1465.
2.22 Subd. 3.Award amount.(a) The amount of an eligible student's scholarship award
2.23under this section is 25 percent of the amount of the student's state grant award under section
2.24136A.121.
2.25 (b) If the commissioner determines that the amount appropriated for scholarships under
2.26this section is insufficient to make full awards to all eligible students, the percentage under
2.27paragraph (a) may be uniformly reduced.
2.28 (c) The commissioner must fully allocate the entire appropriation for scholarships under
2.29this section. If the commissioner determines that the amount appropriated is more than
2.30sufficient to make full awards to all eligible students, the percentage under paragraph (a)
2.31may be uniformly increased. The increase may be made in either year of the biennium and
2.32may be made one or more times. In making the determination that there are more than
2Sec. 2.
25-02942 as introduced02/25/25 REVISOR VH/KR 3.1sufficient funds, the office shall balance the need for sufficient resources to meet the projected
3.2demand for scholarships with the requirement of fully allocating the appropriation for
3.3scholarships under this section.
3.4 Subd. 4.Administration; duration of scholarship.(a) The commissioner shall make
3.5scholarship awards to eligible students who apply for and receive a state grant award under
3.6section 136A.121.
3.7 (b) Each scholarship is for a period of one semester. A scholarship may be renewed if
3.8the eligible student continues to meet the conditions of eligibility.
3.9 (c) Scholarships may be provided to an eligible student for up to the equivalent of four
3.10full-time semesters of enrollment for the completion of a certificate or an associate degree
3.11and up to the equivalent of eight full-time semesters of enrollment for the completion of a
3.12bachelor's degree.
3.13 (d) The maximum total time a student is eligible to receive the scholarship under this
3.14section is a total of eight full-time semesters of enrollment or the equivalent. A semester,
3.15or equivalent term, in which the student earns a North Star Promise scholarship under section
3.16136A.1465 counts toward the maximum time for which a student is eligible for a scholarship
3.17under this section. In addition, the commissioner may determine a time frame by which the
3.18recipient of a scholarship under this section must complete the degree program for which
3.19the recipient has received the scholarship.
3.20 (e) The scholarship must be paid directly to the eligible institution where the student is
3.21enrolled.
3.22 Subd. 5.Report required.By February 15 each year, the commissioner must submit a
3.23report to the chairs and ranking minority members of the legislative committees with
3.24jurisdiction over higher education on the details of the State Grant Plus scholarship, including
3.25summary data on scholarship awards at each eligible Minnesota postsecondary institution
3.26showing:
3.27 (1) the total number of students who received a scholarship in the prior academic year
3.28and this number as a percentage of the institution's total undergraduate enrollment;
3.29 (2) average and total scholarship award amounts;
3.30 (3) relevant demographic data on scholarship recipients, including but not limited to
3.31race and ethnicity, first generation college student status, and gender; and
3.32 (4) enrollment, retention, degree completion, and other relevant student outcome data
3.33on scholarship recipients.
3Sec. 2.
25-02942 as introduced02/25/25 REVISOR VH/KR 4.1 EFFECTIVE DATE.This section is effective the day following final enactment.
4.2Scholarships under this section shall be awarded beginning in the 2025-2026 academic year.
4.3 Sec. 3. Minnesota Statutes 2024, section 136A.1465, subdivision 5, is amended to read:
4.4 Subd. 5.Duration of scholarship authorized; scholarship paid to institution.(a)
4.5Each scholarship is for a period of one semester. A scholarship may be renewed provided
4.6that the eligible student continues to meet the conditions of eligibility.
4.7 (b) Scholarships may be provided to an eligible student pursuing the completion of a
4.8certificate or an associate degree who has not previously received the scholarship for four
4.9full-time semesters or the equivalent. Scholarships may be provided to an eligible student
4.10pursuing the completion of a bachelor's degree who has not previously received the
4.11scholarship for eight full-time semesters or the equivalent. The maximum for which a student
4.12is eligible is a total of eight full-time semesters or the equivalent. A semester, or equivalent
4.13term, in which the student earns a State Grant Plus scholarship under section 136A.1212
4.14counts toward the maximum for which a student is eligible for a scholarship under this
4.15section. Courses taken that qualify as developmental education or below college-level shall
4.16be excluded from the limit.
4.17 (c) A student is entitled to an additional semester or the equivalent of grant eligibility
4.18if the student withdraws from enrollment:
4.19 (1) for active military service because the student was ordered to active military service
4.20as defined in section 190.05, subdivision 5b or 5c;
4.21 (2) for a serious health condition, while under the care of a medical professional, that
4.22substantially limits the student's ability to complete the term; or
4.23 (3) while providing care that substantially limits the student's ability to complete the
4.24term to the student's spouse, child, or parent who has a serious health condition.
4.25 (d) The scholarship must be paid directly to the eligible institution where the student is
4.26enrolled.
4.27 Sec. 4. APPROPRIATION; FAFSA COMPLETION GRANTS.
4.28 (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
4.29general fund to the commissioner of the Office of Higher Education for competitive grants
4.30to nonprofit organizations to increase the percentage of Minnesota's high school seniors
4.31completing the Free Application for Federal Student Aid (FAFSA). This is a onetime
4.32appropriation.
4Sec. 4.
25-02942 as introduced02/25/25 REVISOR VH/KR 5.1 (b) No later than December 15, 2026, and no later than December 15, 2027, the
5.2commissioner must report to the chairs and ranking minority members of the legislative
5.3committees and divisions with jurisdiction over higher education and E-12 education on
5.4grants awarded by this appropriation. The report must include the applicants receiving grants
5.5under this section, the amount of each grant, and the purposes for which the grant funds
5.6were used. The report must also include any relevant findings, results, and outcomes of the
5.7grant program, the program's impact on the FAFSA completion goal under Minnesota
5.8Statutes, section 136A.096, and other information which the commissioner deems significant
5.9or useful.
5.10 Sec. 5. APPROPRIATION; COMPETITIVE GRANTS TO INCREASE PELL
5.11GRANT ELIGIBLE STUDENT RETENTION AND GRADUATION RATES.
5.12 (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
5.13general fund to the commissioner of the Office of Higher Education for competitive matching
5.14grants to eligible institutions under Minnesota Statutes, section 136A.101, subdivision 4,
5.15to increase retention and graduation rates of federal Pell grant eligible students. This is a
5.16onetime appropriation.
5.17 (b) In awarding grants under paragraph (a), the commissioner shall give preference to
5.18applications from institutions with the highest rates of federal Pell grant eligible students
5.19enrolled, and shall prioritize applications providing faculty and student support staff with
5.20professional development opportunities centered on culturally validating pedagogy and
5.21leadership.
5.22 (c) No later than December 15, 2026, and no later than December 15, 2027, the
5.23commissioner must report to the chairs and ranking minority members of the legislative
5.24committees and divisions with jurisdiction over higher education and E-12 education on
5.25grants awarded by this appropriation. The report must include the institutions receiving
5.26grants under this section, the amount of each grant, and the purposes for which the grant
5.27funds were used. The report must also include any relevant findings, results, and outcomes
5.28of the grant program, the program's impact on the retention and graduation rates of federal
5.29Pell grant eligible students, and other information that the commissioner deems significant
5.30or useful.
5Sec. 5.
25-02942 as introduced02/25/25 REVISOR VH/KR 6.1 Sec. 6. APPROPRIATION; MULTILINGUAL AND CULTURALLY RELEVANT
6.2COMMUNICA TIONS AND MATERIALS.
6.3 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
6.4fund to the commissioner of the Office of Higher Education to increase access to the office's
6.5communications, materials, and other resources by non-English-speaking people in
6.6accordance with Minnesota Statutes, section 15.441, and to create or expand the office's
6.7culturally relevant communications, materials, and other resources for diverse populations
6.8in the state. This is a onetime appropriation.
6.9 Sec. 7. APPROPRIATION; MINNESOTA EDUCATION EQUITY PARTNERSHIP.
6.10 $90,000 in fiscal year 2026 and $90,000 in fiscal year 2027 are appropriated from the
6.11general fund to the commissioner of the Office of Higher Education for the Minnesota
6.12Education Equity Partnership (MnEEP).
6.13 Sec. 8. APPROPRIATION; WORKING GROUP ON HIGHER EDUCATION
6.14FINANCIAL STABILITY.
6.15 (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
6.16of the Office of Higher Education to establish a working group to make recommendations
6.17to the legislature regarding comprehensive, long-term strategies for sustainable and successful
6.18state funding of higher education financial aid programs and public postsecondary institutions
6.19in Minnesota.
6.20 (b) The working group shall consist of: the commissioner of the Office of Higher
6.21Education or a designee; the executive director of the P-20 education partnership or a
6.22designee; student representatives nominated by the Student Advisory Council under
6.23Minnesota Statutes, section 136A.031; the executive director of the Minnesota Education
6.24Equity Partnership (MnEEP) or a designee; the president of the Minnesota Private College
6.25Council or a designee; the chancellor of the Minnesota State College and Universities system
6.26or a designee; the president of the University of Minnesota or a designee; a representative
6.27selected by the Tribal Nations Education Committee; and any other P-20 partnership members
6.28the commissioner considers relevant for the working group.
6.29 (c) The commissioner of the Office of Higher Education shall convene the first meeting
6.30of the working group by July 1, 2025. The members of the working group shall elect one
6.31member to serve as chair. The working group shall meet with a frequency sufficient to
6.32complete the report required under paragraph (d).
6Sec. 8.
25-02942 as introduced02/25/25 REVISOR VH/KR 7.1 (d) By July 1, 2026, the working group must report to the chairs and ranking minority
7.2members of the legislative committees and divisions with jurisdiction over higher education
7.3with recommendations for how the legislature can best provide stable, sustainable financing
7.4of state higher education programs and institutions for the foreseeable future. The working
7.5group expires upon completion of the report.
7.6 Sec. 9. APPROPRIATION; P-20 EDUCATION PARTNERSHIP WORKING GROUP
7.7ON HIGHER EDUCATION ATTAINMENT GOAL.
7.8 (a) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner
7.9of the Office of Higher Education for the P-20 education partnership to establish a working
7.10group to recommend updates to the legislature regarding the state's higher education
7.11attainment goal under Minnesota Statutes, section 135A.012.
7.12 (b) The working group shall consist of: the commissioner of the Office of Higher
7.13Education or a designee; the executive director of the P-20 education partnership or a
7.14designee; student representatives nominated by the Student Advisory Council under
7.15Minnesota Statutes, section 136A.031; the executive director of the Minnesota Education
7.16Equity Partnership (MnEEP) or a designee; the president of the Minnesota Private College
7.17Council or a designee; the chancellor of the Minnesota State College and Universities system
7.18or a designee; the president of the University of Minnesota or a designee; a representative
7.19selected by the Tribal Nations Education Committee; and any other P-20 partnership members
7.20the commissioner considers relevant for the working group.
7.21 (c) The commissioner of the Office of Higher Education shall convene the first meeting
7.22of the working group by August 15, 2025. The members of the working group shall elect
7.23one member to serve as chair. The working group shall meet with a frequency sufficient to
7.24complete the report required under paragraph (d).
7.25 (d) By January 15, 2026, the working group must report to the chairs and ranking minority
7.26members of the legislative committees and divisions with jurisdiction over higher education
7.27with recommendations for updating the state's higher education attainment goal under
7.28Minnesota Statutes, section 135A.012. The working group expires upon completion of the
7.29report.
7.30 Sec. 10. APPROPRIATION; STATE GRANT PLUS SCHOLARSHIP.
7.31 (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
7.32general fund to the commissioner of the Office of Higher Education for the State Grant Plus
7.33scholarship program under Minnesota Statutes, section 136A.1212.
7Sec. 10.
25-02942 as introduced02/25/25 REVISOR VH/KR 8.1 (b) The base for this appropriation for fiscal year 2028 and later is $......., plus an
8.2additional percentage of that amount equal to the annual percentage increase, if any, in the
8.3resident undergraduate tuition and fees charged at the Minnesota public postsecondary
8.4institution with the highest resident undergraduate tuition and fees among all Minnesota
8.5public postsecondary institutions.
8Sec. 10.
25-02942 as introduced02/25/25 REVISOR VH/KR