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House of Representatives
sHB5158 / File No. 132 1
General Assembly File No. 132
February Session, 2026 Substitute House Bill No. 5158
House of Representatives, March 24, 2026
The Committee on Higher Education and Employment
Advancement reported through REP. HADDAD of the 54th
Dist., Chairperson of the Committee on the part of the House,
that the substitute bill ought to pass.
AN ACT PROHIBITING SCHOLARSHIP DISPLACEMENT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) ( Effective July 1, 2026 ) No institution of higher 1
education in the state may reduce the amount of financial aid awarded 2
to any student as a result of such student receiving a scholarship, 3
whether from a private or public source, provided an institution of 4
higher education may reduce the amount of financial aid (1) if a 5
student's total financial aid meets or exceeds such student's cost of 6
attendance, as defined in 20 USC 1087ll, as amended from time to time, 7
(2) if such reduction is necessary to bring the total financial aid awarded 8
to a student athlete, as defined in section 10a -56 of the general statutes, 9
in compliance with the individual or team financial aid restrictions of an 10
athletic association or conference, including, but not limited to, the 11
NCAA, as defined in section 10a -55k of the general statutes, or (3) as a 12
result of such student receiving a grant under the Roberta B. Willis 13
Scholarship program, established pursuant to section 10a -173 of the 14
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general statutes. As used in this section, "financial aid" means the sum 15
of all scholarships, grants and federal, state and institutional aid 16
received by a student, and "financial aid" does not include any federal, 17
state or private student loans received by a student. 18
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2026 New section
HED Joint Favorable Subst.
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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Constituent Units of Higher
Education
OF - Cost Potential
Minimal
Potential
Minimal
Note: OF=Other Funds
Municipal Impact: None
Explanation
The bill results in a potential, minimal cost annually beginning in FY
27 to the constituent units of higher education by prohibiting
scholarship displacement.1 This potential cost would only be incurred if
the constituent units choose to increase the total amount of financial aid
they offer as a result of the bill.
The constituent units budget how much tuition revenue will be set
aside for financial aid each year. By prohibiting scholarship
displacement, the bill precludes savings that the units otherwise realize
when they reduce financial aid packages. The units may use that savings
to: (1) reallocate financial aid to other students; or (2) reduce the total
amount of financial aid they provide. This means that, as a result of the
bill, the units will either: (1) have less aid to reallocate; or (2) increase the
total amount of financial aid they offer.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the amount of financial aid the
constituent units of higher education offer.
1 Scholarship displacement refers to the practice of reducing a student’s financial aid
package by an amount equal to any scholarships received by the student.
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OLR Bill Analysis
sHB 5158
AN ACT PROHIBITING SCHOLARSHIP DISPLACEMENT.
SUMMARY
This bill generally prohibits Connecticut higher education
institutions from reducing the financial aid awarded to a student
because the student receives a public or private scholarship unless a:
1. student’s total financial aid meets or exceeds the ir cost of
attendance (which includes direct costs, such as tuition and fees,
and indirect costs, such as books and transportation);
2. reduction is necessary to bring the total financial aid awarded to
a student athlete in compliance with an athletic association or
conference’s individual or team financial aid restrictions; or
3. student receives a Roberta B. Willis Scholarship program grant.
Under the bill, “ financial aid” is the total scholarships, grants, and
federal, state, and institutional aid a student receives, but does not
include any federal, state, or private loans.
EFFECTIVE DATE: July 1, 2026
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable Substitute
Yea 18 Nay 0 (03/12/2026)