Higher education; parental contribution provisions modified, attendance provision cost modified, and tuition and fee maximums eliminated.

A bill for an act

relating to higher education; modifying provisions relating to parental contributions;

modifying cost of attendance provisions; eliminating certain tuition and fee

maximums; amending Minnesota Statutes 2025 Supplement, sections 136A.101,

subdivision 5a; 136A.121, subdivision 6; Laws 2025, First Special Session chapter

5, article 1, section 2, subdivision 2.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 136A.101, subdivision 5a, is

amended to read:

Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means the

amount of a family's contribution to a student's cost of attendance, as determined by a federal

need analysis. For dependent students, the assigned family responsibility is 95 percent of

the parental contribution.
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If the parental contribution is between $0 and negative $1,500,

the assigned family responsibility is 50 percent of the parental contribution. If the parental

contribution is less than negative $1,500, the recognized parental contribution is negative

$1,500.
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For independent students with dependents other than a spouse, the assigned family

responsibility is 71 percent of the student contribution. For independent students without

dependents other than a spouse, the assigned family responsibility is 35 percent of the student

contribution.
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If the student contribution is between $0 and negative $1,500, the assigned

family responsibility is 50 percent of the student contribution. If the student contribution is

less than negative $1,500, the recognized student contribution is negative $1,500.
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For a

student registering for less than full time, the office shall prorate the assigned family

responsibility using the ratio of the number of credits the student is enrolled in to the number

of credits for full-time enrollment.

Sec. 2.

Minnesota Statutes 2025 Supplement, 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 106 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
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Minnesota

state
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two-year institution, or for four-year programs, an amount equal to the highest tuition

and fees charged at a public
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Minnesota state
new text end
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. 3.

Laws 2025, First Special Session chapter 5, article 1, section 2, subdivision 2, is

amended to read:

Subd. 2.

State Grants

247,300,000

247,300,000

(a) If the appropriation in this subdivision for

either year is insufficient, the appropriation

for the other year is available for it. This

appropriation is available until June 30, 2029.

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(b) For purposes of Minnesota Statutes,

section
136A.121, subdivision 6
, a tuition and

fee maximum is established for four-year

programs that is the lesser of: (1) the average

tuition and fees charged by the institution; or

(2) an amount equal to the highest tuition and

fees charged at a public university in the

2024-2025 academic year plus two percent

for fiscal year 2026, plus an additional two

percent for fiscal year 2027.

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(c)
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new text begin
(b)
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The base for this appropriation is

$238,467,000 in fiscal year 2028 and

thereafter.