Certain North Star Promise scholarship program eligibility requirements modifications and North Star Promise scholarships funding amounts modifications

A bill for an act

relating to higher education; modifying certain income eligibility requirements for

the North Star Promise scholarship program; modifying funding amounts for North

Star Promise scholarships; amending Minnesota Statutes 2025 Supplement, section

136A.1465, subdivisions 1, 2; Laws 2025, First Special Session chapter 5, article

1, section 5.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 136A.1465, subdivision 1, is

amended to read:

Subdivision 1.

Definitions.

The following terms have the meanings given:

(1) "eligible student" means a resident student under section
136A.101, subdivision 8
,

who is enrolled in any public postsecondary educational institution or Tribal college and

who meets the eligibility requirements in subdivision 2;

(2) "gift aid" includes:

(i) all federal financial aid that is not a loan or pursuant to a work-study program;

(ii) state financial aid, unless designated for other expenses, that is not a loan or pursuant

to a work-study program;

(iii) institutional financial aid, including a grant, scholarship, tuition waiver, fellowship

stipend, or other payment, unless designated for other expenses, that is not a loan or pursuant

to a work-study program; and

(iv) all private financial aid that is not a loan or pursuant to a work-study program.

Financial aid from the state, public postsecondary educational institutions, and Tribal colleges

that is specifically designated for other expenses is not gift aid for purposes of the North

Star Promise scholarship.

(3) "other expenses" includes books, required supplies, child care, emergency assistance,

food, and housing;

(4) "public postsecondary educational institution" means an institution operated by this

state, or the Board of Regents of the University of Minnesota;

(5) "recognized cost of attendance" has the meaning given in United States Code, title

20, chapter 28, subchapter IV, part F, section 1087ll;

new text begin

(6) "state college" means a two-year community or technical college in the Minnesota

State Colleges and Universities system;

new text end

deleted text begin

(6)
deleted text end
new text begin
(7)
new text end
"Tribal college" means a college defined in section
136A.1796, subdivision 1
,

paragraph (d); and

deleted text begin

(7)
deleted text end
new text begin
(8)
new text end
"tuition and fees" means the eligible resident tuition and mandatory fees charged

by an institution.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning in the fall 2026 academic

term.

new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 136A.1465, subdivision 2, is amended

to read:

Subd. 2.

Conditions for eligibility.

new text begin
(a)
new text end
A scholarship may be awarded to an eligible

student who:

(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state

aid application by 30 days after the start of the term for which a scholarship is being awarded;

(2) has a family adjusted gross income below $80,000
new text begin
, subject to paragraph (b)
new text end
;

(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over

and has met all requirements for admission as a student to an eligible college or university;

(4) has not completed the degree requirements for the first baccalaureate degree at the

time the scholarship is awarded;

(5) is enrolled in at least one credit per fall, spring, or summer semester;

(6) is enrolled in a program or course of study that applies to a degree, diploma, or

certificate;

(7) is not in default, as defined by the office, of any federal or state student educational

loan;

(8) is not more than 30 days in arrears in court-ordered child support that is collected or

enforced by the public authority responsible for child support enforcement or, if the applicant

is more than 30 days in arrears in court-ordered child support that is collected or enforced

by the public authority responsible for child support enforcement, but is complying with a

written payment agreement under section
518A.69
or order for arrearages;

(9) has not been convicted of or pled nolo contendere or guilty to a crime involving

fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
new text begin

title 34,
new text end
subtitle B, chapter VI, part 668, subpart C; and

(10) is meeting satisfactory academic progress as defined in section
136A.101, subdivision

10
.

new text begin

(b) The family adjusted gross income condition in paragraph (a), clause (2), applies to

an eligible student attending a public postsecondary education institution other than a state

college, but does not apply to an eligible student attending a state college or a Tribal college.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning in the fall 2026 academic

term.

new text end

Sec. 3.

Laws 2025, First Special Session chapter 5, article 1, section 5, is amended to read:

Sec. 5.
TRANSFERS.

(a) The commissioner of the Office of Higher Education, in consultation with the

commissioner of management and budget, must transfer $2,500,000 in fiscal year 2026 and

$2,500,000 in fiscal year 2027 from the general fund to the spinal cord and traumatic brain

injury grant account in the special revenue fund under Minnesota Statutes, section
136A.901,

subdivision 1
. The commissioner of the Office of Higher Education may use up to ten

percent of the amounts transferred under this paragraph to administer the program. The

commissioner of management and budget must include a transfer of $2,500,000 each year

from the general fund to the spinal cord and traumatic brain injury grant account in the

special revenue fund in each forecast prepared under Minnesota Statutes, section
16A.103
,

from the effective date of this section through the February 2027 forecast.

(b) The commissioner of the Office of Higher Education, in consultation with the

commissioner of management and budget, must transfer $3,132,000 in fiscal year 2026 and

$3,132,000 in fiscal year 2027 from the general fund to the dual training account in the

special revenue fund under Minnesota Statutes, section
136A.246, subdivision 10
. The

commissioner of the Office of Higher Education may use up to five percent of the amounts

transferred under this paragraph to administer the program. Of the amounts transferred

under this paragraph, $132,000 each year is for transfer to the Department of Labor and

Industry to support identification of competency standards and development of dual training

programs in the transportation and child care industries as required under Minnesota Statutes,

section
175.45
. The commissioner of management and budget must include a transfer of

$3,132,000 each year from the general fund to the dual training account in the special

revenue fund in each forecast prepared under Minnesota Statutes, section
16A.103
, from

the effective date of this section through the February 2027 forecast.

(c) The commissioner of the Office of Higher Education, in consultation with the

commissioner of management and budget, must transfer $325,000 in fiscal year 2026 and

$325,000 in fiscal year 2027 from the general fund to the large animal veterinarian loan

forgiveness program account in the special revenue fund under Minnesota Statutes, section

136A.1795, subdivision 2
. The commissioner of management and budget must include a

transfer of $325,000 each year from the general fund to the large animal veterinarian loan

forgiveness program account in the special revenue fund in each forecast prepared under

Minnesota Statutes, section
16A.103
, from the effective date of this section through the

February 2027 forecast.

(d) The commissioner of the Office of Higher Education, in consultation with the

commissioner of management and budget, must transfer $45,000 in fiscal year 2026 and

$45,000 in fiscal year 2027 from the general fund to the agricultural education loan

forgiveness account in the special revenue fund under Minnesota Statutes, section
136A.1794,

subdivision 2
. The commissioner of management and budget must include a transfer of

$45,000 each year from the general fund to the agricultural education loan forgiveness

account in the special revenue fund in each forecast prepared under Minnesota Statutes,

section
16A.103
, from the effective date of this section through the February 2027 forecast.

(e) The commissioner of the Office of Higher Education, in consultation with the

commissioner of management and budget, must transfer $750,000 in fiscal year 2026 and

$750,000 in fiscal year 2027 from the general fund to the inclusive higher education grant

account in the special revenue fund under Minnesota Statutes, section
deleted text begin
135A.162
deleted text end
new text begin
136A.922
new text end
,

subdivision 4
. The commissioner of the Office of Higher Education may use up to five

percent of the amounts transferred under this paragraph to administer the program. The

commissioner of management and budget must include a transfer of $750,000 each year

from the general fund to the inclusive higher education grant account in the special revenue

fund in each forecast prepared under Minnesota Statutes, section
16A.103
, from the effective

date of this section through the February 2027 forecast.

(f) The commissioner of the Office of Higher Education, in consultation with the

commissioner of management and budget, must transfer $49,500,000 in fiscal year 2026

and
deleted text begin
$49,500,000
deleted text end
new text begin
$.......
new text end
in fiscal year 2027 from the general fund to the account in the special

revenue fund for North Star Promise scholarships under Minnesota Statutes, section

136A.1465, subdivision 8
. The commissioner of management and budget must include a

transfer of
deleted text begin
$49,500,000
deleted text end
new text begin
$.......
new text end
each year from the general fund to the account in the special

revenue fund for North Star Promise scholarships in each forecast prepared under Minnesota

Statutes, section
16A.103
, from the effective date of this section through the February 2027

forecast.