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SECOND REGULAR SESSION
SENATE BILL NO. 1121
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR TRENT.
5718S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 173.250, RSMo, and to enact in lieu thereof two new sections relating to higher
education workforce policy prioritization.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 173.250, RSMo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
173.250 and 173.1541, to read as follows:3
173.250. 1. There is hereby established a "Higher 1
Education Academic Scholarship Program" and any moneys 2
appropriated by the general assembly for this program shall 3
be used to provide scholarships for Missouri citizens to 4
attend a Missouri college or university of their choice 5
pursuant to the provisions of this section. 6
2. The definitions of terms set forth in section 7
173.1102 shall be applicable to such terms as used in this 8
section. In addition, the following definitions shall apply: 9
(1) "Academic scholarship", an amount of money paid by 10
the state of Missouri to a student pursuant to the 11
provisions of this section; 12
(2) "ACT", the American College Testing program 13
examination; 14
(3) "Approved institution", an approved public or 15
approved private institution as defined in section 173.1102; 16
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(4) "Eligible student", an individual who meets the 17
criteria set forth in section 173.1104, excluding the 18
requirements of financial need and undergraduate status and, 19
in addition, meets the following requirements: 20
(a) Has achieved a qualifying score on the ACT or SAT; 21
(b) Is a Missouri resident who has completed secondary 22
coursework through graduation from high school or the 23
virtual public school established in section 161.670, 24
receipt of a general education development (GED) diploma, 25
completion of a program of study through homeschooling or 26
any other program of academic instruction that satisfies the 27
compulsory attendance requirement under section 167.031; and 28
(c) Is enrolled full time or accepted for full-time 29
enrollment as a postsecondary student at an approved 30
institution during the academic year immediately following 31
the completion of his or her secondary coursework; 32
(5) "Missouri test-takers", all Missouri high school 33
seniors who take the ACT or the SAT; 34
(6) "Qualifying score", a composite score on the ACT 35
or the SAT achieved in an eligible student's high school 36
sophomore, junior, or senior year that is in the top five 37
percent of Missouri test-takers, as established at the 38
beginning of an eligible student's final year of secondary 39
coursework; 40
(7) "Recipient", an eligible or renewal student who 41
receives an academic scholarship pursuant to this section; 42
(8) "Renewal student", an eligible student who remains 43
in compliance with the provisions of section 173.1104, 44
maintains continuous enrollment, and makes satisfactory 45
academic degree progress; and 46
(9) "SAT", the Scholastic Aptitude Test. 47
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3. The coordinating board for higher education shall 48
be the administrative agency for the implementation of the 49
program established by this section, and shall: 50
(1) Promulgate reasonable rules and regulations for 51
the exercise of its functions and the effectuation of the 52
purposes of this section, including regulations for granting 53
scholarship deferments; 54
(2) Prescribe the form and the time and method of 55
awarding academic scholarships, and shall supervise the 56
processing thereof; and 57
(3) Select qualified recipients to receive academic 58
scholarships, make such awards of academic scholarships to 59
qualified recipients and determine the manner and method of 60
payment to the recipient. 61
4. Before the 2027-28 academic year, eligible students 62
shall be offered academic scholarships in the following 63
amounts and in the following order of priority, within the 64
limits of the funds appropriated and made available: 65
(1) Each eligible student with a qualifying score in 66
the top three percent of all Missouri test-takers shall be 67
offered an academic scholarship of up to three thousand 68
dollars per year. All students in the top three percent 69
shall receive awards of three thousand dollars before any 70
student in the top fourth and fifth percentiles receives any 71
award; 72
(2) Provided sufficient funds are appropriated, each 73
eligible student with a qualifying score in the top fourth 74
and fifth percentiles shall be offered an academic 75
scholarship of up to one thousand dollars per year. 76
5. Before the 2027-28 academic year, eligible students 77
may renew academic scholarships for their second, third, and 78
fourth years of postsecondary education, or as long as the 79
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recipient is in compliance with the criteria to be a renewal 80
student. 81
6. If an eligible student is unable to enroll during 82
the first academic year or a renewal student ceases 83
attendance at an approved institution for the purpose of 84
providing service to a nonprofit organization, a state or 85
federal government agency, or any branch of the Armed Forces 86
of the United States, such student shall be offered an 87
academic scholarship upon enrollment in any approved 88
institution after the completion of their service, if the 89
student meets all other requirements for an initial or 90
renewal award and if the following criteria are met: 91
(1) For an eligible student who cannot attend an 92
approved institution as a result of service to a nonprofit 93
organization or the state or federal government, the student 94
returns to full-time status within twenty-seven months and 95
provides verification to the coordinating board for higher 96
education that the service to the nonprofit organization was 97
satisfactorily completed and was not compensated other than 98
for expenses, or that the service to the state or federal 99
government was satisfactorily completed; or 100
(2) For an eligible student who cannot attend an 101
approved institution as a result of military service in the 102
Armed Forces of the United States, the student returns to 103
full-time status within six months after the eligible 104
student first ceases service to the Armed Forces and 105
provides verification to the coordinating board for higher 106
education that the military service was satisfactorily 107
completed. 108
7. A recipient of an academic scholarship awarded 109
under this section may transfer from one approved 110
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institution to another without losing eligibility for the 111
academic scholarship. 112
8. If a recipient of an academic scholarship at any 113
time withdraws from an approved institution so that under 114
the rules and regulations of that institution he or she is 115
entitled to a refund of any tuition, fees or other charges, 116
the institution shall pay the portion of the refund 117
attributable to the academic scholarship for that term to 118
the coordinating board for higher education. 119
9. Other provisions of this section to the contrary 120
notwithstanding, if an eligible student has been awarded an 121
initial academic scholarship pursuant to the provisions of 122
this section but is unable to attend an approved institution 123
during the first academic year because of illness, 124
disability, pregnancy or other medical need or if a renewal 125
student ceases all attendance at an approved institution 126
because of illness, disability, pregnancy or other medical 127
need, the recipient shall be eligible for an initial or 128
renewal academic scholarship upon enrollment in or return to 129
any approved institution, provided the recipient: 130
(1) Enrolls in or returns to full-time status within 131
twenty-seven months; 132
(2) Provides verification in compliance with 133
coordinating board for higher education rules of sufficient 134
medical evidence documenting an illness, disability, 135
pregnancy or other medical need of such person to require 136
that that person will not be able to use the academic 137
scholarship during the time period for which it was 138
originally offered; and 139
(3) Meets all other requirements established for 140
eligibility to receive an academic scholarship. 141
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10. (1) As used in this section, "eligible program of 142
study" has the same meaning as in section 173.2553. 143
(2) For the 2027-28 academic year and all subsequent 144
academic years, subject to appropriation: 145
(a) An eligible student shall be offered academic 146
scholarships in an amount equal to the actual in-state 147
tuition charged to such eligible student for the first four 148
semesters the student is enrolled at the approved 149
institution; 150
(b) An eligible student who has completed the 151
student's first two semesters and received an academic 152
scholarship under subsections 1 to 9 of this section shall 153
be deemed an eligible student under paragraph (a) of this 154
subdivision for the student's third and fourth semesters; and 155
(c) A renewal student who is enrolled in an eligible 156
program of study may renew academic scholarships for up to 157
six semesters in an amount equal to the actual in-state 158
tuition charged to such eligible student as long as the 159
recipient is in compliance with the criteria to be a renewal 160
student. 161
173.1541. 1. This section shall be known and may be 1
cited as the "Missouri Higher Education Funding Policy 2
Prioritization Act". 3
2. The Missouri department of higher education and 4
workforce development, in consultation with public 5
institutions of higher education in this state, shall: 6
(1) Develop a funding model for public institutions of 7
higher education that: 8
(a) Aligns funding for higher education to develop 9
educated persons to meet the professional and workforce 10
needs for the state of Missouri; 11
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(b) Provides a level of stable, sustainable resources 12
that allow public institutions of higher education in this 13
state to serve students well and fulfill such institutions' 14
missions; 15
(c) Is based on the 2023 study commissioned by the 16
Missouri department of higher education and workforce 17
development and is developed in cooperation with public 18
institutions of higher education in this state and the 19
Missouri department of higher education and workforce 20
development using data, mechanics, and calculations that are 21
as simple and easy to understand as practicable; 22
(d) Includes a process for the allocation of the core 23
appropriations to public four-year institutions of higher 24
education; public community colleges, as that term is 25
defined in section 163.191; and State Technical College of 26
Missouri; 27
(e) Uses a cost-based approach to funding that 28
recognizes each institution's instructional mission and that 29
incorporates accountability and an outcomes-based focus; and 30
(f) Includes a performance component that is designed 31
to enhance improvement in student success and efficient 32
operations; 33
(2) Establish a plan for testing and implementing the 34
funding model described in this section, which plan, after 35
having been reviewed and consented to by two members of the 36
Missouri house of representatives appointed by the speaker 37
of the house of representatives and two members of the 38
Missouri senate appointed by the president pro tempore of 39
the senate, shall be approved by the coordinating board for 40
higher education and submitted to the governor and the 41
general assembly before August 31, 2026; 42
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(3) Evaluate the effectiveness of the funding model 43
test and submit a report to the governor, the speaker of the 44
house of representatives, and the president pro tempore of 45
the senate before October 15, 2026; and 46
(4) Present the funding model to the coordinating 47
board for higher education for final approval before 48
November 1, 2026. 49
3. Such funding model shall not become effective 50
unless approved by the general assembly by concurrent 51
resolution. 52
4. For the 2028-29 fiscal year and all subsequent 53
fiscal years, the appropriation of state funding to public 54
four-year institutions of higher education; public community 55
colleges, as that term is defined in section 163.191; and 56
State Technical College of Missouri shall be in accordance 57
with such funding model approved by the general assembly. 58
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