An Act amending the act of July 18, 1974 (P.L.483, No.174), known as The Institutional Assistance Grants Act, repealing provisions relating to legislative findings; further providing for definitions, for institutional assistance grants and for assistance grant fund; and repealing provisions relating to appropriation.

PRINTER'S NO. 3418
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2525
Session of
2026
INTRODUCED BY FLEMING AND SANCHEZ, MAY 20, 2026
REFERRED TO COMMITTEE ON EDUCATION, MAY 20, 2026
AN ACT
Amending the act of July 18, 1974 (P.L.483, No.174), entitled
"An act authorizing the Pennsylvania Higher Education
Assistance Agency to make institutional assistance grants on
behalf of Pennsylvania State scholarship students attending
independent institutions of higher education in the
Commonwealth, and making an appropriation," repealing
provisions relating to legislative findings; further
providing for definitions, for institutional assistance
grants and for assistance grant fund; and repealing
provisions relating to appropriation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of July 18, 1974 (P.L.483,
No.174), known as The Institutional Assistance Grants Act, is
repealed:
[Section 2. Legislative Findings.--The General Assembly has
found and hereby declares that:
(a) The Commonwealth is committed to the development and
preservation of a planned and diverse system of higher education
which encompasses both public and independent institutions. The
percentage of students attending independent institutions in the
Commonwealth is forty-two per cent (42%), which figure is much
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higher than the national average of twenty-four per cent (24%).
Independent institutions make a significant contribution to
higher education in the Commonwealth and it is in the public
interest to facilitate optimum utilization of all higher
education resources in the Commonwealth.
(b) Tuition and fees charged to students by independent
institutions, even when financed by various types of student
financial aid, do not cover the cost of education. Many
independent institutions are, therefore, presently faced with
serious financial difficulties. These difficulties inhibit their
ability to provide higher education to the Commonwealth students
and, therefore, impair the provision of higher education in the
Commonwealth and increase the burden on public institutions.
(c) The institutional assistance grants on behalf of
Pennsylvania scholarship students attending independent
institutions authorized herein are designed to assure maximum
educational choice by preserving the quality of independent
institutions and will tend to moderate the costs charged to
students at independent institutions.]
Section 2. The definitions of "assistance grant,"
"assistance grant fund" and "State-owned institutions" in
section 3 of the act are amended to read:
Section 3. Definitions.--As used in this act:
* * *
["Assistance grant" shall not exceed four hundred dollars
($400).
"Assistance grant fund" shall mean the aid received pursuant
to this act on behalf of Pennsylvania State scholarship students
by each eligible institution.]
* * *
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"State-owned institutions" shall mean the [fourteen
Pennsylvania State colleges and university.] institutions that
are part of the State System of Higher Education under Article
XX-A of the act of March 10, 1949 (P.L.30, No.14), known as the
"Public School Code of 1949 ."
* * *
Section 3. Sections 5 and 6 of the act are amended to read:
Section 5. Institutional Assistance Grants.--For [the
academic year beginning on or about September 1, 1974,] each
year funding is available, the agency shall allot, on behalf of
each Pennsylvania State scholarship student attending the
eligible institution as certified pursuant to section 4, an
assistance grant [as defined in section 3, such allotment] to be
made to each eligible institution from the funds appropriated to
the agency [pursuant to section 10.] for the purpose of this
act. An eligible institution shall use an assistance grant under
this section to supplement each Pennsylvania State scholarship
student's grant amount and reflect the supplement on each
Pennsylvania State scholarship student's tuition bill as an
"Institutional Assistance Grant provided by the Commonwealth."
Section 6. [Assistant Grant Fund.--The Institutional
Assistance Grant Fund shall be maintained in a separate account
and shall not be commingled with other funds of the eligible
institution. The moneys in the fund may be used only for, or in
connection with, expenses incurred by the eligible institution
for educational cost. Each institution shall cause an audit of
such separate account to be made annually, which audit shall
indicate the manner in which the moneys in the assistance grant
fund have been expended. A copy of the audit shall be forwarded
to the agency.] Accountability.--The agency shall audit the
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records of an eligible institution that receives an assistance
grant to ensure compliance with this act. The agency shall
publish an annual report on the publicly accessible Internet
website of the agency that includes the distribution and use of
assistance grant money and any other information that the agency
determines necessary for the implementation of this act.
Section 4. Section 10 of the act is repealed:
[Section 10. Appropriation.--The sum of twelve million
dollars ($12,000,000), is hereby appropriated to the
Pennsylvania Higher Education Assistance Agency for the
purposes, and administration, of this act for the fiscal year
July 1, 1974 to June 30, 1975.]
Section 5. This act shall take effect immediately.
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