The proposed legislation, General Assembly Raised Bill No. 1112, aims to prohibit institutions of higher education in the state from reducing the financial aid awarded to students due to the receipt of scholarships from any source, whether public or private. The bill specifies that financial aid may only be reduced if a student's total financial aid exceeds their cost of attendance, as defined by federal law, or if the reduction is necessary to comply with financial aid restrictions imposed by athletic associations, such as the NCAA.

This act is set to take effect on July 1, 2025, and introduces new legal language to ensure that students are not penalized in their financial aid packages for receiving scholarships. The bill emphasizes the importance of maintaining financial support for students and aims to create a more equitable financial aid system in higher education.