The proposed legislation, General Assembly Raised Bill No. 1261, aims to expand the existing Alliance District Educator and Counselor Loan Subsidy Program and the High Priority Occupation Loan Subsidy Program in Connecticut. The bill introduces new provisions that allow for interest rate subsidies on loans for not only teachers, paraeducators, and school counselors employed in designated alliance districts but also for individuals in high-priority occupations within those municipalities. The eligibility criteria and administrative guidelines for these programs will be established through a memorandum of agreement between the Connecticut Higher Education Supplemental Loan Authority and the Commissioner of Education.

Additionally, the bill repeals and replaces certain sections of current law to reflect these changes, including the removal of the term "Educator and Counselor" from the program's title, thereby broadening its scope. It also mandates the creation of a separate, nonlapsing account to manage funds for the expanded program, which will include state appropriations and proceeds from bond sales. The act is set to take effect on July 1, 2025, and aims to address workforce shortages in high-demand occupations that contribute to the health, welfare, or education of residents in alliance districts.

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