The bill amends the State School Aid Act of 1979, specifically sections 236 and 241, to update the appropriations for higher education for the fiscal year ending September 30, 2026. Notably, the gross appropriation amount is revised from $2,324,292,600.00 to $100.00, with adjustments made to federal, local, private, and state revenues. The bill also specifies that the funds appropriated for public universities will be distributed in 11 equal monthly installments starting from October 16, 2025, rather than 2024, and institutions will accrue their payments for July and August 2026 to their fiscal year ending June 30, 2026.

Additionally, the bill introduces new provisions for the allocation of funds, including a one-time allocation of up to $8,500,000.00 for participating public universities to offset normal cost contributions, and appropriations for various programs such as the Michigan Transfer Pathways and FAFSA completion incentives. The changes aim to streamline funding processes and support higher education institutions in Michigan while ensuring that appropriations are effectively managed and distributed.

Statutes affected:
Senate Introduced Bill: 388.1836, 388.1841