The bill amends the State School Aid Act of 1979, focusing on appropriations for higher education for the fiscal year ending September 30, 2026. It reduces the gross appropriation from $2,324,292,600.00 to $2,264,207,800.00 while significantly increasing other state restricted revenues from $461,668,300.00 to $1,935,771,400.00. The bill also modifies funding for public universities, with specific increases for institutions like Central Michigan University and Michigan State University. New sections (241f through 241l) are introduced, and funding allocations for grants and financial aid are increased from $542,453,600.00 to $551,500,000.00, with a focus on scholarship distribution.

Additionally, the bill imposes new requirements for public universities, including transparency mandates for financial reporting and restrictions on tuition increases, capping them at 4.5% or $735. It prohibits the use of appropriated funds for diversity, equity, and inclusion initiatives and requires universities to maintain compliance with Title IX regulations. The bill also outlines eligibility criteria for the Michigan achievement scholarship program, establishes a tuition incentive program, and mandates the creation of an online resource for financial aid information. Overall, the legislation aims to enhance funding for higher education while ensuring accountability and compliance among public universities.

Statutes affected:
House Introduced Bill: 388.1836, 388.1841