The bill establishes a new program called the "Funding for Success Incentive Aid Program" under Minnesota Statutes, chapter 124D. This program aims to provide outcome-based financial incentives to schools that demonstrate success in improving graduation rates and the enrollment of recent graduates in public colleges or universities. The bill outlines specific metrics for determining success, including a "Graduation rate multiplier" based on the percentage of students meeting graduation requirements and a "Recent graduate enrollment success rate multiplier" based on the enrollment of recent graduates in higher education without remedial courses. Schools must achieve a minimum threshold in these metrics to qualify for funding.

Additionally, the bill appropriates funds from the general fund to the Department of Education for the implementation of this program, with specific funding amounts designated for fiscal years, including a base amount for fiscal year 2028. The funding for success incentive aid will be calculated based on the combined multipliers from the success metrics and the total enrollment of the school, with the stipulation that schools not meeting the minimum metrics will not receive any funding. The provisions of this bill are set to take effect for the 2026-2027 school year and beyond.