This bill aims to enhance higher education funding in Minnesota by increasing the default living and miscellaneous expenses allowance for the state grant program and establishing a new scholarship program called the State Grant Plus scholarship. The amendment to Minnesota Statutes 2024, section 136A.121, subdivision 6, raises the living and miscellaneous expenses allowance from 115 to 121 percent of the federal poverty guidelines for a one-person household in Minnesota for nine months. Additionally, the bill introduces the State Grant Plus scholarship, which provides eligible students with an award amount equal to 25 percent of their state grant award, contingent upon their enrollment in at least one credit at an eligible institution and not being eligible for the North Star Promise scholarship.

The bill also includes provisions for various appropriations aimed at improving higher education access and outcomes. These include funding for competitive grants to increase FAFSA completion rates, enhance retention and graduation rates for Pell Grant-eligible students, and develop multilingual and culturally relevant communications. Furthermore, it establishes working groups to recommend strategies for sustainable funding of higher education and updates to the state's higher education attainment goals. The bill mandates annual reports on the scholarship program and the outcomes of the appropriated funds, ensuring accountability and transparency in the implementation of these initiatives.

Statutes affected:
Introduction: 136A.121, 136A.1465