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 amounting 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 competitive grants to nonprofit organizations to increase FAFSA completion rates, grants to institutions to enhance retention and graduation rates for Pell grant-eligible students, and funding for multilingual communications to support non-English-speaking populations. Furthermore, it establishes working groups to develop recommendations for sustainable funding strategies for higher education and to update the state's higher education attainment goals. The bill mandates annual reporting on the scholarship program and the outcomes of the funded initiatives, ensuring accountability and transparency in the use of appropriated funds.

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