This bill modifies the state grant program for higher education in Minnesota by amending Minnesota Statutes 2024, section 136A.121, subdivision 3, to change the criteria for awarding grants. The previous requirement of awarding grants "on a funds available basis" has been removed, allowing grants to be awarded to those who meet the office's requirements. Additionally, a new subdivision (22) has been added to the statute, which appropriates the necessary funds annually from the general fund to the commissioner of the Office of Higher Education to meet the need for state grants. Both of these changes will take effect on July 1, 2026.

Furthermore, the bill repeals subdivisions 7 and 7a of Minnesota Statutes 2025 Supplement, section 136A.121, which outlined procedures for handling insufficient and surplus appropriations for state grants. The repeal of these subdivisions aims to streamline the grant allocation process and eliminate previous provisions that may complicate funding adjustments based on grant demand. This repeal will also take effect on July 1, 2026.

Statutes affected:
Introduction: 136A.121