The bill establishes the Armed Forces Reserve Component Scholarship Program in Ohio, designed to provide financial assistance to eligible members of the U.S. armed forces reserve components pursuing higher education. Eligible applicants must not hold a baccalaureate degree, be actively enrolled in a qualifying educational program, and meet specific residency and eligibility criteria. The Chancellor of Higher Education will oversee the scholarship approvals, ensuring a fair application process that does not prioritize individuals based on sex, race, or religion. The scholarship amounts will vary based on the type of institution, with full tuition coverage at state institutions and average tuition coverage at private institutions. Provisions are included to protect scholarship recipients who may need to withdraw from courses due to active duty, while also establishing repayment obligations for those who do not complete their enlistment terms.

Additionally, the bill introduces new provisions for managing the scholarship program's funds, including the creation of a scholarship reserve fund and a scholarship donation fund. It mandates that if the Chancellor reduces scholarship amounts, affected recipients must receive a grant or tuition waiver from their educational institution equivalent to the reduction. The controlling board is prohibited from transferring appropriations for the scholarship program, ensuring funds are used as intended. The total appropriation for the program is set at $10 million for fiscal year 2027, which will be managed by the Chancellor to support the program's operations and ensure fiscal responsibility and transparency.