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 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, a new section, 136A.1212, is introduced to create the State Grant Plus scholarship, which provides eligible students with a scholarship amounting to 25 percent of their state grant award, contingent upon their enrollment in an eligible institution and receipt of a state grant.

The bill also includes various appropriations aimed at improving access to higher education and supporting student retention and graduation rates. These appropriations include funding for 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 resources for 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 reporting on the scholarship program and its impact, ensuring transparency and accountability in the implementation of these initiatives.

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