approved the report of the Higher Education Conference Committee on Friday night<\/a> But the package does nothing to fix a $131 million shortfall in the state grant program on a 101-33 vote. Without the new money, students face an estimated 38% cut in award funding and 18,000 students lose their grants entirely, leading to a decline.<\/p>\n <\/strong>HF4252, sponsored by Representative Dan Wolgamott and Senator Omar Fateh, cleared the House with bipartisan support after conference committee signoff on Friday. It will now go to the Senate before the session adjourns on Monday.<\/p>\nWolgamot himself highlighted this difference: “It’s disappointing that we didn’t have any goals to close that gap<\/em>.” The Senate’s proposed $52 million one-time appropriation was removed from the final agreement earlier in the week.<\/p>\n<\/div>\n\n
by numbers<\/h2>\n\n- $131 million: <\/strong>Projected Shortfall in the Minnesota State Grant Program for the 2026-27 Academic Year<\/li>\n
- 88,000: <\/strong>Students expected to receive state grants next year<\/li>\n
- 18,000: <\/strong>Students who will lose their grant completely under rationing<\/li>\n
- 38%:<\/strong> According to the Minnesota Private College Council, an overall decrease in awards is projected<\/li>\n
- $52 million:<\/strong> The one-time appropriation proposed by the Senate that was removed from the final budget deal<\/li>\n
- $6.5 million: <\/strong>Annual state grant dollars are flowing into for-profit colleges. The amendment to redirect that money failed<\/li>\n
- ~6%: <\/strong>Year-over-year increase in state grant recipients in both 2024 and 2025<\/li>\n<\/ul>\n<\/div>\n
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What’s behind it: <\/strong>Enrollment is rising after a decade of decline, helped by the North Star Promise, which provides free tuition at public colleges to families earning less than $80,000. The new FAFSA formula also revealed greater financial need than anticipated. Tuition continues to rise statewide and state funding has not kept pace for three consecutive years.<\/p>\nWhat will happen next: <\/strong>The Senate must agree to the conference report before adjourning on Monday, May 18. Minnesota’s Office of Higher Education has a Lumina Foundation grant to create a more stable state grant model, and lawmakers say they expect a small difference next academic year but no relief is coming for students this fall.<\/p>\n<\/div>\n\n
How it connects: <\/strong>According to Minnesota financial aid data from The College Investor, Minnesota state grants range from about $1,415 at a public two-year college and $6,439 at a private four-year college, with the average award closer to $3,406. <\/p>\nThe 38% cut means thousands of dollars per recipient \u2013 \u200b\u200bmoney that most students will not be able to pay back. NASFAA research has shown that even small cuts in aid increase the likelihood that a student will drop out before completing a degree.<\/p>\n
Ground level: <\/strong>Minnesota’s higher education bill passed with bipartisan support, but leaves the biggest problem (a $131 million gap in the program that actually pays students’ tuition) unresolved and headed for fall.<\/p>\nDon’t miss these other stories:<\/strong><\/p>\n<\/div>\n