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HF4572

Office of Higher Education prohibited from using public money to support low-earning degree programs, and report required.
Legislative Session 94 (2025-2026)

AI Generated Summary

Purpose

  • This bill adds a new rule to Minnesota’s higher education law to stop using state money to support lowearning degree programs. A lowearning degree program is defined as one that has lost eligibility to receive federal money under U.S. Code title 20 section 1087dc. The goal is to reduce funding for programs deemed low-earning and increase transparency about which programs are affected.

Main Provisions

  • Prohibition on state money

    • The commissioner of the Office of Higher Education (OHE) cannot allocate or spend state money in any program run by OHE to directly or indirectly support a lowearning degree program.
    • This restriction applies to:
    • Student financial aid programs (including but not limited to those under Minnesota Statutes sections 136A.091 to 136A.1465).
    • Student loan programs and loan repayment programs (including but not limited to sections 136A.15 to 136A.1796).
    • Programs providing state money to institutions, such as grant programs.

  • Public information and reporting

    • The commissioner must annually review federal determinations of lowearning degree programs.
    • The commissioner must keep a list of all current lowearning degree programs at Minnesota postsecondary institutions on OHE’s public website.
    • By February 15 each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees that oversee higher education finance and policy. The report must include at minimum:
    • The current list of lowearning degree programs in Minnesota.
    • Information about enforcement and implementation of the section by OHE.
    • An estimate of the amount of state money saved, reallocated, or redirected away from lowearning degree programs because of this section.

  • Implementation and rules

    • The commissioner must develop policies and adopt rules as needed to implement this section.

Significant Changes to Existing Law

  • Creates a new prohibition (136A.045) on using state funds to support lowearning degree programs.
  • Adds mandatory transparency through an on-line public list and annual reporting to the Legislature.
  • Establishes a clear budget impact focus by requiring an estimate of funds saved or redirected.

Definitions and Scope

  • Lowearning degree program: a program that has lost eligibility to receive federal money under 20 U.S.C. 1087dc.
  • State money: funds allocated or expended by the state through programs administered by the Office of Higher Education.
  • Applies to: all relevant state-supported activities under OHE, including student financial aid, student loans/loan repayment, and grants to institutions.
  • Location: applies to postsecondary institutions located in Minnesota.

Practical Effect

  • If a degree program is deemed lowearning, OHE cannot use state funds to support it, even indirectly.
  • Public accountability is increased through a public online list and annual reporting about which programs are affected and how much money is saved or redirected.

Relevant Terms - lowearning degree program - United States Code title 20 section 1087dc - Office of Higher Education - Minnesota Statutes chapter 136A - 136A.045 - state money - student financial aid programs - student loan programs - loan repayment programs - grants - Minnesota postsecondary institutions located in Minnesota - public website - annual review - February 15 - enforcement - implementation - policies and rules

Bill text versions

Past committee meetings

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2026HouseActionIntroduction and first reading, referred toHigher Education Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines a low-earning degree program as one that has lost eligibility to receive federal money under United States Code title 20 § 1087dc.",
      "modified": []
    },
    "citation": "20 U.S.C. § 1087dc",
    "subdivision": "Subd. 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Used to reference the range of sections relating to student financial aid programs, enforcement, and low-earning degree programs within Minnesota Statutes Chapter 136A.",
      "modified": []
    },
    "citation": "Minn. Stat. § 136A.091 to 136A.1465",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Used to reference the range of sections related to student loan programs and loan repayment programs within Minnesota Statutes Chapter 136A.",
      "modified": []
    },
    "citation": "Minn. Stat. § 136A.15 to 136A.1796",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentions Minnesota Statutes Chapter 136A as the chapter within which the bill would codify new law.",
      "modified": []
    },
    "citation": "Minn. Stat. ch. 136A",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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