Purpose of the Bill

The bill aims to modify and enhance the workforce development scholarship program for students in Minnesota. It seeks to encourage enrollment in high-demand occupations by providing financial incentives and support to students at Minnesota State Colleges and Universities, particularly for those in skill-based, noncredit, and credit programs. It also provides funding for various educational needs.

Main Provisions

• Scholarship Enhancements: The bill revises the scholarship program to offer flexible funding. Students attending two-year colleges can receive up to $2,500 per year for credit-based programs, and up to $1,500 for noncredit programs. Four-year university students can receive up to $3,500 per year.
• Program Eligibility: The scholarships are available for students in specified high-demand fields such as healthcare, information technology, and education. Institutions may add additional areas based on regional workforce data indicating job shortages.
• Incentives for Transition: Allows unused scholarship funds to be redirected from noncredit to credit programs and from noncredit to industry-recognized credentials or certifications.
• Administration and Renewal: Sets a lifetime cap of $8,500 in scholarships per student. Allows further scholarships if students progress to additional educational phases. Preference is given to students with financial need.

Significant Changes

• Scholarship Cap Increase: The lifetime scholarship cap increases from $7,500 to $8,500 per student.
• Flexible Use of Funds: Expands the flexible use of scholarship money to cover various academic and non-academic costs like tools, transportation, and certifications.

Funding and Appropriations

• The bill appropriates $237,958,000 in FY 2026 and $236,958,000 in FY 2027 to support the operations and maintenance of the Minnesota State Colleges and Universities.
• Additional specific allocations include funding for emergency grants, building repairs, course materials, student support services, and expanded workforce development scholarships.

Relevant Terms

workforce development, scholarship program, high-demand occupations, Minnesota State Colleges and Universities, credit-based programs, noncredit programs, industry-recognized credentials, financial need, skill-based outcomes, stackable credentials, tuition support, emergency grants, educational funding, infrastructure improvement.