SAINT PAUL, MN — A bill moving through the Minnesota House seeks to create a new scholarship program to make higher education more accessible. Authored by New Hope DFL Representative Cedrick Frazier, the legislation proposes increasing the expense allowance for the State Grant Program from 115% to 121% of federal poverty guidelines.
“Together, these initiatives remove financial barriers, support student success and strengthen the future of higher education in Minnesota. By investing in students today, the state is laying the foundation for stronger, more prosperous future for all Minnesotans,” Frazier said.
However, the bill faces financial hurdles, as the Office of Higher Education’s grant program already carries a $232 million deficit. Republican Representative Marion Rarick of Maple Lake raised concerns about the proposed expansion’s impact on the state’s finances.
“You’re proposing to increase it to 121%, so in my calculations it’s about $36 million more costs from the state grant program and the state grant program already is 232 million short. So this would be creating a bigger hole,” Rarick noted.
Despite these budgetary challenges, proponents argue the investment is necessary. Jon Peterson, representing the Minnesota Education Equity Partnership, emphasized the importance of funding higher education.
“Investing in higher education in ways that better support students and systems is a moral and economic imperative for our state. Despite the current fiscal realities that we are facing, it is critically important that we continue to invest in higher Ed if we are to achieve the academic and economic goals we have set for our students and for our communities.”
As the bill progresses, lawmakers must weigh the benefits of expanding student aid against the state’s financial constraints.
