Committee approves university funding plan that shifts funds into scholarships and campus investment funds, adds tuition caps and restricts some spending

The House Appropriations Committee adopted the H‑1 substitute to House Bill 45 80, the higher education appropriation, in a session that focused on a large restructuring of university support and a major expansion of the Michigan Achievement Scholarship (MAS).

House Fiscal Agency staff described the bill as moving substantial ongoing general‑fund operations appropriations for universities into a combination of smaller direct appropriations and new campus investment funds, while adding one‑time deposits to a post‑secondary scholarship fund. The H‑1 shows a gross appropriation framework that includes a large SAF (School Aid Fund) one‑time deposit of $1.1 billion to the post‑secondary scholarship fund, paired with a transfer of various university operation grants away from the general fund. House Fiscal summarized the net result as a direct appropriation to universities of $855.7 million gross (about $41.6 million general fund) for FY26, with an estimated additional $828.1 million in campus investment/MMAS‑related funding included in projections; combined, the total estimate with MAS would approximate current operations funding but shift the composition of appropriation sources.

Under the H‑1 the…