MHEC and independent colleges clash with DLS over proposed cuts to Sellinger funding

The Department of Legislative Services recommended the subcommittee reduce fiscal 2026 funding for the Sellinger program by 50% and restrict the remaining funds to a competitive grant administered by the Maryland Higher Education Commission. DLS also recommended statutory changes to eliminate the Sellinger formula and replace it with a needs-based grant program.

Sanjay Rai, secretary of the Maryland Higher Education Commission, told the Education, Business and Administration Subcommittee the governor's FY26 proposal invests in higher education and that MHEC opposes the DLS recommendation to cut or eliminate the Sellinger formula. "The administration of the program on a per FTE student basis makes the most sense for allocations of funds to the independent colleges and universities," Rai said, arguing the formula provides predictability and preserves collaboration across higher‑education segments.

MHEC staff told the subcommittee that Sellinger funding historically totaled $73,300,000 in the budget documents cited and that DLS recommended reducing the program by $36,600,000 (a 50% cut) and restricting remaining funds to a grant program. The DLS analysis also noted a 40% decrease in prior funding cycles and recommended statutory changes to permanently replace the formula.

Representatives and presidents of independent colleges delivered unified testimony urging the subcommittee to reject the DLS recommendation. Matt Power, president of the Maryland Independent College and University Association (MICUA), said the Sellinger program is a decades‑old partnership that helps prevent closures and supports local economies. "Two years of 50% reductions to our funding seems like an indication that the state of Maryland is actively encouraging our demise," Power said.

Mike Sosalski, president of Washington College, and Maria Harris Tilden, vice president for government, community and economic partnerships at Johns Hopkins University, also testified. Harris Tilden noted Johns Hopkins’ underwriting of institutional need-blind admissions and said Sellinger funds make a Hopkins education more affordable for Maryland residents; she also flagged a recent federal antitrust settlement involving selective colleges that the DLS summary referenced. Several college presidents said the Sellinger funds are primarily used by independent colleges to provide institutional financial aid; MHEC staff confirmed institutions used roughly 89% of Sellinger funds for student financial assistance over recent years.

Independent college leaders warned that converting Sellinger to a competitive needs-based grant would be administratively burdensome for MHEC and could destabilize smaller campuses. Speakers said the per‑FTE allocation creates predictable funding that allows institutions with declining enrollments to recover and supports cross‑segment collaboration. One alternative put forward by MICUA—endorsed reluctantly in testimony—would limit formula participation to MICUA institutions with undergraduate enrollment under 5,000 FTES to preserve some funding and yield an estimated $20,500,000 toward the state deficit if adopted.

MHEC asked the legislature to fund Sellinger at the governor’s allowance and warned that an administrative competition based on institutional financial need would require resources MHEC does not have and could create year‑to‑year unpredictability that harms students.

No formal action or vote on the recommendation occurred during the hearing; senators said they would continue to work with stakeholders while facing a difficult state budget.