Universities push $50 million for Challenge Grant; private colleges ask to join matching program

University presidents, foundation leaders, donors and students told the Senate Appropriations Education and Environment Division they support renewing and expanding North Dakota’s Challenge Grant program, which matches private donations to public college foundations to fund scholarships and other priorities.

“We do support the $50,000,000 toward challenge grant,” North Dakota State University President David Cook told the committee, urging legislative support for the governor’s executive budget proposal.

The hearing featured students describing how matched scholarship funds reduced their debt and enabled internships and study abroad opportunities, foundation leaders who said the program multiplies private gifts and attracts out‑of‑state donors, and testimony that the program has produced measurable fundraising growth across the university system.

Why it matters: Supporters said challenge grant matching has spurred donors, built endowments and increased scholarship support — which university leaders say is vital to keep students in the state and to supply a workforce for in‑state employers.

Key testimony and numbers

- Deanna Carlson Zink, CEO of the University of North Dakota Alumni Association and Foundation, said the program has produced $188 million in donor gifts against $94 million in state matches over roughly 12 years. She said 60% of gifts to UND under the program came from donors living outside North Dakota.

- Rick Hedberg of the Minot State University Development Foundation testified that Minot State’s foundation assets rose from $24 million in 2014 to $61.6 million by July 1 (figures provided by the foundation) and credited the Challenge Grant program for much of the increase.

- Several students explained the direct effect: Ally Kujath, a senior at UND, said scholarship support reduced her need for part‑time work so she could study abroad and volunteer; Braden Schmeichel, a recent NDSCS graduate, said matched scholarships reduced his debt at graduation to $6,500.

Private college inclusion proposed

Senator Terry Wanzek proposed amendments to make two private, North Dakota‑based university foundations — the University of Jamestown and the University of Mary — eligible for challenge‑grant matching for scholarships serving North Dakota high‑school graduates. Wanzek said the amendment would direct funds to student scholarships rather than to institutions’ discretionary budgets.

University of Jamestown President Polly Peterson and University of Mary officials told the committee the private institutions serve North Dakota students, retain many graduates in the state, and compete for the same donors; they asked to be eligible for scholarship matching only. Peterson said matching funds help the institutions leverage gifts and retain students in the state.

Committee context and next steps

No formal vote on funding or the amendment occurred during the hearing. Committee members and witnesses discussed program mechanics, whether match ratios should vary for smaller institutions, and the balance between scholarships and endowed faculty positions. Multiple witnesses encouraged funding at or near the governor’s proposed $50,000,000 for the next biennium.

Ending

The committee closed testimony on Senate Bill 2003 and continued its agenda; the challenge‑grant proposal and potential amendments will be considered as the Legislature develops the 2025–27 budget.