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Conference committee begins negotiations to close $239 million state grant gap; House, Senate differ on parameters and tuition cap

3242677 · May 9, 2025
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Summary

Conference committee members reviewed competing House and Senate higher‑education proposals that leave an estimated $239 million gap in the Minnesota State Grant program for FY2026–27. The bills differ on how to allocate new money, cap tuition increases, and set aid‑calculation rules that determine award size.

Conference committee chairs and nonpartisan analysts on May 6 opened public negotiations on competing House and Senate higher‑education plans to address an estimated $239 million shortfall in the Minnesota State Grant program for fiscal 2026–27.

Nonpartisan fiscal analysts told the committee the gap reflects the difference between the program’s current statutory parameters and projected need. "For reference in the 2627 biennium, there is about a $239,000,000 difference between the base level of state grant program appropriations and projected spending based on the parameters currently in statute," Megan Bursch, nonpartisan fiscal analyst supporting the Senate Higher Education Committee, said.

Why it matters: State grants help low‑ and moderate‑income Minnesotans pay tuition. The committee must combine appropriations, statutory parameter changes and rationing options to prevent deep cuts…

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