House approves higher-education finance bill after tight votes on North Star Promise and program restorations

St. Paul — The Minnesota House approved House File 2431, the higher-education finance and policy bill, after extended floor debate and close votes on several high-profile amendments. The chamber passed the bill as amended by a vote of 120 yeas to 14 nays.

Lawmakers said the bill is a bipartisan compromise intended to address a large shortfall in the state grant program and to preserve the North Star Promise, a program that provides in-state tuition benefits to certain Minnesota residents. Representative Marie Wohlgemont, the bill’s chief author, said the package “is the result of robust negotiations” between the bill’s chairs and members on both sides of the aisle.

A9 and A10: narrow defeats

Two floor amendments attracted sustained debate and close recorded votes.

- A9 (Schultz): That amendment would have restricted eligibility for the North Star Promise by inserting a requirement tied to lawful immigration status. Representative Matt Schultz described the amendment as correcting a “loophole” and said the change would ensure benefits go to legally present Minnesota students. Opponents called the measure punitive and appealed to humanitarian and economic arguments. Representative Esther Hansen Jay told colleagues the amendment was “devoid of humanity” and warned it would punish young people who had complied with federal processes and were waiting for immigration outcomes. The amendment failed on a roll call, 66 ayes to 67 nays.

- A10 (Coulter): Representative Lucy Coulter offered an amendment to restore or expand funding for several programs that the base budget reduced, including large-animal veterinarian and agriculture-education loan-forgiveness programs, a University of Minnesota–Mayo partnership residency program, a student-parent support initiative, and a paramedic scholarship program. Coulter framed the amendment as “pay me now or pay me later,” arguing proven supports for foster youth, student parents and paramedic recruitment would reduce longer-term costs. The A10 amendment did not pass on a roll call result recorded in the chamber as 67 ayes and 67 nays (tie — amendment not adopted).

Sponsors and priorities

Co-chair Representative Bernie Rehrig and fellow co-chair Representative Wohlgemont and staff described the bill as a difficult but necessary compromise under a “zero” budget target and a roughly $239 million shortfall in the state grant program that lawmakers said they needed to address. Rehrig said the committee reviewed line-by-line spending and audited nonprofit grantees as part of the negotiations.

Wohlgemont said the bill seeks to protect the University of Minnesota and Minnesota State base funding and to preserve the North Star Promise account while making targeted investments, including a $1.5 million partnership between the University of Minnesota Medical School and CentraCare for the St. Cloud medical school.

Areas of dispute and details raised on the floor

- Foster youth (FIG): Representative Peggy Hicks and others said the fostering independence grant (FIG) program is sending more students to college than projected, leaving some students on wait lists. Hicks urged colleagues not to reduce that support, saying “our FIG students … are looking at us and saying, hold up. Y’all said if I graduated from high school … that you’d help me.”

- For-profit colleges and state grants: Coulter’s amendment included a provision to reduce state grant dollars going to for-profit institutions and redirect funds to student-support programs; the amendment’s supporters argued the shift would help foster youth and other vulnerable students while critics said the savings assumptions did not fully match the requested restorations.

- Medical residencies and rural doctor training: The bill includes funding changes that will move certain residency support and expand the St. Cloud medical school partnership; Representative Carolyn Liebling and others urged that residency funding be maintained to preserve physician supply in rural communities.

Final outcome and next steps

The House approved the bill as amended by a recorded vote: "There being 120 ayes and 14 nays, the bill is passed as amended and its title is agreed to." Sponsors said they expect additional negotiation with the Senate in conference committee and indicated some program concerns — including foster youth wait lists and residency funding — could be revisited.

Ending

Lawmakers described the measure as a compromise that addresses the large state-grant shortfall while preserving major elements of the higher-education system. Several members said they plan to press for additional adjustments in conference committee and with the Senate.