Committee deadlocks on bill limiting state aid to noncitizens after tie vote

The Minnesota House Higher Education Finance and Policy Committee debated House File 1323, a bill from Representative Schultz that would restrict eligibility for specified state student aid programs to U.S. citizens and certain lawfully present noncitizens, but a committee vote to send the bill forward ended in a 7–7 tie and the bill was laid over.

Representative Schultz told the committee the bill ‘‘seeks to add eligibility requirements to ensure that Minnesota kids who have legal status here have more money for the state grant program and for the North Star Promise program.’’ He moved two technical amendments; the A1 amendment, which updated dates in the bill, was adopted without objection. The A2 amendment—intended to align the bill text with an updated fiscal note and to narrow the bill’s application to student-aid programs rather than institutional grants—was debated and adopted.

Lawmakers pressed the author and Office of Higher Education officials for clarity on who the bill would affect. Andrew Wald, general counsel at the Office of Higher Education, cautioned that the phrase "benefiting the student individually" is not defined in statute but said the amendment was intended to cover aid paid directly to students (for example, a state grant or North Star Promise award) rather than institutional grants. Nikki Oliver, OHE director of government relations, said OHE’s updated fiscal estimate treated the intent as applying only to direct-to-individual financial aid and, on that interpretation, showed a zero net cost to OHE because funds would remain within programs rather than returning to the general fund.

Representative Hansen and other members warned the change could cut off access for students who have applied for forms of immigration relief—such as Special Immigrant Juvenile Status—while they are in adjudication. Megan Flores, manager of state financial aid programs at OHE, explained distinctions between T visas (victims of human trafficking), SIJS (a classification that can lead to lawful permanent residence) and deferred-action statuses; she said A-status and deferred-action beneficiaries may be eligible for aid, but applicants in an in-between status often must use alternative financial aid applications because they are not eligible for federal FAFSA-based aid.

Members also debated fiscal impacts. Nicole Whelan, state grant research manager at OHE, said the fiscal analysis estimated that the bill’s eligibility change would reduce the number of students qualifying for state grants by about 500 in isolation; after applying anticipated rationing to match appropriations, an estimated total of roughly 12,000 students could be affected across the program in the biennium under the combined assumptions.

Chair Robbins renewed the motion to refer HF1323, as amended, to Ways and Means. A roll-call vote was taken; the tally was 7 in favor and 7 opposed, so the motion did not prevail and HF1323 was laid over for possible future action.

The committee record shows members asked OHE and the author to work on clearer statutory language and to provide the finalized fiscal note before the bill returns to committee or a Ways and Means hearing.