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HB 4955

Higher education: financial aid; Michigan achievement scholarship; provide for. Creates new act. TIE BAR WITH: HB 4956'25

2025-2026 Regular Session Introduced by Greg Markkanen

Creates a last‑dollar scholarship program to cover community college tuition and other eligible postsecondary costs for Michigan residents, funded by annual appropriations.

bill electronically reproduced 09/16/2025
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Bill Summary · HB 4955

Summary — HB 4955 (Michigan Achievement Scholarship Act)

Status: Introduced March 13, 2025; electronically reproduced 09/16/2025; referred to Appropriations. Companion: SB 1493. Tie-bar: HB 4956 (Michigan Achievement Skills Scholarship).

Purpose

Creates the Michigan Achievement Scholarship Act to recodify and expand the existing Michigan Achievement Scholarship (currently in section 248 of the State School Aid Act) into a standalone public act. The program provides last‑dollar scholarship assistance intended to make community college tuition free for in‑district students, to support attendance at other eligible postsecondary institutions in Michigan, and to increase access to education and workforce skills.

Key provisions

  • Establishes the Michigan Achievement Scholarship and defines program terms (e.g., “cost of attendance,” “last‑dollar,” “gift aid,” “SAI eligible student”).
  • Administers the scholarship through the Department of Lifelong Education, Advancement, and Potential (DLEAP).
  • Funds and payments are subject to appropriation under Article III of the State School Aid Act; awards may only be made if funds are appropriated and available.
  • Provides a community‑college guarantee: last‑dollar scholarship for community college students eligible for in‑district tuition; capped for out‑of‑district students (no more than in‑district tuition/fees).
  • For public universities, independent nonprofit colleges/universities, or specified baccalaureate programs, awards follow amounts prescribed in section 248 (currently: minimum $2,500 plus the lesser of $3,000 or the student’s last‑dollar amount).
  • Defines “last‑dollar” differently by institution type: for community/tribal colleges = tuition, mandatory fees, contact hours for program minus gift aid; for universities/independent colleges = individual cost of attendance minus gift aid.
  • Prohibits receiving a Michigan Achievement Scholarship and a Michigan Achievement Skills Scholarship in the same term.

Student eligibility (annual)

Must meet all of the following:
- Michigan residency as determined for FAFSA.
- High school diploma/certificate or high school equivalency obtained in 2023 or later.
- Full‑time undergraduate enrollment at an eligible Michigan institution for the semester award is received.
- Be a first‑time enrollee who began postsecondary studies within 15 months of graduation (dual enrollment does not disqualify), or be a prior recipient of this scholarship or the Skills Scholarship.
- Maintain satisfactory academic progress; not be in default on a federal student loan.
- Apply for and accept all available “gift aid” (defined list includes Pell, certain state grants, tuition incentive benefits, etc.).
- For students at public universities/independent nonprofit colleges or certain baccalaureate community college programs, be an “SAI eligible student” (FAFSA completed and either prior recipient with 2023–24 EFC ≤ $25,000, or for 2024–25+ a Student Aid Index ≤ 30,000). If the federal metric changes, the department must coordinate to adopt an equivalent state metric.

Administrative & funding notes

  • DLEAP will promulgate rules and administer awards per department procedures and the State School Aid Act.
  • Payments are subject to legislative appropriation. The bill makes certain Pell‑student additional payments discretionary for the department (section 248 currently prescribes an extra payment, e.g., $1,000).

Differences from present law (section 248)

  • Recodifies and clarifies many provisions into a new act while leaving section 248 in law (the bill cites some of its provisions).
  • Omits section 248’s explicit requirement that scholarship monies be paid to the institution for credit to the student’s account.
  • Changes mandatory additional payments for Pell‑eligible students into discretionary payments by the department.

Who is affected

  • Michigan resident students graduating high school (2023+) or holders of equivalency certificates who enroll full‑time at eligible Michigan postsecondary institutions.
  • Eligible institutions: Michigan public universities, community colleges, federally recognized tribal colleges in Michigan, and qualified independent nonprofit colleges/universities.

Legislative progress / timeline

  • Filed: 3/13/2025; committee hearings and favorable report in May 2025 (recommended to Local & Consent); reintroduced/reproduced and referred to Appropriations on 9/16/2025.

Compiled from official sources — confirm details with the bill’s official record.

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