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HB 4377

Higher education: financial aid; Michigan reconnect grant recipient act; modify. Amends secs. 11, 15 & 21 of 2020 PA 68 (MCL 390.1711 et seq.). TIE BAR WITH: HB 4378'25

2025-2026 Regular Session Introduced by Matt Bierlein and 7 co-sponsors

Michigan Reconnect now offers a one-time up to $1,500 skills scholarship for short-term training, with eligibility extending to ages as low as 21 if funded.

bill electronically reproduced 04/22/2025
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Bill Summary · HB 4377

Summary — HB 4377 (2025): Amendments to the Michigan Reconnect Grant Recipient Act

Status: Enacted (Signed by Governor 6/20/2025). Effective date: September 1, 2025. Tie-bar: HB 4378 (both bills required per bill language).

Purpose

HB 4377 amends the Michigan Reconnect Grant Recipient Act (2020 PA 68) to (1) clarify the program’s intent and eligibility timing, (2) allow the program’s minimum age threshold to be reduced (under funding conditions), and (3) establish a short‑term training (skills scholarship) component to the Reconnect initiative. The overall aim remains providing last‑dollar financial aid to adult learners seeking associate degrees or industry‑recognized certificates/credentials and increasing postsecondary attainment among working‑age adults.

Key changes and provisions

  • Purpose statement (Sec. 11): Reframes intent to provide last‑dollar assistance to individuals “age 25 21 and older” seeking associate degrees or industry‑recognized certificates — reflecting the statute’s allowance to lower the minimum age under funding conditions.
  • Minimum age and eligibility (Sec. 15):
    • Continues main eligibility requirements (state residency ≥1 year; high school diploma or approved equivalency; admitted/enrolled in a Pell‑eligible program at an eligible institution; no prior associate or baccalaureate degree).
    • Retains administrative requirements: submit a Michigan Reconnect application, file the FAFSA, and apply for all available gift aid.
    • Adds express authority to reduce the program minimum age from 25 down to as low as 21 if sufficient funds are appropriated — but a reduced minimum age may not be applied after the state fiscal year ending September 30, 2032.
    • Clarifies that eligibility conditions must be met by the date of enrollment described in the statute.
  • Reconnect short‑term training program (Sec. 21):
    • Creates a short‑term training (skills scholarship) program administered by the Department of Labor and Economic Opportunity (the department).
    • Department responsibilities include approving qualified occupational training programs (using criteria in the Act), posting program lists on its website, and collecting required data from participating institutions (including apprenticeship work‑experience verification).
    • Skills scholarship details:
    • One‑time grant up to $1,500 to contribute toward tuition for approved qualified occupational training programs.
    • Scholarship cannot exceed the full tuition charged.
    • Applicant eligibility mirrors main Reconnect criteria (including the same age rule: generally ≥25, reducible to ≥21 if funded, with same 2032 cutoff).
    • Scholarships awarded only while appropriated funds remain available.
    • The department must inform skills scholarship recipients that they remain eligible for the full Reconnect grant to pursue an associate degree and that community colleges will attempt to convert training coursework to college credit where possible.
  • Rulemaking and implementation:
    • The department is authorized to promulgate rules only as to specified administrative matters (application form/timing, applying statutory eligibility criteria, and data compliance).
    • To expedite rollout, the department may operate the short‑term training program consistent with its proposed rules or policies before final rules are adopted.
  • Conditional enactment / tie‑bar:
    • The bill as drafted contains a tie‑bar: it does not take effect unless an identified companion bill (HB 4378 / a Senate bill) is enacted. The legislative record shows the bill was subsequently enacted and signed; effective date set to 9/1/2025.

Who is affected

  • Primary beneficiaries: adult Michigan residents seeking associate degrees, industry‑recognized certificates/credentials, or short‑term occupational training — particularly those lacking prior postsecondary degrees.
  • Postsecondary institutions: eligible community colleges and approved training institutions (must apply to participate, meet program criteria, and supply enrollment/employment data).
  • Department administering the program: new responsibilities for program approval, data collection, website listings, and outreach to recipients.
  • State budget: program expansion (including lowering age threshold and awarding skills scholarships) depends on appropriations; scholarship awards limited to available funds.

Fiscal/Policy considerations

  • The short‑term scholarships are funded only while appropriations last; the bill itself does not specify a funding source.
  • Allowing the age threshold to be lowered (to as low as 21) is contingent on sufficient appropriations; the reduction is time‑limited (may not be applied after FY ending 9/30/2032).
  • The bill emphasizes conversion of short‑term training to community college credit where feasible, supporting education‑to‑credential pathways for adult learners.

Implementation timeline and procedural notes

  • Enacted and signed 6/20/2025. Effective date: 9/1/2025.
  • Because skills scholarships and expanded eligibility depend on appropriations and approved program lists, practical availability of the short‑term training awards will follow departmental rulemaking, program approval processes, and any legislative appropriations.

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

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