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SB 268

Higher Education - Undocumented Students - Out-of-State Tuition Exemption Eligibility

2025 Regular Session Introduced by Ben Brooks

SB 268 shortens MD Dream Act tax history from 3 to 2 years, expanding in-state tuition eligibility for MD-educated undocumented students; effective July 1, 2025.

Hearing 1/22 at 10:00 a.m.
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Bill Summary · SB 268

SB 268 — Higher Education: Undocumented Students — Out‑of‑State Tuition Exemption Eligibility (Maryland)

Purpose / Intent

SB 268 narrows one documentation requirement of the Maryland Dream Act (which allows certain noncitizen students to qualify for in‑state tuition). Specifically, it reduces from three years to two years the period for which an individual — or the individual’s parent or legal guardian — must have filed Maryland income tax returns immediately prior to the academic year in order to qualify for the out‑of‑state tuition exemption. The change is intended to make in‑state tuition more accessible to students who attended Maryland high schools but whose families have shorter Maryland tax‑filing histories.

Key provisions

  • Amends Article — Education, § 15‑106.8(b)(4):
    • Replaces the current requirement that the student (or the student’s parent/guardian) filed Maryland income tax returns annually for the 3‑year period before the academic year with a requirement covering the 2‑year period.
  • Other Dream Act eligibility criteria (unchanged by this bill) remain in effect, e.g. attendance and graduation requirements and timely enrollment rules.
  • Effective date: the bill provides that it takes effect July 1, 2025.

Who is affected

  • Primary beneficiaries: students eligible under Maryland’s Dream Act (undocumented or certain nonpermanent residents) who attended and graduated from Maryland high schools but whose families have shorter Maryland tax‑filing histories — specifically those with 2 but not 3 prior years of Maryland income tax filings.
  • Colleges and universities: public institutions in Maryland (community colleges and four‑year institutions) may see changes in the composition of students qualifying for in‑state tuition.
  • State financial aid programs: more students qualifying for in‑state rates could affect eligibility for State‑funded scholarships and grant programs that require in‑state tuition status.

Fiscal and enrollment impacts (summary of fiscal note)

  • The fiscal note projects minimal General Fund expenditure increases and minimal overall impact on local community colleges.
  • Potential effects:
    • Slight increases in the number of full‑time equivalent students (FTES) paying in‑state rather than out‑of‑state tuition at community colleges (including Baltimore City Community College).
    • Possible changes in tuition revenues for public institutions and in the number of students eligible for State scholarships that require in‑state tuition status.
  • Representative figures from the fiscal analysis (illustrative):
    • Estimated in‑state undergraduate tuition (FY2024 estimate): about $10,600 (average).
    • Difference between in‑state and out‑of‑state rates can be large (example: roughly $29,400 difference at UMCP in fall 2024).
    • Community college in‑county tuition example: about $4,800.
  • The fiscal note concludes the net State and local fiscal effects are likely small, though enrollment and revenue shifts could vary by institution.

Procedural / timeline notes

  • Bill text amends § 15‑106.8(b)(4) of the Education Article.
  • Reported effective date: July 1, 2025.
  • Status (as provided): scheduled for hearing (reported as Hearing 1/22 at 10:00 a.m.); check the Maryland General Assembly docket for current committee action and amendments.
  • Because the bill modifies eligibility criteria that feed into funding formulas and scholarship programs, agencies (higher education institutions and financial aid administrators) will need to update application and verification procedures if the change is enacted.

Practical implications

  • SB 268 lowers one administrative barrier to receiving in‑state tuition under the Dream Act, potentially enabling additional Maryland‑educated students to access lower tuition sooner.
  • While the number of newly eligible students is uncertain, the policy change is expected to be modest in fiscal impact but may have outsized importance to affected students and families in easing access to affordable higher education.

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

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