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HF 3627

Maximum income eligibility condition for the North Star Promise scholarship program increased, and required transfer of money increased.

2025-2026 Regular Session Introduced by Nathan Coulter and 6 co-sponsors

Boost North Star Promise eligibility to family AGI under $100,000 and lock in multi-year General Fund transfers to higher-ed and related programs through 2027.

Introduction and first reading, referred to Higher Education Finance and Policy
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Bill Summary · HF 3627

Summary of HF 3627 (Minnesota, 2025-2026)

Date: 2026

HF 3627 proposes changes related to Minnesota's North Star Promise scholarship program and related fund transfers. The measure touches income eligibility for the scholarship and adjusts several budget transfers to support higher education programs and other targeted accounts.

1) Purpose and intent

  • Increase the maximum family adjusted gross income (AGI) threshold for North Star Promise scholarship eligibility.
  • Reallocate and increase transfers from the General Fund to various higher education and workforce-related programs, including a larger appropriation to the North Star Promise scholarship fund.
  • Align funding with anticipated program needs through 2027, with explicit annual transfer amounts and forecast-based adjustments.

2) Key provisions and changes

A. North Star Promise scholarship eligibility (Section 1)

  • The income eligibility cap for North Star Promise changes:
    • Previous cap: family AGI below $80,000.
    • New cap: family AGI below $100,000.
  • Other eligibility criteria (summarized):
    • FAFSA or state aid application filed within 30 days after the start of the term.
    • Graduate of a high school or equivalent, or 17+ with admission requirements met.
    • Not yet earned a first baccalaureate degree.
    • Enrolled in at least one credit per term (fall, spring, or summer).
    • Enrolled in a degree, diploma, or certificate program.
    • Not in default on federal/state student loans.
    • Not more than 30 days in arrears in court-ordered child support, or complying with a payment agreement if arrears exceed 30 days.
    • No felony fraud involving Title IV funds.
    • Satisfactory academic progress as defined by statute.
  • Effective date: Fall 2026 academic term.

B. Transfers and funding (Section 2)

The bill amends Laws 2025, First Special Session, ch. 5, art. 1, sec. 5 to specify transfers from the General Fund to several special revenue fund accounts. Notable items include:

  • North Star Promise scholarships (new/dedicated transfer):

    • Transfer amount: $49,500,000 in fiscal year 2026 and the same amount in fiscal year 2027 (the bill indicates the amount was previously $49,500,000 but uses placeholder for subsequent year).
    • Purpose: to fund the North Star Promise scholarship account (136A.1465, subd. 8).
    • Administration: Office of Higher Education (OHE) may use up to a specified percent for program administration (noted as up to five percent in other lines of the section; exact percent for this line is not explicitly restated in excerpt).
    • OHE must coordinate with the Commissioner of Management and Budget (MMB) to ensure transfers appear in each forecast under Minn. Stat. 16A.103 through February 2027 forecast.

  • Other targeted transfers (illustrative examples in the bill):

    • Spinal cord and traumatic brain injury grant account: $2,500,000 in 2026 and $2,500,000 in 2027.
    • Dual training account: $3,132,000 in 2026 and 2027 (with $132,000 annually for transportation and child care competency standards development; 5% admin cap).
    • Large animal veterinarian loan forgiveness account: $325,000 in 2026 and 2027.
    • Agricultural education loan forgiveness account: $45,000 in 2026 and 2027.
    • Inclusive higher education grant account: $750,000 in 2026 and 2027 (formerly referenced as 135A.162; now aligned to 136A.922, subd. 4).
    • All transfers are to be reflected in the special revenue fund, with administration allowances where applicable.

  • Forecast integration: For each transfer, the bill requires MMB to include the corresponding transfer amounts in state forecasts through February 2027.

3) Who is affected

  • Eligible students for the North Star Promise scholarship may qualify at a higher family income threshold ($100,000 AGI rather than $80,000).
  • Prospective and current North Star Promise participants, including families near the previous income cap, could gain increased access.
  • Higher education institutions and state agencies (Office of Higher Education, Management and Budget) involved in program administration and forecasting will implement and monitor these transfers.
  • Other affected programs (spinal cord/traumatic brain injury grants, dual training, veterinary loan forgiveness, agricultural education loan forgiveness, inclusive higher education grants) receive targeted funding to support related services and workforce development.

4) Procedural and timeline notes

  • Effective date for the expanded income eligibility: Fall 2026 term.
  • Transfers to the North Star Promise accounts and other programs are set for fiscal years 2026 and 2027, with ongoing forecast-based updates through February 2027.
  • Administrative allowances are permitted under several transfer provisions (commonly up to 5-10%).

5) Sponsor and status

  • Primary sponsor: HF 3627.
  • Senate/House sponsors include a slate of co-sponsors (Ginny Klevorn, Jess Hanson, Dan Wolgamott, Mohamud Noor, Nathan Coulter, Kim Hicks, Tina Liebling).
  • Status: Introduced and referred to Higher Education Finance and Policy as of 2026-02-23.

Note: The bill text includes placeholders indicating updated forecast amounts for 2027 to be specified in subsequent draft versions.

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

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