North Star Promise scholarship program eliminated, and unencumbered balances in the North Star Promise special revenue fund account appropriated to the state grant program.

2025-2026 Regular Session Introduced by Keith Allen and 6 co-sponsors

Eliminates the North Star Promise scholarships and redirects unencumbered funds to the state grant program, expanding aid for students while ending North Star Promise awards.

Author added Fogelman

#education-higher

Overview

HF 2192 proposes to eliminate the North Star Promise scholarship program and redirect unencumbered balances in the North Star Promise special revenue fund to the state grant program. The bill was introduced on March 12, 2025. On March 20, 2025, the author was updated to include Fogelman. It has a companion bill in the Senate, SF 2683. The bill is classified under Education-Higher.

What the bill would do

Eliminate the North Star Promise scholarship program.

Transfer any unencumbered (unobligated) balances currently held in the North Star Promise special revenue fund account to the state grant program.

Presumably apply these funds to supporting students through the state grant program, rather than through the North Star Promise mechanism.

Key provisions (as implied by the bill title)

Abolishment of the North Star Promise scholarship program.

Reallocation mechanism for unencumbered funds: the North Star Promise special revenue fund account would serve as the source of funds to be appropriated to the state grant program.

Administrative and budgetary adjustments to reflect the transfer of funds and the discontinuation of the North Star Promise program (exact details would appear in the bill’s fiscal and implementation sections).

Fiscal and financial implications

Direct effect: funds previously devoted to North Star Promise would be redirected to the state grant program, potentially increasing available funding within the state grant framework.

Implications for existing North Star Promise recipients: the program’s elimination would end new and ongoing scholarship awards under North Star Promise; current obligations would be addressed according to the bill’s transition provisions (details would be in the bill).

Budgetary dynamics: the unencumbered balances would be used to augment or support the state grant program, with potential impacts on annual grant allocations and eligibility distributions.

Who would be affected

Prospective and current North Star Promise recipients (and their families): program cessation would end scholarships under North Star Promise.

Students seeking state grants: potential enhancement or expansion of state grant funding, subject to appropriation and program rules.

Higher education institutions and administrators: changes in student financial aid flows and reporting.

Minnesota Office of Higher Education and related budget offices: implementation of the transfer and reallocation.

Procedural and timeline notes

Introduced: March 12, 2025.

Legislative actions: 2025-03-12 (Introduction and first reading, referred to Higher Education Finance and Policy); 2025-03-20 (Author added Fogelman).

Committee action likely to follow in the Higher Education Finance and Policy committee, with potential hearings and amendments.

Related bill: SF 2683 (companion in the Senate).

Additional considerations

Implementation details, including any transition provisions for affected students and institutions, would be addressed in the bill’s clauses on effective dates, appropriations, and any required rulemakings.

Readers should consult the bill text for precise definitions (e.g., “unencumbered balances,” “special revenue fund account,” and “state grant program”) and for any stated effective dates.

Bill