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HF 4572

Office of Higher Education prohibited from using public money to support low-earning degree programs, and report required.

2025-2026 Regular Session Introduced by Bidal Duran

The bill bars state funds and aid programs from supporting any degree program that has lost federal aid eligibility, directing resources to higher-earning programs instead.

Introduction and first reading, referred to Higher Education Finance and Policy
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Bill Summary · HF 4572

Summary: HF 4572 (2025-2026) – Office of Higher Education Prohibited from Using Public Money to Support Low-Earning Degree Programs; Required Report

Purpose and intent

  • Prohibits the Minnesota Office of Higher Education (OHE) from allocating or expending state funds to directly or indirectly support degree programs deemed “low-earning.”
  • Aims to align state financial support with programs that maintain eligibility for federal funding and presumably offer better student outcomes and labor market value.

Key provisions and changes

Definition

  • A “low-earning degree program” is defined as a program that has lost eligibility to receive federal money under United States Code, title 20, section 1087d(c). (U.S. Code 1087d concerns federal student aid eligibility related to: program participation, accrediting, and related criteria.)

State money restriction

  • The commissioner (presumably the Commissioner of the Office of Higher Education) may not allocate or expend state money in any program administered by OHE to directly or indirectly support a low-earning degree program.
  • This prohibition applies to: 1) Student financial aid programs (including programs under Minnesota Statutes chapters 136A.091 to 136A.1465). 2) Student loan programs and loan repayment programs (including programs under chapters 136A.15 to 136A.1796). 3) Programs providing state money to institutions, including any grant programs.

Public information and reporting (annual requirements)

  • The commissioner must annually review federal determinations of low-earning degree programs.
  • The commissioner must maintain a publicly accessible list on OHE’s website of all current low-earning degree programs at Minnesota postsecondary institutions.
  • By February 15 each year, the commissioner must report to the chairs and ranking minority members of the legislative committees with jurisdiction over higher education finance and policy. The report must include: 1) The current list of low-earning degree programs in Minnesota. 2) Information about enforcement and implementation of this section by OHE. 3) The estimated amount of state money saved, reallocated, or redirected away from low-earning degree programs as a result of this section.

Administration and rules

  • The commissioner must develop policies and adopt rules as needed to implement this section.
  • Effective date: The section becomes effective the day after final enactment.

Who and what is affected

  • Affected entity: Minnesota Office of Higher Education (OHE) and its programs.
  • Impacted programs: Any degree programs that are newly identified as “low-earning” per federal eligibility determinations, including:
    • Federal aid-eligible status of programs (loss of eligibility triggers the designation).
    • OHE-administered student financial aid, student loan, loan repayment, and grant programs.
  • Stakeholders likely affected:
    • Postsecondary institutions that host or offer low-earning programs and rely on state funds or state-supported aid/grants.
    • Current and prospective students in affected programs (potentially influencing tuition and finance options).
    • State policymakers and higher education finance policymakers reviewing annual reports and budget implications.

Procedural and timeline aspects

  • Trigger: Identification of low-earning programs via federal determinations (annual review).
  • Reporting deadline: February 15 each year for the legislative committees.
  • Public reporting: Maintenance of a current list on OHE’s website.
  • Implementation: OHE to develop policies and rules; ongoing administrative duties begin after enactment.

Potential impact and considerations

  • Financial impact: State funds allocated to low-earning programs would be redirected or eliminated, potentially freeing resources for higher-earning programs or other state priorities.
  • Compliance burden: Institutions may need to adjust or terminate programs in response to funding restrictions and/or redirection.
  • Transparency: Annual public reporting and a public online list increase visibility into which programs are considered low-earning.
  • Federal eligibility dependence: The measure ties state funding decisions to federal eligibility determinations, which can be subject to change by federal policy.

Note: The summary reflects the bill text as introduced and does not account for amendments or legislative revisions that may occur during the session.

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

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