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SF 4638

Omnibus Higher Education supplemental appropriations

2025-2026 Regular Session Introduced by Omar Fateh

The bill funds Minnesota higher education with a new persistence grant program and requires direct admissions participation starting 2029, plus targeted one-time money for key prog

Comm report: To pass as amended and re-refer to Finance
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Bill Summary · SF 4638

Summary of SF 4638 (2025-2026) – Omnibus Higher Education Supplemental Appropriations

NI: Minnesota Senate, sponsored by Fateh. Committee: Higher Education; status: referred to Finance after a pass-as-amended.

This bill provides supplemental funding for higher education programs and makes policy changes related to direct admissions, student persistence, and related higher education initiatives. It includes targeted one-time appropriations for FY 2027 and establishes a new student persistence grant program, among other provisions.

1) Primary Purpose and Intent

  • To augment funding for higher education programs in Minnesota, with a focus on:
    • State grant programs and related higher education services
    • Support for the University of Minnesota through targeted extension staffing
    • Initiatives to promote direct admissions and student persistence
    • Establishment of a new student persistence grant program to help at-risk students complete degrees

2) Key Provisions and Changes

Article 1: Higher Education Appropriations

  • State Grant Program
    • One-time appropriation of $131,000,000 in FY 2027 from the General Fund for the state grant program (in addition to a prior 2025 special session appropriation).
  • Minitex
    • One-time appropriation of $1,500,000 in FY 2027 for Minitex (a library and information services program), in addition to existing funding.
  • Direct Admissions Program
    • One-time appropriation of $253,000 in FY 2027 for the direct admissions program (in addition to existing funding).
  • Minnesota P-20 Education Partnership
    • One-time appropriation of $1,060,000 in FY 2027 to support the P-20 partnership activities under §127A.70.
  • Student Persistence Grant Program

    • One-time appropriation of $900,000 in FY 2027 to establish a new student persistence grant program.
  • University of Minnesota

    • One-time appropriation of $150,000 in FY 2027 to the Board of Regents for a new Extension staff position (to support farmer-lender mediation under Mn Stat. ch. 583).

Article 2: Higher Education Policy

  • Participation in Direct Admissions Program (Section [120B.1251])

    • Beginning in the 2029-2030 school year, each public high school district or charter school must participate in the Direct Admissions Program under §136A.84, unless the district school board adopts a written resolution exempting specific high schools.
    • Effective date: July 1, 2026.
  • Expiration of Certain Provisions (Section 583.215)

    • Extends expiration dates for several statutory sections (including 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 to 583.32) to June 30, 2027 or 2032 (as applicable). This appears to be a sunset or extension of related authorities.
  • Student Persistence Grant Program (Section 3)

    • Creation of a competitive grant program administered by the Commissioner of Higher Education to support persistence among students at Minnesota public postsecondary institutions that opt to participate.
    • Program Requirements:
    • Initial cohort of at least 1,000 students.
    • Focus on students with strong potential for degree completion but at risk due to academic, financial, or systemic barriers (including “academic middle” students with about a 2.5 GPA or higher).
    • Use proactive, individualized coaching and coordinated academic and financial aid support to improve persistence and completion.
    • Implement a structured model with:
      • Assessment of persistence risk across academic, financial, and social-emotional domains
      • Tiered intervention strategies prioritizing those facing greatest barriers
      • Targeted supports for academic progress, financial aid stability, and student engagement
      • Coordination with campus partners to align supports with existing services
    • Eligible Applicants:
    • Nonprofit organizations or other entities with experience serving low-income Minnesota students, especially those in the academic middle.
    • Contracted Partner Qualifications:
    • Near-peer or individualized persistence coaching
    • Track record of supporting persistence or college completion for low-income students
    • Experience across multiple Minnesota public higher education systems (Minnesota State Colleges and Universities and University of Minnesota)
    • Ability to serve a cohort of at least 1,000 students annually
    • Experience supporting families at or below 275% of the federal poverty guidelines
    • Experience working with academically middling students
    • Data systems capable of tracking persistence, completion, and KPIs
    • Use of student engagement tools for proactive interventions
    • Reporting and Evaluation:
    • Annual report to legislative chairs and ranking minority members until all funds are expended and terms met
    • Report content to include persistence and completion outcomes, retention rates, credential attainment, financial aid renewal rates, comparison to demographically similar non-participants, and recommendations on sustainability and potential statewide expansion

3) Who Would Be Affected

  • Postsecondary students in Minnesota, particularly:
    • Participants in the state grant program and financial aid
    • Students at institutions involved in the direct admissions program
    • Participants in the new student persistence grant program (targeted to at-risk students, including those in the “academic middle”)
  • Public high schools (districts and charter schools) via the direct admissions program requirement starting 2029-2030
  • Higher education institutions and systems (Minnesota State Colleges and Universities and University of Minnesota) through program requirements and data reporting
  • The University of Minnesota Extension program, via an additional staff position funded on a one-time basis
  • Public postsecondary institutions and related partners collaborating with grant recipients

4) Procedural and Timeline Highlights

  • Effective Date: July 1, 2026 for the direct admissions participation requirement (Sec. 1 of Article 2).
  • FY 2027: Most new one-time appropriations are targeted for FY 2027 (state grant program, Minitex, direct admissions, P-20, and persistence grant program, plus the UMN Extension position).
  • Expiration/Extension: Several statutory sections’ expiration dates are extended to June 30, 2027 or 2032 (as specified), indicating temporary or transitional authorities.
  • Reporting: Annual reporting requirement by the Commissioner of Higher Education until all grant funds are expended and terms met, including detailed outcomes and recommendations.

5) Notable Observations

  • The bill emphasizes supporting students at risk of noncompletion through a structured persistence grant program with rigorous requirements for implementation, coordination, and evaluation.
  • A strong focus on the “academic middle” and low-income students, with explicit data and outcomes tracking.
  • The direct admissions participation is phased in with a statewide mandate starting in the 2029-2030 school year, subject to exemptions via school board resolutions.

Overall, SF 4638 advances targeted funding and policy changes intended to reduce college attrition, expand direct admissions connectivity between high schools and postsecondary institutions, and create a scalable framework for student persistence supports across Minnesota’s public higher education system.

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

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