Purpose

• This bill makes targeted changes to funding for Minnesota’s state colleges and universities and related programs. It reallocates and adds appropriations to support student services, technology, materials, workforce training, hunger relief, and certain community-based Justice initiatives. It also creates a small new grant program related to restorative practices.

Main Provisions and What the Bill Seeks to Accomplish

• Higher education funding adjustments

  • Operations and Maintenance: Provides 5.7 million annually (FY2026 and FY2027) as supplemental aid to presidents of two-year institutions with at least one campus outside a metropolitan county; requires at least 158,000 to be transferred to each qualifying campus.
  • Attainment gap support: Directs funds to help close the attainment gap by improving retention and completion for students of color.
  • Technology upgrades: Allocates 9.5 million annually for enterprisewide technology, including upgrading the Integrated Statewide Record System and maintaining tech services.
  • Free course materials: Allocates 50,000 annually to reduce student costs by expanding free materials (open educational resources, open textbooks) and support for ZDegrees.
  • Student support services: Allocates 3.158 million annually to expand student support services (addressing basic needs, insecurity, mental health) and to provide systemwide online resources and 24/7 online access for support.
  • Retirement contributions: Allocates 883,000 in FY2026 and 894,000 in FY2027 to cover increased employer retirement contributions for the higher education IPERS plan.
  • Menstrual products: Allocates 282,000 annually to provide access to menstrual products.
  • Unemployment insurance aid: Allocates 809,000 annually to cover unemployment insurance costs for institutions in the system.
  • Juvenile Detention Alternatives Initiative (JDAI) at Metropolitan State University: 500,000 annually to support JDAI work; includes 280,000 per year to provide JDAI services to counties and Tribes and 220,000 per year to local government units, Tribes, and agencies to support local JDAI (including alternatives to detention). This is a one-time appropriation in the sense of how the money is allocated in this bill.
  • PFAS contamination at the Lake Superior College Emergency Response Training Center: 500,000 in FY2026 for one-time environmental cleanup related to firefighting foam, including investigations and reimbursements for past expenses.

• Direct student support

  • Workforce development scholarships: 4.5 million annually for FY2026 and FY2027 under a state scholarship program; up to 5% may be used to administer the programs.
  • Law enforcement grant pilot: 500,000 in FY2027 only from this pool for a law enforcement grant pilot program.
  • Emergency assistance grants: 2.25 million annually for FY2026 and FY2027 to provide emergency aid directly to students, aimed at meeting immediate needs to help them stay in school. The Board must award grants directly to students and include detailed reporting on distribution, application processes, numbers served, average grant amount, and typical wait times.
  • Hunger-free campus: 600,000 annually for FY2026 and FY2027 to support hunger-free campus activities (on-campus food pantries, SNAP/MFIP information, work-study eligibility info, hunger awareness events, emergency grants, and a hunger task force). Institutions must meet specific requirements, and, by February 1 each year, report on activities and outcomes. The program requires matching shares from other resources.

• Regional and network support

  • Cook County Higher Education Board: Provides targeted funding to support remote northeast Minnesota regions; requires ongoing reporting of student numbers, hours delivered, and services.
  • Learning Network of Minnesota: Funding provided to support network activities (specific amounts shown in the bill’s line items).

• Office of Restorative Practices

  • A new appropriation: 500,000 in FY2027 from the general fund to the Commissioner of Children, Youth, and Families to issue grants under Minnesota Statutes section 142A.76, subdivision 5.

• General funding and structure

  • The bill amends a prior appropriation (Laws 2025 First Special Session chapter 5 article 1 section 3) to reallocate and add these amounts across the state’s higher education system and related programs.
  • Most new funding runs through 2026 and 2027, with some one-time components noted (such as PFAS-related cleanup and the JDAI-related allocations for MSU).
  • Some programs require annual reporting to legislative chairs and ranking minority members, with details on distribution, processes, and outcomes.

Significant Changes to Existing Law

• Reallocation and additions to higher education funding across multiple categories (operations and maintenance, technology, student access, mental health and basic needs, and support services).
• New or expanded focus on open educational resources and reduced student costs for course materials.
• Increased attention to student mental health, basic needs, and direct emergency support for students, including a formal reporting requirement.
• Creation of a specific appropriation for restorative practices grants through the Office of Restorative Practices.
• New or expanded funding for JDAI-related activities, including support to counties, Tribes, and local government units.
• One-time funding designations for PFAS remediation related to a specific training center.
• Hunger-free campus requirements with matching funds and formal reporting.

Implementation Notes

• Funding comes from the state general fund.
• Several line items run for FY2026 and FY2027; some components are explicitly one-time or contingent on program requirements.
• Institutions must comply with reporting requirements by February 1 each year for certain programs.

Practical Implications for audiences

• Minnesota State Colleges and Universities will receive more targeted funding aimed at improving retention, completion, and student support, while also investing in technology and open educational resources.
• Students may see more direct emergency aid, hunger-relief resources, and access to menstrual products on campus.
• Regional and tribal considerations are explicitly highlighted, including support for JDAI-related activities and remote-region education programs.
• A new Office of Restorative Practices will start issuing grants to support restorative approaches in youth and families contexts.

Important Terms (to look for in related materials)

• Board of Trustees, Minnesota State Colleges and Universities
• Higher education: Operations and Maintenance; enterprise-wide technology; open educational resources; ZDegrees; Integrated Statewide Record System
• Student support services; basic needs; mental health; 24/7 online access
• IPERS; unemployment insurance aid
• Juvenile Detention Alternatives Initiative (JDAI); Metropolitan State University
• PFAS contamination; Lake Superior College Emergency Response Training Center
• Direct Student Support; workforce development scholarships; law enforcement grant pilot program
• Emergency assistance grants; hunger-free campus; on-campus food pantry; SNAP/MFIP
• Hunger task force; reporting requirements
• Cook County Higher Education Board; remote regions
• Learning Network of Minnesota
• Office of Restorative Practices; grants; Minnesota Statutes 142A.76

Relevant Terms - Board of Trustees; Minnesota State Colleges and Universities; Metropolitan State University - Operations and Maintenance; enterprise-wide technology; Integrated Statewide Record System - open educational resources; open textbooks; ZDegrees - basic needs; mental health; support services; 24/7 online access - IPERS; unemployment insurance aid - Juvenile Detention Alternatives Initiative (JDAI) - PFAS; Lake Superior College Emergency Response Training Center - emergency assistance grants; hunger-free campus; on-campus food pantry; SNAP; MFIP - hunger task force; regional higher education boards (Cook County) - Learning Network of Minnesota - Office of Restorative Practices; grants; Minnesota Statutes 142A.76