Lowest recognized family responsibility amount modified for purposes of determining state grant awards.

This bill modifies how Minnesota calculates family responsibility amounts for state grant awards, directly affecting students and their families receiving financial aid. It establishes a new rule where any negative parental or student contribution is treated as zero rather than the previous threshold of negative $1,500, while also adjusting percentage calculations for dependent and independent students. The legislation applies to state grant awards beginning in the summer 2026 academic term and includes provisions for adjusting living expense allowances when grant funds exceed projected demand.