Lowest recognized family responsibility amount modified for determining state grant awards, and surplus program funds to award recipients directed at public institutions only.

This bill modifies how Minnesota calculates family responsibility amounts for state grant awards and directs surplus funds to public institutions only. It changes the calculation so that if a family or student contribution is negative, the assigned family responsibility is set to zero rather than applying a percentage to negative values. Additionally, any excess grant funds will now be used exclusively to increase living and miscellaneous expense allowances for students at public colleges and universities. The changes take effect for state grant awards beginning in the summer 2026 academic term.