Georgia House Bill HB38

Georgia 2025-2026 Regular Session

• Introduced: 1/14/25
• Report Pass: 1/30/25
• Engrossed: 2/19/25
• Refer: 2/20/25
• Report Pass: 3/13/25
• Enrolled: 4/7/25
• Chaptered: 5/12/25
• Passed: 5/12/25

Caption

Education; needs based financial aid program; revise definition of eligible student

Summary

HB38 amends Georgia’s needs-based financial aid program by revising the definition of an “eligible student.” Under the bill, a student must meet the program’s existing income and academic criteria, be eligible for a scholarship or grant under the referenced code section, complete the FAFSA, and have completed a specified share of program credit requirements. The bill changes the credit-progress threshold for eligibility from 70 percent to 80 percent for four-year programs, while leaving the two-year program threshold at 45 percent. The bill also extends the automatic repeal date for the needs-based financial aid subpart from June 30, 2025 to June 30, 2029. It takes effect upon the Governor’s approval or upon becoming law without approval, and it repeals conflicting laws. In practical terms, the measure updates who can qualify for state needs-based aid and keeps the program in place for several additional years.

Impact

HB38 affects Title 20 of the Official Code of Georgia Annotated, specifically the statutory framework for the state’s needs-based financial aid program. It narrows and clarifies eligibility by requiring FAFSA completion and by increasing the completed-credit threshold for four-year students from 70 percent to 80 percent, while preserving the existing 45 percent threshold for two-year students. It also extends the program’s sunset date to 2029, ensuring the statutory authority for the aid program continues beyond the prior repeal date.

Sentiment

The bill appears to have broad legislative support. It passed the House overwhelmingly, 169-3, and the Senate by 46-5, indicating strong bipartisan approval. The available record does not include committee debate, but the vote margins suggest the measure was generally viewed as a routine or favorable update to student financial aid rules rather than a controversial policy change.

Contention

The main policy issue in HB38 is the tightened eligibility standard for four-year students, which raises the required progress toward a degree from 70 percent to 80 percent. Supporters likely view this as a way to target aid to students closer to completion and to encourage timely graduation, while potential critics could argue it may reduce access for students who are still making progress but have not yet reached the higher threshold. The extension of the program’s automatic repeal date was not reflected as contentious in the voting record, given the strong margins in both chambers.