Undocumented noncitizens made ineligible for state financial aid programs.
HF1323 would prohibit undocumented noncitizens, and other noncitizens not lawfully present in the United States, from receiving any state-funded financial aid or assistance administered by the commissioner of higher education. The prohibition is broad and covers payments, grants, loans, subsidies, and other forms of aid funded by state tax revenue. The new restriction would take effect the day after final enactment and would apply to financial aid awards beginning with the fall 2025-2026 academic year.
The bill also amends the definition section for Minnesota’s North Star Promise scholarship law. It clarifies the meaning of “eligible student” and revises the definition of “gift aid,” while preserving the treatment of aid from federal, state, institutional, and private sources. It also specifies that aid designated for other expenses such as books, supplies, child care, emergency assistance, food, and housing is not considered gift aid for purposes of the scholarship program. These changes would apply to scholarship awards beginning in the fall 2025-2026 academic year.
If enacted, HF1323 would change Minnesota higher education law by making undocumented noncitizens ineligible for state-funded financial aid and by aligning related scholarship definitions in chapter 136A. The bill would directly affect the Minnesota Office of Higher Education, public postsecondary institutions, Tribal colleges, and students seeking state grants, loans, or scholarships. It would also narrow access to the North Star Promise scholarship and other state-supported aid programs for students who are not lawfully present in the United States.
No committee testimony, vote record, or other discussion is provided in the materials, so there is no documented public or legislative sentiment to summarize from the record. Based on the bill text alone, the measure appears to reflect a restrictive policy approach to state aid eligibility rather than a broadly inclusive one.
The central point of contention is likely the exclusion of undocumented and otherwise unlawfully present noncitizens from state financial aid, which would affect access to higher education funding for immigrant students. Supporters would likely view the bill as limiting state spending to lawful residents and aligning aid with immigration status, while opponents would likely argue it creates barriers to college access and disproportionately harms immigrant communities. The amendment to North Star Promise definitions may also draw attention because it changes how scholarship eligibility and gift aid are calculated.