To enact section 3333.27 of the Revised Code to enact the Student Choice Grant Program and to make an appropriation.
Summary
HB394 would create the Student Choice Grant Program within the Ohio Department of Higher Education and direct the Chancellor of Higher Education to administer it through rulemaking. The program would provide grants to Ohio residents who have lived in the state for at least two years, are enrolled full-time in a bachelor’s degree program at an eligible nonprofit Ohio college, and meet academic standards set by the chancellor. Students already enrolled in higher education before July 1, 2026, and incarcerated individuals would be ineligible. The bill also bars grants for theology or religious-profession programs unless the program leads to an accredited bachelor’s degree.
The grant amount would be capped at the lesser of a school’s instructional and general charges or a formula tied to state instructional subsidy levels at state universities. Grants would be paid to institutions, which would then reduce student charges, and awards could be received for up to ten semesters, fifteen quarters, or five academic years. The bill includes coordination rules so the grant does not reduce eligibility for, or duplicate, other specified state aid programs, and it requires institutions to report ineligible students and refund overpayments to the state. The measure also appropriates $95 million from the General Revenue Fund for fiscal year 2027 to support the program.
Impact
HB394 would add a new section to the Revised Code, section 3333.27, establishing a state grant program for undergraduate students at eligible nonprofit Ohio institutions and giving the Chancellor of Higher Education broad authority to set eligibility, application, and compliance rules. It would also create a new GRF appropriation line item for Student Choice Grants and authorize $95 million in FY 2027. The bill would affect higher education funding, student aid administration, and participating private nonprofit colleges by requiring them to certify eligibility, apply grant reductions to tuition and fees, and refund improperly received funds.
Sentiment
No committee transcript or vote record is available with the bill text, so there is no documented floor or committee debate to gauge sentiment. Based on the introduced language, the bill appears designed to expand college affordability and student choice, suggesting support from sponsors and likely higher education access advocates. At the same time, the structure of the program and the large appropriation indicate it would likely draw scrutiny over cost, eligibility limits, and the use of public funds for private nonprofit institutions.
Contention
The main points of contention are likely to be the program’s cost, the use of state funds for students attending nonprofit private colleges, and the exclusion of students already enrolled before July 1, 2026. The religious-program restriction may also be controversial because it limits grants for theology or religious-profession degrees unless they lead to an accredited bachelor’s degree. Additional questions may arise over how the chancellor sets academic standards, how the grant interacts with other aid programs, and whether the formula fairly mirrors state university subsidy levels.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3505.01 and 3505.10 of the Revised Code to modify the deadline for a political party to certify its nominees for President and Vice-President to the Secretary of State.
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