Transcript Highlights:

• And within our institution and our growing institution and thriving institution, inside of our vision
• And within our institution and our growing institution and thriving institution, inside of our vision
• Annually, at our institution, we bring all of our teachers in.
• If you live in Grand Forks County, you have access to 10 institutions: the nine existing institutions
• And so the institution is subsidizing it. Now, so that... The institution is subsidizing it.

Committee: Joint Education Committee

Summary: The meeting focused heavily on dual credit programming across North Dakota, with presentations from Valley City State University, Lake Region State College, Fargo Public Schools, and teachers from West Fargo and Drake-Anamoose. Speakers described dual credit as a way to give high school students college-level rigor, reduce future tuition costs, and help students explore academic and career pathways. Several presenters emphasized that strong local relationships between colleges and school districts are central to program quality, especially in rural areas where access to advanced coursework can be limited. Valley City State University outlined its quality-control model, including annual teacher trainings, syllabus and outcomes alignment, faculty evaluations, qualification standards, school visits, and a goal of building 24-credit College Studies Certificates. The university reported about 504 students in the fall and 559 in the spring, with roughly 5,539 projected credit hours and about 130 students expected to earn the 24-credit certificate. Members asked about faculty qualifications, online versus in-person delivery, student retention, revenue, and whether a more centralized statewide model might be more efficient; the presenter said centralization could reduce duplication but might weaken local relationships and choice. Lake Region State College described a broader regional model, with about 913 dual credit students last fall across 44 school districts, roughly half of them taking online college courses and half taking face-to-face courses taught by qualified high school teachers serving as adjuncts. The college said it has paid for graduate credits to help teachers meet credentialing requirements and reimburses districts for teacher support and materials. Fargo Public Schools reported 50 dual credit courses through multiple higher-ed partners, 1,571 enrollments, and a 12.61% increase in participation, while also raising concerns about inconsistent registration systems, credentialing requirements, and transfer clarity across institutions. Teachers from West Fargo and Drake-Anamoose reinforced the value of dual credit, while noting concerns about retention in foundational science courses and the importance of maintaining rigor and support for students.

Transcript Highlights:

• And I can't think of any institution more important than the institution that prepares young people for
• It does position our institutions and our institutional leaders to really develop a comprehensive plan
• This is how we will ensure our institutions remain relevant.
• This is how we will ensure our institutions remain relevant.
• Also very proud to be an alum from that institution.

Committee: Joint Joint Committee on Bonding, Capital Expenditures and State Assets

Summary: The committee heard testimony on the BRIGHT Act, a higher education capital bill that would use Fair Share surtax revenue to fund major repairs, modernization, and decarbonization projects across UMass, state universities, and community colleges. UMass leadership described a $4.8 billion deferred maintenance backlog, aging buildings, and the need to modernize facilities, improve accessibility, and reduce emissions. Administration officials said the bill would authorize $2.5 billion in capital funding, split roughly 50-50 between UMass and the rest of public higher education, plus additional targeted funding for housing planning, smaller modernization projects, campus master plans, and workforce skills grants. They emphasized that the financing structure is modeled on the Commonwealth Transportation Fund and would not raise student costs, while also supporting affordability through financial aid and free community college. Members raised questions about regional equity, the distribution of funds among the five UMass campuses and the 24 state university/community college campuses, project labor agreements, whether the bill would unlock private or federal matching funds, and how the system is preparing for AI and changing workforce needs. UMass officials said project selection is data-driven, based on deferred maintenance, safety, accessibility, sustainability, and programmatic needs, and that the flagship campus in Western Massachusetts would likely receive a large share because of its size and needs. They also said UMass Boston would receive its own share and would not be shortchanged by the Bayside project. On labor, they said PLAs are commonly used and they would follow existing board and building authority policies. On affordability, they said the university has shifted hundreds of millions into need-based aid and that the state’s recent support has helped keep tuition low for many students. DCAMM and higher education officials said the state’s public campuses account for a large share of state-owned building space and a disproportionate share of operational carbon emissions, making decarbonization a major driver of the bill. They said the legislation would allow larger, more comprehensive projects that can address deferred maintenance, energy efficiency, and program needs at the same time, while also making some projects shovel-ready through the Fair Share supplemental funding already appropriated. A later panel from the State Universities Council of Presidents argued the bill’s authorization is still too small to meet long-term needs and urged the committee to increase the bond cap and ensure a more equitable distribution among segments. No votes or final actions were taken in the portion of the meeting provided.

Transcript Highlights:

• We need to incentivize more of this collaboration across institutions.
• Finally, the state regents will advocate for institutional Institution-specific allocations totaling
• every system institution is impacted.
• The institutions that get the most are not our ones.
• I'm going back to where the institutional specific allocations are. Uh, 291.5 million.

Committee: House Appropriations and Budget

Transcript Highlights:

• And then members must also be part of their institutions...
• Now, this is for all institutions combined.
• Each institution is accounted for and funded separately.
• First of all, this is combined across all institutions.
• This is combined across all institutions.

Committee: Joint Pension Funding Council

Transcript Highlights:

• The institute shall be run by an administrator appointed by the Director of Commerce and will oversee
• The state institution establishes a state debt limit. The issue is...
• The state institution establishes a state debt limit.
• In this last fiscal year, our institutions lost roughly $55 million less than the year before.
• But my research, which is funded by the National Institute of Mental Health, gives me hope.

Bills: SB6321 , SGA9245 , SGA9247 , SGA9250 , SGA9252 , SGA9253 , SGA9254 , SGA9259 , SGA9260 , SGA9261 , SGA9262

Committee: Senate Higher Education & Workforce Development

Keywords: scientific research, innovation, economic growth, Washington Institute, public funding

Transcript Highlights:

• And in addition to the scholarship, it provides institutions with flexible funding for support services
• Post-secondary institutions are also able to identify students through registration and the financial
• So essentially, the way it used to work is that we paid institutions $500 per student per quarter.
• , the institution could choose to use some of that funding to help pay for that salary.
• Students at the public four-year institutions, starting in academic year 2026-27.

Summary: The Senate Higher Education and Workforce Development Committee began with a work session presentation from the Washington Student Achievement Council on the Passport to Careers Program. Staff explained that Passport serves youth who experienced foster care at age 13 or later or unaccompanied homelessness, and that the program provides scholarships and campus support services for college, apprenticeship, and pre-apprenticeship pathways. WASAC said the program is a national model because it uses data-sharing agreements to identify eligible students automatically, is funded by the state, and partners with the College Success Foundation and campus networks to provide support. Officials reported that about 2,000 students will be served in 2025-26, with awards capped at $2,000, and cited an evaluation finding that 31% of participants graduate within eight years, compared with much lower rates for similarly situated students outside the program. Committee members asked about graduation rates for all students, the share of Passport students who are parents, how unaccompanied homelessness is identified, where campus support staff are housed, and how funding is used. WASAC said most students are single without children, unaccompanied homeless youth are identified through McKinney-Vento liaisons, and campus support structures vary by institution. Staff also described how the program has grown 131% since unaccompanied homeless youth became eligible in 2019, while appropriations have remained around $7 million annually, forcing reductions in the maximum scholarship award from $5,000 in 2023-24 to $2,800 and then $2,000 in 2025-26. Officials emphasized that students still face significant unmet need and that campus support funds are often used for basic needs, academic support, and emergency aid. The committee then moved through executive session on several bills and advanced each one with a do pass recommendation to Ways and Means. The bills included SB 5826 on medication abortion access at public postsecondary institutions, SB 5828 on Washington College Grant and College Bound Scholarship awards at private four-year institutions, SB 5909 on low-enrollment undergraduate programs, SB 5931 on WIA board co-chair terms and dashboard requirements, SB 5954 on tuition waivers for certain veteran dependents and survivors, SB 5963 on Passport to Careers funding and eligibility changes, SB 6082 on a state financial aid fraud performance audit, and SB 6090 establishing the Heritage Orchard Program at Washington State University. The committee adopted the proposed substitute for SB 5931 before passing it, and all measures were reported out subject to signatures.

Transcript Highlights:

• </c> combination of of state institutional combination of of state institutional and<00:24:15.600><c>
• Uh there's a Enterprise Institute.
• . institutions. institutions.
• We hold high of our institutions.
• </c> the state um institutions. the state um institutions.

Summary: The committee met with a quorum, approved the previous meeting minutes, and heard a presentation from Austin Reid of the National Conference of State Legislatures on education-related provisions in the federal One Big Beautiful Bill Act (H.R. 1). Reid said the law is projected to increase the federal deficit over 10 years, with major savings coming from Medicaid, student loan changes, and SNAP. He focused on how those changes could affect schools, including possible effects on free and reduced-price meal certification, state funding formulas that use SNAP as a proxy for low-income status, and Medicaid-funded school services for students with disabilities. Reid also outlined the new federal scholarship tax credit, which gives a dollar-for-dollar credit for donations to qualifying scholarship-granting organizations. He said families up to 300% of area median income may benefit, the program begins in 2027, and states must opt in and designate eligible organizations. He noted unresolved questions about whether states can add their own criteria and said Treasury regulations will be important. He also described the expansion of 529 plans to cover more K-12 and postsecondary expenses. On higher education, Reid explained a new workforce Pell grant option for short-term programs, with states and governors playing a role in determining eligible programs. He said the programs must meet placement, completion, and earnings measures and that implementation is expected to be tight before the July 1, 2026 effective date. He also reviewed student loan changes, including lower institutional loan limits, prorated borrowing for part-time enrollment, new caps on graduate and Parent PLUS loans, and a new earnings-based accountability standard that could make some programs ineligible for student loans if graduates earn too little. No votes were taken beyond approval of the minutes.

Transcript Highlights:

• There are nine institutions requesting changes.
• On the first page, it totals the four-year institutions at the bottom.
• I just was curious about two other institutions. Those were ASU.
• Which only applies to money paid by the institution to student athletes.
• , all of the institutions, the agency institutions, if you're interested.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee first considered revisions to the JBC rules, which staff said were all prompted by acts passed in the 2025 legislative session. The rules were adopted without objection. Members then received a balanced budget presentation from DFA Secretary Jim Hudson on the governor’s FY27 proposal, which he said was built around three priorities: limiting state government growth, continuing investments in education, and advancing income tax cuts. He highlighted major additions for education funding, EFA growth, pay plan costs, higher education productivity funding, drug task forces, corrections medical costs, the governor’s 1033 initiative, SNAP error-rate reduction, and Medicaid sustainability, while also explaining a new A/B funding category structure intended to prioritize recurring costs and preserve room for tax cuts. Members questioned Hudson about the cost of income tax reductions, the constitutional balanced-budget requirement, education funding, the Educational Adequacy Fund, Medicaid trust fund balances, and the impact of federal changes on Medicaid and SNAP. Hudson said each tenth of a percent income tax cut would cost about $58 million, the budget remained balanced, public education would still receive historic increases, and the Medicaid trust fund would be monitored closely with additional set-asides proposed. He also said the FY27 SNAP administrative cost increase would be about $18 million. The committee then heard from the Division of Higher Education, which reported institutions were 2.61% more productive overall and that the budget recommendation followed the statutory productivity formula. Questions focused on why some institutions were receiving decreases or large increases, how the formula works, and how the new return-on-investment metric and committee composition would affect future funding. The committee approved several higher education-related actions, including personnel changes for nine institutions and special language for North Arkansas College’s move into the University of Arkansas system. Staff then walked members through the higher education appropriation summary, explaining large percentage increases at several institutions were tied to federal funds or corrected carry-forward issues, including the U of A School of Mathematical, Sciences and the Arts, South Arkansas College, SAU Tech, ASU Mountain Home, and ASU Newport. Members also discussed UAPB’s 1890 extension program and the University of Arkansas Division of Agriculture’s land-grant matching funds; officials said UAPB’s recommendation was being aligned with actual spending and that the Division of Agriculture’s Smith-Lever and Hatch matches were included within its overall appropriation. The committee ultimately adopted the Higher Education Coordinating Board’s recommendations for all institutions and then moved on to the Department of Corrections section, with the chair outlining how the committee would proceed through those appropriations by section.

Transcript Highlights:

• Some such institutions are...
• institutions to move to preeminence?
• I would love for all institutions in Florida to be R1 institutions.
• I would love for all institutions in Florida to be R1 institutions.
• I just want to make sure that institutions don't see it that way, especially those who are R2 or R3 institutions

Committee: Senate Fiscal Policy

Summary: The committee first heard CS for CS for SB 344, which would modernize the Telecommunications Access System Act of 1991 based on Public Service Commission recommendations. The bill drew no opposition and was reported favorably. Members then took up several Senator Burton measures: CS for SB 714 on non-opioid advanced directives, which was amended to create a Department of Health website access point for a voluntary form allowing patients to notify providers they do not want opioid medications; CS for SB 738 on child care and early learning providers, which streamlines and updates child care regulation and was supported by industry and business groups; CS for SB 756 on health insurance coverage for individuals with developmental disabilities, which removes the age-8 diagnosis limit and age cap for mandated autism-related coverage; and CS for CS for SB 1356, creating a Florida Institute for Pediatric Rare Diseases at FSU and a newborn genetic testing pilot, later amended to add FIU and Nicklaus Children’s Hospital to the board and remove specific appropriations. All of these bills were reported favorably. The committee also approved CS for CS for SB 1624 on higher education, a broad bill affecting tuition policies, workforce programs, institutional governance, and naming changes. The bill generated extended discussion over replacing references to “minority” with “underrepresented,” with the sponsor explaining the intent was to focus on low-income access and student support, while members raised concerns about impacts on majority-minority institutions and preeminence pathways. An amendment added guardrails for private religious postsecondary institutions by requiring public review of affidavits of compliance and giving the Commission for Independent Education enforcement authority. After debate, the bill was reported favorably. The committee then passed CS for SB 1626 on child welfare, which addresses military-family investigations, emergency shelter certification, children’s services council appointments, criminal-background exemptions, group-home rates, licensing extensions, small residential group homes, missing-children procedures, and psychotropic medication refills; it was amended to adjust council board composition and then reported favorably. Additional bills approved included SB 178, directing Florida A&M University to conduct an agronomic study on emerging crops for land taken out of production; SB 1162, expanding boating improvement funding for trailer parking and offering lease incentives for clean marine manufacturers; CS for CS for SB 958, creating a type 1 diabetes early detection information program for parents and schools; CS for CS for CS for SB 1070, requiring ECGs for student athletes with phased implementation and exemptions, after extensive testimony from parents and advocates about sudden cardiac arrest; CS for SB 774, requiring electronic transmission of certain court orders to sheriffs within six hours; SB 1516, creating an International Aerospace Innovation Fund administered by Space Florida; SB 994, revising driver education requirements and prompting a commitment to add distracted-driving instruction; and CS for CS for SB 1402, expanding eligibility for dropout retrieval programs. The committee also took up SB 810 on stormwater management systems, amending it to focus annual inspections on vulnerable MS4 infrastructure. That bill drew significant opposition from the Florida League of Cities, counties, and stormwater groups, who argued the mandate would duplicate existing permit requirements and impose major costs, but supporters said it was a basic flood-prevention measure. The transcript ends during debate on SB 810, before a final vote is shown.

Transcript Highlights:

• Participating institutions must send their data to WASAC annually.
• I'm the chief operating officer of DigiPen Institute of Technology.
• I'm the director of the Seattle Film Institute.
• I'm the president and founder of Seattle Film Institute.
• My name is Julian Loisa, fifth year at DigiPen Institute of Technology.

Summary: The committee began with a work session on dual credit, hearing first from the Council of Presidents and the State Board for Community and Technical Colleges, then from the Education Research and Data Center. The dual credit overview described Washington’s six dual credit programs, high participation rates, transferability, and recent efforts to improve transparency, pathways, and equity. Testimony emphasized both benefits and challenges, including access, funding, advising, and the need for clearer statewide coordination. ERDC outlined its annual report, dashboard, research briefs, and future work on school-level factors and possible causal effects of dual credit participation. No votes were taken during the work session. The committee then held public hearings on several bills. SB 6227 would direct WSAC to work with public higher education institutions to create formal data collection protocols for parenting students and convene a work group to recommend how to identify and support them. Senator Wilson and multiple student and advocacy witnesses supported the bill, citing the lack of consistent statewide data and the barriers parenting students face; WSAC testified that its research found significant food, housing, and child care insecurity among these students. SB 6235 would prohibit public colleges with athletics programs from entering certain private equity or sovereign wealth fund agreements involving athletics revenues or control. Senator Holy said the bill was intended to prevent loss of institutional control, while UW and WSU testified in opposition, warning it could limit flexibility and create competitive disadvantages. The committee also heard SB 6217, which would expand Washington College Grant eligibility to students in eligible non-degree credential programs beginning in 2027-28. Supporters from the community and technical college system, a community college president, and workforce representatives said the bill would help students access short-term training for family-wage jobs and address workforce shortages, especially in construction trades. Finally, SB 6209 would restore Washington College Grant and College Bound Scholarship eligibility for certain private four-year and career/vocational schools if they meet a gainful-employment standard. DigiPen, Evergreen Beauty College, Seattle Film Institute, and related students and administrators testified in support, arguing the bill would preserve access for low-income and nontraditional students in career-focused programs; some witnesses on the bill’s earlier panel also urged that certificate and two-year programs be included. The hearings were managed with shortened testimony times because of the large number of sign-ins, and no final committee action or votes were recorded in the transcript.

Transcript Highlights:

• So you have sector by sector information, region by region, educational institution by educational institution
• throughout the report, and then just who all the partners are. institution by educational institution
• I launched, in 2023, the vision of our institute.
• Then we just designed programs with those institutions.
• And again, it gives those educational institutions.

Summary: The Careers and Workforce Subcommittee met for its first meeting of the year, took roll, and heard member introductions centered on the importance of workforce pathways beyond the traditional four-year college route. Members repeatedly emphasized manufacturing, trades, rural workforce needs, apprenticeships, and helping students and adults find multiple paths to good jobs. The chair outlined the subcommittee’s focus on policies that build a skilled workforce and announced the day’s theme would be manufacturing, with presentations from the Florida Department of Commerce, the Florida Semiconductor Institute, and Fleet Force CDL training. Secretary Alex Kelly presented Florida’s manufacturing report, saying manufacturing is a major economic driver and that Florida has become the 10th largest state in manufacturing employment. He highlighted strong job multipliers, rapid growth in manufacturing GDP and establishments, the importance of logistics and ports, and the state’s small-business-heavy manufacturing base. He also stressed the aging manufacturing workforce, the need for modern skills such as robotics, cybersecurity, and data analytics, and the role of public-private partnerships, apprenticeships, and workforce education investments in supporting reshoring and industry growth. Dr. David Arnold described Florida’s semiconductor sector and the Florida Semiconductor Institute’s mission to grow research, workforce, and ecosystem development. He said semiconductors are strategically important, Florida ranks fifth nationally in semiconductor workforce, and the main bottleneck is mid-level technician talent rather than engineers or entry-level workers. He pointed to NeoCity, Valencia College, and other regional partnerships as models, and said the state needs more proactive planning, better instructor capacity, and stronger pathways from K-12 through postsecondary. Evan Agiloff of Fleet Force discussed Florida’s CDL shortage, saying trucking is essential to the supply chain, Florida has about 18,000 open CDL positions, and Fleet Force’s college-based model can quickly move students into middle-class jobs. Members asked about apprenticeships, CTE pathways, semiconductor training, infrastructure needs, and how to expand and better fund workforce programs; no votes were taken.

Transcript Highlights:

• It was a much smaller institution, with around 16,000 students.
• So we're really, really proud of the DNA of our institution.
• From the largest institutions to smaller institutions, these partnerships will allow us to develop clinical
• are institutions we will partner with.
• Of the institutions, we've had no opposition.

Bills: HB42 , HB 125 , HB 1233 , HB2853 , HB3148 , HB3326 , HB3701 , HB4066 , HB4361 , HB4762 , HB4909 , HB4912 , HB42 , HB125

Committee: House Higher Education

Summary: The Committee on Higher Education met to hear several bills and first corrected the minutes from its April 1, 2025 meeting to reflect that a committee substitute for HB 271 had been adopted before the bill was reported favorably. The committee then heard HB 3326, which would help Texas higher education employees, especially adjunct faculty, qualify for federal Public Service Loan Forgiveness by counting classroom hours toward full-time status, requiring institutions to verify employment within 60 days, and requiring annual notice to eligible employees. No witnesses testified against the bill, and it was left pending. Members then heard HB 2853, authorizing UTEP to phase in a student union fee increase to fund demolition and reconstruction of its aging student union. Representative Perez and UTEP student and university witnesses said the current facility is outdated and insufficient for a campus of more than 25,000 students, while some members raised concerns about the size of the fee increase and its impact on low-income students. UTEP representatives said most students receive aid, the fee would be phased in over time, and the project was student-approved; the bill was left pending. The committee also heard HB 4066, a one-line bill to abolish the Texas Research Incentive Program after the state cleared its backlog of matching obligations, with the author saying the program was no longer needed in light of newer research funding approaches. The bill was left pending. The committee spent substantial time on HB 125, which would create the Tarleton State University College of Osteopathic Medicine. Supporters, including Tarleton leadership, the founding dean, a rural hospital CEO, and a feasibility consultant, argued the school would address severe rural physician shortages by recruiting Texas and rural students, training them in rural settings, and developing new residency slots rather than competing for existing ones. Members asked about affordability, residency placement, and whether the school would draw students from rural Texas; Tarleton said it would seek to keep tuition and debt low, had already raised private donations, and would request $25 million in state support over the biennium. The bill was left pending. Finally, the committee heard HB 42, which would increase the annual Higher Education Fund appropriation and adjust its allocation methodology. The chair and university witnesses described rising deferred maintenance, inflation, cybersecurity needs, and enrollment growth at HEAF-eligible institutions, with witnesses from Texas Tech, Sam Houston State, and UNT saying the additional funding would help address aging facilities and technology needs. After testimony, the committee left HB 42 pending and recessed.

Transcript Highlights:

• Costs are borne by the institutions, not the public.
• It amends the existing mandated reporting section of the Welfare and Institutions Code whereby an institution
• It amends the existing mandated reporting section of the Welfare and Institutions Code whereby an institution
• There certainly is no feedback loop to close the loop with the institution and notify the institution
• Sometimes they send the information to the banking institutions, but the banking institutions don’t let

Committee: Senate Banking and Financial Institutions

Transcript Highlights:

• how the elite flagship institutions in this country are. be a top 50 research institution because that's
• They like their experience at the regional institution.
• It ensures institutional quality, integrity, and viability.
• While institutions are accredited at the institutional level, some programs also host specialized accreditation
• Department of Education for institutional accreditation.

Committee: House Education

Summary: The House Education Committee met on May 6 and first welcomed LSU President Wade Roos and Chancellor Jim Dalton, who outlined LSU’s goals of becoming an elite, accessible flagship university, increasing research expenditures, improving student recruitment and retention, and expanding pathways that keep Louisiana students in-state. Members praised the new leadership and LSU’s workforce and research direction, and a representative from LSU enrollment reported gains in TOPS Excellence commitments for the coming fall. The committee then advanced several education bills. SB 105 by Sen. Kathy, which reinstates TOPS Tech eligibility for honorably discharged veterans, was reported favorably without objection. SB 374, also by Sen. Kathy, creates a uniform framework for college economic development districts; members adopted an amendment adding a legislator to each district board, and the bill was reported favorably with amendments. SB 304 by Sen. Edmonds, which authorizes the Board of Regents to establish a list of eligible accreditors and allows institutions to seek different accreditors, was reported favorably. SB 522 by Sen. Edmonds, allowing vocational and technical charter schools to apply directly to BESE as Type 2 charters with Commerce and Industry support, drew discussion about whether the authority should extend to public schools as well; it ultimately passed 9-1. The committee also approved SB 290 by Sen. Abraham, a cleanup bill requiring school system concurrence before student exit-code changes in the data system, and HCR 81 by Rep. Freiberg, which asks the Department of Education to study options for districts facing declining enrollment and related financial pressures. HCR 175 by Rep. Larvadain, a study resolution on possible TOPS Tech changes, was deferred by the author because it overlapped with another measure. Several members also used personal privilege to welcome local mayors and community guests to the committee room.

Transcript Highlights:

• </c><00:07:12.319><c> type</c> dependency status and institution type dependency status and institution
• </c> students at more expensive institutions. students at more expensive institutions.
• </c> standpoint uh all of these institutions standpoint uh all of these institutions working<00:33:05.519
• institutions like to come share their institutions like to come share their perspectives?
• </c> correctional institution. correctional institution.

Summary: The Higher Education Conference Committee reviewed differences among the Governor’s, House, and Senate proposals for state grant parameter changes and their effects on state grant spending, North Star Promise spending, and average student awards. Nonpartisan staff explained that the proposals use different combinations of parameter changes, with the Governor’s and Senate plans modeled to avoid or minimize rationing, while the House plan would require rationing to balance the program. Staff reported projected biennium balances of a positive $29.836 million for the Governor’s proposal, a negative $60.758 million for the House proposal without rationing, a positive $994,000 for the House proposal with rationing, and a positive $3.623 million for the Senate proposal; North Star Promise balances also varied, with the Senate showing a positive balance and the Governor and House with rationing showing negative balances. Staff also said the Senate proposal would extend availability of the state grant appropriation and suspend surplus procedures through fiscal year 2029, allowing the balance to carry forward. The committee then focused on the House-only tuition and fee cap provision, which would limit the tuition recognized for state grant purposes for four-year programs to the University of Minnesota Twin Cities level, with 1% annual increases in fiscal years 2026 and 2027. House members said the cap was intended to address rising tuition, especially at the University of Minnesota, and to produce savings in the state grant program. The governor’s office confirmed the provision was not included in the Governor’s bill. Representatives from the University of Minnesota and the Minnesota Private College Council opposed the cap, arguing it would reduce awards for low-income students and shift costs to students rather than address underlying tuition pressures; they also said it could discourage enrollment at higher-cost institutions. Supporters from Minnesota State argued the cap would improve fairness because students at lower-tuition institutions are effectively capped lower, while students at more expensive institutions receive larger awards, and they said the legislature should intervene in a variable that has grown substantially over time. Committee members questioned how the cap would work and whether it was tied to the Twin Cities campus rate. Testifiers clarified that the state grant formula is tied to the University of Minnesota level, but because Minnesota State institutions are below that level, the cap effectively limits their students to their own lower tuition while allowing higher awards at the University of Minnesota and private colleges. No formal vote or final action was taken in the portion of the meeting provided; the chair indicated the committee would continue with item-by-item review of the remaining parameter changes and hear additional testimony from agencies and institutions.

Transcript Highlights:

• </c><00:08:53.360><c> to</c> traditional financial institutions to traditional financial institutions
• </c><00:12:54.399><c> had</c> regulated financial institutions had regulated financial institutions had
• </c><00:13:24.639><c> almost</c> is each financial institution almost is each financial institution almost
• ><c> decide</c><00:13:31.519><c> who</c> financial institution A can decide who financial institution
• I don't know their own institution?

Summary: The meeting began with roll call and approval of the prior meeting minutes, which passed unanimously. Members then introduced the day’s presentations, including one on the Canton network and another on tokenizing real-world assets, with a focus on how blockchain systems can support regulated financial institutions and asset tokenization. Julie, the director of policy and government affairs at Digital Asset, presented on the Canton network, describing it as a privacy-enabled public blockchain designed for regulated finance. She said tokenization should preserve the same legal and economic rights as the underlying asset, and argued that blockchain-based books and records can shorten settlement times, improve 24/7 trading, and reduce friction in capital markets. She identified three main barriers to institutional adoption of public blockchains: lack of privacy, limited throughput/scalability, and lack of control for compliance purposes such as freezing assets, pausing transactions, and meeting AML/sanctions obligations. She explained Canton’s structure as a public, permissionless network with application-level privacy controls, a global synchronizer, and super validators chosen by vote. She also highlighted current ecosystem participants and use cases, including Broadridge, Circle, and the DTCC’s planned tokenization of U.S. Treasuries on the network. Members and online participants asked about the relationship between tokenized assets and the Clarity Act, tokenized deposits, safeguards for faster settlement, and whether the platform could be used for municipal or property records. Julie said Digital Asset was not taking a position on rewards, but supported clearer statutory definitions because tokenized securities should carry the same rights as the underlying assets and investors need to know whether a token is a true tokenized security or a synthetic/reference token. She said the company is agnostic on whether the cash leg is stablecoins or tokenized deposits, though it expects both to develop. In response to concerns about rapid settlement, she pointed to institution-level permissions and SEC disclosure expectations as safeguards. She also said the technology could be used for other records, including potentially property-related records, if those assets can be tokenized.

Transcript Highlights:

• Most students incur institutional debt Most students incur institutional debts when they withdraw from
• And the institution... It is required to pay that back.
• I think for us, obviously, it's going to be an institution-by-institution determination since all our
• colleges are independently operating. ...to, I think, be an institution-by-institution determination
• I'm representing the Central Valley Institute, and I'm sorry.

Summary: The committee hearing covered several higher education bills, with extensive testimony on student aid, affordability, and institutional debt. AB 587 would add veteran representation to the California Student Aid Commission; the author said the change would bring lived experience from the veteran community to student aid policy, and members raised a concern about keeping the commission’s membership odd-numbered, which the author said would be addressed by amendment. AB 791 would standardize cost-of-attendance housing calculations using objective data and improve notice of the adjustment process; supporters said current budgets often underestimate students’ real living costs, while UC, CSU, and independent colleges opposed or had concerns about the bill’s prescribed methodology, fiscal impact, and a 14-day turnaround for adjustments. AB 850 would create a one-term grace period for students with institutional debt to re-enroll while arranging repayment, bar reporting that debt to credit agencies, and require more transparency; proponents described students being blocked from continuing school over debts, while CSU, UC, and private-college representatives said they already use holds and payment plans and worried about added liabilities and budget pressures. AB 537 would extend the California College Promise Program to part-time community college students; supporters said most community college students attend part-time and should not be excluded from fee waivers, while the committee noted fiscal concerns but ultimately advanced the bill. AB 7 would allow universities to consider whether an applicant is a descendant of American chattel slavery in admissions as a reparative measure; supporters framed it as lineage-based reparative justice, while opponents argued it would function as a racial proxy and conflict with Proposition 209 and equal-protection principles. The committee took roll-call votes on the measures, advancing AB 587, AB 791, AB 850, and AB 537 to Appropriations, with AB 850 and AB 537 receiving fewer votes and the roll left open for additional members.

Transcript Highlights:

• </c> become Tuskegee Institute. Dr. become Tuskegee Institute. Dr.
• On the tenure institutions forward.
• </c> as a legislative body our institutions as a legislative body our institutions do<02:07:28.600><c
• </c> institutions and let's keep it that way. institutions and let's keep it that way.
• . institution. institution.

Transcript Highlights:

• </c> institutions overseen by the department. institutions overseen by the department.
• Before, it was more broad, to financial institutions, but it is really the lending institutions that
• :24:31.320><c> institution</c><01:24:32.080><c> for</c> institution to financial institution for institution
• Section 35 financial institution.
• </c> institutions supervision fund. institutions supervision fund.

Transcript Highlights:

• Public institutions can be oriented fully toward public goals and can have increased transparency and
• tend to rely on private institutions for and outsource much of the control and income related to the
• , which otherwise are out in shark-infested waters competing with Wall Street institutions.
• I’m able to leverage it further through my 91 financial institutions.
• The benefits of such an institution would be numerous.

Bills: SB5754

Committee: Senate Ways & Means

Keywords: public bank, state bank, finance, banking regulations, economic development, state investment