HB 2525 — An Act amending the act of July 18, 1974 (P.L.483, No.174), known as The Institutional Assistance Grants Act, repealing provisions relating to legislative findings; further providing for definitions, for institutional assistance grants and for assistance grant fund; and repealing provisions relating to appropriation.

PRINTER'S NO.   3418

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2525
                                               Session of
                                                 2026

     INTRODUCED BY FLEMING AND SANCHEZ, MAY 20, 2026

     REFERRED TO COMMITTEE ON EDUCATION, MAY 20, 2026


                                    AN ACT
 1   Amending the act of July 18, 1974 (P.L.483, No.174), entitled
 2      "An act authorizing the Pennsylvania Higher Education
 3      Assistance Agency to make institutional assistance grants on
 4      behalf of Pennsylvania State scholarship students attending
 5      independent institutions of higher education in the
 6      Commonwealth, and making an appropriation," repealing
 7      provisions relating to legislative findings; further
 8      providing for definitions, for institutional assistance
 9      grants and for assistance grant fund; and repealing
10      provisions relating to appropriation.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.    Section 2 of the act of July 18, 1974 (P.L.483,
14   No.174), known as The Institutional Assistance Grants Act, is
15   repealed:
16      [Section 2.    Legislative Findings.--The General Assembly has
17   found and hereby declares that:
18      (a)   The Commonwealth is committed to the development and
19   preservation of a planned and diverse system of higher education
20   which encompasses both public and independent institutions. The
21   percentage of students attending independent institutions in the
22   Commonwealth is forty-two per cent (42%), which figure is much
 1   higher than the national average of twenty-four per cent (24%).
 2   Independent institutions make a significant contribution to
 3   higher education in the Commonwealth and it is in the public
 4   interest to facilitate optimum utilization of all higher
 5   education resources in the Commonwealth.
 6      (b)    Tuition and fees charged to students by independent
 7   institutions, even when financed by various types of student
 8   financial aid, do not cover the cost of education. Many
 9   independent institutions are, therefore, presently faced with
10   serious financial difficulties. These difficulties inhibit their
11   ability to provide higher education to the Commonwealth students
12   and, therefore, impair the provision of higher education in the
13   Commonwealth and increase the burden on public institutions.
14      (c)    The institutional assistance grants on behalf of
15   Pennsylvania scholarship students attending independent
16   institutions authorized herein are designed to assure maximum
17   educational choice by preserving the quality of independent
18   institutions and will tend to moderate the costs charged to
19   students at independent institutions.]
20      Section 2.    The definitions of "assistance grant,"
21   "assistance grant fund" and "State-owned institutions" in
22   section 3 of the act are amended to read:
23      Section 3.    Definitions.--As used in this act:
24      * * *
25      ["Assistance grant" shall not exceed four hundred dollars
26   ($400).
27      "Assistance grant fund" shall mean the aid received pursuant
28   to this act on behalf of Pennsylvania State scholarship students
29   by each eligible institution.]
30      * * *

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 1      "State-owned institutions" shall mean the [fourteen
 2   Pennsylvania State colleges and university.] institutions that
 3   are part of the State System of Higher Education under Article
 4   XX-A of the act of March 10, 1949 (P.L.30, No.14), known as the
 5   "Public School Code of 1949."
 6      * * *
 7      Section 3.   Sections 5 and 6 of the act are amended to read:
 8      Section 5.   Institutional Assistance Grants.--For [the
 9   academic year beginning on or about September 1, 1974,] each
10   year funding is available, the agency shall allot, on behalf of
11   each Pennsylvania State scholarship student attending the
12   eligible institution as certified pursuant to section 4, an
13   assistance grant [as defined in section 3, such allotment] to be
14   made to each eligible institution from the funds appropriated to
15   the agency [pursuant to section 10.] for the purpose of this
16   act. An eligible institution shall use an assistance grant under
17   this section to supplement each Pennsylvania State scholarship
18   student's grant amount and reflect the supplement on each
19   Pennsylvania State scholarship student's tuition bill as an
20   "Institutional Assistance Grant provided by the Commonwealth."
21      Section 6.   [Assistant Grant Fund.--The Institutional
22   Assistance Grant Fund shall be maintained in a separate account
23   and shall not be commingled with other funds of the eligible
24   institution. The moneys in the fund may be used only for, or in
25   connection with, expenses incurred by the eligible institution
26   for educational cost. Each institution shall cause an audit of
27   such separate account to be made annually, which audit shall
28   indicate the manner in which the moneys in the assistance grant
29   fund have been expended. A copy of the audit shall be forwarded
30   to the agency.] Accountability.--The agency shall audit the

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 1   records of an eligible institution that receives an assistance
 2   grant to ensure compliance with this act. The agency shall
 3   publish an annual report on the publicly accessible Internet
 4   website of the agency that includes the distribution and use of
 5   assistance grant money and any other information that the agency
 6   determines necessary for the implementation of this act.
 7      Section 4.   Section 10 of the act is repealed:
 8      [Section 10.   Appropriation.--The sum of twelve million
 9   dollars ($12,000,000), is hereby appropriated to the
10   Pennsylvania Higher Education Assistance Agency for the
11   purposes, and administration, of this act for the fiscal year
12   July 1, 1974 to June 30, 1975.]
13      Section 5.   This act shall take effect immediately.




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