As Introduced

136th General Assembly

Regular Session H. B. No. 394

2025-2026

A BILL

To enact section 3333.27 of the Revised Code to enact the Student Choice Grant Program and to make an appropriation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3333.27 of the Revised Code be enacted to read as follows:

Sec. 3333.27. (A) As used in this section:

(1) "Eligible institution" means a nonprofit Ohio institution of higher education that holds a certificate of authorization issued under section 1713.02 of the Revised Code and meets the requirements of Title VI of the Civil Rights Act of 1964.

(2) "Resident" and "full-time student" have the same meanings as those adopted by the chancellor of higher education under section 3333.122 of the Revised Code.

(3) "State university" has the same meaning as under section 3345.011 of the Revised Code.

(B) The chancellor of higher education shall establish and administer a student choice grant program and adopt rules for the administration of the program.

(1) The applicant has been a resident of Ohio for at least two years prior to application for the grant.

(2) The applicant is enrolled as a full-time student in a bachelor's degree program at an eligible institution.

(3) The applicant maintains an academic record that meets or exceeds the standard established pursuant to this section by rule of the chancellor.

No grant shall be made to any individual who was enrolled as a student in an institution of higher education on or before July 1, 2026, or is serving a term of imprisonment.

(D) The grant shall not exceed the lesser of the total instructional and general charges of the institution in which the student is enrolled, or an amount equal to one-fourth of the total of any state instructional subsidy amount distributed by the chancellor in the second fiscal year of the preceding biennium for all full-time students enrolled in bachelor's degree programs at a state university divided by the sum of the actual number of full-time students enrolled in bachelor's degree programs at a state university reported to the chancellor for such year by the institutions to which the subsidy was distributed.

(E) The chancellor shall prescribe the form and manner of application for grants, including the manner by which eligible institutions certify that each applicant from such institution is enrolled in a bachelor's degree program as a full-time student and has an academic record that meets or exceeds the standard established by the chancellor.

(F) A grant awarded to an eligible student shall be paid to the institution in which the student is enrolled, and the institution shall reduce the student's instructional and general charges by the amount of the grant.

(G) Each grant awarded shall be prorated and paid in equal installments at the time of enrollment for each term of the academic year for which the grant is awarded. No student is eligible to receive a grant for more than ten semesters, fifteen quarters, or the equivalent of five academic years.

(H) The receipt of an Ohio student choice grant shall not affect a student's eligibility for assistance, or the amount of that assistance, granted under section 3315.33, 3333.122, 3333.125, 3333.126, 3333.127, 3333.128, 3333.129, 3333.21, 3333.24, 3333.26, 3333.28, 3333.372, 3333.391, 3333.393, 3333.421, 3333.61, 5910.03, 5910.031, 5910.032, or 5919.34 of the Revised Code. If a student receives assistance under one or more of those sections, the student choice grant made to the student shall not exceed the difference between the total instructional and general charges of the institution in which the student is enrolled and the amount of assistance received under those sections.

(I) The general assembly shall support the student choice grant program by such sums and in such manner as it may provide, but the chancellor may also receive funds from other sources to support the program.

(J) No grant shall be made to any student enrolled in a course of study leading to a degree in theology, religion, or other field of preparation for a religious profession unless the course of study leads to an accredited bachelor of arts or bachelor of science degree.

(K) Institutions of higher education that enroll students receiving grants under this section shall report to the chancellor the name of each student who has received such a grant but who is no longer eligible for all or part of such grant and shall refund all money due to the state within thirty days after the beginning of the term immediately following the term in which the student was no longer eligible to receive all or part of the grant. There shall be an interest charge of one per cent per month on all money due and payable after such thirty-day period. The chancellor immediately shall notify the office of budget and management and the legislative service commission of all refunds received.

(L) Notwithstanding any provision of section 121.95 of the Revised Code to the contrary, a regulatory restriction contained in a rule adopted under this section is not subject to sections 121.95 to 121.953 of the Revised Code.

Section 2. All items in this act are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all operating appropriations made in this act, those in the first column are for fiscal year 2026 and those in the second column are for fiscal year 2027. The operating appropriations made in this act are in addition to any other operating appropriations made for these fiscal years.

Section 3.

	1	2	3	4	5
A	BOR DEPARTMENT OF HIGHER EDUCATION
B	General Revenue Fund
C	GRF	235531	Student Choice Grants	$0	$95,000,000
D	TOTAL GRF General Revenue Fund			$0	$95,000,000
E	TOTAL ALL BUDGET FUND GROUPS			$0	$95,000,000

STUDENT CHOICE GRANTS

The foregoing appropriation item 235531, Student Choice Grants, shall be used by the Chancellor of Higher Education to support the Student Choice Grant Program pursuant to section 3333.27 of the Revised Code.

Section 4. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the manner in which appropriation accounts shall be maintained. Expenditures from operating appropriations contained in this act shall be accounted for as though made in, and are subject to all applicable provisions of, the main operating appropriations act of the 136th General Assembly.