Military affairs: other; tuition assistance for Michigan National Guard members; modify, the official text

Act
No. 38

Public
Acts of 2025

Approved
by the Governor

December
9, 2025

Filed
with the Secretary of State

December
9, 2025

EFFECTIVE
DATE:  December 9, 2025

state of michigan

103rd Legislature

Regular session of 2025

Introduced by Senator Klinefelt

ENROLLED SENATE BILL No. 542

AN ACT to amend 2014 PA 259,
entitled “An act to provide for tuition assistance at certain educational institutions
for Michigan National Guard members and certain other individuals; and to
provide for the powers and duties of certain state governmental officers and
entities,” by amending sections 3 and 4 (MCL 32.433 and 32.434), as amended by
2023 PA 33.

The People of the State of
Michigan enact:

Sec.
3. (1) The Michigan National Guard tuition assistance program is created within
the department of military and veterans affairs.

(2) The adjutant general shall administer the tuition
assistance program and prescribe forms and procedures to effectively carry out
the tuition assistance program.

(3) An eligible person may apply for tuition assistance from
the tuition assistance program before enrolling in an eligible educational
institution. The adjutant general shall approve the application if the
applicant is an eligible person and if there is sufficient money in the fund to
cover the amount of tuition assistance determined to be available under this
subsection by the adjutant general in that academic year. The adjutant general
shall determine the amount of tuition assistance that may be provided under
this subsection in any academic year. The amount of tuition assistance
determined by the adjutant general under this subsection applies to all
eligible persons.

(4) If an eligible person has enrolled in an eligible
educational institution and has not applied for and received tuition assistance
from the tuition assistance program, the eligible person may apply for tuition
assistance for tuition paid to the eligible educational institution in that
current academic year. The adjutant general shall approve the application if
the applicant is an eligible person and if there is sufficient money in the Michigan
National Guard member benefits fund created in the Michigan National Guard
member benefits fund act to cover the amount of tuition assistance determined
to be available under this subsection by the adjutant general in that academic
year. The adjutant general shall determine the amount of tuition assistance
that may be provided under this subsection in any academic year. The amount of
tuition assistance determined by the adjutant general under this subsection
applies to all eligible persons.

(5) The tuition assistance program applies to any course of
study that is intended to culminate in vocational or technical training, a
certificate, or the eligible person’s first associate degree, bachelor’s
degree, or master’s degree.

(6) The adjutant general may make a tuition assistance
distribution under this section to either the eligible person or the eligible
education institution, and may determine when the distribution is made.

(7) Upon completion of a course of study, an eligible person
who successfully applied for tuition assistance under subsection (3) or (4)
must provide evidence of attendance and completion of the course of study with
a minimum grade point average of 2.0 on a 4.0 scale, as applicable, in that
current semester, in a manner prescribed by the adjutant general.

(8) If an eligible person who received tuition assistance
under subsection (3) or who received reimbursement for the cost of tuition
under subsection (4) did not complete the course of study for which it was
granted, that eligible person must reimburse the fund in an amount and in a
manner prescribed by the adjutant general unless the eligible person was
deployed in a state or federal status that resulted in the eligible person’s
inability to complete the course of study. In that case, the matter must be determined
by the adjutant general.

(9) The adjutant general may establish a policy that allows 1
or more of the following individuals who are family members of an eligible
person to utilize the eligible person’s tuition assistance established under
this act, in a manner prescribed by the adjutant general and consistent with
the requirements of this act that are applicable to the eligible person:

(a) A lawfully married spouse.

(b) A dependent child, stepchild, or legally adopted child
who has graduated high school or obtained a high school diploma equivalent
certificate, or who has turned 18 years of age, and who must use the eligible
person’s tuition assistance before turning 26 years of age.

Sec.
4. (1) The Michigan National Guard tuition assistance fund is created within
the state treasury.

(2) The state treasurer may receive money or other assets
from any source for deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the fund interest
and earnings from the fund.

(3) The balance of money in the fund must not exceed
$15,000,000.00. Any balance of money in the fund in excess of $15,000,000.00
lapses to the general fund. Money in the fund at the close of the fiscal year
remains in the fund and, except as otherwise provided in this subsection, does
not lapse to the general fund. The unencumbered balance remaining in the fund
at the end of the fiscal year ending September 30, 2025 must be transferred to
the Michigan National Guard member benefits fund created in the Michigan
National Guard member benefits fund act.

(4) The department of military and veterans affairs is the
administrator of the fund for auditing purposes.

(5) The adjutant general shall expend money from the fund, on
appropriation, to provide tuition assistance to an eligible person, or other
individual described in section 3(9), for the cost of tuition to an eligible
educational institution under section 3(3) or to reimburse an eligible person,
or other individual described in section 3(9), for the cost of tuition paid to
an eligible educational institution under section 3(4) for a course of study
completed by the eligible person, or other individual described in section
3(9).

Enacting section 1. This amendatory act does not
take effect unless all of the following bills of the 103rd Legislature are
enacted into law:

(a) Senate Bill
No. 540.

(b) House Bill No. 4962.

This
act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of
Representatives

Approved___________________________________________

____________________________________________________

Governor