A 8951: Exempts the income of dependent applicants from their eligibility determination for excelsior scholarship and tuition assistance program awards and makes adjustments to certain award reduction schedules.

  
  STATE OF NEW YORK ________________________________________________________________________ 8951 2025-2026 Regular Sessions  IN ASSEMBLY July 16, 2025 ___________ Introduced by M. of A. JENSEN -- read once and referred to the Committee on Higher Education AN ACT to amend the education law, in relation to exempting the income of dependent applicants for certain awards The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 669-h of the education law, as 2 amended by section 1 of part T of chapter 56 of the laws of 2018, is 3 amended to read as follows: 4 1. Eligibility. An excelsior scholarship award shall be made to an 5 applicant who: (a) is matriculated in an approved program leading to an 6 undergraduate degree at a New York state public institution of higher 7 education; (b) if enrolled in (i) a public institution of higher educa- 8 tion prior to application, has completed at least thirty combined cred- 9 its per year following the student's start date, or its equivalent, 10 applicable to [his or her] their program or programs of study or (ii) an 11 institution of higher education prior to application, has completed at 12 least thirty combined credits per year following the student's start 13 date, or its equivalent, applicable to [his or her] their program or 14 programs of study and which were accepted upon transfer to a public 15 institution of higher education; (c) enrolls in at least twelve credits 16 per semester and completes at least thirty combined credits per year 17 following the student's start date, or its equivalent, applicable to 18 [his or her] their program or programs of study except in limited 19 circumstances as prescribed by the corporation in regulation. Notwith- 20 standing, in the student's last semester, the student may take at least 21 one course needed to meet [his or her] their graduation requirements and 22 enroll in and complete at least twelve credit hours or its equivalent. 23 For students who are disabled as defined by the Americans With Disabili- 24 ties Act of 1990, 42 USC 12101, the corporation shall prescribe rules 25 and regulations that allow applicants who are disabled to be eligible EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00404-01-5 
 A. 8951 2 1 for an award pursuant to this section based on modified criteria; (d) 2 has an adjusted gross income for the qualifying year, as such terms are 3 defined in this subdivision, equal to or less than: (i) one hundred 4 thousand dollars for recipients receiving an award in the two thousand 5 seventeen--two thousand eighteen academic year; (ii) one hundred ten 6 thousand dollars for recipients receiving an award in the two thousand 7 eighteen--two thousand nineteen academic year; and (iii) one hundred 8 twenty-five thousand dollars for recipients receiving an award in the 9 two thousand nineteen--two thousand twenty academic year and thereafter; 10 and (e) complies with the applicable provisions of this article and all 11 requirements promulgated by the corporation for the administration of 12 the program. Adjusted gross income shall be the total of the combined 13 adjusted gross income of the applicant and the applicant's parents or 14 the applicant and the applicant's spouse, if married. The income of an 15 applicant shall not be included in the total adjusted gross income if 16 the applicant is considered a dependent. Qualifying year shall be the 17 adjusted gross income as reported on the federal income tax return, or 18 as otherwise obtained by the corporation, for the calendar year coincid- 19 ing with the tax year established by the U.S. department of education to 20 qualify applicants for federal student financial aid programs authorized 21 by Title IV of the Higher Education Act of nineteen hundred sixty-five, 22 as amended, for the school year in which application for assistance is 23 made. Provided, however, if an applicant demonstrates to the corporation 24 that there has been a change in such applicant's adjusted gross income 25 in the year(s) subsequent to the qualifying year which would qualify 26 such applicant for an award, the corporation shall review and make a 27 determination as to whether such applicant meets the requirement set 28 forth in paragraph (d) of this subdivision based on such year. Provided, 29 further that such change was caused by the death, permanent and total 30 physical or mental disability, divorce, or separation by judicial decree 31 or pursuant to an agreement of separation which is filed with a court of 32 competent jurisdiction of any person whose income was required to be 33 used to compute the applicant's total adjusted gross income. 34 § 2. Subdivision 1 of section 663 of the education law, as amended by 35 section 1 of part R of chapter 54 of the laws of 2016, is amended to 36 read as follows: 37 1. Income defined. Except as otherwise provided in this section, 38 "income" shall be the total of the combined net taxable income and 39 income from pensions of New York state, local governments, the federal 40 government and any private employer of the applicant, the applicant's 41 spouse, and the applicant's parents, including any pension and annuity 42 income excluded for purposes of taxation pursuant to paragraph three-a 43 of subsection (c) of section six hundred twelve of the tax law, as 44 reported in New York state income tax returns for the calendar year 45 coinciding with the tax year established by the U.S. department of 46 education to qualify applicants for federal student financial aid 47 programs authorized by title IV of the Higher Education Act of 1965, as 48 amended, for the school year in which application for assistance is 49 made, except that any amount received by an applicant as a scholarship 50 at an educational institution or as a fellowship grant, including the 51 value of contributed services and accommodations, shall not be included 52 within the definition of "income" for the purposes of this article. The 53 term "parent" shall include birth parents, stepparents, adoptive parents 54 and the spouse of an adoptive parent. Income, if not a whole dollar 55 amount, shall be assumed to be equal to the next lowest whole dollar 56 amount. Any change in the status of an applicant with regard to the 
 A. 8951 3 1 persons responsible for the applicant's support occurring after the 2 beginning of any semester shall not be considered to change the appli- 3 cant's award for that semester. The income of an applicant shall not be 4 included in the total income if the applicant is considered a dependent. 5 § 3. Subparagraph (iii) of paragraph a, subparagraphs (ii) and (iii) 6 of paragraph b and the opening paragraph of paragraph c of subdivision 3 7 of section 667 of the education law, subparagraph (iii) of paragraph a 8 as amended by section 1 of part X of chapter 56 of the laws of 2024, 9 subparagraph (ii) of paragraph b as amended by section 2 of part DD of 10 chapter 56 of the laws of 2021, subparagraph (iii) of paragraph b as 11 amended by chapter 309 of the laws of 1996, and the opening paragraph of 12 paragraph c as added by chapter 83 of the laws of 1995 and relettered by 13 section 2 of part J of chapter 58 of the laws of 2011, are amended and 14 paragraph b is amended by adding a new subparagraph (vi) to read as 15 follows: 16 (iii) (A) For students who have been granted exclusion of parental 17 income and were single with no dependent for income tax purposes during 18 the tax year next preceding the academic year for which application is 19 made, the base amount, as determined in subparagraph (i) of this para- 20 graph, shall be reduced in relation to income as follows: 21 Amount of income Schedule of reduction 22 of base amount 23 (1) [Less than three thousand None 24 dollars 25 (2) Three thousand dollars or Thirty-one per centum of 26 more, but not more than thirty amount in excess of three 27 thousand dollars thousand dollars] 28 Less than seven thousand None 29 dollars 30 (2) Seven thousand dollars or Seven per centum of excess 31 more, but less than eleven over seven thousand dollars 32 thousand dollars 33 (3) Eleven thousand dollars or Two hundred eighty dollars 34 more, but less than eighteen plus ten per centum of excess 35 thousand dollars over eleven thousand dollars 36 (4) Eighteen thousand dollars or Nine hundred eighty dollars 37 more, but not more than one plus twelve per centum of 38 hundred twenty-five excess over eighteen 39 thousand dollars thousand dollars 40 (B) For those students who have been granted exclusion of parental 41 income who have a spouse but no other dependent, for income tax purposes 42 during the tax year next preceding the academic year for which applica- 43 tion is made, the base amount, as determined in subparagraph (i) of this 44 paragraph, shall be reduced in relation to income as follows: 45 Amount of income Schedule of reduction 46 of base amount 47 (1) Less than seven thousand None 48 dollars 49 (2) Seven thousand dollars or Seven per centum of excess 50 more, but less than eleven over seven thousand dollars 
 A. 8951 4 1 thousand dollars 2 (3) Eleven thousand dollars or Two hundred eighty dollars 3 more, but less than eighteen plus ten per centum of excess 4 thousand dollars over eleven thousand dollars 5 (4) Eighteen thousand dollars or Nine hundred eighty dollars 6 more, but not more than [sixty] plus twelve per centum of 7 one hundred twenty-five excess over eighteen 8 thousand dollars thousand dollars 9 (ii) Except for students as noted in subparagraph (iii) of this para- 10 graph, the base amount as determined in subparagraph (i) of this para- 11 graph, shall be reduced in relation to income as follows: 12 Amount of income Schedule of reduction 13 of base amount 14 (A) Less than seven thousand None 15 dollars 16 (B) Seven thousand dollars or Seven per centum of the excess 17 more, but less than eleven over seven thousand dollars 18 thousand dollars 19 (C) Eleven thousand dollars or Two hundred eighty dollars 20 more, but less than eighteen plus ten per centum of excess 21 thousand dollars over eleven thousand dollars 22 (D) Eighteen thousand dollars or Nine hundred eighty dollars 23 more, but not more than one plus twelve per centum of 24 hundred twenty-five excess over eighteen 25 thousand dollars thousand dollars 26 (iii) For students who have been granted exclusion of parental income 27 and were single with no dependent for income tax purposes during the tax 28 year next preceding the academic year for which application is made, the 29 base amount, as determined in subparagraph (i) of this paragraph, shall 30 be reduced in relation to income as follows: 31 Amount of income Schedule of reduction of 32 base amount 33 (A) [Less than three thousand None 34 dollars 35 (B) Three thousand dollars or Thirty-one per centum of the ex- 36 more, but not more than ten cess over three thousand dollars 37 thousand dollars] 38 Less than seven thousand None 39 dollars 40 (B) Seven thousand dollars or Seven per centum of excess 41 more, but less than eleven over seven thousand dollars 42 thousand dollars 43 (C) Eleven thousand dollars or Two hundred eighty dollars 44 more, but less than eighteen plus ten per centum of excess 45 thousand dollars over eleven thousand dollars 46 (D) Eighteen thousand dollars or Nine hundred eighty dollars 47 more, but not more than one plus twelve per centum of 48 hundred twenty-five excess over eighteen 49 thousand dollars thousand dollars 
 A. 8951 5 1 (vi) The income of students who have not been granted exclusion of 2 parental income and are single with no dependent shall not be included 3 in the amount of income when determining a reduction to the base amount 4 of the student's award. 5 In no [even shall] event shall any award: 6 § 4. This act shall take effect immediately.