Committee advances measure to bar scholarship displacement at Connecticut colleges

The committee advanced HB 5158, targeting so-called "scholarship displacement," a practice where institutions recalculate institutional financial aid after students report external scholarships, which can reduce the aid families expected. Chair explained the bill would address cases where "the original financial aid package gets modified" after a student earns a scholarship and said the measure aims to protect families and encourage private scholarship philanthropy. Senator Slapp and Representative Branca described the issue as often driven by timing of awards; the substitute exempts awards from the Roberta Willis scholarship program because of timing challenges with that program's disbursement schedule. Senator Martin and others offered anecdotal examples of donors and students who felt disadvantaged by displacement, and several members said they supported sending the bill forward while continuing to refine language and examine implementation details. The motion to send HB 5158 (LCO 3068) to the floor passed by roll-call and will be subject to any appropriations or fiscal review as it proceeds.