HB3807 104TH GENERAL ASSEMBLY

LRB104 08492 HLH 18544 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3807

Introduced 2/18/2025, by Rep. Kevin Schmidt

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1030 new
110 ILCS 947/65.103 new

Amends the Higher Education Student Assistance Act. Establishes the Illinois Trades Retention and Development Encouragement (ITRADE) Grant Program to be administered by the Illinois Student Assistance Commission. Provides that the Illinois Student Assistance Commission shall award grants under the program to eligible applicants who (i) have graduated from high school or have received a State of Illinois High School Diploma, (ii) are pursuing or intend to pursue a qualifying degree or certificate at a qualified institution, and (iii) are entitled to apply for assistance. Provides that a qualifying degree or certificate is an associate degree or certificate granted by a qualified institution in a field related to the trades, including, but not limited to, electrical work, plumbing, masonry, steel working, fabrication, or construction. Amends the State Finance Act to make conforming changes. Effective January 1, 2026.

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 3. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Illinois Trades Retention and Development Encouragement Grant Program Fund.

Section 5. The Higher Education Student Assistance Act is amended by adding Section 65.103 as follows:

(110 ILCS 947/65.103 new)

Sec. 65.103. ITRADE Grant Program.

(a) As used in this Section:

"Eligible applicant" means a student who (i) has graduated from high school or has received a State of Illinois High School Diploma, (ii) is pursuing or intends to pursue a qualifying degree or certificate at a qualified institution, and (iii) is entitled to apply for assistance under this Section.

"Minority student" has the meaning given to that term in Section 50.

"Program" means the Illinois Trades Retention and Development Encouragement (ITRADE) Grant Program established under this Section.

"Qualifying degree or certificate" means an associate degree or certificate granted by a qualified institution in a field related to the trades, including, but not limited to, electrical work, plumbing, masonry, steel working, fabrication, or construction.

"Qualifying job" means a job with an employer in this State performing work that is directly related to the field of study that qualified the candidate for assistance under this Section.

"Qualified student" means a person who (i) is a resident of this State, (ii) as an eligible applicant, has made a timely application for a grant under this Section, (iii) is enrolled on at least a half-time basis at a qualified institution, (iv) is enrolled in a course of study in a field related to the trades, and (v) continues to advance satisfactorily toward the attainment of a qualifying degree or certification.

"Recipient" means an Illinois resident enrolled at a qualified institution who receives a grant award under this Section.

(b) Subject to appropriation and no sooner than the 2026-2027 academic year, there is established the Illinois Trades Retention and Development Encouragement (ITRADE) Grant Program to recruit and train individuals to work in trade jobs that have a high demand for new employees and that offer high wages by awarding grants.

(c) Each grant awarded under this Section shall be in an amount determined by the Commission. That amount shall be up to and include the full cost of tuition and fees at the qualified institution at which the recipient is enrolled if the institution is a public community college or an equivalent rate established by the Commission if the institution is a private institution. The total amount of grant assistance awarded by the Commission under this Section to an eligible applicant in any given fiscal year, when added to other financial assistance awarded to that individual for that fiscal year, may not exceed the cost of attendance at the institution at which the student is enrolled. If the amount of financial assistance to be awarded to a qualified student exceeds the cost of attendance at the institution at which the student is enrolled, then the grant shall be reduced by an amount equal to the amount by which the combined financial assistance available to the student exceeds the cost of attendance.

(d) The maximum number of academic terms for which a qualified student may receive grant assistance under this Section shall be 4 semesters or 6 quarters.

(e) All applications for grants awarded under this Section shall be made to the Commission on forms that the Commission shall provide for eligible applicants. The form of the application and the information required to be set forth in the application shall be determined by the Commission, and the Commission shall require eligible applicants to submit with their applications any supporting documents or recommendations as the Commission deems necessary.

(f) Subject to appropriation for the purposes of the program, payment of any grants awarded under this Section shall be determined by the Commission. All grant funds distributed in accordance with this Section shall be paid to the qualified institution and shall be used only for payment of the tuition and fees assessed by the institution.

Any grant awarded under this Section shall be applicable to 2 semesters or 3 quarters of enrollment annually. The qualified institution may request payment for tuition and fees only up to the amount of actual tuition and fee expenses incurred. If a student withdraws after the expiration of the tuition refund or withdrawal adjustment period, the student may receive payment for tuition and fees incurred up to the term award.

(g) Prior to receiving grant assistance for any academic year, each recipient of a grant awarded under this Section shall be required by the Commission to sign an agreement under which the recipient pledges that the recipient (i) shall work in this State in a qualifying job for a period of not less than one year for each year of grant assistance that the recipient was awarded under this Section and (ii) shall, upon request by the Commission, provide the Commission with evidence that the recipient is fulfilling or has fulfilled the terms of the agreement entered into under this Section.

If a recipient of a grant awarded under this Section fails to fulfill the obligations set forth in this subsection, the Commission shall require the recipient to repay the amount of the grant received, prorated according to the fraction of the employment obligation not completed, at a rate of interest equal to 5% and, if applicable, reasonable collection fees. The Commission is authorized to adopt rules related to its collection activities for repayment of grants under this Section. All repayments collected under this Section shall be forwarded to the State Comptroller for deposit into the General Revenue Fund in the State treasury.

A recipient of a grant under this Section is not considered in violation of an agreement entered into under this Section if the recipient (i) enrolls on a full-time basis as a graduate student in a course of study related to the degree or certification for which he or she qualified for a grant under this Section at a qualified institution, (ii) is serving, not in excess of 3 years, as a member of the armed services of the United States, (iii) is a person with a temporary total disability for a period of time not to exceed 3 years, as established by the sworn affidavit of a qualified physician, (iv) is seeking and unable to find full-time employment with an employer in this State that satisfies the criteria set forth in this subsection and is able to provide evidence of that fact, (v) becomes a person with a permanent total disability, as established by the sworn affidavit of a qualified physician, or (vi) meets any other criteria that the Commission deems necessary.

(h) Grant recipients under this Section who withdraw from a program related to the trades under this Section but remain enrolled in school to continue their postsecondary studies in another academic discipline shall not be required to commence repayment of their grant so long as they remain enrolled in school on a full-time basis or if they can document for the Commission special circumstances that warrant extension of repayment.

(i) If the program does not expend at least 90% of the amount appropriated for the program in a given fiscal year for 3 consecutive fiscal years on or before January 1 of each of those fiscal years, then up to 3% of amount appropriated for the program for each of next 3 fiscal years shall be allocated to increasing awareness of the program.

(j) The Commission shall administer the program and shall adopt all necessary and proper rules not inconsistent with this Section for its effective implementation.

(k) Under the program, the Commission shall establish a methodology for prioritizing applications from applicants who demonstrate a financial need or hardship, applications from minority students, and applications from applicants demonstrating academic excellence. After the first academic year that the program operates, the Commission shall prioritize the applications of those applicants who received a grant under this Section during the prior academic year and who remain eligible for a grant under this Section.

(l) In each fiscal year, the Commission may use up to 5% of the moneys appropriated for the program for administration of the program.

(m) Grants may be made under this Section through the 2032-2033 academic year.

(n) The Illinois Trades Retention And Development Encouragement Grant Program Fund is created as a special fund in the State treasury. Moneys in the fund may come from both public entities and institutional, organizational, or other private entities. All moneys in the Fund shall be used, subject to appropriation, by the Commission to implement and administer the program pursuant to this Section.

Section 99. Effective date. This Act takes effect January 1, 2026.