(1) The postsecondary scholarship fund is created in the department of treasury for the purpose of providing scholarship awards to eligible students who attend eligible postsecondary educational institutions in this state, as provided in subsection (5).

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

    (3) Money in the postsecondary scholarship fund at the close of the fiscal year must remain in the postsecondary scholarship fund and not lapse to the general fund.

    (4) The department of treasury is the administrator of the postsecondary scholarship fund for auditing purposes.

    (5) Money must be expended from the postsecondary scholarship fund only for the purpose of providing Michigan achievement scholarship awards to eligible students who attend eligible postsecondary educational institutions in this state and for other purposes described in this section. From the funds appropriated in section 236(7) for the Michigan achievement scholarship, the department of lifelong education, advancement, and potential may use up to $10,000,000.00 annually for the purposes of outreach programs to raise awareness of the Michigan achievement scholarship and other state scholarship programs allocated in section 236(7). The department of lifelong education, advancement, and potential shall ensure that state scholarships are well publicized and that high school students are provided information on the availability of financial aid. The department of lifelong education, advancement, and potential may receive and expend funds received from outside sources for scholarships, marketing, or other purposes related to Michigan state scholarships. The department of lifelong education, advancement, and potential shall provide the necessary funding and staff to fully operate the programs.

    (6) For the fiscal year ending September 30, 2026, $300,000,000.00 of ongoing funding is deposited into the postsecondary scholarship fund from the following:

    (a) State school aid fund, $200,000,000.00.

    (b) State general fund/general purpose money, $100,000,000.00.

    (7) It is the intent of the legislature that the postsecondary scholarship fund serves as the primary funding source of the Michigan achievement scholarship. To ensure the Michigan achievement scholarship provides ongoing supports for students, it is the intent of the legislature to increase annual deposits into the postsecondary scholarship fund until the fully implemented costs of the Michigan achievement scholarship are deposited annually into the postsecondary scholarship fund.

    (8) In addition to the appropriations in section 236, if the amount of general fund money allocated in section 236(7)(a), (b), (d), or (e) is not sufficient to fully fund 1 or more of those awards, there is appropriated from the postsecondary scholarship fund the amount necessary to fully fund those awards. The state budget director shall provide written notification to the house and senate appropriations subcommittee on higher education and the house and senate fiscal agencies prior to any additional appropriation described in this subsection.

    (9) In addition to the deposit to the postsecondary scholarship fund described in subsection (6), for the fiscal year ending September 30, 2025 only, an amount not to exceed $80,000,000.00 from the unspent and unreserved state school aid fund balances appropriated under section 11, as recorded as part of the state book-closing process for the 2024-2025 fiscal year, is deposited into the postsecondary scholarship fund.