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 Next fall, Georgia students attending one of the state’s public colleges and universities will have a chance at financial aid if they come from a low-income family.

Gov. Brian Kemp on Monday signed legislation that establishes a need-based financial aid program.

The amended budget for fiscal year 2026 already included $325 million for the DREAMS Scholarship. Senate Bill 556 establishes the rules for spending it, placing the program under the Georgia Student Finance Commission, which oversees the HOPE scholarships.

Kemp had pledged to create the scholarship during his State of the State address in January.

He said his signature on SB 556 will “endow the largest investment in a need-based scholarship the state has ever seen.”

Georgia was, until now, one of only two states in the nation without such a program to help students in need. Critics have contended that the lack of support drove some of Georgia’s best students to other states for college, producing a long-term drag on the economy.

DREAMS builds on a much smaller program launched by the University System of Georgia last year under the watch of Chancellor Sonny Perdue, who attended the bill signing ceremony.

He announced in March, after the $325 million was included in the budget, that $25 million would be available for scholarships this fall. The rest of the money will serve as the foundation of an endowment for future students.

House Speaker Jon Burns, R-Newington, said the bill, along with other measures Kemp signed Monday and an early grades literacymeasure from last week, would help Georgia’s economy grow.

“This work will make our state a national leader in workforce development for years to come and, more importantly, ensure hard-working Georgians have opportunities to succeed statewide,” he said.

DREAMS recipients can receive up to $3,000 a year for up to eight semesters or 12 quarters. Students must work or volunteer at least part-time to be eligible. Unlike HOPE however, grades are not a factor.

SB 556 also creates a scholarship for University System of Georgia medical students. They can get up to eight semesters of funding toward their attendance costs in exchange for working in the state for four years after graduation.

The new law also increases the cap on contributions to Georgia’s 529 college savings plan, a tax-advantaged savings account. Previously, families could only contribute until the account reached $235,000. The new limit is $550,000. And it allows advanced fine arts courses in high school to count toward HOPE scholarship grade point average calculations for students who graduate after June.