(1) From the state school aid fund money appropriated in section 11, there is allocated $50,000,000.00 for 2023-2024 for the MI future educator student teacher stipend program. Except as otherwise provided in this section, the funds allocated under this section must be paid to eligible educator preparation programs for payments to eligible student teachers working in a district.

    (2) An eligible student teacher under this subsection must meet all of the following:

    (a) The individual must be admitted to an eligible educator preparation program, be working toward a teacher certification, be participating in required student teaching coursework, and be maintaining satisfactory academic progress. As used in this subdivision, “required student teaching coursework” means credit hours, or the program equivalent, required by an eligible educator preparation program for successful completion of the program. This coursework must include regular placement in a district where the student gains real-world, first-hand experience working in a classroom, teaching students, engaging in the day-to-day activities of a certified teacher, and working daily under the guidance of a certified teacher.

    (b) The individual must timely complete an application in a form and manner prescribed by the department of treasury. The application must include the district in which the individual is working as a student teacher and must include a certification by the district and the individual’s eligible educator preparation program that the student is working as a student teacher. If the individual’s eligible educator preparation program is not provided by a public institution of higher education, the district in which the individual is working must also provide an assurance that they will forward any amount received under this section from the department of treasury for purposes of the program described in this section to the individual’s eligible educator preparation program.

    (c) The individual must not have received a payment from funds under this subsection previously, unless the individual is enrolled in an eligible educator preparation program that requires multiple semesters of student teaching.

    (d) If an individual is employed by their district as a teacher of record, they are not eligible for payment under this section.

    (e) An individual that is a current City Year corps member enrolled in an eligible educator preparation program is eligible for payment under this section.

    (3) The department of treasury shall pay each eligible educator preparation program an amount not to exceed $9,600.00 per academic semester for each eligible student teacher working in a district. If the individual’s eligible educator preparation program is not provided by a public institution of higher education, the department of treasury shall pay an amount not to exceed $9,600.00 per academic semester to the district in which the individual is working as a student teacher, and that district must forward the amount received to the individual’s eligible educator preparation program. If funding allocated under this section is insufficient to fully fund all eligible student teachers, the department of treasury shall first award funding for eligible student teachers who are also Pell grant recipients and then shall distribute funding in the order in which applications were received. It is intended that payments under this subsection are made at the beginning of the semester in 1 lump sum for eligible student teachers.

    (4) Eligible educator preparation programs shall pay funds received under this section, in entirety, to the eligible student teacher.

    (5) Notwithstanding section 17b, the department of treasury shall make payments under this section on a schedule determined by the department of treasury.

    (6) As used in this section, “eligible educator preparation program” means an institution of higher education that meets all of the following:

    (a) Is a public or private institution of higher education in this state.

    (b) Has an established school of education with an educator preparation program approved by the department.

    (c) Has not increased tuition and fee rates above the limitations described in section 241c.