First-dollar and last-dollar programs refer to two distinct methods of distributing funding for College Promise programs. 

The term “first-dollar program” means that College Promise funds are provided to students first, or before any other grant or awarded funding. By contrast, the term “last-dollar program” means that students would draw upon any available public funding before being awarded College Promise funds. Both models administer funds to eligible students that cover the direct costs of being a student, such as tuition and fees. 

In a ”first-dollar program”, the amount of College Promise funding awarded to an eligible student does not take into account any additional funding or grants that the student is eligible for, like a federal Pell Grant. Therefore, a “first-dollar” College Promise program covers the direct costs of being a student, and has the potential to reduce the associated costs that come with being a student, such as transportation, childcare, school materials, and other costs.  

In a “last-dollar program”, the amount of College Promise funding awarded to an eligible student takes into account any additional public funding or grants the student is eligible for, like a federal Pell Grant. The total amount of “last-dollar” College Promise funding a student receives to cover the direct costs of being a student varies depending on other public funding for which the student is eligible. Unlike “first-dollar programs”, “last-dollar programs” do not have the potential of reducing the associated costs that come with being a student, such as transportation, childcare, school materials, and other costs.