A spokeswoman for Governor Jennifer Granholm says the state will award college scholarship money won by middle school students.
That reverses the governor's previous plan which had angered students and some Republican lawmakers.
The Merit Award scholarships of up to $500 were earned by good scores on the state's MEAP tests. Students who pass the MEAP in seventh and eighth grades, as well as in high school, are eligible for the cash.
The middle school money is a bonus attached to a $2500 scholarship that can be earned by high school students.
Granholm had sparked controversy when she proposed not awarding the middle school grants earlier this year.