University of Pikeville officials are supporting the compromise to provide scholarships instead of making UPike a state supported school.
The House passed HB 260 89-7. It would provides up to $6,000 grants per year to students attending several private colleges in eastern Kentucky.
The money would come from coal severance funds intended for economic development.
UPike President Paul Patton said it is not what they wanted, but they are pleased with the compromise.
"Our objective is to increase, in fact double the number of people in this region that are getting bachelor degrees, and this bill actually has the potential to do that. We here at the University of Pikeville are hoping to be an integral part of it.>
Patton says the goal is still to make UPike a state supported school in the future.