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For more than a decade, states across the country have advanced policies to help immigrant and undocumented students more easily pursue higher education in the United States. These policies range from offering in-state tuition, access to state-based financial assistance or scholarships, and participation in state and local Promise programs. The goal is simple: giving these students a pathway to economic mobility through a postsecondary degree or credential while building a stronger workforce.
Today, that progress is at risk in the shadow of intensifying and indiscriminate immigration enforcement, including the withdrawal of long-time legal statuses for many residents, and intense scrutiny from the federal government on state, local and institutional policies and practices designed to better serve students who are not yet citizens. These actions follow a rocky rollout of the newly redesigned Free Application for Federal Student Aid (FAFSA) that had a disproportionate effect on prospective students from mixed-status families.
California has continued to prioritize maintaining educational access for all students in the state, including immigrant and mixed-status family students. Despite a difficult state fiscal environment, the Governor and Legislature made strategic investments in the recently finalized 2025-26 California state budget to help low-income students afford college—including those accessing financial aid via the California Dream Act Application (CADAA), an alternative to the federal FAFSA for students ineligible for federal aid or wary of submitting family data to the federal government.
Why This Matters Now
According to the California Student Aid Commission (CSAC), in the 2024-25 academic year, there were around 99,000 students who applied for financial aid and reported having at least one family member without a Social Security Number (SSN) and about 12 percent of California high school students have at least one parent without an SSN. These students and their families are facing a very tough decision: risk sharing personal family information on the FAFSA or give up thousands in federal aid that they qualify for and are entitled to as citizens to help make their college dream a reality.
Given this situation, California opened its CADAA, which traditionally has served student populations who cannot fill out a FAFSA, to provide students with an option to access state and institutional aid if they choose to forgo federal aid. Now the state has also made additional targeted investments that will help keep college within reach for these and other low-income students in California.
Key Investments in Affordability and Student Support Systems in the 2025-26 CA Budget
- $20 million in emergency grants for community college students
Low-income students at California Community Colleges (CCCs) often face significant affordability challenges due to the high net costs, the costs after subtracting available grant aid, despite low tuition fees. This emergency assistance, up to $1,400 per student, helps fill gaps for students who still have unmet financial need after applying for aid via the CADAA. While this is less than the average Pell amount a CCC student gets, this nearly doubles the maximum amount of a Cal Grant B Access Award, which is the most awarded state grant for CCC students. - $15 million for Dreamer Resource Liaisons
These Liaisons are a lifeline for undocumented and immigrant students, offering support with basic needs, legal aid, career pathways, and emergency funding for those who demonstrate need. As more immigrant or mixed status family students look to CCCs as a pathway to an education, these liaisons are a lynchpin in connecting them to the resources they need and qualify for. - $5.1 million for community-based financial aid outreach and support
Despite the rocky rollout of the new FAFSA, California has continued to make progress in boosting both FAFSA and CADAA completion cross the state. Much work remains to push those numbers even higher and ensure students aren’t leaving aid they qualify for on the table. Contacting students through trusted community-based organizations is a key way to reach more students who may be hesitant to complete aid applications. - $5.3 million for a statewide campaign on financial aid
To get the message out, CA is funding a broad media effort to encourage students to apply for aid and enroll in college. This campaign will give special attention to students with the most financial need and communities who are least represented in college enrollment.
Looking Ahead
These budget investments are a bold step forward and we are grateful for the commitment shown by legislators and the Governor this year, but that commitment must be sustained. While recent FAFSA failures may be smoothing out, systemic affordability challenges for all low-income students—especially those who are undocumented or mixed-status family students—remain. Without adequate and reliable financial support, we know that students turn to working too many hours, taking on more debt, reducing enrollment to part-time, or dropping out altogether. California has maintained its commitment to all students despite significant economic and political pressure, and we commend the state for continuing to build a model of public higher education that all students can afford to attend without relying on debt.
Read more about these investments below.
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