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This year, TICAS, the Californians for College Affordability coalition, and other statewide higher education coalitions came together to bridge the gap on forgone federal financial aid, to reduce additional cuts to the University of California (UC) and California State University (CSU) systems, and to increase funding for the California Community College (CCC) system to increase financial aid application rates and better support immigrant students.
Federal attacks on colleges, deregulation, and spending cuts increased budgetary uncertainty in California. The state’s four-year public institutions remain a hallmark of innovation and the drivers of a strong economy, and California lawmakers have and must continue to take action to protect our students and institutions from pressures to abandon equitable and affordable pathways to and through college.
In the Spring, we put forth our Affordability Playbook, which laid out the affordability goals we would seek to advance in 2025 through partnerships, research, and advocacy. Below we highlight how they fared in the final 2025-26 California Budget or Higher Education Trailer Bill.
TICAS Priorities Included in the Budget
Priority – Provide additional time for FAFSA/CADAA submissions, allow mixed-status family (MSF) students to file a CADAA, and backfill aid for students who forgo federal aid.
Included in the Budget
- $20 million in Proposition 98 funding for emergency grant aid to support California Community College (CCC) students who have lost access to federal aid.
- Funding not included for students at public four-year universities.
- $11.6 million in Prop. 98 funds for Dreamer Resource Liaisons to provide immigrant students support services, career pathways, promote economic mobility, and to the extent possible provide emergency grants.
TICAS Analysis
We commend the state for prioritizing these vital investments that will help CCC students—especially those who have bypassed FAFSA due to fear or barriers—remain in school and succeed. The emergency grant aid alongside the Dreamer Resource Liaisons will enhance student outcomes and increase retention rates for a student population that is vulnerable to federal actions. Establishing student support services that guide students through complex financial aid and career pathways systems is a crucial part of accessible higher education.
However, we remain concerned about the lack of equivalent emergency aid for students at UC and CSU campuses. These students face similar barriers but have been left without comparable support. While the Middle-Class Scholarship (MCS) will naturally adjust awards for these students since they will have larger unmet need, we must keep in mind that this program could go further in covering those costs or being more predictable. Pair this with the fact that federal funding remains uncertain, this oversight leaves a critical gap that should be reinvestigated in the coming year.
Moving forward, TICAS will monitor how UC and CSU allocate institutional aid and will advocate for long-term, statewide solutions that ensure all low-income students can afford the Total Cost of Attendance (TCOA)—regardless of their FAFSA status.
Policy Priority – Increase FAFSA/CADAA completion rates among CCC students by funding outreach and mandating financial aid awareness programs.
Included in the Budget
- $5.3 million in Prop. 98 funding for a CCC statewide financial aid outreach campaign.
- $5.1 million in Prop. 98 funding for community-based organizations (CBOs) to support statewide outreach and enrollment.
- $5 million in Prop. 98 funds for maintenance and training to support financial aid technology advancements.
TICAS Analysis
We strongly support the state’s investment in outreach initiatives through both CCCs and trusted CBOs. These funds will support efforts to increase CCC FAFSA and CADAA application rates and help address the alarming trend of potentially eligible students leaving hundreds of millions in federal aid unclaimed. A statewide outreach campaign that leverages CBOs as trusted messengers and allows the CCC to reach students and build rapport will increase financial aid application rates and result in more aid for students.
As the CCCs work to increase financial aid application rates, they are also grappling with increasing concerns of financial aid fraud. Funding maintenance and training for useful technology that can combat fraud should also streamline the financial aid verification process, reduce student wait-times for receiving aid, and reduce backlogs for financial aid office staff. We urge the California Community College Chancellor’s Office (CCCCO) to implement these upgrades and training in a student-centered framework that balances the need for security and accountability with the equitable principle of removing – not adding – more barriers to access aid.
Policy Priority – Adopt statutory changes to grant the Bureau for Private Postsecondary Education (BPPE) fiscal stability and flexibility on using its consumer protection resources.
Included in the Budget
- Trailer bill authorizes the Bureau to use Student Tuition Recovery Fund (STRF) funds for claims administration and to staff the Office of Student Assistance and Relief (OSAR).
TICAS Analysis
TICAS applauds these critical statutory changes, which come at a pivotal moment as the BPPE faces a fiscal solvency crisis. The agency plays an essential role in regulating private and for-profit institutions, and this funding ensures it can continue protecting students from fraud, closures, and abuse.
As we approach the 2026 Sunset Review for BPPE, California has an opportunity to build on this investment and explore other options to strengthen their oversight and regulatory authority. Simultaneously, as legislation to potentially enter the State into to NC-SARA makes its way through the final stages of this year’s legislative session, lawmakers should engage in discussion to better understand how this potential change would shape the role of the Bureau.
Priorities not included in the Budget
Policy Priority – Advance financial aid equity by increasing award amounts for the lowest-income students and refining aid distribution formulas to prioritize those with the greatest need.
Not Included the Budget
- No changes to the Middle-Class Scholarship (MCS) formula to better target low-income students.
- No increase to the Cal Grant B (CGB) Access Award, which has not been raised since 1969.
- No mention of if/how we might implement pieces of the Cal Grant Reform framework.
TICAS Analysis
While the final budget made some progress on targeted aid for community college students, it fell short of addressing deeper, structural inequities in California’s financial aid system. Both the MCS and Cal Grant B Access Award remain in need of tweaks to ensure that aid dollars reach students with the highest unmet need, and in the case of the Cal Grant B is increased to meet the rising non-tuition college costs students regularly face. TICAS will continue to advocate for changes that increase award values, improve predictability, and distribute aid more equitably. We urge lawmakers to revisit these priorities in future budgets and consider incremental steps to implement aspects of the Cal Grant Equity Framework and make MCS truly responsive to low-income students’ realities.
Looking Ahead
We would like to thank the legislative and budget staff who have worked closely with key stakeholders across the state to provide policymakers with timely, data-informed insights into what is needed to support California’s higher education students during these uncertain times. We also appreciate the legislature and Governor for their continued commitment to finding workable solutions that prioritize access to affordable higher education and uphold California’s leadership in this space. The 2025–26 California Budget takes meaningful steps toward supporting students, but more comprehensive reforms are still needed to build a truly equitable financial aid framework. TICAS remains committed to working alongside the legislature, higher education institutions, and advocacy partners to ensure that all students—regardless of background—can access, afford, and complete college.
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