SACRAMENTO, C.A. – On June 27, Governor Gavin Newsom and the California Legislature finalized the 2025-26 state budget. The Institute for College Access & Success (TICAS) is especially encouraged by the inclusion of key investments and policy changes that support underserved student populations and address ongoing challenges in California’s higher education landscape. These include:
- $20 million to support emergency financial aid for California Dream Act Applicants attending California Community Colleges (CCCs), offering vital relief amid ongoing economic instability.
- $15 million to support Dreamer Resource Liaisons, who play an essential role in assisting students navigate college systems and tap into support services.
- Extending the use of the 2020 cohort default rate for Cal Grant eligibility through the 2025–26 and 2026–27 academic years, maintaining institutional eligibility safeguards.
- Allowing the Bureau for Private Postsecondary Education (BPPE) to use Student Tuition Recovery Fund (STRF) resources for claims administration and supporting the Office of Student Assistance and Relief (OSAR).
- $5.1 million for CCCs to work with community-based organizations on financial aid outreach and application grants, enhancing communication and support at CCCs to boost FAFSA and CADAA completion.
- $5.3 million for a community college district to lead a statewide outreach campaign promoting financial aid availability, personalized application support, and the long-term value of a community college education.
- No cuts to the CSU and UC systems, ensuring these institutions maintain their capacity to serve current and future students without disruption.
- Authorizing the UC and CSU systemwide central offices to annually report disaggregated data to the California Student Aid Commission regarding their institution’s undergraduate programs.
- Making changes to the Middle Class Scholarship intended to reduce uncertainty for students, institutions, and CSAC.
- $1.5 million to establish the Education and Workforce Development Coordinating Council.
In response, Emmanuel “Manny” Rodriguez, Senior Director of Policy & Advocacy, California for the Institute for College Access & Success, released the following statement:
“TICAS commends Governor Gavin Newsom and the California Legislature for finalizing a 2025-26 state budget that meets the state’s fiscal challenges without inflicting cuts to our public higher education systems. In a year shaped by economic uncertainty, challenges by the federal administration and another year of complications with the Better FAFSA rollout, we are encouraged to see California’s decisionmakers leading the way through their commitments to college affordability, access, and transparency.
“The $321.1 billion agreement sustains financial aid for all current students, avoids cuts to the California Community College, California State University and University of California systems, and funds critical student support services and emergency aid for students at our community colleges. This is a meaningful achievement given the broader fiscal constraints and uncertainty coming from federal funding streams.
“Looking forward, state leaders must continue to lead the nation by prioritizing long-term strategies that ensure California’s public colleges are accessible, affordable, and debt-free for all seeking a higher education credential. This includes maintaining or growing investments in financial aid outreach, expanding Cal Grant eligibility to serve more low-income students, and providing robust support for students who paused or never started their college journeys due to roadblocks, including challenges with the FAFSA.
“TICAS remains committed to working alongside Governor Newsom, the Legislature, and education partners across California to advance a vision of postsecondary education that is equitable, student-centered, and truly affordable.”
