Existing law establishes the California Career Technical Education Incentive Grant Program, administered by the State Department of Education, with the purpose of encouraging, maintaining, and strengthening the delivery of high-quality career technical education programs. Existing law requires, for the 202122 fiscal year and each fiscal year thereafter, $300,000,000 to be available to the department, upon appropriation by the Legislature, for the program. Existing law requires a grant applicant to demonstrate a proportional dollar-for-dollar match and sets that amount at $2 for every $1 received from the program. Existing law prohibits an applicant from being awarded an amount higher than the amount that the allocation formula determines the applicant to be eligible to receive under the program. Existing law authorizes a grant recipient under the program to consist of one or more, or any combination, of school districts, county offices of education, charter schools, or regional occupational centers or programs operated by joint powers authorities or county offices of education, as provided. Existing law provides that an applicant receiving a grant from the program in a prior fiscal year is eligible to apply to receive a renewal grant if the applicants career technical education program continues to meet specified requirements, as provided.

This bill would delete the prohibition against an applicant being awarded more than the amount determined by the allocation formula and would instead provide that an applicant receiving a grant from the program in a prior fiscal year is required to receive a renewal grant for at least 3 additional years, as provided. The bill would require, beginning with the 202627 fiscal year, up to 90% of the grants awarded pursuant to the program to be designated for renewal grants and up to 10% to be designated for grants for new applicants, unless otherwise determined by the Superintendent of Public Instruction, as provided. The bill would require the Superintendent to cease distribution of funding and recover previously distributed funding if certain conditions occur, including, among others, that the grant recipient did not implement the program substantively as was initially proposed, as provided.

Existing law establishes the California Career Technical Education Incentive Grant Program, administered by the State Department of Education, with the purpose of encouraging, maintaining, and strengthening the delivery of high-quality career technical education programs. Existing law requires, for the 202122 fiscal year and each fiscal year thereafter, $300,000,000 to be available to the department, upon appropriation by the Legislature, for the program. Existing law requires a grant applicant to demonstrate a proportional dollar-for-dollar match and sets that amount at $2 for every $1 received from the program. Existing law prohibits an applicant from being awarded an amount higher than the amount that the allocation formula determines the applicant to be eligible to receive under the program. Existing law authorizes a grant recipient under the program to consist of one or more, or any combination, of school districts, county offices of education, charter schools, or regional occupational centers or programs operated by joint powers authorities or county offices of education, as provided. Existing law provides that an applicant receiving a grant from the program in a prior fiscal year is eligible to apply to receive a renewal grant if the applicants career technical education program continues to meet specified requirements, as provided.

This bill would delete the prohibition against an applicant being awarded more than the amount determined by the allocation formula and would instead provide that an applicant receiving a grant from the program in a prior fiscal year is required to receive a renewal grant for 3 additional years, as provided. The bill would require, beginning with the 202627 fiscal year, up to 90% of the grants awarded pursuant to the program to be designated for renewal grants and up to 10% to be designated for grants for new applicants, unless otherwise determined by the Superintendent of Public Instruction, as provided. The bill would require the Superintendent to cease distribution of funding and recover previously distributed funding if certain conditions occur, including, among others, that the grant recipient did not implement the program substantively as was initially proposed, as provided.

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 1694 (Carrillo) - California Career Technical Education Incentive Grant Program: renewal grants

Bill Summary:

This bill makes various changes to the Career Technical Education Incentive Grant (CTEIG) Program, including requiring renewal grants for prior grantees for up to three additional years and deleting the prohibition against applicants receiving awards above the amount generated by the allocation formula.

Fiscal Impact:

• This bill could result in forgone savings in the tens of millions of dollars each year that would otherwise revert to the Proposition 98 General Fund and reappropriated for other K-14 educational purposes. Based on grant award data from CDE, there has been about $102.5 million in savings from the CTEIG from 2021-22 to 2023-24.
• The California Department of Education (CDE) estimates General Fund costs of $494,000 each year and 2.0 positions to comply with the bill’s requirements.

Background:

Existing law establishes the CTEIG Program as a state education, economic, and workforce development initiative intended to encourage, maintain, and strengthen the delivery of high-quality career technical education (CTE) programs. It requires applicants to provide a local match of $2 for every $1 received from the program and prohibits an applicant from receiving an amount greater than the amount determined by the allocation formula.

Existing law requires applicants to demonstrate that their CTE programs meet specified minimum eligibility standards, including high-quality curriculum and instruction, work-based learning opportunities, student support services, labor market alignment, industry partnerships, pathways to postsecondary education and employment, access for students with exceptional needs, and annual data reporting.

Existing law requires the CDE, in consultation with the Executive Director of the SBE, to give positive consideration to applicants serving unduplicated pupils, students with higher-than-average dropout rates, applicants in areas of high unemployment, regional programs operated by county offices of education or joint powers authorities, and applicants demonstrating regional collaboration, industry engagement, and infrastructure investment.

Existing law requires the SPI, in collaboration with the Executive Director of the SBE, to determine and publicly release the CTEIG allocation formula, allowable expenditures, funding amounts, and number of grants to be awarded.

Proposed Law:

This bill requires applicants receiving a grant in a prior fiscal year to receive renewal grants for at least three additional fiscal years, provided the applicant continues to meet program requirements, continues to satisfy minimum eligibility standards, and is not otherwise determined ineligible by the SPI.

This bill requires the SPI to cease distribution of grant funding and recover previously distributed funding if the grant recipient failed to implement the program substantively as was initially proposed, the recipient did not comply with specific matching fund requirements, or the recipient no longer requires the grant.

This bill deletes the provision that prohibits an applicant from receiving an award greater than the amount determined by the allocation formula.

This bill includes legislative intent to provide increased CTEIG stability by allowing grants to be automatically renewed for four years to support high-quality CTE courses and pathways and to ensure all pupils have the opportunity to be college and career ready.

Related Legislation:

AB 1590 (Ransom, 2026) requires the Superintendent of Public Instruction (SPI) to revise the CTEIG allocation formula no later than the 2027-28 fiscal year to ensure that all funds appropriated for the program are fully allocated in the year in which they are appropriated. The bill is currently on the Suspense File in this committee.

Staff Comments:

This bill is intended to address concerns from local educational agencies and CTE stakeholders that significant amounts of appropriated CTEIG funding have gone unallocated. According to the author, “I have seen firsthand how Career Technical Education (CTE) can change the trajectory of a young person’s life. CTE equips students with real-world skills that open doors to good-paying careers and higher education, and it is especially impactful for low-income students, who make up half of all participants. These programs succeed because they are built through strong partnerships between our local schools and regional employers, ensuring students gain skills that are aligned with real workforce needs. AB 1694 will provide the stability schools and industry partners need by allowing LEAs to renew their CTEIG awards for up to four years if they meet quality standards and maintain matching funds. This measure strengthens our commitment to high-quality, locally driven CTE pathways and ensures students are prepared for long-term success.”

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SENATE COMMITTEE ON EDUCATION

Senator Sasha Renée Pérez, Chair

2025 - 2026 Regular

Bill No: Hearing Date: June 10, 2026

Subject:

SUMMARY

This bill revises the Career Technical Education Incentive Grant (CTEIG) Program by requiring renewal grants for prior grantees for up to three additional years, reserving up to 90% of annual funding for renewal applicants beginning in the 2026-27 fiscal year, deleting the prohibition against applicants receiving awards above the amount generated by the allocation formula, and authorizing the Superintendent of Public Instruction (SPI) to cease or recover funding if specified program requirements are not met.

BACKGROUND

Existing law:

1. Establishes the CTEIG Program for the purpose of encouraging, maintaining, and strengthening the delivery of high-quality career technical education (CTE) programs. (Education Code (EC) § 53070)
2. Provides, beginning in the 2021–22 fiscal year and each fiscal year thereafter, that $300 million shall be available to the California Department of Education (CDE), upon appropriation by the Legislature, for the CTEIG Program. (EC § 53070)
3. Requires grant applicants to provide a local match of $2 for every $1 received from the program and prohibits an applicant from receiving an amount greater than the amount determined by the allocation formula. (EC § 53071)
4. Authorizes applicants to consist of one or more school districts, county offices of education, charter schools, regional occupational centers or programs, or joint powers authorities. (EC § 53071)
5. Requires applicants to demonstrate that their CTE programs meet specified minimum eligibility standards related to curriculum, work-based learning, student support services, labor market alignment, industry partnerships, data reporting, and access for students with exceptional needs. (EC § 53071)
6. Requires the SPI, in collaboration with the Executive Director of the State Board of Education (SBE), to determine reporting requirements and renewal grant eligibility criteria. (EC § 53073)
7. Provides that prior grantees are eligible to apply for renewal grants if their CTE programs continue to meet specified statutory requirements and are deemed successful based on established metrics. (EC § 53073)
8. Requires the CDE, in consultation with the Executive Director of the SBE, to give positive consideration to applicants serving high-need student populations, rural communities, and regional collaborative programs. (EC § 53075)
9. Requires the SPI, in collaboration with the Executive Director of the SBE, to determine and publicly release the allocation formula, grant amounts, allowable expenditures, and number of grants awarded under the program. (EC § 53076)

ANALYSIS

This bill:

1. Includes legislative intent to provide increased CTEIG stability by allowing grants to be automatically renewed for four years to support high-quality CTE courses and pathways and to ensure all pupils have the opportunity to be college and career ready.
2. Deletes the provision prohibiting an applicant from receiving an award greater than the amount determined by the allocation formula.
3. Requires applicants receiving a grant in a prior fiscal year to receive renewal grants for up to three additional fiscal years, provided the applicant continues to meet program requirements, continues to satisfy minimum eligibility standards, and is not otherwise determined ineligible by the SPI.
4. Requires, beginning with the 2026-27 fiscal year, that up to 90% of available CTEIG funding be designated for renewal grants and up to 10% be designated for new applicants, unless otherwise determined by the SPI.
5. Authorizes the SPI to cease distribution of grant funding and recover previously distributed funding if the recipient did not implement the program substantially as proposed, the recipient did not comply with specific matching fund requirements, or the recipient no longer requires the grant.

STAFF COMMENTS

1. Need for the bill. According to the author, “I have seen firsthand how Career Technical Education (CTE) can change the trajectory of a young person’s life. CTE equips students with real-world skills that open doors to good-paying careers and higher education, and it is especially impactful for low-income students, who make up half of all participants. These programs succeed because they are built through strong partnerships between our local schools and regional employers, ensuring students gain skills that are aligned with real workforce needs. AB 1694 will provide the stability schools and industry partners need by allowing LEAs to renew their CTEIG awards for up to four years if they meet quality standards and maintain matching funds. This measure strengthens our commitment to high-quality, locally driven CTE pathways and ensures students are prepared for long-term success.”
2. This bill shifts CTEIG from a primarily competitive grant model toward a multiyear funding structure. Existing law allows prior grantees to apply for renewal grants if they continue meeting statutory requirements and demonstrate successful outcomes. However, funding still occurs through an annual allocation process in which all applicants compete for available funding. This bill would alter that structure by effectively guaranteeing up to three additional years of funding for successful grantees and reserving up to 90% of annual appropriations for renewal grants beginning in the 2026-27 fiscal year.

Supporters may argue that this approach better reflects the realities of sustaining high-quality CTE programs, which often require long-term staffing commitments, durable industry partnerships, equipment purchases, pathway sequencing, and ongoing coordination with postsecondary institutions and employers. Conversely, reserving the vast majority of annual funding for existing grantees may reduce opportunities for new applicants seeking to establish or expand pathways in response to emerging workforce needs or changing student demand.

The bill therefore raises a broader policy question regarding whether the primary purpose of CTEIG should be sustaining existing high-performing programs, expanding access to new applicants and pathways, or balancing both objectives simultaneously.

1. Longstanding concerns regarding unallocated CTEIG funding. Existing law currently prohibits applicants from receiving awards greater than the amount generated by the allocation formula. This bill deletes that limitation. The bill appears intended, at least in part, to respond to growing concerns from local educational agencies (LEAs) and CTE stakeholders regarding significant amounts of appropriated CTEIG funding going unallocated in recent years despite substantial statewide matching capacity.

Recent CDE materials and the Round 12 Request for Applications indicate that the department anticipates allocating all available program funds in a single funding round following administrative revisions to the allocation methodology. According to CDE, the revised methodology differs from prior years in two significant ways. First, the methodology proportionally allocates an applicant’s unduplicated pupil count (UPC) based on the percentage of average daily attendance (ADA) attributed to an individual application versus a consortium application. Second, where an applicant’s available local match is less than the amount generated by the allocation formula, funding that would otherwise remain unallocated is redistributed among other applicants with remaining match capacity.

To the extent these administrative changes successfully eliminate carryover balances within existing statutory authority, questions may arise regarding whether deletion of the statutory formula cap is necessary to achieve the bill’s stated objective of fully allocating available appropriations. At the same time, proponents may argue that removing the statutory limitation provides additional clarity and flexibility to ensure future administrations continue maximizing annual allocations when statewide matching capacity exists.

1. Measure reflects broader statewide efforts to strengthen workforce development and career readiness. California has made significant recent investments in workforce-aligned education initiatives, including the K-12 Strong Workforce Program, Golden State Pathways Program, dual enrollment expansion, apprenticeship pathways, and other college and career readiness efforts. These initiatives increasingly emphasize durable partnerships among TK-12 schools, postsecondary institutions, employers, labor organizations, and regional workforce agencies.

Within that broader policy context, stakeholders have increasingly argued that annual grant uncertainty can make it difficult for LEAs to sustain long-term pathway development, maintain staffing continuity, replace equipment, and preserve industry partnerships. This bill reflects a growing policy discussion regarding whether major CTE funding programs should function more like ongoing operational funding streams rather than short-term competitive grants.

1. CTEIG operates within a broader landscape of CTE funding streams. While CTEIG remains one of the state’s largest ongoing dedicated K-12 CTE funding sources, LEAs also support CTE programs through Local Control Funding Formula (LCFF) base funding, Perkins V funds, the K–12 Strong Workforce Program, Golden State Pathways grants, California Partnership Academies, Agricultural Career Technical Education Incentive Grants, and various local and regional workforce initiatives.

As a result, this bill also raises broader questions regarding how the state’s various CTE funding streams should interact and whether long-term program sustainability is best addressed through dedicated ongoing categorical funding, local flexibility within LCFF, competitive grants, or some combination thereof.

1. Committee amendments. Staff recommends the following amendments to clarify the author’s intent and ensure consistency within the bill:
   1. Clarify that successful grantees shall receive renewal grants for “at least” three additional years. As currently drafted, the phrase “shall receive renewal grants for 3 additional years” could arguably be interpreted as establishing a maximum renewal period rather than a minimum funding continuity expectation for successful programs.
   2. Broaden the SPI’s enforcement authority related to matching funds from paragraph (1) of subdivision (a) of Section 53071 to subdivision (a) as a whole. Subdivision (a) contains several additional match-related requirements beyond the proportional dollar-for-dollar match itself, including provisions governing reductions in awards when sufficient match is unavailable, allowable and prohibited match sources, and requirements that matching funds support the funded program. This amendment would ensure all statutory matching fund requirements remain enforceable under the bill.
   3. Strike the provision requiring that up to 90% of annual CTEIG funding be reserved for renewal grants and up to 10% for new applicants. According to CDE, the vast majority of program funding is already allocated to renewal grantees operationally. CDE staff have expressed concerns that codifying a fixed allocation structure could create administrative complications in years where there are insufficient viable new applicants to fully utilize the reserved funding amount, potentially leaving otherwise allocatable funds unawarded absent additional administrative action. Additionally, CDE has indicated that viable new applicants meeting baseline program requirements would still have a reasonable opportunity to receive funding without this statutory reservation.

SUPPORT

aiEDU
Alameda County Office of Education
Amador County Unified School District
Association of California School Administrators
Baldy View Regional Occupational Program
California Chamber of Commerce
California High School District Coalition
Campbell Union High School District
Career Technical Education Joint Powers Authority Coalition
CAROCP - the Association of Career and College Readiness Organizations
Chaffey Joint Union High School District
Coalition for Career Technical Education
Coastline Regional Occupational Program
Contra Costa County Office of Education
Desert Sands Unified School District
El Monte Union High School District
Fullerton Joint Union High School District
Glenn County Office of Education
Grossmont Union High School District
Huntington Beach Union High School District
Lake County Office of Education
Los Banos Unified School District
Madera County Superintendent of Schools
Mission Valley ROP
Mountain Desert Career Pathways Joint Powers Authority
Napa County Office of Education
Nevada Joint Union High School District
Rocklin Unified School District
San Benito High School District
San Bernardino County Superintendent of Schools
San Diego Unified School District
San Gabriel Valley Regional Occupational Program
Santa Maria Joint Union High School District
Shasta-Trinity Regional Occupational Program
Small School Districts Association
Tri-Cities Regional Occupational Program
Valley Regional Occupational Program
Wheatland Union High School District

OPPOSITION

None received

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Date of Hearing: May 6, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1694

Author:(Carrillo) – As Introduced Ver:February 3, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill allows a grant recipient of the Career Technical Education Incentive Grant (CTEIG) to continue receiving grant funds for up to four years total, allows a grant recipient to receive funding above the statutory formula if they have additional matching funds available, and requires the State Superintendent of Public Instruction (SSPI) to recover grant funds from local educational agencies (LEAs) out of compliance with specified requirements.

FISCAL EFFECT:

Ongoing General Fund costs to the California Department of Education (CDE) of an unknown but likely minor and absorbable amount to monitor grant recipient compliance with program requirements and recover funds as needed.

The bill appropriates no additional funding for the CTEIG program but does change elements of the allocation formula. To the extent additional CDE administrative workload results from the bill’s compliance monitoring requirements these costs may be offset by reduced workload associated with reviewing applications from the same LEAs on an annual basis because grant recipients in a given year would now be eligible for up to three additional years.

COMMENTS:

1. Purpose. According to the author:

CTE equips students with real-world skills that open doors to good-paying careers and higher education, and it is especially impactful for low-income students, who make up half of all participants. These programs succeed because they are built through strong partnerships between our local schools and regional employers, ensuring students gain skills that are aligned with real workforce needs. AB 1694 will provide the stability schools and industry partners need by allowing LEAs to renew their CTEIG awards for up to four years if they meet quality standards and maintain matching funds.

1. Background. Limited State Funding Earmarked for Career Technical Education. Originally established in 2015 as a one-time investment of $900 million to cover a three-year span, CTEIG is a state education, economic, and workforce development initiative providing students in kindergarten through grade twelve with the knowledge and skills necessary to transition from secondary education to postsecondary education and living-wage employment. The CDE administers the program, in consultation with the SBE. LEAs submit applications outlining the ways in which they meet the statutorily defined requirements, including a two-to-one match of local to state funding. In 2018, the Legislature appropriated ongoing funding of $150 million for CTEIG and increased the annual funding amount to $300 million, effective 2021. Additionally, the California Community Colleges Chancellor’s Office administers the Strong Workforce Program, with $150 million appropriated annually for K-12 LEAs to compete for regionally across eight regional consortia to fund CTE programs and pathways aligned with industry needs.

Prior to the adoption of the Local Control Funding Formula (LCFF), the state provided funding for CTE through a number of categorical programs, including $400 million for the Regional Occupational Centers/Programs (ROC/P). In 2013 the LCFF folded this funding into LEA base funding amounts, permanently making the funding discretionary and available for other K-12 priorities. However, the LCFF does include a base grant rate adjustment for the high school grade span (grades 9 through 12) of 2.6%, an acknowledgment of the fact that most CTE course offerings are for high school students. While the state provides limited earmarked funding for K-12 CTE programs, it provided nearly double the amount of funding to LEAs in fiscal year 2024-25 than it provided in 2013-14 through the LCFF ($42.6 billion compared to an estimated $80.5 billion) and the LCFF’s accountability system provides discretion for LEAs to determine how best to meet the needs of their communities, including providing CTE coursework, if desired.

Savings Available from Prior Years’ Allocations. According to grant award data from the CDE, as of April, 2025, of the total of $900 million in CTEIG funds appropriated between fiscal years 2021-22 and 2023-24, the CDE identified $102.5 million in carryover savings. The savings were then returned to the Proposition 98 General Fund re-appropriation account which the Legislature appropriated for another K-12 education purpose. However, much of these returned funds under the CTEIG are a symptom of the statutory formula limiting a grant recipient’s allocation to no more than the formula calculates even when a recipient has additional matching funds beyond that amount. This bill removes that cap and allows an eligible grant recipient to receive up to the amount of funds for which they can provide a two-to-one match. Additionally, the bill allows a grant recipient to remain eligible for an additional three years beyond the initial year of receiving a grant, a feature which proponents, such as the Small School District’s Association, state will “strengthen program sustainability and expand student access to high-quality CTE opportunities throughout the state.”

1. Related Legislation. AB 1590 (Ransom), of the current legislative session, would require, SSPI to determine a revised CTEIG allocation formula ensuring all funds appropriated for the program in a given fiscal year are fully allocated within that fiscal year. AB 1590 is pending hearing in this committee.

AB 401 (Muratsuchi), of the current legislative session, would have applied an annual cost-of-living adjustment (COLA) to the CTEIG, subject to an appropriation, allowed a grant recipient to automatically continue receiving grant funds for up to four years total, and required the SSPI to recover grant funds from LEAs out of compliance with specified requirements. AB 401 was held in this committee.

Analysis Prepared by: Aaron Heredia / APPR. / (916) 319-2081

Date of Hearing: March 18, 2026

ASSEMBLY COMMITTEE ON EDUCATION

Darshana Patel, Chair

ABPCA Bill Id:AB 1694 (

Author:Carrillo) – As Introduced Ver:February 3, 2026

SUBJECT: California Career Technical Education Incentive Grant Program: renewal grants

SUMMARY: For purposes of the California Career Technical Education Incentive Grant Program (CTEIG), deletes the prohibition against an applicant being awarded more than the amount determined by the allocation formula; requires that an applicant receiving a grant receive a renewal grant for 3 additional years; and requires, beginning with the 2026–27 fiscal year, that up to 90% of the grants be for renewal grants and up to 10% for new grants. Specifically, this bill:

1. Requires that recipients of grants from the CTEIG program receive renewal grants for three additional years provided they meet quality standards, as specified.
2. Requires the Superintendent of Public Instruction (SPI) to cease funding and recover previously disbursed funds if the applicant fails to substantively implement the program as proposed in their initial application, fails to meet the matching funds requirements, or no longer requires the grant funds.
3. Requires that, commencing with the 2026-27 fiscal year, 90% of the CTEIG funds be designated for renewal grants and 10% designated for new applicants each year.
4. Removes the limitation that no applicant be awarded an amount higher than they are eligible for under the allocation formula.

EXISTING LAW:

1. Authorizes the CTEIG Program as a state education, economic, and workforce development initiative with the goal of providing students in kindergarten through 12th grade with the knowledge and skills necessary to transition to employment and postsecondary education, and:
2. Identifies the purpose of the competitive CTEIG program as the encouragement and maintenance of the delivery of career technical education (CTE) programs by school districts and charter schools;
3. Appropriates funding for the CTEIG program as follows: $400 million for 2015-16; $300 million for 2016-17; $200 million for 2017-18; and $150 million per year for 2018-19 to 2020-21; and $300 million per year beginning in the 2021-22 fiscal year and every year thereafter; and
4. Specifies the distribution of the funds appropriated by school size as follows: 4% to applicants with an average daily attendance (ADA) of 140 or less; 8% to applicants with an ADA of 141 to 550; and 88% to applicants with an ADA of more than 550. (Education Code (EC) 53070)
5. Requires that applicants demonstrate the ability to provide local matching funds as follows:
6. $1.00 for every $1 received in 2015-16;
7. $1.50 for every $1 received in 2016-17; and
8. $2.00 for every $1 received in 2017-18, and each fiscal year thereafter.
9. As of July 1, 2021, requires the proportional match to be encumbered in the fiscal year for which the applicant is applying for a grant under the program. (EC 53071)
10. Requires applicants for the CTEIG Program to demonstrate that their CTE programs provide all of the following to meet minimum eligibility standards:
11. High-quality curriculum and instruction aligned with the California CTE Model Curriculum Standards, including a coherent sequence of CTE courses that enable students to transition to postsecondary education programs, that lead to a career pathway or attain employment or industry certification upon graduation from high school, including programs that integrate academic and CTE and that offer the opportunity for participants to prepare for postsecondary enrollment and to earn postsecondary credits through Advanced Placement courses, International Baccalaureate courses, or dual enrollment opportunities;
12. Career exploration, guidance, and a continuum of work-based learning opportunities aligned with academic coursework, which may include paid internships;
13. Student support services, including counseling and leadership development to address students’ social, emotional, career, and academic needs;
14. System alignment, coherence, and articulation with postsecondary institutions, allowing for dual enrollment opportunities;
15. Ongoing and meaningful industry and labor partnerships, evidenced by written agreements and through participation on advisory committees and collaboration with business and labor organizations to provide opportunities for students to gain access to pre-apprenticeships, internships, industry certifications, and work-based learning opportunities, as well as opportunities for industry to provide input to the CTE programs and curriculum;
16. Opportunities for students to participate in after-school, extended day, and out-of-school internships, competitions, leadership development opportunities, and other work-based learning opportunities;
17. Connection to regional or local labor market demands and a focus on current or emerging high-skill, high-wage, or high-demand occupations, and is informed by the regional plan of the local Strong Workforce Program consortium;
18. Pathway to an industry-recognized credential or certificate, or appropriate postsecondary education or training, employment, or a postsecondary degree;
19. Staffing by skilled teachers or faculty and the provision of professional development opportunities for any teachers or faculty members supporting students in those programs;
20. Opportunities for students with exceptional needs to participate in all programs; and
21. Annual data reporting to allow for an evaluation of the program. (EC 53071)
22. Requires CTEIG grantees to report data, including the core metrics required by the federal Strengthening Career and Technical Education for the 21st Century Act (Perkins V), the quality indicators described in the California State Plan for CTE, as well as additional specified metrics. Requires the California Workforce Pathways Joint Advisory Committee to review the data metrics annually and make recommendations on whether these data metrics remain the most appropriate metrics to evaluate program outcomes for new and renewal applicants, or whether other metrics should be included. (EC 53071)
23. Defines grant recipients for CTEIG as one or more school districts, county offices of education (COEs), charter schools, regional occupational centers or programs (ROCPs) operated by joint power authorities (JPAs) or COEs, or any combination of these. (EC 53072)
24. Requires the California Department of Education (CDE) to annually submit the list of recommended new and renewal grant recipients to the State Board of Education (SBE) for review and approval prior to making annual grant awards. CDE and SBE, in determining proposed grant recipients, are required to give positive consideration and the greatest weight to those applicants who:
25. Serve unduplicated students or subgroups with higher than average dropout rates;
26. Are located in an area of the state with a high unemployment rate; and
27. Offer an existing high-quality regional-based CTE program as a JPA or COE.
28. Requires the CDE and the SBE, in determining proposed grant recipients, to also give positive consideration to those applicants who:
    1. Successfully leverage existing CTE resources and funding, including Perkins, California Partnership Academies, or Agricultural CTE Incentive Grants, as well as contributions from industry, labor, and philanthropic sources;
    2. Engage in regional collaborations with postsecondary education or other local educational agencies (LEAs), including the Strong Workforce Program (SWP) consortium operating in their areas, as well as pathway programs provided under an adopted California and Career Access Pathways partnership agreement;
    3. Make significant investments in CTE infrastructure, equipment, and facilities; and
    4. Operate within rural districts. (EC 53075)
29. Requires that CTEIG grantees be eligible to receive a renewal grant if their CTE program meets the specified requirements and has been evaluated and deemed successful by the SPI in collaboration with the SBE, based upon the metrics identified. Requires that renewal grant recipients include the CTE program within their local control accountability plan (LCAP) and annual update. (EC 53073)
30. Authorizes the K-12 component of the SWP to create, support, or expand high-quality CTE programs at the K-12 level that are aligned with the workforce development efforts occurring through the SWP, and authorizes, commencing with the 2018-19 fiscal year, and subject to an annual appropriation, $150 million to be apportioned annually by the California Community College Chancellor’s Office (CCCCO) to local consortia. (EC 88827)
31. Establishes the California Golden State Pathways Program (GSPP) to provide LEAs with the resources to promote pathways in high-wage, high-skill, high-growth areas, including technology, health care, education, and climate-related fields that, among other things, allow students to advance seamlessly from high school to college and career and provide the workforce needed for economic growth. (EC 53020)
32. Federal law, the Strengthening Career and Technical Education for the 21st Century Act, reauthorizes the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins), provides federal support for CTE programs and focuses on improving the academic and technical achievement of CTE students, strengthening the connections between secondary and postsecondary education and improving accountability.

FISCAL EFFECT: Unknown

COMMENTS:

Need for the bill. The author states, “I have seen firsthand how Career Technical Education (CTE) can change the trajectory of a young person’s life. CTE equips students with real-world skills that open doors to good-paying careers and higher education, and it is especially impactful for low-income students, who make up half of all participants. These programs succeed because they are built through strong partnerships between our local schools and regional employers, ensuring students gain skills that are aligned with real workforce needs. AB 1694 will provide the stability schools and industry partners need by allowing LEAs to renew their CTEIG awards for up to four years if they meet quality standards and maintain matching funds. This measure strengthens our commitment to high-quality, locally driven CTE pathways and ensures students are prepared for long-term success.”

Funding for CTEIG program going unused in spite of high demand. This bill would require the SPI, in consultation with the SBE, by the 2027-2028 fiscal year, to revise the CTEIG formula to ensure all funds appropriated are allocated for the purposes of CTE.

According to the author, over the past five years, nearly $120 million in state-approved CTEIG funding has gone unallocated due to a provision of the allocation formula which prohibits LEAs from receiving more than they are eligible to receive under the allocation formula. This has prevented otherwise qualified school districts from receiving full funding that would directly benefit students. Data provided by the author is shown below:

Master plan for career education identifies need for sustained funding. In August 2023, Governor Newsom issued an Executive Order calling for a new Master Plan for Career Education to increase equitable access to living wage jobs by creating and strengthening education and training pathways specific to sectors, regions, and individuals’ skills and experience. Initial input from the agencies focused on four primary concepts: creating stronger coordination mechanisms, building skills-based pathways, expanding work-based learning, and increasing access to public benefits and career pathways.

Additional input gained from numerous stakeholder input sessions held around the state identified numerous barriers to achieving the goals of universal access to high quality CTE opportunities within the TK-12 education system. The lack of sustained and coordinated funding for programs was identified as a key barrier. Participants noted that siloed funding streams, “nonsustainable funding sources,” and “competitive/unpredictable funding” for career education posed challenges to long-term planning, collaboration, and sustained programming. Participants reported a need for long-term, “sustained, consistent funding” for college and career readiness programs, as opposed to relying on annual one-time grants or competitive funding.

Renewal versus new applicants. This bill would provide greater stability in CTEIG funding by setting aside 90% of funding for renewal grants and reserving 10% of the funding for new applicants each year. According to the CDE, in recent years, up to 5% of the total available CTEIG funding has gone to new applicants.

Current K-12 CTE programs. There are a number of initiatives supporting K-12 CTE programs supported by state and federal funds, including two large competitive grant programs with ongoing funding:

1) The Career Technical Education Incentive Grant Program was originally established in 2015 as a one-time investment of $900 million to cover a three-year span, and acted as a bridge for LEAs to support CTE programs until the Local Control Funding Formula (LCFF) was fully funded. It was created as a state education, economic, and workforce development initiative to provide students in kindergarten through grade twelve with the knowledge and skills necessary to transition from secondary education to postsecondary education and living-wage employment. The purpose of the program is to encourage, maintain, and strengthen the delivery of high-quality CTE programs. The program is administered by the CDE. In 2018, ongoing funding of $150 million for CTEIG was appropriated. In 2021, the annual funding for CTEIG was increased to $300 million.

Prior to the adoption of the LCFF, the state provided funding for CTE through a number of categorical programs, including the Regional Occupational Centers/Programs (ROC/P), which was funded at $400 million at the time. This funding was folded into the Local Control Funding Formula (LCFF), increasing the LCFF base rate for high schools by 2.6%.

2) The K-12 Strong Workforce Program (K-12 SWP) was established in 2018 as a component of the Community Colleges’ SWP to create, support, or expand high-quality CTE programs at the secondary level that are aligned with the workforce development efforts occurring through the SWP.

As is the case for CTEIG, the K-12 SWP is meant to support the overall development of high-quality K-12 CTE programs, courses, course sequences, programs of study, and pathways. The program is administered by the California Community College Chancellor’s Office (CCCCO). The program is currently funded at $150 million per year for the LEAs, $12 million for 72 K-12 Pathway Coordinators and 8 regional K-14 Technical Assistance Providers, and $1.5 million for consortia administrative costs, for a total of $163.5 million.

Unlike the CTEIG program, which is administered at the state level, the CCCCO allocates K-12 SWP grant funding to eight regional consortia according to a statutory formula. Each regional consortium is required to administer a competitive grant program it receives to LEAs in the region. Each consortium establishes a selection committee made up of individuals with expertise in K-12 CTE and workforce development, including teachers, administrators, community college faculty or administrators, and other K-12 education stakeholders. Employees of LEAs applying for grants under the program may serve as members of the selection committees. Each selection committee has exclusive authority under state law to determine the recipients of K-12 SWP grants in its region and the specific amount for each grant.

Improved outcomes for CTE students. A wide body of research indicates that involvement in CTE coursework provides improved academic outcomes and other benefits to students with findings, such as the following:

• Students with greater exposure to CTE are more likely to graduate from high school, enroll in a two-year college, be employed, and earn higher wages;
• The average high school graduation rate for students concentrating in CTE programs is 93%, compared to an average national graduation rate of 80%;
• Students taking more CTE classes are just as likely to pursue a four-year degree as their peers;
• 91% of high school graduates who earned 2-3 CTE credits enrolled in college;
• CTE provides the greatest boost to students who need it most – boys and students from low-income families; and
• 80% of students taking a college preparatory academic curriculum with rigorous CTE met college and career readiness goals, compared to only 63% of students taking the same academic core who did not experience rigorous CTE.

College and career readiness is a state priority. Each LEA’s local control and accountability plan (LCAP) must demonstrate, among other priorities, how they are ensuring that all students are being prepared to be college and career ready. The College and Career Readiness Index displayed on each LEA’s California Schol Dashboard includes data on the number of students completing a CTE pathway.

Defining Career Technical Education. CTE prepares students for the world of work by introducing them to workplace competencies, and makes academic content accessible to students by providing it in a hands-on context. Along the way, students develop career-relevant, real-world 21st Century skills.

CTE is a program of study that involves a multiyear sequence of courses that integrates core academic knowledge with technical and occupational knowledge to provide students with a pathway to postsecondary education and careers. CTE programs in California are organized into 15 industry sectors, covering 58 pathways that identify the knowledge and skills students need. Partnerships are usually developed between high schools, businesses, and postsecondary schools, providing pathways to employment and associate, Bachelor’s, and advanced degrees.

CTE courses and pathways may be offered in comprehensive high schools with CTE programs, as well as through regional CTE programs or centers operated by JPAs or COEs. Some CTE programs are blended with academic programs in what is known as a “linked learning model.” Community colleges and technical institutes also offer CTE at the postsecondary level.

Arguments in support. The Career Technical Education Joint Powers Authority Coalition writes, “AB 1694 strengthens the CTEIG program by establishing a four-year grant timeline, providing successful applicants with multiyear renewal funding rather than requiring annual reapplication. This change will provide meaningful stability for ROC/Ps by allowing them to plan responsibly, protect local matching fund commitments, and sustain high-quality programs without the uncertainty of yearly competitive funding cycles.

Importantly, the four-year timeline will enable our members to spend more time working directly with students to support their college and career success, and less time preparing annual grant applications. At the same time, AB 1694 includes appropriate safeguards to ensure continued accountability and oversight regarding how CTEIG funds are used.

AB 1694 also deletes the prohibition against an applicant being awarded more than the amount determined by the CTEIG allocation formula. Removing this restriction provides the California Department of Education with greater flexibility to ensure that available funds are fully allocated to high-performing, capacity-ready applicants in a given funding cycle. In years when some eligible applicants do not apply or do not meet program requirements, this change allows the state to maximize its investment in high-quality CTE programs rather than leaving funds unawarded. This targeted flexibility strengthens program efficiency while continuing to prioritize accountability and student outcomes.

AB 1694 does not increase overall program costs; rather, it strengthens the effectiveness and stability of the state’s existing investment in CTE by supporting continuity while maintaining strong fiscal accountability.”

Related legislation. AB 1590 (Ransom) of the 2025-26 Session requires the SPI to determine, in consultation with the executive director of the SBE, a revised allocation formula for the CTEIG program that ensures that all funds appropriated for the program in any given fiscal year are fully allocated to program applicants in that fiscal year.

AB 401(Muratsuchi) of the 2025-26 Session would have required CTEIG program recipients to be granted renewal grants for a total of four years, subject to specified conditions; required the SPI to designate 90% of the CTEIG funds for renewal grants and 10% for new applicants; added a cost-of-living adjustment to the CTEIG appropriation; and removed a limitation on grant awards above a specified level. This bill was held in the Assembly Appropriations Committee.

SB 612 (Valladares) of the 2025-26 Session would require, subject to an appropriation, a one-semester course in CTE as a graduation requirement beginning with students graduating in the 2031-32 school year and require LEAs serving students in grades 9 to 12 to offer at least one course in CTE at all of its high schools.

SB 845 (Pérez) of the 2025-26 Session would require the CDE to coordinate the updating of CTE model curriculum standards and framework at least every 5 years, convene CTE industry advisory groups for each CTE subject area including specified representatives, to provide input to the updating of the standards and frameworks, identify various work-based learning opportunities, including apprenticeship and pre-apprenticeship programs, as well as outlining the responsibilities of the LEA in sponsoring work-based learning.

SB 721 (Dahle) of the 2025-26 Session would include participation in CTE enhancement, as defined, as an excused absence.

AB 1929 (McKinnor) Chapter 145, Statutes of 2024, requires that LEAs receiving specified CTE state grants and the California Community College Chancellor’s Office disaggregate program and performance accountability outcome data by race and gender.

AB 3131 (McCarty) Chapter 434, Statutes of 2024, requires that LEAs receiving Equity Multiplier funding through the LCFF be given positive consideration for the K-12 SWP, a career technical education initiative.

AB 377 (Muratsuchi) of the 2023-24 Session, would have required the consolidation of specified K-12 CTE programs, increased ongoing funding for the CTEIG, administered by the CDE, to $450 million per year; requires specified CTE staffing at the state and regional level to support local CTE programs and pathways; and deletes authorization for the K-12 SWP administered by the Chancellor of the California Community Colleges (CCCCO). Also, requires the CDE to establish a stakeholder workgroup to consider improvements to the CTEIG program.

AB 2058 (O’Donnell) of the 2021-22 Session was substantially similar to this bill. The bill was held in the Senate Education Committee.

AB 181 (Committee on Budget) Chapter 52, Statutes of 2022, appropriates $500 million in one-time Proposition 98 funding for the Golden State Pathways Program to support the development and implementation of college and career educational pathways in critically needed sectors of the economy. Authorizes the CDE to contract with up to 10 LEAs for the provision of technical assistance to LEAs, applicants, and grant recipients.

AB 1923 (Mathis) Chapter 114, Statutes of 2022, requires the SPI to prioritize proposals for new California Partnership Academies based on a school district’s enrollment of socioeconomically disadvantaged students, and for school districts located in a rural or economically disadvantaged area.

AB 130 (Committee on Budget) Chapter 44, Statutes of 2021, provides that, for the 2021–22 fiscal year and each fiscal year thereafter, $300 million would be made available to the CDE, upon appropriation for the CTEIG program. Also makes adjustments to program provisions relating to eligibility requirements for grant applicants, and for ensuring compliance with program requirements.

AB 1808 (Committee on Budget) Chapter 32, Statutes of 2018, appropriates in the 2018–19 fiscal year and each fiscal year thereafter, $150 million to the CTEIG program administered through CDE. Also establishes a K–12 component of the SWP to create, support, or expand high-quality CTE programs at the K–12 level aligned with the workforce development efforts and, commencing with the 2018–19 fiscal year, requires the CCCCO to allocate $150 million for this program to regional CTE consortia.

AB 1743 (O’Donnell) of the 2017-18 Session would have extended funding for the CTEIG Program by providing ongoing funding of $500 million per year with a 1:1 local match and $12 million per year for regional K-12 CTE coordinators to provide technical assistance and support to local CTE providers. This bill was held in the Senate Education Committee.

AB 104 (Committee on Budget) Chapter 13, Statutes of 2015, establishes the CTEIG, a competitive grant program administered by the CDE, to provide support for career technical education in grades K-12, and provides $400 million in 2015-16, $300 million in 2016-17, and $200 million in 2017-18 for this program.

REGISTERED SUPPORT / OPPOSITION:

Support

AI Education Project - aiEDU
Alameda County Office of Education
Antelope Valley Union High School District
Baldy View Regional Occupational Program
Bret Harte Union High School District

California Charter Schools Association
Career Technical Education Joint Powers Authority Coalition
CAROP - the Association of Career and College Readiness Organizations
Chaffey Joint Union High School District
Coast Unified School District
Coastline ROP
College and Career Advantage, JPA ROP
Contra Costa County Office of Education
Dos Palos-Oro Loma Joint Unified School District
Eden Area ROP
El Monte Union High School District
Fall River Joint Unified School District
Humboldt County Office of Education
Huntington Beach Union High School District
Metropolitan Education District
Mission Valley ROP
Monterey County Office of Education
Mountain Desert Career Pathways Joint Powers Authority
Mountain View Los Altos Union High School District
Napa County Office of Education
Nevada County Superintendent of Schools
Nevada Joint Union High School District
Pasadena Unified School District
Roseville Joint Union High School District
San Benito High School District

San Joaquin County Office of Education
San Luis Coastal Unified School District
San Luis Obispo County Office of Education
Shasta Union High School District
Shasta-trinity Regional Occupational Program
Small School Districts Association
Sonoma County Office of Education
Stockton Unified School District
Sutter County Superintendent of Schools
Taft Union High School District
Torrance Unified School District
Tri-cities Regional Occupational Program
Tri-valley Regional Occupational Program
Union Roofing Contractors Association
Valley Regional Occupational Program
Ventura Unified School District
Wheatland Union High School District

1 individual

Opposition

None on file

Analysis Prepared by: Tanya Lieberman / ED. / (916) 319-2087

Date of Hearing: March 18, 2026

ASSEMBLY COMMITTEE ON EDUCATION

Al Muratsuchi, Chair

ABPCA Bill Id:AB 1694 (

Author:Carrillo) – As Introduced Ver:February 3, 2026

SUBJECT: California Career Technical Education Incentive Grant Program: renewal grants

SUMMARY: For purposes of the California Career Technical Education Incentive Grant Program (CTEIG), deletes the prohibition against an applicant being awarded more than the amount determined by the allocation formula; requires that an applicant receiving a grant receive a renewal grant for 3 additional years; and requires, beginning with the 2026–27 fiscal year, that up to 90% of the grants be for renewal grants and up to 10% for new grants. Specifically, this bill:

1. Requires that recipients of grants from the CTEIG program receive renewal grants for three additional years provided they meet quality standards, as specified.
2. Requires the Superintendent of Public Instruction (SPI) to cease funding and recover previously disbursed funds if the applicant fails to substantively implement the program as proposed in their initial application, fails to meet the matching funds requirements, or no longer requires the grant funds.
3. Requires that, commencing with the 2026-27 fiscal year, 90% of the CTEIG funds be designated for renewal grants and 10% designated for new applicants each year.
4. Removes the limitation that no applicant be awarded an amount higher than they are eligible for under the allocation formula.

EXISTING LAW:

1. Authorizes the CTEIG Program as a state education, economic, and workforce development initiative with the goal of providing students in kindergarten through 12th grade with the knowledge and skills necessary to transition to employment and postsecondary education, and:
2. Identifies the purpose of the competitive CTEIG program as the encouragement and maintenance of the delivery of career technical education (CTE) programs by school districts and charter schools;
3. Appropriates funding for the CTEIG program as follows: $400 million for 2015-16; $300 million for 2016-17; $200 million for 2017-18; and $150 million per year for 2018-19 to 2020-21; and $300 million per year beginning in the 2021-22 fiscal year and every year thereafter; and
4. Specifies the distribution of the funds appropriated by school size as follows: 4% to applicants with an average daily attendance (ADA) of 140 or less; 8% to applicants with an ADA of 141 to 550; and 88% to applicants with an ADA of more than 550. (Education Code (EC) 53070)
5. Requires that applicants demonstrate the ability to provide local matching funds as follows:
6. $1.00 for every $1 received in 2015-16;
7. $1.50 for every $1 received in 2016-17; and
8. $2.00 for every $1 received in 2017-18, and each fiscal year thereafter.
9. As of July 1, 2021, requires the proportional match to be encumbered in the fiscal year for which the applicant is applying for a grant under the program. (EC 53071)
10. Requires applicants for the CTEIG Program to demonstrate that their CTE programs provide all of the following to meet minimum eligibility standards:
11. High-quality curriculum and instruction aligned with the California CTE Model Curriculum Standards, including a coherent sequence of CTE courses that enable students to transition to postsecondary education programs, that lead to a career pathway or attain employment or industry certification upon graduation from high school, including programs that integrate academic and CTE and that offer the opportunity for participants to prepare for postsecondary enrollment and to earn postsecondary credits through Advanced Placement courses, International Baccalaureate courses, or dual enrollment opportunities;
12. Career exploration, guidance, and a continuum of work-based learning opportunities aligned with academic coursework, which may include paid internships;
13. Student support services, including counseling and leadership development to address students’ social, emotional, career, and academic needs;
14. System alignment, coherence, and articulation with postsecondary institutions, allowing for dual enrollment opportunities;
15. Ongoing and meaningful industry and labor partnerships, evidenced by written agreements and through participation on advisory committees and collaboration with business and labor organizations to provide opportunities for students to gain access to pre-apprenticeships, internships, industry certifications, and work-based learning opportunities, as well as opportunities for industry to provide input to the CTE programs and curriculum;
16. Opportunities for students to participate in after-school, extended day, and out-of-school internships, competitions, leadership development opportunities, and other work-based learning opportunities;
17. Connection to regional or local labor market demands and a focus on current or emerging high-skill, high-wage, or high-demand occupations, and is informed by the regional plan of the local Strong Workforce Program consortium;
18. Pathway to an industry-recognized credential or certificate, or appropriate postsecondary education or training, employment, or a postsecondary degree;
19. Staffing by skilled teachers or faculty and the provision of professional development opportunities for any teachers or faculty members supporting students in those programs;
20. Opportunities for students with exceptional needs to participate in all programs; and
21. Annual data reporting to allow for an evaluation of the program. (EC 53071)
22. Requires CTEIG grantees to report data, including the core metrics required by the federal Strengthening Career and Technical Education for the 21st Century Act (Perkins V), the quality indicators described in the California State Plan for CTE, as well as additional specified metrics. Requires the California Workforce Pathways Joint Advisory Committee to review the data metrics annually and make recommendations on whether these data metrics remain the most appropriate metrics to evaluate program outcomes for new and renewal applicants, or whether other metrics should be included. (EC 53071)
23. Defines grant recipients for CTEIG as one or more school districts, county offices of education (COEs), charter schools, regional occupational centers or programs (ROCPs) operated by joint power authorities (JPAs) or COEs, or any combination of these. (EC 53072)
24. Requires the California Department of Education (CDE) to annually submit the list of recommended new and renewal grant recipients to the State Board of Education (SBE) for review and approval prior to making annual grant awards. CDE and SBE, in determining proposed grant recipients, are required to give positive consideration and the greatest weight to those applicants who:
25. Serve unduplicated students or subgroups with higher than average dropout rates;
26. Are located in an area of the state with a high unemployment rate; and
27. Offer an existing high-quality regional-based CTE program as a JPA or COE.
28. Requires the CDE and the SBE, in determining proposed grant recipients, to also give positive consideration to those applicants who:
    1. Successfully leverage existing CTE resources and funding, including Perkins, California Partnership Academies, or Agricultural CTE Incentive Grants, as well as contributions from industry, labor, and philanthropic sources;
    2. Engage in regional collaborations with postsecondary education or other local educational agencies (LEAs), including the Strong Workforce Program (SWP) consortium operating in their areas, as well as pathway programs provided under an adopted California and Career Access Pathways partnership agreement;
    3. Make significant investments in CTE infrastructure, equipment, and facilities; and
    4. Operate within rural districts. (EC 53075)
29. Requires that CTEIG grantees be eligible to receive a renewal grant if their CTE program meets the specified requirements and has been evaluated and deemed successful by the SPI in collaboration with the SBE, based upon the metrics identified. Requires that renewal grant recipients include the CTE program within their local control accountability plan (LCAP) and annual update. (EC 53073)
30. Authorizes the K-12 component of the SWP to create, support, or expand high-quality CTE programs at the K-12 level that are aligned with the workforce development efforts occurring through the SWP, and authorizes, commencing with the 2018-19 fiscal year, and subject to an annual appropriation, $150 million to be apportioned annually by the California Community College Chancellor’s Office (CCCCO) to local consortia. (EC 88827)
31. Establishes the California Golden State Pathways Program (GSPP) to provide LEAs with the resources to promote pathways in high-wage, high-skill, high-growth areas, including technology, health care, education, and climate-related fields that, among other things, allow students to advance seamlessly from high school to college and career and provide the workforce needed for economic growth. (EC 53020)
32. Federal law, the Strengthening Career and Technical Education for the 21st Century Act, reauthorizes the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins), provides federal support for CTE programs and focuses on improving the academic and technical achievement of CTE students, strengthening the connections between secondary and postsecondary education and improving accountability.

FISCAL EFFECT: Unknown

COMMENTS:

Need for the bill. The author states, “I have seen firsthand how Career Technical Education (CTE) can change the trajectory of a young person’s life. CTE equips students with real-world skills that open doors to good-paying careers and higher education, and it is especially impactful for low-income students, who make up half of all participants. These programs succeed because they are built through strong partnerships between our local schools and regional employers, ensuring students gain skills that are aligned with real workforce needs. AB 1694 will provide the stability schools and industry partners need by allowing LEAs to renew their CTEIG awards for up to four years if they meet quality standards and maintain matching funds. This measure strengthens our commitment to high-quality, locally driven CTE pathways and ensures students are prepared for long-term success.”

Funding for CTEIG program going unused in spite of high demand. This bill would require the SPI, in consultation with the SBE, by the 2027-2028 fiscal year, to revise the CTEIG formula to ensure all funds appropriated are allocated for the purposes of CTE.

According to the author, over the past five years, nearly $120 million in state-approved CTEIG funding has gone unallocated due to a provision of the allocation formula which prohibits LEAs from receiving more than they are eligible to receive under the allocation formula. This has prevented otherwise qualified school districts from receiving full funding that would directly benefit students. Data provided by the author is shown below:

Master plan for career education identifies need for sustained funding. In August 2023, Governor Newsom issued an Executive Order calling for a new Master Plan for Career Education to increase equitable access to living wage jobs by creating and strengthening education and training pathways specific to sectors, regions, and individuals’ skills and experience. Initial input from the agencies focused on four primary concepts: creating stronger coordination mechanisms, building skills-based pathways, expanding work-based learning, and increasing access to public benefits and career pathways.

Additional input gained from numerous stakeholder input sessions held around the state identified numerous barriers to achieving the goals of universal access to high quality CTE opportunities within the TK-12 education system. The lack of sustained and coordinated funding for programs was identified as a key barrier. Participants noted that siloed funding streams, “nonsustainable funding sources,” and “competitive/unpredictable funding” for career education posed challenges to long-term planning, collaboration, and sustained programming. Participants reported a need for long-term, “sustained, consistent funding” for college and career readiness programs, as opposed to relying on annual one-time grants or competitive funding.

Renewal versus new applicants. This bill would provide greater stability in CTEIG funding by setting aside 90% of funding for renewal grants and reserving 10% of the funding for new applicants each year. According to the CDE, in recent years, up to 5% of the total available CTEIG funding has gone to new applicants.

Current K-12 CTE programs. There are a number of initiatives supporting K-12 CTE programs supported by state and federal funds, including two large competitive grant programs with ongoing funding:

1) The Career Technical Education Incentive Grant Program was originally established in 2015 as a one-time investment of $900 million to cover a three-year span, and acted as a bridge for LEAs to support CTE programs until the Local Control Funding Formula (LCFF) was fully funded. It was created as a state education, economic, and workforce development initiative to provide students in kindergarten through grade twelve with the knowledge and skills necessary to transition from secondary education to postsecondary education and living-wage employment. The purpose of the program is to encourage, maintain, and strengthen the delivery of high-quality CTE programs. The program is administered by the CDE. In 2018, ongoing funding of $150 million for CTEIG was appropriated. In 2021, the annual funding for CTEIG was increased to $300 million.

Prior to the adoption of the LCFF, the state provided funding for CTE through a number of categorical programs, including the Regional Occupational Centers/Programs (ROC/P), which was funded at $400 million at the time. This funding was folded into the Local Control Funding Formula (LCFF), increasing the LCFF base rate for high schools by 2.6%.

2) The K-12 Strong Workforce Program (K-12 SWP) was established in 2018 as a component of the Community Colleges’ SWP to create, support, or expand high-quality CTE programs at the secondary level that are aligned with the workforce development efforts occurring through the SWP.

As is the case for CTEIG, the K-12 SWP is meant to support the overall development of high-quality K-12 CTE programs, courses, course sequences, programs of study, and pathways. The program is administered by the California Community College Chancellor’s Office (CCCCO). The program is currently funded at $150 million per year for the LEAs, $12 million for 72 K-12 Pathway Coordinators and 8 regional K-14 Technical Assistance Providers, and $1.5 million for consortia administrative costs, for a total of $163.5 million.

Unlike the CTEIG program, which is administered at the state level, the CCCCO allocates K-12 SWP grant funding to eight regional consortia according to a statutory formula. Each regional consortium is required to administer a competitive grant program it receives to LEAs in the region. Each consortium establishes a selection committee made up of individuals with expertise in K-12 CTE and workforce development, including teachers, administrators, community college faculty or administrators, and other K-12 education stakeholders. Employees of LEAs applying for grants under the program may serve as members of the selection committees. Each selection committee has exclusive authority under state law to determine the recipients of K-12 SWP grants in its region and the specific amount for each grant.

Improved outcomes for CTE students. A wide body of research indicates that involvement in CTE coursework provides improved academic outcomes and other benefits to students with findings, such as the following:

• Students with greater exposure to CTE are more likely to graduate from high school, enroll in a two-year college, be employed, and earn higher wages;
• The average high school graduation rate for students concentrating in CTE programs is 93%, compared to an average national graduation rate of 80%;
• Students taking more CTE classes are just as likely to pursue a four-year degree as their peers;
• 91% of high school graduates who earned 2-3 CTE credits enrolled in college;
• CTE provides the greatest boost to students who need it most – boys and students from low-income families; and
• 80% of students taking a college preparatory academic curriculum with rigorous CTE met college and career readiness goals, compared to only 63% of students taking the same academic core who did not experience rigorous CTE.

College and career readiness is a state priority. Each LEA’s local control and accountability plan (LCAP) must demonstrate, among other priorities, how they are ensuring that all students are being prepared to be college and career ready. The College and Career Readiness Index displayed on each LEA’s California Schol Dashboard includes data on the number of students completing a CTE pathway.

Defining Career Technical Education. CTE prepares students for the world of work by introducing them to workplace competencies, and makes academic content accessible to students by providing it in a hands-on context. Along the way, students develop career-relevant, real-world 21st Century skills.

CTE is a program of study that involves a multiyear sequence of courses that integrates core academic knowledge with technical and occupational knowledge to provide students with a pathway to postsecondary education and careers. CTE programs in California are organized into 15 industry sectors, covering 58 pathways that identify the knowledge and skills students need. Partnerships are usually developed between high schools, businesses, and postsecondary schools, providing pathways to employment and associate, Bachelor’s, and advanced degrees.

CTE courses and pathways may be offered in comprehensive high schools with CTE programs, as well as through regional CTE programs or centers operated by JPAs or COEs. Some CTE programs are blended with academic programs in what is known as a “linked learning model.” Community colleges and technical institutes also offer CTE at the postsecondary level.

Arguments in support. The Career Technical Education Joint Powers Authority Coalition writes, “AB 1694 strengthens the CTEIG program by establishing a four-year grant timeline, providing successful applicants with multiyear renewal funding rather than requiring annual reapplication. This change will provide meaningful stability for ROC/Ps by allowing them to plan responsibly, protect local matching fund commitments, and sustain high-quality programs without the uncertainty of yearly competitive funding cycles.

Importantly, the four-year timeline will enable our members to spend more time working directly with students to support their college and career success, and less time preparing annual grant applications. At the same time, AB 1694 includes appropriate safeguards to ensure continued accountability and oversight regarding how CTEIG funds are used.

AB 1694 also deletes the prohibition against an applicant being awarded more than the amount determined by the CTEIG allocation formula. Removing this restriction provides the California Department of Education with greater flexibility to ensure that available funds are fully allocated to high-performing, capacity-ready applicants in a given funding cycle. In years when some eligible applicants do not apply or do not meet program requirements, this change allows the state to maximize its investment in high-quality CTE programs rather than leaving funds unawarded. This targeted flexibility strengthens program efficiency while continuing to prioritize accountability and student outcomes.

AB 1694 does not increase overall program costs; rather, it strengthens the effectiveness and stability of the state’s existing investment in CTE by supporting continuity while maintaining strong fiscal accountability.”

Related legislation. AB 1590 (Ransom) of the 2025-26 Session requires the SPI to determine, in consultation with the executive director of the SBE, a revised allocation formula for the CTEIG program that ensures that all funds appropriated for the program in any given fiscal year are fully allocated to program applicants in that fiscal year.

AB 401(Muratsuchi) of the 2025-26 Session would have required CTEIG program recipients to be granted renewal grants for a total of four years, subject to specified conditions; required the SPI to designate 90% of the CTEIG funds for renewal grants and 10% for new applicants; added a cost-of-living adjustment to the CTEIG appropriation; and removed a limitation on grant awards above a specified level. This bill was held in the Assembly Appropriations Committee.

SB 612 (Valladares) of the 2025-26 Session would require, subject to an appropriation, a one-semester course in CTE as a graduation requirement beginning with students graduating in the 2031-32 school year and require LEAs serving students in grades 9 to 12 to offer at least one course in CTE at all of its high schools.

SB 845 (Pérez) of the 2025-26 Session would require the CDE to coordinate the updating of CTE model curriculum standards and framework at least every 5 years, convene CTE industry advisory groups for each CTE subject area including specified representatives, to provide input to the updating of the standards and frameworks, identify various work-based learning opportunities, including apprenticeship and pre-apprenticeship programs, as well as outlining the responsibilities of the LEA in sponsoring work-based learning.

SB 721 (Dahle) of the 2025-26 Session would include participation in CTE enhancement, as defined, as an excused absence.

AB 1929 (McKinnor) Chapter 145, Statutes of 2024, requires that LEAs receiving specified CTE state grants and the California Community College Chancellor’s Office disaggregate program and performance accountability outcome data by race and gender.

AB 3131 (McCarty) Chapter 434, Statutes of 2024, requires that LEAs receiving Equity Multiplier funding through the LCFF be given positive consideration for the K-12 SWP, a career technical education initiative.

AB 377 (Muratsuchi) of the 2023-24 Session, would have required the consolidation of specified K-12 CTE programs, increased ongoing funding for the CTEIG, administered by the CDE, to $450 million per year; requires specified CTE staffing at the state and regional level to support local CTE programs and pathways; and deletes authorization for the K-12 SWP administered by the Chancellor of the California Community Colleges (CCCCO). Also, requires the CDE to establish a stakeholder workgroup to consider improvements to the CTEIG program.

AB 2058 (O’Donnell) of the 2021-22 Session was substantially similar to this bill. The bill was held in the Senate Education Committee.

AB 181 (Committee on Budget) Chapter 52, Statutes of 2022, appropriates $500 million in one-time Proposition 98 funding for the Golden State Pathways Program to support the development and implementation of college and career educational pathways in critically needed sectors of the economy. Authorizes the CDE to contract with up to 10 LEAs for the provision of technical assistance to LEAs, applicants, and grant recipients.

AB 1923 (Mathis) Chapter 114, Statutes of 2022, requires the SPI to prioritize proposals for new California Partnership Academies based on a school district’s enrollment of socioeconomically disadvantaged students, and for school districts located in a rural or economically disadvantaged area.

AB 130 (Committee on Budget) Chapter 44, Statutes of 2021, provides that, for the 2021–22 fiscal year and each fiscal year thereafter, $300 million would be made available to the CDE, upon appropriation for the CTEIG program. Also makes adjustments to program provisions relating to eligibility requirements for grant applicants, and for ensuring compliance with program requirements.

AB 1808 (Committee on Budget) Chapter 32, Statutes of 2018, appropriates in the 2018–19 fiscal year and each fiscal year thereafter, $150 million to the CTEIG program administered through CDE. Also establishes a K–12 component of the SWP to create, support, or expand high-quality CTE programs at the K–12 level aligned with the workforce development efforts and, commencing with the 2018–19 fiscal year, requires the CCCCO to allocate $150 million for this program to regional CTE consortia.

AB 1743 (O’Donnell) of the 2017-18 Session would have extended funding for the CTEIG Program by providing ongoing funding of $500 million per year with a 1:1 local match and $12 million per year for regional K-12 CTE coordinators to provide technical assistance and support to local CTE providers. This bill was held in the Senate Education Committee.

AB 104 (Committee on Budget) Chapter 13, Statutes of 2015, establishes the CTEIG, a competitive grant program administered by the CDE, to provide support for career technical education in grades K-12, and provides $400 million in 2015-16, $300 million in 2016-17, and $200 million in 2017-18 for this program.

REGISTERED SUPPORT / OPPOSITION:

Support

AI Education Project - aiEDU
Alameda County Office of Education
Antelope Valley Union High School District
Baldy View Regional Occupational Program
Bret Harte Union High School District

California Charter Schools Association
Career Technical Education Joint Powers Authority Coalition
CAROP - the Association of Career and College Readiness Organizations
Chaffey Joint Union High School District
Coast Unified School District
Coastline ROP
College and Career Advantage, JPA ROP
Contra Costa County Office of Education
Dos Palos-Oro Loma Joint Unified School District
Eden Area ROP
El Monte Union High School District
Fall River Joint Unified School District
Humboldt County Office of Education
Huntington Beach Union High School District
Metropolitan Education District
Mission Valley ROP
Monterey County Office of Education
Mountain Desert Career Pathways Joint Powers Authority
Mountain View Los Altos Union High School District
Napa County Office of Education
Nevada County Superintendent of Schools
Nevada Joint Union High School District
Pasadena Unified School District
Roseville Joint Union High School District
San Benito High School District

San Joaquin County Office of Education
San Luis Coastal Unified School District
San Luis Obispo County Office of Education
Shasta Union High School District
Shasta-trinity Regional Occupational Program
Small School Districts Association
Sonoma County Office of Education
Stockton Unified School District
Sutter County Superintendent of Schools
Taft Union High School District
Torrance Unified School District
Tri-cities Regional Occupational Program
Tri-valley Regional Occupational Program
Union Roofing Contractors Association
Valley Regional Occupational Program
Ventura Unified School District
Wheatland Union High School District

1 individual

Opposition

None on file

Analysis Prepared by: Tanya Lieberman / ED. / (916) 319-2087