AB 402: Student financial aid: Cal Grant Program and the California Community College Expanded Entitlement Program.

(1)Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program, provides awards to certain California postsecondary students to help pay the costs of postsecondary education. Existing law sets the maximum Cal Grant A and B tuition award amount for new recipients in the 202324 award year at $9,358 for students attending independent institutions of higher education. Existing law authorizes community colleges to award an associate degree for transfer, and provides that the Cal Grant A and B tuition award amount for future years for students attending independent institutions of higher education depends on the number of commitments those institutions make to accept associate degrees for transfer. Beginning with the 202425 award year, existing law sets the maximum tuition award amount for new Cal Grant A and B recipients at either $9,358 or $8,056, depending upon whether the number of new unduplicated transfer students accepted by those institutions who have been given associate degree for transfer commitments in the prior award year exceeds statutory targets.

This bill would set the 202425 award year amount for new Cal Grant A and B recipients attending an independent institution of higher education at $9,358. Beginning set, beginning with the 202526 202627 award year, the bill would set and subject to an appropriation for this purpose, the maximum tuition award amount for new Cal Grant A and B recipients at either $9,708 or $8,056, with the higher amount conditioned on the achievement of the target numbers for associate degree for transfer commitments that apply for the prior award year.

(2)Existing law establishes a California Community College Expanded Entitlement Award for students who were not awarded a Cal Grant A or B award at the time of the students high school graduation but who will be enrolled at a California community college during the award year and meet other criteria. Existing law authorizes a student who receives a California Community College Expanded Entitlement Award to subsequently transfer to a University of California or California State University campus and remain eligible to receive the award. Existing law also authorizes a student who receives a California Community College Expanded Entitlement Award and who subsequently transfers to an independent institution of higher education to remain eligible to receive the award, but only if General Fund moneys over the multiyear forecasts beginning in the 202425 fiscal year are available to support ongoing augmentations and actions, and if funding is provided in the annual Budget Act to implement the Cal Grant Reform Act.

This bill would instead authorize a student who receives a California Community College Expanded Entitlement Award and who subsequently transfers to an independent institution of higher education to remain eligible to receive the award without the above-described conditions.