(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.

(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 with the 202526 award year, the bill would set 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.

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 402 (Patel) - Student financial aid: Cal Grant Program and the California Community College Expanded Entitlement Program

Bill Summary:

This bill increases the Cal Grant award for students attending a California independent institution of higher education (ICCU) from $9,358 to $9,708 when associate degree for transfer (ADT) goals are achieved. The bill also expands eligibility for the California Community College (CCC) Expanded Entitlement Program to award recipients who subsequently transfer to an ICCU.

Fiscal Impact:

• The California Student Aid Commission (CSAC) estimates General Fund costs ranging from $12.1 million to $13.9 million for the increased Cal Grant awards for recipients attending ICCUs and the additional transfer students that would now be eligible for an award. This estimate assumes a 0.5 percent transfer rate to independent institutions of the 157,000 Entitlement Cal Grant awards that were paid to community college students this year, yielding an additional 785 students that could receive an average award amount of either $8,930 (Cal Grant A) or $11,213 (Cal Grant B). This estimate also assumes that approximately 29,000 students attending ICCUs would be eligible for an award at a cost of about $5.1 million each year. The bill’s provisions are subject to an appropriation.
• The CSAC estimates one-time General Fund costs of $90,000 and 0.5 temporary positions to implement changes to its grant processing system.
• The Chancellor’s office estimates minor one-time Proposition 98 General Fund costs for community colleges to update financial aid materials to reflect the change to the Expanded Entitlement Program. However, because the award is based on students’ total cost of attendance, this bill would create ongoing cost pressures.

Background:

Existing law establishes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, grade point average (GPA), California residency, and other criteria. Maximum award amounts for the California State University (CSU) and the University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. Supplemental Cal Grant awards programs are available to students with dependent children and former and current foster youth attending CSU, UC, or a CCC to assist with non-tuition costs, such as living expenses. The law sets the maximum Cal Grant A and B tuition award amount for new recipients in the 2023-24 award year, who attend an ICCU, at $9,358.

Existing law establishes the CCC Expanded Entitlement Program which eliminates the age and time out of high school Cal Grant eligibility requirements for eligible community college students. The law provides that CCC Expanded Entitlement Awards may retain their Cal Grant Award when they transfer to a UC or CSU.

Proposed Law:

This bill increases the Cal Grant award for students attending ICCUs from $9,358 to $9,708 when ADT goals are achieved, commencing with the 2026-27 year.

This bill authorizes a student who receives an Expanded Entitlement Award and who subsequently transfers to an ICCU to remain eligible to receive the award, thereby making students transferring to an ICCU newly eligible.

The bill’s provisions would be subject to an appropriation.

Staff Comments:

The CCC Expanded Entitlement Program broadened eligibility by allowing community college students to receive a Cal Grant entitlement award regardless of the number of years since high school graduation. However, students who transfer to private institutions are not eligible to use the remainder of their expanded entitlement award. This bill would extend eligibility to those students who transfer to qualifying ICCUs.

This bill would also increase the Cal Grant award amount to students attending Western Association of Schools and Colleges (WASC) accredited non-public ICCUs. These institutions are generally members of the Association of Independent California Colleges and Universities which represents about 85 private, nonprofit, WASC-accredited colleges and universities headquartered in California.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Sasha Renée Pérez, Chair

2025 - 2026 Regular

Bill No: Hearing Date: June 3, 2026

Subject: .

SUMMARY

This bill, subject to an appropriation and commencing the 2026-27 year, increases the Cal Grant award for students attending a California independent institution of higher education (ICCU) from $9,358 to $9,708 when associate degree for transfer (ADT) goals are achieved. It further expands eligibility for the California Community College (CCC) Expanded Entitlement Program to award recipients who subsequently transfer to an ICCU.

BACKGROUND

Existing law:

1. Defines “independent institutions of higher education” as those nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in this state and are accredited by an agency recognized by the United States Department of Education. (Education Code (EC) § 66010, et seq.)
2. Establishes the California Student Aid Commission (CSAC) for the purpose of

administering specified student financial aid programs. (EC § 69510, et seq.)

1. Establishes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, grade point average (GPA), California residency, and other criteria. Maximum award amounts for the California State University (CSU) and the University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. Supplemental Cal Grant awards programs are available to students with dependent child(ren) and former and current foster youth attending CSU, UC, or a CCC to assist with non-tuition costs, such as living expenses. Sets the maximum Cal Grant A and B tuition award amount for new recipients in the 2023-24 award year, who attend an ICCU, at $9,358. (EC §§ 69430–69433 and §§ 69465-69470)
2. Establishes the CCC Expanded Entitlement Program, which eliminates the age and time out of high school Cal Grant eligibility requirements for eligible CCC students. Specifies that CCC Expanded Entitlement Awards may retain their Cal Grant Award when they transfer to a UC or CSU. (EC § 69435.5)

ANALYSIS

This bill:

1. Increases, subject to an appropriation and commencing the 2026-27 year, the Cal Grant award for students attending ICCUs from $9,358 to $9,708 when ADT goals are achieved, as specified.
2. Authorizes a student who receives a CCC Expanded Entitlement Award and who subsequently transfers to an ICCU to remain eligible to receive the award, thereby making students transferring to an ICCU newly eligible.
3. Makes technical and clarifying changes.

STAFF COMMENTS

1. Need for the bill. According to the author, “A higher education degree remains the most effective way to achieve upward mobility, and Cal Grant serves to increase access for low and middle-income students to the education that can transform their futures and careers. Since 2001, Cal Grant awards for students attending non-profit private schools have decreased by 4%, while awards for UCs and CSUs have increased by 274% and 224%, respectively. At the same time, inflation has significantly increased the cost to attend a private non-profit college. AB 402 supports access and student agency by increasing the award amounts of Cal Grant and allowing Community College Expanded Entitlement recipients to maintain their awards at a private non-profit institution.”
2. Why increase the Cal Grant award for ICCUs? This bill seeks to increase the Cal Grant award amount to students attending Western Association of Schools and Colleges (WASC) accredited non-public independent California colleges and universities (ICCU). Below is a summary of information about the sector and the Cal Grant recipients they serve.
   1. WASC-accredited non-public institutions. The institutions that would benefit from the provisions of this bill are generally members of the Association of Independent California Colleges and Universities (AICCU), which represents about 85 private, nonprofit, WASC-accredited colleges and universities headquartered in California. These institutions include research universities, liberal arts colleges, religiously affiliated institutions, and specialized colleges and universities that focus on the arts, theater, and music.

The AICCU reports that their member institutions enroll over 346,000 students, comprised of 184,200 undergraduate students and 148,676 graduate students. ICCU institutions award over 55 percent of all graduate degrees in California and approximately 19 percent of the baccalaureate degrees. The sector produces 43 percent of the teaching credentials, 27 percent of computer and information science degrees, 53 percent of nursing degrees, and 91 percent of clinical, counseling, and applied psychology degrees in the state. California residents comprise approximately 61 percent of the undergraduate population of ICCUs.

• 1. Who is served? According to AICCU, over half of Cal Grant students at their member institutions are the first in their families to go to college and from historically underrepresented groups in higher education. AICCU reports that data collected over the years has consistently demonstrated that Cal Grant students graduate at a higher level than the general student population in the sector, even with the barriers they confront.

According to the AICCU’s 2021 survey of their member institutions, 65 percent of their Cal Grant students graduate in 4 years, and 47 percent are first-generation college students. Approximately 50 percent of the Cal Grant population at AICCU institutions is Latino, 20 percent Caucasian, 14 percent Asian and Pacific Islander, and 6 percent African American. The sector educates about 40,500 nontraditional learners and over 24,000 California students through the Cal Grant program. The average institutional aid award to a Cal Grant student is approximately $32,000.

1. Determining Cal Grant award amounts for ICCU students. In an effort to encourage participation and align ICCUs with state objectives around transfer, the 2018 budget trailer bill, AB 1809 (Committee on Budget, Chapter 33, Statutes of 2018), conditioned the amount of a Cal Grant tuition award for ICCUs on reaching annual goals for accepting CCC transfer students with ADT commitments. The award amount is maintained at current levels unless target goals are not achieved. To date, ICCUs collectively have struggled to meet statutory targets. Despite this, an award reduction for new recipients did not occur rather recent budget actions delayed implementation of annual goals in order to preserve the award for students.

AICCU reports in their annual ADT report that a total of 2,345 ADT students were admitted to 32 AICCU participating institutions for the 2025-26 academic year, concluding that the number indicates relative stability in ADT admits compared to the prior year. By comparison, in the 2024-25 academic year, 33 institutions admitted 2,367. The two year graduation rate for ADT students has generally remained near the 40-60 percent range. The report notes that this figure is comparable with their peers on similar transfer pathways. Seemingly, adjustments proposed in this bill could make transfer targets more attainable year after year and allow for growth in acceptance rates. This bill proposes to adjust the Cal Grant award at ICCUs from $9,358 to $9,708 when ADT goals are met.

1. CCC Expanded Entitlement Program. The 2021-22 State Budget Act included an expansion to the Cal Grant Program by establishing the CCC Expanded Entitlement Program. This program created a new pathway for CCC students to receive Cal Grant A and B entitlement awards even if they were no longer eligible under the traditional entitlement programs (high school and transfer entitlement). Prior to this expansion, students generally qualified for a Cal Grant Entitlement award if they were recent high school graduates or were within one year of high school graduation. These students could use their awards at the CCC, CSU, UC, or qualifying private institutions, including ICCUs. Students who had been out of high school for more than one year and were under age 28 could later qualify for a Transfer Entitlement award upon transferring from a CCC to a CSU, UC, or qualifying private institutions, including ICCUs. Students age 28 or older generally were not eligible for entitlement awards and instead competed for a limited number of competitive awards.

The CCC Expanded Entitlement program broadened eligibility by allowing CCC students to receive a Cal Grant entitlement award regardless of the number of years since high school graduation. The program also allows recipients to retain their entitlement award when transferring from a CCC to a CSU or UC, regardless of age. Under current law, however, students who transfer to a private institution, including ICCUs, are not eligible to use the remainder of their expanded entitlement award. This bill would extend eligibility to students who transfer to qualifying ICCUs.

1. Prior and related legislation.

SB 851 (Portantino, 2022) would have modified the formula for determining the amount of a Cal Grant award for a student who attends an ICCU. SB 851 would have expanded eligibility for supplemental Cal Grant programs and the CCC Entitlement Program to students attending ICCUs. This bill was heard and passed by this Committee and was subsequently amended to relate to personal income tax.

AB 2030 (Blanca Rubio, 2020), similar to AB 1307 below, would have established a formula to determine the amount of Cal Grant awards for students attending ICCUs. AB 2030 was not heard by the Senate Education Committee due to the shortened 2020 Legislative calendar.

AB 1307 (Blanca Rubio, 2019), similar to this bill, would have created a new Cal Grant for ICCUs. The formula was to be set and maintained at 80 percent of the sum of the General Fund share of the CSU marginal cost of instruction and maximum Cal Grant award for tuition at the CSU. Unlike this bill, AB 1307 did expand eligibility to other programs. AB 1307 was vetoed by the Governor, whose message read, in part:

“…While this is a worthy measure, it creates ongoing General Fund costs in the tens of millions of dollars annually, and should be considered in the annual budget process.”

AB 1166 (Burke, 2017), which was held in this Committee by the request of the author, was similar in nature to this measure.

AB 831 (Bonilla, 2015), which was held on the Assembly Appropriations Suspense File, was similar in nature to this measure.

AB 1318 (Bonilla 2014), which was held by the author on the Senate Floor, was similar to this measure except that under AB 1318, students attending for-profit WASC-accredited institutions would also have been eligible for the increased award amount.

SUPPORT

Association of Independent California Colleges & Universities (sponsor)

Azusa Pacific University

California Association of Christian Colleges and Universities

California Baptist University

California Institute of the Arts

Chapman University

EDvance College

Hispanic Association of Colleges and Universities

John Paul the Great Catholic University

Mount Saint Mary’s University

National University

Sacramento Metropolitan Chamber of Commerce

Samuel Merritt University

San Diego Regional Chamber of Commerce

Santa Clara University

University of La Verne

University of Southern California

OPPOSITION

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 402

Author:(Patel)

As Amended Ver:May 23, 2025

Majority vote

SUMMARY

Sets, beginning with the 2026-27 award year, and subject to an appropriation for this purpose, the maximum tuition award amount for new Cal Grant A and B recipients attending an independent institution of higher education (ICCU) 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. Authorizes a student who receives a California Community College (CCC) Expanded Entitlement Award and who subsequently transfers to an ICCU to remain eligible to receive the award, as specified. Makes technical and clarifying changes to existing law.

Major Provisions

Please refer to the Summary above.

COMMENTS

Role of ICCUs. Founded in 1955, the Association of Independent California Colleges and Universities (AICCU) is comprised of over 85 independent, nonprofit colleges and universities in California. Together, these institutions make up the Independent California Colleges and Universities sector (ICCU). The ICCUs are located throughout the state in nearly every community and collectively educate over 346,000 students, including 184,200 undergraduates.

Last year the ICCUs welcomed over 3,300 new transfer students from the CCC and provided undergraduate education to roughly 40,000 nontraditional students and returning adults. The sector educates nearly 25,000 Cal Grant recipients. Among those students, 51% identify as Latinx and nearly half (48%) are the first in their families to go to college.

Additionally, the ICCUs enroll 45% of students in teacher education programs, and credential 43% of the State's new teachers.

Expanded Entitlement Program for CCC Students. The 2021-22 State Budget Act included an expansion to the Cal Grant Program by establishing the CCC Expanded Entitlement Program. This Program establishes Cal Grant A and B entitlement eligibility for students attending a CCC who were not awarded at the time of high school graduation.

Students who receive a CCC Expanded Entitlement award are permitted to retain their remaining Cal Grant eligibility when transferring to a CSU or UC campus so long as they receive at least one payment at a CCC and continue to meet income and academic requirements. However, existing law prohibits eligible students who choose to transfer to an ICCU from accessing the reminder of their award.

This measure, in part, authorizes eligible students transferring to an ICCU, to benefit from the Program.

According to the Author

According to the author, "Cal Grant is a key financial aid source for low income students that has not kept up with the increasing costs of colleges. This is especially true with private institutions where funding has decreased by 4% since 2001. By increasing the award amounts of Cal Grant and expanding it to Community College transfer students we are reinvesting into our state's future."

Further, the author states, "giving more funding to low income students increases opportunities and access to institutions that are crucial for social mobility."

Arguments in Support

According to the AICCU, "we firmly believe that college is worth it for those who choose it. The combination of state aid, institutional support, and the federal Pell Grant program is a critical partnership that helps expand opportunities for students in all communities and regions of the state while reducing the need for students to take out loans or work long hours."

Further, AICCU states that, "our institutions do their part to ensure affordable access for these students, who on average receive over $24,000 per year in institutional grant aid. Compared to 2013, our institutions have increased the average institutional grant aid by over 30%, investing in a greater share of the students' cost of attendance while state and federal aid has been stagnant."

Additionally, per the AICCU, "AB 402 provides direct state investment to students and their pursuit of a baccalaureate degree in two ways. First, by increasing the Cal Grant award amount to $9,708, the state can restore the award amount to a level not seen since 2001. Second, the bill supports nontraditional transfer students by guaranteeing transfer portability of the California Community College Expanded Entitlement Program to those who transfer to an ICCU." The AICCU notes that, "currently, nontraditional students who receive a Cal Grant at community college do not have the ability to use remaining eligibility at one of our institutions, creating an artificial financial barrier for these students and locking them out of the programs and opportunities that they might otherwise benefit from."

Lastly, the AICCU cites, "these targeted policies are not only equitable, but cost-effective and strengthen our partnership to educate and train the future workforce and leaders of California. Our universities educate students at a lower cost to the state than our public counterparts. A Cal Grant eligible student who attends our institutions receives an average of $8,927 from the state, compared to $19,635 at a CSU and $31,318 at a UC when you combine the Cal Grant award with per-student funding the state provides for enrollment. AB 402 advances the state's broader policy goals around college access, affordability, and degree attainment by strengthening the partnership between our institutions and the state that supports students."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations:

1. One-time General Fund costs of $90,000 and one half of a temporary position for the California Student Aid Commission (CSAC) to implement necessary changes to its grant processing system to incorporate the changes required by this bill should the Legislature provide an appropriation for its purpose.
2. Ongoing General Fund cost pressures between approximately $11.2 million to $12.8 million for the Legislature to appropriate funds necessary to support a potential 685 additional transfer students this bill makes eligible for an award and (b) approximately 29,000 students attending ICCUs the bill makes eligible for a higher award amount.

VOTES

ASM HIGHER EDUCATION: 9-0-1

YES: Fong, Boerner, Essayli, Jeff Gonzalez, Jackson, Muratsuchi, Patel, Celeste Rodriguez, Sharp-Collins

ABS, ABST OR NV: DeMaio

ASM APPROPRIATIONS: 11-1-3

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache

NO: Tangipa

ABS, ABST OR NV: Sanchez, Dixon, Ta

UPDATED

VERSION: MAy 23, 2025

CONSULTANT: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0000832

Date of Hearing: April 23, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 402

Author:(Patel) – As Introduced Ver:February 4, 2025

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

SUMMARY:

This bill allows a student transferring to an independent institutions of higher education (ICCU) to remain eligible to receive a California Community College (CCC) Expanded Entitlement Award. The bill also sets the 2024-25 award year amount for a new Cal Grant A and Grant B recipient attending ICCUs at $9,358 and either $9,708 or $8,056 for 2025-26, depending on specific conditions.

Specifically, this bill increases the Cal Grant A and Grant B award amounts for the 2025-26 award year, and every year thereafter, to either $9,708 or $8,056 for recipients attending ICCUs depending on whether the ICCU meets its target numbers for associate degree for transfer commitment applications from the prior award year.

FISCAL EFFECT:

1. One-time General Fund costs of $90,000 and one half of a temporary position for the California Student Aid Commission (CSAC) to implement necessary changes to its grant processing system to incorporate the changes required by this bill.
2. Ongoing General Fund costs between approximately $11.2 million to $12.8 million associated with (a) an estimated potential 685 additional transfer students this bill makes eligible for an award and (b) approximately 29,000 students attending ICCUs the bill makes eligible for a higher award amount.

COMMENTS:

1. Purpose. According to the author:

Cal Grant is a key financial aid source for low income students that has not kept up with the increasing costs of colleges. This is especially true with private institutions where funding has decreased by 4% since 2001. By increasing the award amounts of Cal Grant and expanding it to Community College transfer students we are reinvesting into our state’s future.

1. Role of ICCUs. Founded in 1955, the Association of Independent California Colleges and Universities (AICCU) includes over 85 independent, nonprofit colleges and universities in California. Together, these institutions make up the Independent California Colleges and Universities sector. There are ICCUs throughout the state in nearly every community and collectively educate over 346,000 students, including 184,200 undergraduates.

Last year, the ICCUs welcomed over 3,300 new transfer students from the CCC and provided undergraduate education to roughly 40,000 nontraditional students and returning adults. The ICCUs enroll 45% of students in teacher education programs, and credential 43% of the State’s new teachers. The sector educates nearly 25,000 Cal Grant recipients. However, unlike a CCC student transferring to a University of California (UC) or California State University (CSU), which allows them to retain Cal Grant eligibility, a CCC student transferring to an ICCU may not access the remainder of their award under existing law. According to the AICCU, a Cal Grant eligible student attending an ICCU receives an average of $8,927 from the state, compared to $19,635 at a CSU and $31,318 at a UC for the Cal Grant award combined with per-student funding the state provides for enrollment.

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

Date of Hearing: March 18, 2025

ASSEMBLY COMMITTEE ON HIGHER EDUCATION

Mike Fong, Chair

ABPCA Bill Id:AB 402 (

Author:Patel) – As Introduced Ver:February 4, 2025

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

SUMMARY: Sets the 2024–25 award year amount for new Cal Grant A and B recipients attending an independent institution of higher education (ICCU) at $9,358. Beginning with the 2025–26 award year, sets 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. Authorizes a student who receives a California Community College (CCC) Expanded Entitlement Award and who subsequently transfers to an ICCU to remain eligible to receive the award, as specified.

EXISTING LAW:

1. Defines “independent institutions of higher education” as those nonpublic higher education institutions that grant undergraduate degrees, graduate degrees, or both, and that are formed as nonprofit corporations in this state and are accredited by an agency recognized by the United States Department of Education (Education Code (EC) Section 66010, et seq.).
2. Establishes the California Student Aid Commission (CSAC) for the purpose of administering specified student financial aid programs (EC Section 69510, et seq.).
3. Establishes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs, and eligibility is based upon financial need, grade point average (GPA), California residency, and other criteria. Maximum award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. Supplemental Cal Grant awards programs are available to students with dependent child(ren) and former and current foster youth attending CSU, UC, or a CCC to assist with non-tuition costs, such as living expenses. Sets the maximum Cal Grant A and B tuition award amount for new recipients in the 2023-24 award year, who attend an ICCU, at $9,358 (EC Sections 69430–69433 and Sections 69465-69470).
4. Establishes the CCC Expanded Entitlement Program, which eliminates the age and time out of high school Cal Grant eligibility requirements for eligible CCC students. Specifies that CCC Expanded Entitlement Awards may retain their Cal Grant Award when they transfer to a UC or CSU (EC Section 69435.5).

FISCAL EFFECT: Unknown

COMMENTS: Need for the measure. According to the author, “Cal Grant is a key financial aid source for low income students that has not kept up with the increasing costs of colleges. This is especially true with private institutions where funding has decreased by 4% since 2001. By increasing the award amounts of Cal Grant and expanding it to Community College transfer students we are reinvesting into our state’s future.”

Further, the author states, “giving more funding to low income students increases opportunities and access to institutions that are crucial for social mobility.”

Role of ICCUs. Founded in 1955, the Association of Independent California Colleges and Universities (AICCU) is comprised of over 85 independent, nonprofit colleges and universities in California. Together, these institutions make up the Independent California Colleges and Universities sector (ICCU). The ICCUs are located throughout the state in nearly every community and collectively educate over 346,000 students, including 184,200 undergraduates.

Last year the ICCUs welcomed over 3,300 new transfer students from the CCC and provided undergraduate education to roughly 40,000 nontraditional students and returning adults. The sector educates nearly 25,000 Cal Grant recipients. Among those students, 51% identify as Latinx and nearly half (48%) are the first in their families to go to college.

Additionally, the ICCUs enroll 45% of students in teacher education programs, and credential 43% of the State’s new teachers.

Expanded Entitlement Program for CCC Students. The 2021-22 State Budget Act included an expansion to the Cal Grant Program by establishing the CCC Expanded Entitlement Program. This Program establishes Cal Grant A and B entitlement eligibility for students attending a CCC who were not awarded at the time of high school graduation.

Students who receive a CCC Expanded Entitlement award are permitted to retain their remaining Cal Grant eligibility when transferring to a CSU or UC campus so long as they receive at least one payment at a CCC and continue to meet income and academic requirements. However, existing law prohibits eligible students who choose to transfer to an ICCU from accessing the reminder of their award.

This measure, in part, authorizes eligible students transferring to an ICCU, to benefit from the Program.

Arguments in support. According to the AICCU, “we firmly believe that college is worth it for those who choose it. The combination of state aid, institutional support, and the federal Pell Grant program is a critical partnership that helps expand opportunities for students in all communities and regions of the state while reducing the need for students to take out loans or work long hours.”

Further, AICCU states that, “our institutions do their part to ensure affordable access for these students, who on average receive over $24,000 per year in institutional grant aid. Compared to 2013, our institutions have increased the average institutional grant aid by over 30%, investing in a greater share of the students’ cost of attendance while state and federal aid has been stagnant.”

Additionally, per the AICCU, “AB 402 provides direct state investment to students and their pursuit of a baccalaureate degree in two ways. First, by increasing the Cal Grant award amount to $9,708, the state can restore the award amount to a level not seen since 2001. Second, the bill supports nontraditional transfer students by guaranteeing transfer portability of the California Community College Expanded Entitlement Program to those who transfer to an ICCU.” The AICCU notes that, “currently, nontraditional students who receive a Cal Grant at community college do not have the ability to use remaining eligibility at one of our institutions, creating an artificial financial barrier for these students and locking them out of the programs and opportunities that they might otherwise benefit from.”

Lastly, the AICCU cites, “these targeted policies are not only equitable, but cost-effective and strengthen our partnership to educate and train the future workforce and leaders of California. Our universities educate students at a lower cost to the state than our public counterparts. A Cal Grant eligible student who attends our institutions receives an average of $8,927 from the state, compared to $19,635 at a CSU and $31,318 at a UC when you combine the Cal Grant award with per-student funding the state provides for enrollment. AB 402 advances the state’s broader policy goals around college access, affordability, and degree attainment by strengthening the partnership between our institutions and the state that supports students.”

Prior legislation. AB 132 (Assembly Committee on Budget), Chapter 144, Statutes of 2021, the Higher Education Trailer Bill for the 2021-22 Budget Act, in part, enacted the CCC Expanded Entitlement Program.

AB 183 (Assembly Committee on Budget). Chapter 54, Statutes of 2022, the Higher Education Trailer Bill for the 2022-23 Budget Act, in part, increased the award amount, from $9,220 to $9,358, for the approximately 28,000 Cal Grant students attending an ICCU.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of Independent California Colleges and Universities (AICCU)
California Chamber of Commerce
California Lutheran University
Hispanic Association of Colleges and Universities (HACU)
Mount Saint Mary's University
National University
North Orange County Community College District
Point Loma Nazarene University
San Diego Community College District
Southern California University of Health Sciences (SCUHS)
Southwestern Community College District
Thomas Aquinas College
UNITE-LA, Inc.
University of Southern California

Opposition

None on file.

Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960