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Yes: 185 • No: 18
CaliforniaAB 1232025-2026 Regular SessionHouseWALLET
Budget Act of 2025.
Sponsored By: Jesse Gabriel (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
47 provisions identified: 37 benefits, 3 costs, 7 mixed.
More help for student basic needs
The law provides $75.754 million for student basic needs and mental health: $32.466 million for mental health care and $43.288 million for basic needs centers and coordinators. Colleges with basic needs centers must designate or hire a basic needs coordinator. It also creates a $60 million Student Support Block Grant for 2025–26, with at least $150,000 per college and the rest based on headcount and fee‑waiver counts. Funds can cover food, housing, transportation, childcare, advising, legal help, mental health, and job placement; districts must spend the money by June 30, 2029 and file required reports.
More money for community colleges
The state increases community college funding for costs and enrollment growth. $678.022 million pays an 8.22% cost‑of‑living increase. $100.216 million pays a 1.07% COLA. $128.094 million funds 2.28% statewide FTES growth, and $26.407 million funds 0.50% FTES growth. $150 million hires more full‑time faculty. $91.207 million supports the California College Promise.
More workforce training at community colleges
The law provides $290.4 million for the Strong Workforce Program. $22.929 million targets priority and emerging sectors, with up to 10% for state technical help. Employers must match performance‑based training $1 for each $1 of state funds.
Stabilizing college budgets and disasters
The state sets aside $408.363 million for community college apportionments to be spent in 2026–27 to repay deferred payments. It provides a one‑time $3.804 million backfill for property tax losses from fires tied to January 2025 state emergency declarations. Up to $100,000 is available for a maintenance allowance under Title 5 rules.
Teacher grants up to $20,000
Eligible students who enrolled in or applied to a qualifying teacher or pupil‑personnel program from January 1, 2020 through June 30, 2024 can get a one‑time grant up to $20,000, subject to funding. The commission accepts applications starting September 1 for the next year and can run up to three application periods annually. Students can request a pre‑enrollment notice showing a likely award amount. A priority school is one with at least 55% unduplicated pupils, and the list is posted by April 15 each year; service at a listed school still counts if the school later drops off. If you do not meet program rules (like enrollment, academic standing, service, or credential within six years), you must repay 50% or 25% of the total grant for each year of nonperformance until fully repaid.
Teacher grants: new awards, rules, and caps
The Golden State Teacher Grant offers a one‑time grant up to $10,000 for California residents who applied or enrolled in a qualifying program from Jan 1, 2020 to June 30, 2024 and commit to four years of service within eight years. For applications received July 1, 2024 to June 30, 2025, a reduced grant up to $5,000 is available with a two‑year service commitment, and a transition window through June 30, 2026 allows reduced awards for two‑year commitments (intern programs excluded). Starting July 1, 2024, the Commission prioritizes applicants with the lowest income and assets (Student Aid Index). Funds from 2020 and 2021 budgets remain available until June 30, 2026. Grants must supplement, not replace, other aid, and the Commission may set exceptions to repayment. Limits apply: no more than 8% of total program funding can go to these specific awards, only $50 million in grants can be issued for 2023–24 applications, and up to 1.5% of program funds may be used for outreach and administration.
More mental health and basic needs help
The law provides $75.754 million to support student basic needs. $32.466 million expands mental health resources. $43.288 million helps colleges open and run basic needs centers. The Chancellor must report on mental health spending by January 1, 2025, and every three years after.
Campus housing funds for named colleges
Starting July 1, 2023, bonds fund specific student housing projects. UC allocations: Davis $43 million; Santa Barbara $43 million; Riverside $126 million; Merced $100 million; Santa Cruz $111.787 million. CSU allocations: San Jose $89.1 million; Sacramento $41.34 million; Stanislaus $18.85 million, plus $7.489 million to cover overruns. Community colleges using local financing get: San Diego City College $75 million; Cerritos $67.995 million; College of San Mateo $55.854 million; College of the Redwoods $28.415 million. Another $81.343 million is authorized but needs future legislation. Projects must meet all program rules.
Help for homeless and housing‑insecure students
The law provides $20.562 million to help homeless and housing‑insecure students. Funds pay for emergency housing, rental subsidies, emergency grants, case management, and other services. Campuses get money based on need. The Chancellor’s Office must report by July 15 each year on spending, staff hired, students served, and results.
More low-cost student housing and rent caps
The law creates a grant program to build or convert buildings into student housing for UC, CSU, and community colleges. When money is set, 50% goes to community colleges, 30% to CSU, and 20% to UC; officials may shift shares to favor projects that serve low‑income students. Projects must first offer units to low‑income students. Rent for these units is set at 30% of 50% of area median income for a single room, with yearly increases capped by the smaller of the AMI formula or California CPI, and this lasts for the life of the building. Projects must deliver at least the promised low‑income beds and cannot charge higher rents than in the application, but they can add beds or charge less if feasible. Intersegmental projects must spell out how low‑income beds are split between the UC campus and the community college partner.
Student housing grants target need, protect aid
Housing grant applicants must show unmet demand using two measures: the campus housing waitlist share and the county rental vacancy rate. Agencies rank projects by a composite score that includes funding per low‑income bed, expected rents, timeline, location, reapplication status, and unmet demand. If your housing costs go down from these projects, that savings does not reduce your eligibility for other public student aid.
Apprenticeships funded at $10.05/hour
Apprenticeship programs get $10.05 for each eligible instruction hour. Funds in one schedule are spendable until June 30, 2027. $1.133 million one time reimburses eligible hours from 2021–22 and 2022–23. Another $30 million backs the California Apprenticeship Initiative and is available until June 30, 2030.
Better online learning and security
The state funds online learning systems and cybersecurity for community colleges, including $10.613 million for distance learning, $41.89 million for priority tech tools, $4 million for the library platform, and $25 million for technology and data security. Districts that get security funds must do annual self‑assessments and report on fixes and incidents, with flexibility to submit existing reports if duplicative.
Cash deposits for KIDS accounts
For 2021–22, each unduplicated pupil in grades 1–12 gets $500 in a KIDS Account, plus $500 more if foster youth and $500 more if homeless. Starting in 2022–23, each first grader who is an unduplicated pupil gets $500 each year, with the same $500 add‑ons for foster youth and for homeless pupils. Beginning July 1, 2025, and subject to funding, foster youth in grades 1–12 can get an extra $500, with some who missed earlier deposits also eligible for another $500. The foster‑youth add‑on authority ends January 1, 2029.
Childcare and work‑study for parents
The state provides $11.246 million for childcare for CalWORKs students, with districts able to seek approval to repurpose those funds. It adds at least $5.997 million for direct work‑study wage reimbursements and $752,000 for job development and placement. These funds reduce out‑of‑pocket costs and expand paid work options for student parents.
Clearer CSU/UC course standards
On or after October 1, 2025, CSU begins setting uniform academic standards for high‑school and articulated college‑level courses that count for CSU and UC admission. CSU creates a faster course‑approval process, rules for duplicate courses, and guidance for computer science, and posts the standards online. K–12 schools consult an advisory group that may include UC and CSU members.
Credit for prior learning at scale
For 2025–26, up to $15 million funds a systemwide Credit for Prior Learning Initiative. Colleges will identify and award credit for military service, job training, certifications, foreign credentials, and other prior learning. The Chancellor’s Office must report on progress and spending by March 1, 2026 and on implementation and outcomes by January 31, 2028.
FAFSA help, opt‑outs, and privacy
Beginning in 2022–23, high schools must confirm each 12th grader files the FAFSA or the California Dream Act form, unless the family submits an opt‑out. The Student Aid Commission must create the statewide opt‑out form and rules, and the state shares rosters each year to help schools track filings. Schools must protect student and parent data under FERPA and state law, no matter immigration status. Starting in 2025–26, schools must also give families information about the KIDS savings program.
Help for Native American students
The state creates a Native American Student Support and Success Program to improve K–12 to college pathways, mentoring, and leadership. Up to 20 colleges can receive one‑time grants to build local programs, consult with California tribes, offer culturally responsive counseling and peer cohorts, and hire a full‑time coordinator and tribal liaison, with a hiring preference for Native American or Alaska Native candidates.
More full‑time community college faculty
The law provides $50 million to hire new full‑time faculty and $100 million more to hire above a district’s normal level, moving toward a 75% full‑time target. The Chancellor’s Office must consult with state finance and legislative offices before distributing funds.
More services for disabled students
The law funds disability services, including at least $3.945 million to fix civil‑rights deficiencies, $943,000 for High Tech Centers, and at least $9.6 million for sign language, captioning, and other communication help. For the communication‑services funds, each district must add $1 in local money for every $4 in state funds.
More staff and outreach for aid
The state funds college financial aid operations, including $0.91 per‑unit reimbursements, 2% waiver reimbursements, and a $5.3 million outreach campaign with $2.5 million for bilingual outreach. It provides up to $45.2 million for direct contact with applicants, with at least $50,000 per campus. It funds up to $5 million for aid‑tech maintenance and $20 million one‑time to handle FAFSA delays, with at least $50,000 per campus and the rest by FTES/Pell formula. These funds supplement, not replace, prior aid‑office funding.
More support for justice‑involved students
The law funds reentry education and supports. It provides $25 million for the Rising Scholars Network. At least $13 million a year creates Project Change grants at up to 45 colleges with transferable courses, wraparound help, and dedicated staff. $1.25 million each year pays for technical assistance and trainings. Incarcerated or detained students can get textbooks or digital course content from up to $3 million a year. Starting July 1, 2025, Rising Scholars grants can be prioritized for programs that show strong student results.
New student aid rules and info
Starting August 1, 2024, colleges must follow federal minimum GPA and pace rules, notify students each term if they fall short, accept paper or online appeals, allow second reviews, and waive third‑party proof when it cannot be reasonably obtained. Cal Grant schools must report disaggregated outcomes by March 31, 2026 and yearly; the state posts results by August 1, 2026 and yearly. Cal Grant status is part‑time at 6–11 units and full‑time at 12 or more units. For federal CRRSA/ARPA rules, related state funds count as need‑based aid and as spent in the year appropriated.
Support for justice‑impacted students
The Rising Scholars Network supports justice‑impacted students with counseling, tutoring, financial aid help, mentoring, and transition materials. The law provides $15 million each year for Project Change‑model programs in juvenile facilities and on campuses. Funds focus on direct student supports and parity of academic services.
Keep schools aid‑eligible using 2020 rates
For the 2024–25, 2025–26, and 2026–27 school years, the Commission uses the 2020 three‑year cohort default rate to certify otherwise qualifying schools. This helps keep some schools eligible for student financial aid during those years.
More online community college classes
The Chancellor gets $20 million to expand tech‑delivered courses and support the California Virtual Campus. Money focuses on high‑demand and prerequisite classes. Courses must count for degree credit and transfer across districts.
Student relief from failed colleges (STRF)
More students can get help from the Student Tuition Recovery Fund. Former Corinthian Colleges students who meet set residency and date rules are eligible. If your STRF claim led to cancellation of your student loan, you can get up to $500 back for legal fees after the bureau verifies cancellation. The fund can also pay for claim administration and staff in the Office of Student Assistance and Relief.
KIDS Accounts: who qualifies and limits
Undocumented pupils who meet program rules are now eligible for KIDS Accounts and enhanced deposits. At the same time, each pupil can receive only one enhanced deposit and only one account under this program, with narrow exceptions for certain foster or homeless cases.
Campus projects use bonds, no private partners
Starting in 2023–24, UC and CSU fund student housing construction with bonds they issue, not the state General Fund. Community college projects use local revenue bonds from their districts. UC and CSU cannot use public‑private partnerships to build, run, or maintain projects funded under this program. This changes how projects are financed and delivered.
Community college payments delayed, with guardrails
The state defers $408.363 million of May–June 2025–26 apportionments to July and shifts another $243.693 million into 2025–26. The Chancellor can adjust May–June schedules to shorten the wait for repayment, move deferred categorical funds into apportionments after first deferring apportionments, and use unused growth money to backfill shortfalls. Schedule (1) dollars will offset certain mandated cost claims.
Planning money for student housing projects
Beginning July 1, 2022, the state provides $17.974 million for planning grants. The Chancellor’s Office allocates this money to listed community colleges to study and plan affordable student rental housing.
Colleges reimbursed after early withdrawals
Up to $500,000 reimburses colleges for federal aid repayments tied to assessed fees when fee‑waiver students fully withdraw before the census date. This eases campus costs linked to early withdrawals.
Digital Career Passport and privacy
You get a free or low‑cost digital Career Passport that stores verified school records, job training, and prior‑learning credit to share with employers and training programs. The program uses existing tools, keeps information secure, protects personal data, and follows federal privacy laws.
Funding for apprenticeships and training hours
The state provides $30 million for the California Apprenticeship Initiative. Covered activities qualify for $9.98 per hour reimbursement. Funds are available until June 30, 2026.
KIDS outreach, data sharing, privacy
The KIDS board and the Department of Education share secure census‑day data each year to find eligible pupils and open or add to KIDS Accounts. Records used to open KIDS Accounts are exempt from public records requests to protect family privacy. The board partners with Riverside schools (2024–25 to 2029–30) and San Diego Unified (2025–26 to 2029–30) and, when feasible, shares student IDs at least three times a year to boost engagement. The partnership authority ends July 1, 2030.
LA fire recovery training and stipends
In 2025–26, $5 million helps Los Angeles Regional Consortium colleges drive workforce recovery from the Palisades and Eaton fires. Funds can pay for retraining, construction pathway completions, and supports. Stipends up to $1,400 per student are allowed. Two districts may each receive $500,000 if they secure at least $4 in matching funds for every $1 in state funds and pursue approved recovery initiatives.
More funding for College Promise
$91.207 million supports the California College Promise. Funds go to eligible programs and students under the Promise rules.
More help applying for college aid
The state funds more outreach to boost college financial aid applications. A community college district gets $5.3 million for statewide ads, with $2.5 million aimed at non‑English and bilingual homes. Up to $45.2 million also pays for direct contact with aid applicants, with at least $50,000 for every campus.
Supports for A2MEND and LGBTQ+ students
The Chancellor’s Office funds student supports for key groups. $1.1 million expands A2MEND student charters at up to 50 colleges to help African American male students. Another $10 million gives grants to districts for LGBTQ+ student supports, up to $900,000 per district, spendable over five years.
State pays for mandated local costs
If the Commission on State Mandates finds this act creates state‑mandated costs, the state reimburses local agencies and school districts under existing rules.
Accounting changes for college budget totals
For state constitutional budget math, the law counts several community college appropriations as “General Fund revenues appropriated for community college districts.” This applies to $15 million for Credit for Prior Learning, $60 million for the Student Support Block Grant, $5 million for the Los Angeles Regional Consortium, and deferred apportionments for 2026–27.
Faster rules for teacher grant program
The commission may use emergency rules to run the Golden State Teacher Grant Program. These rules skip normal rulemaking and can stay in effect until June 30, 2026. This speeds program rollout and updates.
12-unit rule to live in housing
To live in grant‑funded housing, you must average at least 12 degree‑applicable units per semester (or the quarterly equivalent). You may live there for the full academic or calendar year while enrolled. Renewal requires proof you meet the unit rule. Campuses may allow a temporary lower load for illness or injury.
Hire UP pilot ends in 2029–2030
The Hire UP pilot becomes inoperative on March 15, 2029 and is repealed on January 1, 2030. Program benefits tied to this pilot end on those dates.
Extra $65 fee on civil appeals
If you file a civil appeal, $65 of the fee goes to the State Law Library. The rule applies retroactively to January 1, 2025. It becomes inoperative on July 1, 2030, and is repealed January 1, 2031.
Rules to plan, budget, and report projects
Campuses and districts may apply for construction funds only after feasibility studies and preliminary planning are done and reliable cost estimates are developed. Applications must show construction can start by December 31 of the award year or as soon after as possible. Projects must include a contingency: 5% of construction costs for UC and CSU, and 10% for community colleges and intersegmental projects. Grant funds can pay these contingencies, but recipients must cover any costs above their budget with other funds. Campuses cannot seek reimbursement for costs already incurred. UC must follow capital outlay rules to get funding. UC, CSU, and community college leaders must oversee projects and file annual reports starting by July 1 after funds arrive until completion, then yearly for five more years.
Sponsors & Cosponsors
Sponsor
Jesse Gabriel
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 6/27/2025
Item 1000 — Assembly AFLOOR
Yes: 76 • No: 1
Senate vote • 6/27/2025
Item 84 — Senate SFLOOR
Yes: 38 • No: 0
legislature vote • 6/25/2025
Vote in CS62
Yes: 18 • No: 0
House vote • 3/20/2025
Item 53 — Assembly AFLOOR
Yes: 53 • No: 17
Actions Timeline
Chaptered by Secretary of State - Chapter 9, Statutes of 2025.
6/27/2025SenateApproved by the Governor.
6/27/2025legislatureEnrolled and presented to the Governor at 3:15 p.m.
6/27/2025legislatureSenate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 1. Page 2335.).
6/27/2025HouseAssembly Rule 63 suspended. (Ayes 54. Noes 19. Page 2329.)
6/27/2025HouseIn Assembly. Concurrence in Senate amendments pending.
6/27/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 1806.).
6/27/2025SenateRead second time. Ordered to third reading.
6/26/2025SenateFrom committee: Do pass. (Ayes 18. Noes 0.) (June 25).
6/25/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
6/24/2025SenateReferred to Com. on B. & F. R.
4/2/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
3/20/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 724.)
3/20/2025HouseRead second time. Ordered to third reading.
3/18/2025House(Ayes 53. Noes 17. Page 643.)
3/17/2025HouseOrdered to second reading.
3/17/2025HouseWithdrawn from committee.
3/17/2025HouseReferred to Com. on BUDGET.
2/3/2025HouseFrom printer. May be heard in committee February 8.
1/9/2025HouseRead first time. To print.
1/8/2025House
Bill Text
Chaptered
6/27/2025
Enrolled
6/27/2025
Amended Senate
6/24/2025
Introduced
1/8/2025