Equity Alert - Keeping California’s Promise: Investing Equitably in California College Affordability

Oct 15, 2026

Uploaded by Connor

Equity Alert analyzes why Cal Grant Reform is required to sustain college affordability for low-income, BIPOC, and first-generation Californians, emphasizing that robust need-based aid drives access and completion. It explains that the state’s Cal Grant Program remains underfunded, increasing student financial strain and reliance on loans or work. The report outlines how past reforms and the 2022 budget’s Cal Grant Reform Act aim to broaden eligibility and reduce barriers.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages6

Reading Time15 min

AccessFree to download

Equity Alert: Investing Equitably in California College Affordability

UNFUNDED Cal Grant Reform Is an Unfulfilled Promise

How We Got to Cal Grant Reform and Why It Is Needed

Equity Alert Keeping California’s Promise: Investing Equitably in California College Affordability Budgets are a reflection of collective values, and California policymakers and leaders have a responsibility to follow through on their promise of Cal Grant Reform, which will support hundreds of thousands of Californians—including those who are low-income, BIPOC, and first generation—in affording, accessing, and succeeding in higher education. If the state finds the funds, the Cal Grant Reform Act-as enacted in the 2022 Budget Act-is to be implemented in 2024. But instead of using precious resources to put a down payment on this program that low-income California students need now, the state has proposed adding more funding to the less equitable Middle Class Scholarship (MCS) program. It is critical that California approach college affordability equitably by prioritizing students with the least resources. Fully funding Cal Grant reform instead of MCS is by far the best approach; doing so will be pivotal in supporting California’s commitment to advancing racial and economic justice as well as statewide postsecondary attainment. California policymakers have a critical opportunity this year to reinforce the state’s commitment to achieving educational equity for BIPOC students and students with the greatest need by investing in Cal Grant Reform starting in the 2023-24 state budget. This Equity Alert provides an overview of why Cal Grant Reform is needed; describes the limitations of the Middle Class Scholarship program in serving low-income, BIPOC, and community college students in California;1 and provides recommendations that state policymakers can act on this year to advance equity-centered financial aid reforms. UN FUNDED CAL GRANT REFORM IS AN UNFULFILLED PROMISE: CALIFORNIA’S LOW-INCOME BI PO C STUDENTS ARE COUNTING ON POLICYMAKERS TO FULFILL THEIR COMMITMENT TO FUND CAL GRANT REFORM Robust and equitable state need-based financial aid programs are a key driver of college access and completion for lower-income students and racially marginalized students in California, most of whom attend public two-and four-year colleges and universities and come from families with annual incomes of less than $40,000 .2 As the state’s largest need-based financial aid program, Cal Grants are a cornerstone of college affordability for hundreds of thousands of Californians every year; the program provides financial aid that helps students cover tuition and living expenses without the need to repay. Despite being one of the largest grant programs in the nation, the Cal Grant Program isnot fully funded to accommodate all Californians who financially qualify for the program.3 Advocates have continued to uplift the need for equitable structural reforms to better address students’ rising total college costs and to remove the eligibility barriers that keep under-resourced students from accessing these awards that help them get to—and through—college. EQUITY ALERT: Investing Equitably in California College Affordability The Institute for College Access & Success • [ticas. org | The](ticas. org | The) Education Trust–West • [www.edtrustwest. org | 1](www.edtrustwest. org | 1) While net college costs tend to decrease as family income declines, the share of income needed to cover them increases. At the state’s public two-and four-year colleges and universities—which the vast majority of California’s college students attend—the lowest-income students have to put as much as half of their family income towards covering college costs after accounting for available grant aid.4 To fill the gap, students may borrow loans or work excessively, reduce enrollment, or drop out altogether. A Fall 2022 survey found that one-third of previously enrolled California Community College (CCC) students who dropped at least one course in their last term reported it was due to their need to prioritize work, which in turn means they may take longer to transfe

FAQs

Why does the document argue that Cal Grant Reform is needed?

It states that California’s need-based aid is essential for college access and completion, and that Cal Grants are not fully funded for all financially eligible Californians.

What limitations does the document describe for the Middle Class Scholarship program?

It argues the MCS program is less equitable for low-income, BIPOC, and community college students and does not serve those groups as effectively as Cal Grant reform would.

What changes does the Cal Grant Reform Act (included in the 2022 budget) propose?

It proposes streamlining Cal Grant programs, indexing CCC awards to the California Consumer Price Index, aligning income eligibility with Pell Grant changes, and removing certain GPA barriers for CCC students.

Oct 15, 2026

Uploaded by Connor