California’s 2026-27 Budget Strengthens Higher Education Investments That Expand Opportunity for Students

California has reaffirmed its commitment to higher education.

Overview/Summary: 

• On June 29, 2026, California Governor Newsom signed the 2026-27 state budget bill. The final budget, as negotiated by the Governor and the California State Legislature, sustains critical investments in California higher education that will continue to guarantee that all of California’s students, especially those from historically minoritized backgrounds, can access and succeed in higher education to achieve economic prosperity.  

• We commend Governor Newsom and the Legislature for their leadership in sustaining investments in higher education as critical pathways to economic mobility and prosperity in light of an uncertain budget outlook and federal impact on the state.  
• The Campaign for College Opportunity remains steadfast in its budget and policy advocacy efforts that have resulted in sustained higher education investments in this final budget. We look forward to continuing to work closely with the Legislature, our next California Governor, and state higher education systems to ensure that this year’s investments are carried out to best support California’s students. 

Higher Education Budget Highlights

Expand College Access & Strengthen Cross-System Coordination 

In the final 2026-27 budget, the Governor and Legislature have committed to ensuring all Californians have equitable access to attend our public higher education institutions by providing these institutions the proper resources they need to serve all enrolled students. Moreover, the Legislature and Governor have made a sustained commitment to ensure the state properly integrates and aligns efforts across TK-12 education, higher education, employers, and the statewide workforce system to facilitate coordination within and among these entities through the California Education Interagency Council (CEIC). Stay tuned for updates on the crucial work of the Council here. 

• Maintains a fifth and final 5% Compact base increase to the UC and CSU for 2026-27. 

• Provides $153 million to the California Community Colleges (CCC) to fund a 2.5% enrollment growth over 2025-6 and 2026-7 ($55 million to fund enrollment growth for 26-27 and $98 million to fund enrollment growth in 25-26). 

• Provides $292 million ongoing to the CCCs to provide a 2.87% Cost-of-Living Adjustment (COLA) to student apportionments via the Student Centered Funding Formula (SCFF). 

• Provides $1.5 million ongoing to support the establishment of the California Education Interagency Council (CEIC), California’s new coordinating body aligning efforts across TK-12 education, higher education, employers, and the statewide workforce system. 

These investments help institutions continue serving California’s growing and diverse student population while strengthening statewide collaboration.

Streamline Transfer Pathways & Onramps to Completion 

In the final 2026-27 budget, the Governor and Legislature have committed to advancing more seamless transfer pathways and onramps to ensure all Californians complete their intended programs of study. This includes addressing articulation and commonly numbered courses at the California Community Colleges (CCCs). The Campaign for College Opportunity is spearheading further collaboration between the CCC, CSU, and UC to provide greater insight into how commonly numbered courses across the community colleges articulate to the CSU and UC through AB2236 (Berman). Learn more about AB2236 and the Campaign’s advocacy here. 

• Provides $698,000 to the CCCs to support transfer, articulation, and common course numbering projects. 
• Provides $1.4 million to the CCCs to support the Historically Black Colleges and Universities (HBCU) Transfer Pathway program, which helps develop transfer guarantee agreements that help facilitate a smooth transition for students from the California Community Colleges to partnered HBCU institutions. 

Improve College Affordability 

In the final 2026-27 budget, the Governor and Legislature have sustained crucial financial aid investments for California students via student financial aid awards and financial aid student support services provided by the state. This includes ensuring financial aid awards cover student financial need through the Middle Class Scholarship program and expanded student eligibility for the California Community College Transfer Entitlement Award. Learn more about how state policymakers can continue to address college affordability to ensure postsecondary attainment is possible for all Californians here. 

• Provides $4.2 billion in financial aid grants and financial aid application support for California students.  

• Declares intent of the legislature to provide $111 million for fiscal years 2027-28 through 2031-32 given expansion of age eligibility requirements for the California Community College Transfer Entitlement Award. Starting in 2026-27, a student must be younger than 30 years of age by December 21 of the year they are awarded the grant to be eligible for this award. Previously, a student had to be younger than 28 years of age. 
• Declares Middle Class Scholarship awards will cover up to 23% of a student’s remaining financial need. 

Intentionally Serve Historically Excluded Students 

In the final 2026-27 budget, the Governor and Legislature have committed to ensuring California higher education institutions expand college access and success for students who have been historically excluded from higher education. Despite an uncertain federal landscape that includes uncertainty about higher education institutions receiving promised federal funds to support these students, much can still be done to support these students in our state. Learn how in our 2026 State of Higher Education series here.. 

• Provides $71 million in funding for 2026-27 to the CCCs to support Dreamer Resource Liaisons. 

• Provides $147 million in funding for 2026-27 to the CCCs to support the Student Support Block Grant. 

• Provides $554 million in funding for 2026-27 to the CCCs to support the Student Equity and Achievement Program. 
• Provides $8 million in funding to the CSU, and the CCCs, respectively, to support the CCC Asian American, Native Hawaiian, and Pacific Islander Student Achievement Program and the CSU Asian American, Native Hawaiian, and Pacific Islander Student Achievement Program. .

Accelerate Economic Mobility 

In the final 2026-27 budget, the Governor and Legislature have committed to ensuring that higher education attainment allows Californians to achieve upward economic mobility for themselves and generations to come. This includes establishing the statewide infrastructure necessary to implement new Workforce Pell Grants, or federal grants provided to students in eligible short-term workforce preparation programs. The Campaign for College Opportunity is supporting AB1534 (Irwin) to ensure program quality, affordability, and strong return on investment for students as California prepares to implement Workforce Pell. Learn more about AB1534 and the Campaign’s advocacy here. 

• Provides $664 million in one-time funding to the California Student Aid Commission CSAC) to implement the federal Workforce Pell Grant Program. 

What Comes Next?

While the final budget represents meaningful progress, implementation will determine its ultimate impact.

The Campaign for College Opportunity will continue partnering with policymakers, higher education leaders, and advocates to ensure these investments translate into greater access, affordability, and success for California’s students.

We’ll also continue advancing policies that:

• Expand college opportunity
• Strengthen transfer
• Improve affordability
• Increase student success
• Advance educational equity

Stay Engaged

The Campaign for College Opportunity remains committed to advocating for policies that ensure every Californian has the opportunity to earn a college degree and achieve economic prosperity.

Want to stay informed?

• Join our email list via the link below
• Explore our policy priorities
• Learn more about AB 2236 and AB 1534
• Read our 2026 State of Higher Education series
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