The 2026‑27 California Spending Plan

Higher Education

This post summarizes the state’s 2026‑27 spending package for higher education. In this post, we provide an overview of the state’s higher education spending package, then cover spending for the California Community Colleges (CCC), California State University (CSU), University of California (UC), student financial aid, and a few other areas. Our EdBudget tables provide more detail about the 2026‑27 education budget.

Overview

State Spending on Higher Education Increases Significantly in 2026‑27. As Figure 1 shows, ongoing General Fund support for higher education is $26 billion in 2026‑27, which is $3.3 billion (15 percent) higher than the revised 2025‑26 level. Ongoing increases include higher base support and enrollment growth at each of the three public higher education segments, higher Cal Grant spending, and targeted augmentations to select higher education categorical programs. The budget also includes a total of $683 million one‑time General Fund for various higher education purposes, including student support, workforce development, and research.

Tuition Revenue Also Increases Notably. In addition to state support, all three public higher education segments receive revenue from student tuition and fees. CCC relies least on tuition revenue (less than 5 percent of its ongoing core funding), whereas UC relies most on it (more than half of its ongoing core funding). In 2026‑27, the three segments estimate generating an additional $480 million in tuition and fee revenue (from tuition increases and enrollment growth). The segments may use this additional revenue at their discretion.

Tuition Charges Rise at UC and CSU While Remaining Flat at CCC. As this EdBudget table shows, both UC and CSU raised tuition charges for 2026‑27. Consistent with its cohort‑based tuition policy, UC raised tuition 4.4 percent for incoming resident undergraduates and all graduate academic students, while holding tuition charges flat for continuing resident undergraduates. UC also raised supplemental tuition charges for most professional degree programs as well as for nonresident students. CSU raised tuition by 6 percent for all resident undergraduate and graduate students. The CCC enrollment fee, which the state sets in statute, remains flat at $46 per unit. The state last raised the CCC enrollment fee in summer 2012.

Budget Sets Higher Enrollment Growth Expectations for All Three Segments. The state expects all three public higher education segments to increase their resident undergraduate enrollment levels. This EdBudget table shows changes in enrollment expectations at each of the segments. Provisional budget language sets growth targets of 1.5 percent for CCC, 1 percent for CSU, and 1.4 percent for UC in 2026‑27. The budget includes an associated $98 million for CCC (plus another $55 million for additional enrollment growth in 2025‑26). The budget does not earmark enrollment growth funding for UC or CSU. Instead, these segments are to cover the cost of enrollment growth using their base increases. The budget act includes no enrollment growth expectations for any of the higher education segments for 2027‑28.

Major Higher Education Decisions Were Made at Key Junctures. This EdBudget table highlights the major higher education developments that unfolded throughout the state budget process. The Governor’s January budget launched the new budget season by proposing notable Proposition 98 spending increases for CCC and notable non‑Proposition 98 General Fund spending increases for CSU and UC. The Governor’s budget also covered projected increases in Cal Grant spending and the estimated cost of Middle Class Scholarship 2025‑26 awards (paid in arrears). The May Revision added considerable Proposition 98 spending for CCC while making generally small adjustments to non‑Proposition 98 higher education spending. The June legislative budget agreement enacted all of the Governor’s higher education proposals while adding more funding for CCC enrollment growth, other CCC initiatives (mostly student support), two CSU initiatives (workforce related), and several UC initiatives (mostly research). The July budget agreement with the Governor scaled back some of the CCC legislative augmentations while supporting a few new CCC augmentations and several additional UC initiatives. The state also placed on the November 2026 ballot a housing bond that includes $350 million for new affordable student housing projects (split evenly among CSU and UC). The final September budget agreement added more one‑time funding for a few CSU initiatives and several UC initiatives. The state also acted to place on the March 2028 ballot a $7.5 billion research bond that includes $1 billion specifically for university research facilities ($750 million for CSU and $250 million for UC).

California Community Colleges

CCC Proposition 98 Funding Reaches $14.6 Billion in 2026‑27. Proposition 98 funding (a mix of state General Fund and local property tax revenue) is the primary source of support for the community colleges. In 2026‑27, Proposition 98 funding for CCC increases by $1.4 billion (10 percent) from the revised 2025‑26 level, as Figure 2 shows. Of this increase, $211 million is because the budget allocates a higher share of total Proposition 98 funding to community colleges in 2026‑27 (11.1 percent) than in most previous years (10.93 percent). In addition to the 2026‑27 increase, the budget revises 2024‑25 and 2025‑26 Proposition 98 funding for CCC upward by a combined $903 million. (We discuss the Proposition 98 guarantee and spending architecture in our forthcoming post, The 2026‑27 Spending Plan: Proposition 98 and K‑12 Education.)

Budget Package Includes Many CCC Proposition 98 Spending Increases. After accounting for technical adjustments and unspent funds from previous years, $1.9 billion is available for new CCC Proposition 98 spending. As Figure 3 shows, the budget package allocates $723 million toward new ongoing spending and $1.2 billion toward new one‑time spending. The largest of the ongoing spending increases are to augment apportionments beyond the statutory cost‑of‑living adjustment (COLA) and support enrollment growth. The largest of the one‑time increases is to repay an apportionments deferral adopted in last year’s budget. The budget also includes smaller spending increases for many other purposes, including several student support and workforce development programs.

Budget Increases Apportionments Beyond COLA and Creates New Paid Leave Requirement. The budget includes a total of $452 million ongoing for a 4.31 percent increase for apportionments. Of this amount, $292 million is for a 2.87 percent statutory COLA and $160 million is for an additional 1.44 percent increase. The additional increase applies to all districts, including those that do not receive the statutory COLA because they are benefiting from a funding protection called “hold harmless.” Provisional language requires districts first to use the additional increase to cover the cost of implementing a new requirement to provide employees with up to 14 weeks of paid pregnancy disability leave.

Budget Funds Enrollment Growth and Modifies a Related Policy. The budget provides a total of $153 million ongoing for 2.5 percent enrollment growth at CCC. Of this amount, $55 million is provided beginning in 2025‑26 to increase the previously enacted growth target in that year by 1 percent (from 0.57 percent to 1.57 percent). The remaining $98 million is provided in 2026‑27 for further growth of 1.5 percent. Across the two years, the growth funds are estimated to support approximately 25,000 additional full‑time equivalent (FTE) students. In addition to these growth funds, the budget includes $48 million to cover the estimated cost of a new funding policy for credit enrollment. Previously, districts received funding for regular credit enrollment (excluding dual enrollment and incarcerated students) based on the three‑year average of their FTE student count. Under the new policy, districts instead will receive funding based on the greater of their three‑year average or current FTE student count.

Calbright College Receives Substantial Ongoing Base Increase. The budget provides a $38 million ongoing increase for Calbright—an online community college that provides competency‑based education programs targeted toward working adults. This increase more than triples the college’s base funding level, bringing it to $51 million ongoing. Trailer legislation includes several associated requirements. First, it requires Calbright to submit certain data on student enrollment and outcomes to the Chancellor’s Office annually for public display. Second, it requires the Chancellor’s Office to make recommendations for awarding credit for prior learning for Calbright’s programs and similar programs across the system by July 1, 2027. Third, it requires the Chancellor’s Office to convene a work group to develop recommendations related to funding competency‑based education across the system, including at Calbright, by October 1, 2028.

Several Student Support Programs Receive Augmentations. The budget provides a $30 million (5.7 percent) ongoing increase for the Student Equity and Achievement Program, a broad categorical program that supports efforts to improve student outcomes. The budget also adds $148 million one time for the student support block grant, an initiative created in last year’s budget to provide districts with flexible funding they can use for various student services through June 30, 2030. In addition, the budget provides one‑time funding targeted toward a few specific student services, including Dreamer Resource Liaisons; lesbian, gay, bisexual, transgender, queer, and plus (LGBTQ+) resource centers; and financial aid administration.

Several Workforce Development Programs Also Receive Augmentations. The budget provides $14 million ongoing to CCC for the Healthy School Food Pathways program, a set of training programs for K‑12 school food service staff operated by a nonprofit organization. The budget also includes a $16 million one‑time increase for the CCC Strong Workforce Program, which provides funding to districts and regional consortia to increase the availability and quality of career technical education programs. Additionally, the budget includes $16 million one time to cover higher‑than‑projected related and supplemental instruction costs in apprenticeship programs in 2024‑25 and 2025‑26.

Budget Funds Many Capital Outlay Projects, Plus Deferred Maintenance. The budget includes $766 million in Proposition 2 (2024) state general obligation bonds for CCC capital outlay projects. Of this amount, $709 million is for the construction or design‑build phase of 29 projects initiated in 2025‑26, as this EdBudget table shows. The remaining $57 million is for the preliminary plans and working drawings phases of ten projects and all phases of an 11^th project newly approved in 2026‑27, as this EdBudget table shows. To date, the state has committed nearly $1.3 billion (85 percent) of the total $1.5 billion in Proposition 2 bond funding for community college facilities. In addition to these bond funds, the budget provides $121 million one‑time Proposition 98 General Fund to CCC for deferred maintenance projects.

Budget Authorizes Chancellor’s Office to Select New Student Housing Projects. Trailer legislation authorizes the Chancellor’s Office to allocate any unused lease revenue bond authority from the CCC student housing program toward new projects. It directs the Chancellor’s Office to select the new projects from applications submitted by colleges on or before July 1, 2026, using the same scoring criteria it used in previous cycles to rank those applications. Of the $805 million in total lease revenue bond authority for the program, we estimate $218 million remains available, consisting of a mix of funds that have not yet been allocated and funds that have been returned by two projects withdrawing from the program (at San Diego City College and College of the Canyons). We estimate this amount could fund one to five new projects, depending on the cost of the highest‑ranked projects. In addition to authorizing the allocation of these funds, trailer legislation makes various changes to program requirements. Notably, it requires the Chancellor’s Office to certify that any college requesting an increase in state funding or a reduction in bed count for a previously approved project has first exhausted all other available funding and cost containment measures.

Chancellor’s Office Receives Four New Positions. The budget provides $614,000 ongoing non‑Proposition 98 General Fund for four new positions at the Chancellor’s Office, bringing the total number of authorized positions to 218. Three of these positions (two analysts and one supervisor) will form a new contracts oversight unit to provide centralized support in developing and executing contracts. The fourth position (an attorney) will monitor changes in federal laws, regulations, and policies that affect the CCC system.

California State University

Ongoing Core Funding for CSU Reaches $10.1 Billion in 2026‑27. As Figure 4 shows, $6.2 billion is state General Fund, $3.8 billion is student tuition and fee revenue, and $93 million is lottery revenue. Ongoing core funding increases by $815 million (8.8 percent) from 2025‑26. About 75 percent of the increase is from General Fund support and about 25 percent is from student tuition and fee revenue. Tuition revenue is increasing due to rising tuition charges (consistent with CSU’s tuition policy) and anticipated enrollment growth. Ongoing core funding per student is budgeted to increase by $1,881 (8.4 percent), reaching $24,365.

CSU Receives 7 Percent Ongoing General Fund Increase. Figure 5 shows all of the General Fund spending changes for CSU in 2026‑27. Altogether, ongoing General Fund support for CSU increases by $601 million. Most notably, the budget provides a 5 percent unrestricted base increase, reflecting the fifth‑year increase of the Governor’s multiyear compact with CSU. Consistent with the 2025‑26 budget agreement, the budget includes an additional 2 percent unrestricted base increase to provide a partial 2025‑26 compact payment (all of which was postponed last year). CSU has discretion in how to use this new ongoing funding. Also consistent with the 2025‑26 budget agreement, the 2026‑27 budget restores CSU’s base support for the one‑time removal of $144 million (3 percent) for the payment deferral initiated last year. Beyond these increases, the budget covers cost increases for CSU retiree health benefits and certain employer pension contributions. This EdBudget table shows CSU ongoing state General Fund spending by program.

CSU Receives Funding for Five One‑Time Initiatives. In addition to ongoing augmentations, CSU receives a total of $12 million in one‑time General Fund support in 2026‑27. Of that amount, $5.4 million is for the San Diego campus to establish the California‑Mexican Initiative for New Opportunities, which focuses on binational collaboration in education, workforce, and economic development. The San Diego campus must submit a report on this initiative to the Legislature annually beginning March 1, 2027, until all program funds are expended. The budget also includes $3 million for the San José campus to renovate and enhance its Excite Ballpark baseball facilities; $1.6 million for the San Bernardino campus to replace controls for its heating, ventilation, and air conditioning system; and $1 million for the San Marcos campus to upgrade and expand its Cougar Pantry. Lastly, the budget includes $1 million for CSU San Luis Obispo to conduct a study of physician workforce needs in the Central Coast region, including the potential need for a new medical school and residency programs. The study must be completed within 12 months from the receipt of funding. (This funding is part of a package totaling $5 million one‑time General Fund provided to the Department of Health Care Access and Information for its Physician Access Workforce Program.)

Spending Plan Maintains CSU Payment Deferral. The 2025‑26 budget deferred a $144 million General Fund payment to CSU from 2025‑26 to 2026‑27 but allowed CSU to receive a no‑interest General Fund loan in the meantime. CSU requested and received this cash loan in fall 2025. The state continues this arrangement, deferring $144 million from 2026‑27 to 2027‑28, along with offering CSU another no‑interest General Fund cash loan. The state intends to retire the deferral in 2027‑28, incurring an associated one‑time cost of $144 million at that time.

Spending Plan Maintains Out‑Year Funding Commitments for CSU. The budget package maintains two additional out‑year funding commitments made to CSU in the 2025‑26 Budget Act. Specifically, the state still plans to provide CSU with a one‑time back payment of $252 million in 2027‑28 to address the base increase that CSU did not receive in 2025‑26. The state also plans to provide CSU with a 3 percent ongoing base increase ($151 million) in 2028‑29 associated with the remaining postponed 2025‑26 compact payment.

Budget Sets 2026‑27 Enrollment Growth Expectations. Provisional budget language states an intent for CSU to increase resident undergraduate enrollment by 3,511 FTE students, for total resident undergraduate enrollment of 356,341 FTE students in 2026‑27. CSU is expected to cover the cost of this enrollment growth from within its base increase. The language authorizes the administration to reduce funding for CSU if it enrolls fewer students than expected. Funding would be reduced at the 2026‑27 state marginal cost rate of $11,296 for each student below the expected level. If CSU enrolls more students than its budgeted target, the language authorizes that those students will be counted towards a future enrollment target. The 2026‑27 budget includes new provisional language prioritizing enrollment growth at campuses that have met or exceeded their enrollment targets over the past two years. The budget also includes reporting language requiring campuses that have experienced sustained declining enrollment to submit turnaround plans to the CSU Chancellor’s Office, with that office then submitting a consolidated report to the Legislature and Department of Finance by March 1 of each year. Any campus that has already submitted a turnaround plan is required to provide annual progress reports for the subsequent four years. The budget does not set CSU enrollment growth expectations for 2027‑28.

State Approves $619 Million for Capital Outlay Projects at CSU. As this EdBudget table shows, $300 million of this amount is for infrastructure improvements across the CSU system. With these funds, CSU plans to replace many aging building components in specific buildings at specific CSU campuses. The state also approves $179 million in state funds (plus $12 million in campus and donor funds) for the construction and equipment phases of a replacement building at CSU Long Beach. In previous years, the state provided $10 million for the earlier phases of that project. Lastly, the state provides $140 million (plus $10 million in campus funds) to cover all phases of an engineering building replacement project at CSU Sacramento. For all of these projects, the state has authorized CSU to issue university revenue bonds and pay the estimated $50 million in associated debt service using its base support.

University of California

UC Ongoing Core Funding Reaches $12.2 Billion in 2026‑27. As Figure 6 shows, $6.3 billion is student tuition and fee revenue, $5.3 billion is state General Fund, and the remainder is from various smaller sources, including lottery revenue. Ongoing core funding increases by $799 million (7 percent) from 2025‑26. About two‑thirds of the increase comes from the General Fund and the remainder is from student tuition and fee revenue. Tuition revenue increases due to rising tuition charges and anticipated enrollment growth. Ongoing core funding per student is budgeted to increase by $2,393 (6.3 percent), reaching $40,381.

UC Receives 7 Percent Ongoing General Fund Increase. Figure 7 shows all of the General Fund spending changes for UC in 2026‑27. Altogether, ongoing General Fund support for UC increases by a net of $533 million. Similar to CSU, UC receives a 5 percent base increase reflecting the year‑five compact payment, along with an additional 2 percent increase reflecting a partial, delayed year‑four compact payment. The 2026‑27 budget also restores UC’s base support for the one‑time removal of $130 million (3 percent) for the payment deferral initiated last year. The budget provides the Division of Agriculture and Natural Resources (ANR) with a proportional share of the ongoing base increases, totaling $10.3 million. UC (including ANR) may use unrestricted base increases at its discretion. Like CSU, UC generally uses base increases to support compensation increases as well as other core operating cost increases. This EdBudget table shows UC ongoing state General Fund spending by program.

UC Receives One‑Time Funding for 34 Initiatives. Beyond ongoing augmentations, the 2026‑27 Budget Act includes a total of $213 million one‑time General Fund for 34 initiatives. (This amount includes unspent funds from prior years that expired and are reappropriated as well as new funds.) These one‑time initiatives support various student services, workforce programs, research endeavors, and campus‑specific projects. Whereas some of the funding is to expand existing initiatives, some is for new initiatives. One of the new initiatives involves climate research, as described in the box below.

Spending Plan Maintains UC Payment Deferral. Similar to CSU, the budget continues the payment deferral arrangement adopted last year for UC. The 2026‑27 Budget Act defers $130 million from May/June to July 2027, while allowing UC to take a no‑interest General Fund cash loan to cover costs in the meantime. The state intends to retire the deferral in 2027‑28, resulting in a one‑time General Fund cost of $130 million at that time.

Spending Plan Maintains Out‑Year Commitment for UC. As with CSU, the budget package maintains two additional out‑year funding commitments made to UC in the 2025‑26 Budget Act. The state still plans to provide UC with a one‑time back payment of $241 million in 2027‑28 to address the base increase UC did not receive in 2025‑26. The state also plans to provide UC a $144 million ongoing increase in 2028‑29, reflecting the remaining 3 percent base increase postponed from 2025‑26.

Budget Maintains Resident Undergraduate Enrollment Expectations. The 2026‑27 Budget Act specifies that UC is to grow resident undergraduate enrollment by 2,968 FTE students in 2026‑27 (reaching 212,503 FTE students). UC is expected to cover the cost of this enrollment growth from within its base increase. As with CSU, the language also authorizes the administration to reduce funding for UC if actual enrollment falls below the expected level. Funding would be reduced at the 2026‑27 state marginal cost rate of $14,419 for each student below target. If UC enrolls more students than its budgeted target, the language authorizes that those students will be counted towards a future enrollment target. After exceeding the state’s enrollment expectation for 2025‑26 by over 5,000 FTE students (reaching 214,732 FTE students), UC also anticipates exceeding the state’s enrollment expectation for 2026‑27 by approximately 3,000 FTE students (reaching 215,634 FTE students).

Enrollment Expectations Include Replacement of Nonresident Students. The 2026‑27 Budget Act provides a $61 million ongoing General Fund augmentation to complete implementation of the nonresident replacement plan at UC. This amount includes $30 million for a year‑five payment plus $31 million postponed from year four (2025‑26). Under the replacement plan, UC must replace a total of 4,510 nonresident undergraduate FTE students with resident undergraduate FTE students across its three highest‑demand campuses (Berkeley, Los Angeles, and San Diego) from 2022‑23 through 2026‑27. The annual replacement target is 902 FTE students. Provisional language allows UC to count prior‑year replacements above the annual target toward meeting the cumulative five‑year requirement in 2026‑27. Provisional language also requires the Director of the Department of Finance to reduce UC's funding if the 2026‑27 replacement target of 902 FTE students is not met. (While similar language was in place in 2025‑26 and UC fell short of the target, the Department of Finance did not impose a funding reduction that year.)

UC Medical Centers Could Receive New State Grants. Under the 2026‑27 Budget Act, UC's five medical centers (associated with the Davis, Irvine, Los Angeles, San Diego, and San Francisco campuses) qualify to receive grants from a new $250 million one‑time grant program for designated public hospitals. Provisional language directs the Department of Health Care Services to distribute the grants funds using a methodology developed in consultation with designated public hospitals. Hospitals have discretion in how they spend any grant funds they receive.

California Umbilical Cord Blood Collection Program Is Extended. Administered by UC Davis, this program supports the collection and banking of donated umbilical cord blood for use in stem cell transplants and research. Trailer legislation extends the sunset date for this program from January 1, 2027, to January 1, 2032. Trailer legislation requires UC to report on the program by January 1, 2031.

California Student Aid Commission

California Student Aid Commission (CSAC) Total Funding Is $4.3 Billion in 2026‑27. Of this amount, $3.8 billion is state General Fund, $400 million is federal Temporary Assistance for Needy Families funding, and a small amount is from other funds and reimbursements (as this EdBudget table shows). Figure 8 shows all the General Fund spending changes for CSAC in 2026‑27. Most notably, the ongoing state General Fund cost of the Cal Grant program increases. The budget also includes more one‑time funding for the Golden State Teacher Grant (GSTG) program as well as initial one‑time funding for CSAC to support implementation of the new federal Workforce Pell Grant program. The largest adjustment in CSAC’s budget is paying for 2025‑26 Middle Class Scholarship (MCS) awards. We discuss specific budget adjustments below.

Budget Adjusts Cal Grant Spending Upward in 2025‑26. The budget package revises 2025‑26 Cal Grant spending upward by $112 million (4 percent) from the previously enacted level. This increase is explained almost entirely by higher‑than‑expected spending for the High School Entitlement and CCC Expanded Entitlement programs. The higher spending for the High School Entitlement program is due largely to the number of recipients coming in higher than expected—specifically 8 percent higher than original budget assumptions. For the CCC Expanded Entitlement program, the higher spending is attributable to the average award amount coming in higher than expected (13 percent higher). After accounting for these adjustments, the revised 2025‑26 Cal Grant spending level is 16 percent higher than the 2024‑25 level.

Cal Grant Spending Increases in 2026‑27. Cal Grant spending in 2026‑27 increases by $301 million (10 percent) over the revised 2025‑26 level. This increase brings total Cal Grant spending to $3.2 billion. The growth rate in 2026‑27 is notably higher than the ten‑year historical average of 4.6 percent. The higher growth is partly due to larger award amounts resulting from the planned tuition increases at UC and CSU. (Cal Grants provide full tuition coverage for eligible students attending these segments, among other coverage.) In addition to larger award amounts, CSAC estimates the number of Cal Grant recipients will increase by 12 percent at CSU and 5.9 percent at UC. Our Cal Grant Spending and Cal Grant Recipients EdBudget tables summarize costs and recipients, respectively, by segment and award type.

State Temporarily Raises Cal Grant Age Limit. Under the Cal Grant Transfer Entitlement program, students transferring from a community college to a four‑year university are ineligible for a Cal Grant entitlement award if they are age 28 or older by December 31 of the award year. The 2026‑27 budget temporarily raises this age cap from age 28 to 30 beginning in the 2027‑28 award year and extending through the 2031‑32 award year. The state intends to provide funding to cover the cost of the additional recipients who will be eligible for a Cal Grant Transfer Entitlement award under this policy change. Specifically, the 2026‑27 budget provides $13 million in 2027‑28, $22 million in 2028‑29, $24 million in 2029‑30, $25 million in 2030‑31, and $26 million in 2031‑32 for the anticipated increase in Cal Grant spending.

Budget Modifies MCS Spending for 2025‑26 Awards. MCS awards cover a certain percentage of students’ remaining cost of attendance after accounting for various other available resources. Our Middle Class Scholarship EdBudget table summarizes estimated recipients, spending, and award amounts by segment. Last year, the state changed its budgetary approach for the MCS program. In previous years, statute directed CSAC to adjust the percentage of award coverage to remain within the annual state appropriation for the program. Beginning in 2025‑26, the state instead locked in the percentage of award coverage, then committed to covering the associated cost one year in arrears. For 2025‑26, the state set award coverage for most students at 35 percent of their remaining cost of attendance. On a budgetary basis, the state included no funding for the MCS program in the 2025‑26 Budget Act. On a cash basis, the state paid the actual costs as they were incurred in 2025‑26 using a no‑interest General Fund loan. Specifically, the administration authorized a loan of $996 million via executive order on August 11, 2025. The 2026‑27 Budget Act appropriates $959 million for 2025‑26 MCS awards. The slightly lower amount compared to the original loan amount is primarily due to updated data on 2025‑26 recipient count.

State Reduces Coverage for 2026‑27 MCS Awards. For 2026‑27 MCS awards, the state reduces award coverage for most students to 23 percent of their remaining cost of attendance. The projected cost for 2026‑27 MCS awards is $691 million. The state maintains the budgetary approach of paying for these award costs one year in arrears. As a result, the state will pay for 2026‑27 awards in 2027‑28 and use a no‑interest General Fund loan to cover the award costs in 2026‑27.

Budget Provides More One‑Time Funding for the GSTG Program. The budget provides $10 million one‑time General Fund in 2026‑27 for the GSTG program. Though the $10 million is included in the 2026‑27 Budget Act, the funds are to be spent in 2027‑28 for new awards issued at that time. The budget also provides $1.6 million in one‑time federal Title II, Part A funds for GSTG awards. (These funds effectively are fungible with Proposition 98 General Fund, as they are being redirected from an existing K‑12 program that receives funds from both sources.) Like the current GSTG program, the new one‑time funding is to provide awards of up to $10,000 to students committing to work for two years in a high‑priority school within four years of completing their teacher preparation program. Unlike the current program (where students can receive a teaching credential in any subject), the new one‑time funding is for students receiving a teaching credential in a high‑need field (such as mathematics and science). CSAC must encumber or expend these funds, as well as the $50 million one‑time General Fund provided for the program in the 2025‑26 budget, by June 30, 2029.

Budget Provides Ongoing Funding for GSTG Special Education Program. The budget also provides $16 million in ongoing funding from the federal Individuals with Disabilities Education Act (IDEA) for GSTG awards specifically for special education teacher candidates. (Existing IDEA‑funded programs are being shifted into Proposition 98 General Fund to make room for this additional spending.) These awards are up to $20,000. To receive one of these awards, students must commit to working in priority schools for at least four years within eight years following completion of their teacher preparation program. (All types of GSTG awards require students to repay their awards if they fail to meet the conditions of the program, including completing their service requirement.)

Budget Provides One‑Time Funding for Workforce Pell Grant Implementation. The budget includes one‑time General Fund of $664,000 for CSAC and $1.3 million for the Cradle‑to‑Career (C2C) Data System to support implementation of the federal Workforce Pell Grant program. Both CSAC and C2C must submit a spending plan to the Department of Finance before their respective funds will be dispersed. Trailer legislation also adds certain statutory rules for implementing this new program. Under the statutory provisions, CSAC is the state agency responsible for approving if a short‑term program is eligible to participate in the Workforce Pell Grant program. To facilitate this work, CSAC, in collaboration with C2C, the California Workforce Development Board, the Labor and Workforce Development Agency, and the Employment Development Department, must develop certain procedures and data collection processes to be able to determine if a short‑term program meets the federal requirements for being eligible to participate in the program.

Budget Includes a Small Amount of Other One‑time Funding for CSAC. The budget includes $2 million one‑time General Fund for regional financial aid application outreach and support, including for CSAC’s Student Opportunity and Access Program. The budget also includes $120,000 one‑time General Fund to Whittier College (a private, nonprofit university) for fire‑safety upgrades to its Robinson Theater. Lastly, the budget provides $10,000 one‑time General Fund reimbursement annually from 2026‑27 through 2029‑30 for certain data‑sharing costs. Specifically, the funds are intended to reimburse CSAC for staff time to match California Kids Investment and Development Savings Program data provided by the Scholarshare Investment Board with school data.

State Makes Some Ongoing Changes to CSAC’s State Operations. The 2026‑27 budget implements the budget agreement set forth last year to provide CSAC with $3 million ongoing General Fund support beginning in 2026‑27 for cost increases related to its operating expenses and equipment. Additionally, the state adjusts CSAC’s vacant position sweep under Control Section 4.12 of the 2024‑25 Budget Act. Beginning in 2025‑26, the budget sweeps another 0.5 position and associated $164,000 ongoing General Fund.

Other

College of the Law, San Francisco (CLSF) Ongoing Core Funding Reaches $107 Million in 2026‑27. As this EdBudget table shows, CLSF ongoing core funding increases by $4.1 million (4 percent) from 2025‑26. Of this amount, $2.5 million comes from student tuition and fee revenue. CLSF’s tuition revenue is growing primarily due to increases in tuition charges, which generally are set to increase by 3 percent in 2026‑27. CLSF also receives a $1 million ongoing state General Fund augmentation for campus security. CLSF indicates it plans to renew its contract with Urban Alchemy—an alternative campus safety program. Unlike the rest of higher education, the 2026‑27 Budget Act does not include an unrestricted ongoing base increase for CLSF. The budget also sets no enrollment expectations for the school, but the school anticipates increasing its enrollment by 14 students (1.2 percent), for a total of 1,152 FTE students in 2026‑27. Ongoing core funding per student at CLSF is budgeted to increase by $2,480 (2.8 percent), reaching $90,012.

Total Ongoing California State Library Funding Is $69 Million in 2026‑27. Of this amount, $47 million is General Fund, $18 million is federal funds, and the reminder comes from various state special funds. Ongoing General Fund support is up slightly from 2025‑26. This EdBudget table shows all the ongoing and one‑time General Fund spending changes for the California State Library in 2026‑27. The most notable ongoing spending increase is $1.1 million for higher rental payments for the Library and Courts I and II buildings. The budget also includes a total of $32 million one‑time General Fund for ten initiatives. The most notable new one‑time initiative is $5 million for the Career Online High School. This program allows California adults who lack a high school diploma to earn an accredited diploma and a career certificate online at no cost through their local public library. (This program received $3 million one‑time General Fund in the 2021‑22 Budget Act.) The budget also includes new one‑time funding for six specific local library projects as well as carryover from earlier initiatives. Additionally, the budget reappropriates up to $94 million for local library infrastructure projects (much of which has been already awarded but not yet spent) and redirects $4.5 million in unspent funds from one local library infrastructure project to another project authorized last year. Through legislation enacted in February 2026, the state also provided $750,000 in one‑time 2025‑26 funds for LGBTQ archives.

Budget Retains California Education Learning Lab (Learning Lab) and Shifts Program to Government Operations Agency (GovOps). Counter to last year’s budget agreement to stop funding the Learning Lab in 2026‑27, the budget provides $4 million ongoing General Fund for it. This is $1.5 million less than Learning Lab received in 2025‑26. The 2026‑27 budget also shifts Learning Lab from the Office of Land Use and Climate Innovation (LCI) to GovOps. The Learning Lab program director, formerly under LCI, will now be under GovOps. Learning Lab will continue to contract with the Foundation for California Community Colleges for staff support. (Learning Lab has operated this way since 2020.)

Budget Provides General Fund Support to Bureau for Private Postsecondary Education (BPPE) for Litigation Costs. The budget provides $10 million one‑time General Fund to BPPE in 2026‑27 to cover litigation costs associated with an employment lawsuit. This General Fund support replaces a special fund loan (from the Bureau of Automotive Repair’s High Polluter Repair or Removal Account) that the state previously had authorized to help BPPE cover these costs. Provisional language authorizes the Department of Finance to augment BPPE’s expenditure authority from its own special fund, the Private Postsecondary Education Administration Fund (BPPE Fund), to cover any additional litigation costs, upon providing ten days advance notification to the Joint Legislative Budget Committee. In addition to one‑time General Fund support, the budget includes $20 million ongoing from the BPPE Fund for BPPE’s other main operating costs in 2026‑27. The budget also includes $9.1 million ongoing from the Student Tuition Recovery Fund for BPPE’s costs associated primarily with assisting students affected by campus closures in 2026‑27.