Legislators press for clarity as Cal Grant reform, data gaps and big Middle Class Scholarship caseload growth strain budget projections

The Subcommittee took up an update on Cal Grant and institutional aid, focusing on projected caseloads, the unfunded Cal Grant reform framework and a large revision to the Middle Class Scholarship (MCS) caseload.

Amin Singh of the Department of Finance said the governor’s budget assumes roughly $3.1 billion for state financial aid in 2025–26, with $2.6 billion allocated to Cal Grant and $527.2 million for the Middle Class Scholarship. Legislative Analyst Office analyst Natalie Gonzales told the subcommittee that projected MCS spending fell after recent adjustments and that CSAC estimated a larger‑than‑expected increase in recipients for 2024–25, producing a current‑year program deficit estimated at about $103 million.

CSAC Deputy Director Jake Bremner explained factors behind the variance. CSAC received an early institutional upload estimating roughly 327,000 eligible…