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Assembly subcommittee weighs budget plan that halves Middle Class Scholarship coverage as Cal Grant spending rises
Summary
Lawmakers heard that the governor's budget would cut Middle Class Scholarship award coverage from prior levels to 17.5% for 2026-27 (about $513 million ongoing) while increasing Cal Grant spending as enrollment and tuition grow; UC, CSU and aid officials warned students could shoulder more borrowing or work hours.
Chair Alicia Alvarez convened the Assembly Budget Subcommittee No. 3 on Education Finance to hear testimony on the governor's higher-education proposals, including changes to the Middle Class Scholarship program and projected increases in Cal Grant spending.
The Department of Finance said the governor's budget would fully fund the Cal Grant program at an estimated $2.898 billion for 2025-26 and $3.235 billion for 2026-27. "The governor's budget proposes fully funding Cal Grant at its estimated level," Hugo Solis Galena of the Department of Finance told the panel. Finance also described a proposal to set Middle Class Scholarship (MCS) award coverage at roughly 17.5% of unmet need for 2026-27, an ongoing level the administration estimates would cost $513 million.
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