Governor Newsom’s Budget a Cautious Start, California Legislature Should Ensure Higher Education Investment Meets Access and Affordability Needs

SACRAMENTO, C.A. – Today, Governor Newsom released his budget revision for the 2026–27 fiscal year. For higher education, the revised budget proposes total funding of $50 billion to support public segments as well as the California Student Aid Commission. The Legislature is expected to pass a final budget by the June 15 deadline with the new fiscal year beginning July 1.

If adopted as proposed by Governor Newsom, the May Revise:

• Invests $50 billion in higher education against a total state budget of $349 billion.
• Includes a one-time $664,000 investment to support the implementation of the federal Workforce Pell program.
• Provides a one-time $10 million backfill for the Bureau for Private Postsecondary Education’s legal cost.
• Maintains planned multiyear compact investments for the University of California and California State University systems.
• Increases funding for California Community Colleges, including:
  • A 2.87% cost-of-living adjustment for Categorical Programs.
  • Additional Student Support Block Grant resources totaling $100.6 million.
• Includes targeted basic needs investments in light of HR1 impacts, such as $30 million one-time funding for CalFood.

In response to California Governor Gavin Newsom’s release of his proposed state budget revision today, Emmanuel “Manny” Rodriguez, Senior Director of Policy and Advocacy for California at The Institute for College Access & Success (TICAS), issued the following statement:  

“This year’s better than expected tax revenues give policymakers a unique opportunity to support our future workforce; choosing not to invest in them today creates a cost tomorrow for our students and our economy. Throughout his tenure, Governor Newsom and his administration have made meaningful progress in strengthening California’s financial aid system and advancing coordination across the higher education ecosystem. Today’s May Revise continues that foundation and reflects his desire to leave the budget in a similar state to what he inherited. We urge the Legislature to build on this proposal with a more forward-looking vision that balances long-term fiscal health with maximizing opportunities for California’s higher education students.

“Affordability is the buzzword of the moment, but for California’s college students it’s a daily crisis. With average non-tuition costs exceeding $30,000 annually for students living off campus and the majority of our college students experiencing basic needs insecurity, many are forced into a balancing act between their studies, working longer hours, and taking on debt. Given federal changes to SNAP/CalFresh that will further narrow access for many Californians, including college students, California must act now.

“This year’s budget can still meet the moment without breaking the bank by sustaining and strengthening funding for critical financial aid programs. Increasing the Cal Grant B Access Award exemplifies this type of essential investment that works to support the state’s lowest income students in paying for non-tuition college costs. Additionally, the final budget should ensure that our community college Financial Aid offices are adequately resourced to assist students in applying for and accessing the state and federal aid they qualify for. Finally, California can set a national example by implementing Workforce Pell with strong guardrails that guarantee it only approves affordable, high-quality programs that promote economic mobility, while complying with federal law.

“TICAS looks forward to working with the Governor, the Legislature, and advocates statewide to achieve a budget that balances California’s future fiscal health by advancing sensible and cost-effective solutions that prioritize equity, support student success, and reinforce policymakers’ commitment to an affordable and accessible postsecondary education for all.”