“This week, state leaders kicked off the 2023-24 California Legislative Session by swearing in new assemblymembers and senators. The amount of energy and excitement accompanying this new session is affirming. We look forward to working with new and returning legislators to make the state’s postsecondary education system more affordable, accessible, and accountable for the students who need it most in California.
“Additionally, TICAS applauds Governor Gavin Newson, Senate Pro Tem Toni Atkins, and Assembly Speaker Anthony Rendon for their alignment on eliminating California state taxation of federal student debt cancellation. Senate Bill 25/Assembly Bill 35 mirrors the federal tax provision that exempts any cancelled federal student debt from taxation through January 1, 2026. We encourage California’s leaders to go beyond by adopting a permanent end to state taxation of cancelled debt so that after January 1, 2026, students who receive forgiveness through one of numerous paths of cancellation, such as income-driven repayment plans or students who might receive relief after their school’s fraud and abuse, are not stuck with a burdensome tax bill.
“California has taken strides towards making state financial aid more equitable, simplified, and inclusive of covering the non-tuition costs that can create significant barriers for students. We are eager to continue partnering with current and new legislative champions to best support under-resourced Californians across the state by focusing on policies that strengthen need-based financial aid and reduce students’ need to borrow or work excessively.”