Governor Newsom Budget Update Prioritizes Higher Education
Budget expands funding for access, student success, and affordability

In his updated budget proposal, Governor Gavin Newsom maintains his commitment to fund thousands of new seats for California students, invest in proven practices that improve graduation rates, and remove barriers to college affordability. While higher than expected tax revenues increased the total higher education budget from the Governor’s January proposal by an estimated $200 million, they led to modest financial aid investments; notably the expansion of a second year of free community college tuition through the California College Promise and rapid rehousing efforts at the University of California (UC) and California State University (CSU) systems.

The governor’s updated budget maintains $10 million to establish a strong educational data system from pre-K to K-12 to college and the workforce. Now is the time for the Governor to exert his leadership in creating a statewide higher education coordinating body that is inclusive of civil rights and business communities. The coordinating body can set an ambitious North Star goal for statewide college attainment and regularly monitor progress towards meeting the state’s workforce and economic demands while holding our colleges and universities accountable for improvement and the closing of persistent racial/ethnic gaps.

“In 2018, Governor Newsom (then Lieutenant Governor) shared his vision for higher education during our gubernatorial forum and he is making good on many promises -- including establishing a data system and expanding seats at UC and CSU. However, a wholesale reimagining of financial aid that is simplified, reflects the true cost of college and meets the needs of low-income students must be top of mind for the Governor along with a coordinating body that can ensure his investments lead to improved student outcomes,” said Jessie Ryan, Executive Vice President of the Campaign for College Opportunity.

Key Higher Education Budget Highlights:

Longitudinal Data System
  • No change from January proposal. $10 million one-time allocation to plan, develop, and implement a longitudinal data system to connect student information from early education through the workforce.

College Access
  • No change from January proposal. $10 million in permanent funding to support 1,000 enrollment slots previously supported by one-time funds and an additional $15 million to expand certificate programs and degrees at UC extension centers with a focus on outreach to adults with some college experience, but no degree;

  • No change from January proposal. $62 million in on-going funding for CSU enrollment growth of 7,000 resident students.

Student Success
  • No change from January proposal. $45 million in on-going funding for the CSU Graduation Initiative 2025;

  • No change from January proposal. $49.9 million in on-going funding to support UC efforts to improve student success, timely completion, and closing of degree attainment gaps.

Affordability and Supporting Student Basic Needs
  • An expectation that the CSU and UC will hold tuition rates flat;

  • Increase of $5.2 million from January proposal for a total of $45.2 million in on-going funding to support the California College Promise to waive fees for a second academic year for first-time, full-time students with an additional $5 million in one-time funding for program outreach;

  • Maintains the January proposal to provide or increase Cal Grant awards for student parents;

  • Maintains the January proposal of an additional 4,250 Competitive Cal Grant awards for a total of 30,000 awards;

  • Increase of $10 million from January proposal for a total of $18.5 million in on-going funding to address UC student food and housing insecurity and $15 million in one-time and $6.5 million in on-going funding to address CSU student food and housing insecurity.

Supporting Undocumented Students
  • Increase of $400,000 from January proposal for nearly $19 million in on-going funding to support undocumented students at the UC, CSU, and California Community Colleges.

To read the official budget documents produced by the Department of Finance, click here .