Legis
Education
AB 167, Chapter 251, Statutes of 2026 · Friday 18 September 2026

Higher education budget trailer bill

AB 167 revises higher-education aid, community-college funding and housing rules, while extending a cord-blood program.

The budget trailer bill changes how community colleges receive and use state support, tightens requirements for state-financed student housing, and continues selected student-aid and health programs.

What the law does

  • Extends through 2031–32 the higher age limit for community-college transfer Cal Grants, allowing eligible students younger than 30 to qualify.
  • Lets Public Interest Attorney Loan Repayment Program participants choose whether payments go directly to them or their lender.
  • Changes the community-college funding formula to use the higher of a district’s three-year enrollment average or current-year eligible credit enrollment, and repeals a $49.734 million Student Centered Funding Formula appropriation.
  • Adds $325,000 to the 2026–27 Student Support Block Grant, allows spending through June 2030 for student-support purposes, and extends district and Chancellor’s Office reporting deadlines.
  • Requires stronger evidence of housing demand, college ownership of project land, cost contingencies, and approval checkpoints for community-college student-housing projects financed after June 30, 2026.
  • Extends the University of California’s Umbilical Cord Blood Collection Program through January 1, 2032, with a report due by January 1, 2031.

Who it affects

  • Community-college transfer students, including eligible students ages 28 and 29.
  • Community-college students using basic-needs, mental-health, childcare, counseling, legal, and job-support services.
  • Community colleges seeking state-backed financing for student housing.
  • Public-interest attorneys receiving state loan-repayment assistance.
  • California State University campuses and the University of California.