Trustee Update: Federal and State Legislative Update
On June 17 I attended the CCLC Government Relations Webinar and on June 20th I attended the CCCT Board meeting where we received an update on Federal legislation, State legislation and a Budget update. A summary of those updates are below as well as some links for more information.
Federal Update:
The House passed President Trump’s “big beautiful bill” with a single vote. But it’s got some concerning things for community colleges, like rules that make colleges, lenders, and student borrowers share risks.
One of the biggest problems is the proposed changes to Pell Grants. They want to require 30 credits a year for full funding and cut grants for students who don’t attend half-time. That would be a huge hit for community colleges.
The Senate HELP (Health, Education, Labor, and Pensions) Committee rejected some of the House’s tough provisions, like risk sharing and Pell restrictions. They also added $10 billion to address the expected shortfall in Pell Grant funding. That’s a big win for community colleges, but it’s still unclear what the final bill will look like.
One good thing is that both versions of the bill include a Workforce Pell program that would allow Pell Grant eligibility for short-term workforce programs between 150 and 599 clock hours, with a minimum of 8 weeks.
President Trump’s budget proposes a 23% cut across non-defense domestic agencies. The Department of Education is facing a 15.3% reduction and significant cuts to essential programs.
There are also several program eliminations proposed, including TRIO, GEAR UP, and Strengthening Institutions. Pell Grant funding would be reduced by 23%, and Federal Work-Study would be cut by 80%.
The Department of Labor is facing 90% cuts to Job Corps, including the elimination of apprenticeship, youth build, and migrant programs. Instead, they’re moving to a new MASA grant program.
State Budget:
California’s Legislative Analyst Office predicts that the state will have deficits for the next few years, from 2026 to 2029. This means that lawmakers need to make smart choices about how to spend the money.
The community college funding scheme got a 2.3% increase, which means about $217 million more will be available. The governor had proposed a smaller increase, but the lawmakers decided to go with the bigger one.
The transitional kindergarten funding scheme was proposed to cut $492 million from community colleges over three years. But the lawmakers didn’t want to make cuts that would hurt students right now, so they decided to give back $261 million.
Community colleges will have to defer more money than K-12 schools, with a deferral rate of 5.3% compared to 2.2%.
The Enterprise Resource Planning project investment was cut by $168 million in the May revision. The Common cloud data platform also got less money, from $133.5 million to $12 million.
The legislature proposed a $120 million flexible block grant that can be used for different things, like emergency support, outreach, and helping Dreamer students.
The Rising Scholars program got an extra $10 million, which is a big deal because the lawmakers really want to help these students.
Negotiations between the Governor and the State Legislature are continuing. A final budget is expected to be signed by the end of the month.
Call to Action:
AB 1400 seeks to authorize community colleges to offer baccalaureate degrees in nursing, addressing workforce needs in the healthcare sector.
The bill has garnered significant support, with over 50 organizations and institutions already signed on to a support letter.
A deadline for additional sign-ons is set for next Thursday, emphasizing the urgency for community colleges to participate in this advocacy effort.
To add your support: click here.
RESOURCES
https://www.ccleague.org/advocacy/
https://calbudgetcenter.org/resources/a-guide-to-the-california-state-budget-process/
