Congress gave California’s public colleges and universities more than $8 billion in emergency funding during the COVID-19 pandemic. Now the money is drying up and schools are faced with a grim financial future.
Why it matters: Most schools have exhausted the money, often through major purchases, such as new laptops or tuition waivers for students. But maintaining those programs can be costly, and with the state facing a budget deficit this year, colleges say it’s not clear where the money will come from next.
In March 2020, colleges were on the verge of a crisis. Students were dropping out en masse, and California’s public colleges and universities predicted they might lose billions of dollars within the year.
Enter the federal government. In three installments over the following year, Congress gave more than $8 billion to California’s public colleges and universities as part of a national rescue plan. For the California State University system, the stimulus money accounted for roughly a quarter of its annual revenue.
Suddenly, colleges and universities were scrambling to spend the money as quickly as possible, despite limited or inconsistent federal and state guidance. Experts worried the relief money was too much, too fast. Campuses failed to take full advantage of the money, according to a 2021 state audit, and they made decisions that “prioritized students differently.”
Now, as the final deadline to spend the money approaches this June, the boom is turning to bust. Most schools have exhausted the money, often through major purchases, such as new laptops or tuition waivers for students. But maintaining those programs can be costly, and with the state facing a budget deficit this year, colleges say it’s not clear where the money will come from next.
For students, the boom was especially short-lived. Over three years, California’s colleges used the federal money to give cash to students, typically less than $1,000 each. For many struggling students, it wasn’t enough.
How pandemic relief funds ended up in students’ hands
After graduating high school in 2020, Jose Castillo enrolled at Merced College, but he didn’t stay long. He needed money. Like many students his age, he dropped out in fall 2020 and started working 12-hour shifts, five days a week, at a food packaging warehouse. As long as he took a few overtime shifts, he could make nearly $2,000 a month.
He eventually quit and re-enrolled at the community college, where he’s studying animal science. Along with his regular financial aid award, about $10,000 a year, his college gave him an additional $2,000 over two semesters as part of the pandemic relief money. “I’m thankful for whatever I get,” he said.
Castillo lives with his parents and younger brother on a dairy farm, about a half hour from the college. While he isn’t working anymore, his parents work 12-hour shifts at the farm. To help, he drives his brother to school and pays for gas. He also pitches in on groceries.
Covering family expenses, school fees and textbook costs, the money “just goes away,” he said. “Right away.”
Of the $8 billion in federal aid, colleges were required to give about half directly to students. The money went to the poorest students, who often spent it on daily necessities, such as housing, food and transportation, according to federal reports.
But the criteria varied: the same student could qualify for COVID relief money at one school but not another. At Chico State and UC San Diego, for example, students applied for aid by submitting a simple form that only asked the amount of money they needed. Students at other schools, such as Cal State Long Beach State and Sonoma State, needed to write explanations justifying their need and some were denied, according to the 2021 state audit.
The other half of the $8 billion went to “institutional” needs, which colleges could define broadly, such as equipment or staff training. Compared to other federal relief, such as the Payment Protection Program for business loans, the higher education relief program had low levels of fraud, said Kevin Cook, who helps lead the higher education center at the Public Policy Institute of California. In 2022, the Institute released a report on how California’s public colleges and universities used pandemic relief money.
“It seems like these colleges, when given extra funds, were spending it on areas that were needed,” Cook said. “They didn’t build a new football field. They spent it on things that would make the campus safer or help students stay enrolled.”
Missing out on millions
Still, the federal relief program was far from perfect. The federal government bypassed the state and issued stimulus money directly to colleges and universities, allowing schools to spend the money quickly but with relatively little oversight.
Congress gave more than $8 billion to California’s public colleges and universities as part of a national rescue plan.
In their reporting, schools often used vague terms to describe how, exactly, they spent the money they received for institutional use. UCLA reported putting the vast majority of institutional funds towards recuperating “lost revenue” from tuition and dorms when students stopped attending. The university declined to specify what they used that revenue for.
Many community colleges were equally vague, though not all. At Yuba College, an hour north of Sacramento, administrators decided to give students additional cash by using the money designated for institutional needs. Because of low vaccination rates across the county, they also gave out nearly $700,000 worth of Amazon gift cards as incentives for students to get vaccinated. In East San Jose, Evergreen Valley College put most of its institutional needs dollars toward new technology, tuition discounts and waivers for students who had accumulated fines and fees.
Often these expenses come with ongoing costs that the one-time federal funding can’t cover. At Evergreen Valley College, Vice President of Administrative Services Andrea Alexander has been scaling back how often departments get technology upgrades while searching for other funds to pay for future maintenance. She said the school will likely ask voters for a bond in the next five years to cover the ongoing cost of technology. The bond will also pay for cybersecurity upgrades, which are increasingly necessary as community colleges try to stem an onslaught of financial aid fraud.
Amid the flurry of federal funding, the audit found that many public colleges and universities had neglected to apply for grants they were likely eligible for. Following the audit’s recommendation, the UC system found nearly $74 million in expenses that colleges could bill to the Federal Emergency Management Agency, according to Stett Holbrook, a spokesperson for the president’s office. The same agency approved just over $3 million in reimbursements from the Cal State system, with nearly $20 million in expenses still pending review.
A spokesperson for the California Community Colleges Chancellor’s Office, Paul Feist, said it has not issued any formal guidance to schools about requesting such reimbursements and that it “does not monitor what claims, if any, districts made to FEMA.”
‘I wouldn’t say it lasted long’
Jaxon Hutchinson, center, helps his mom, Mikala Hutchinson, prepare dinner as Ryder Hutchinson, far right, eats a snack at their home at Marine Corps Base Camp Pendleton in Oceanside on April 26, 2024.
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Adriana Heldiz
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CalMatters
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On a per-student basis, community colleges received less money than UC or CSU campuses, even though community colleges educate the majority of low-income students in the state. That’s because the federal government initially prioritized giving money to schools with a higher percentage of full-time students and to schools that had more Pell Grant recipients.
Federal Pell Grants go directly to low-income students. Though many community college students qualify, they rarely apply for the money or receive it. Community college students are also more likely to attend part-time, since many work.
Initially, some community college students didn’t qualify for any aid. In January 2022, Mikala Hutchinson began taking classes at MiraCosta College in Oceanside, north of San Diego. She was taking high school-level classes since she didn’t have a high school degree or equivalent.
For decades, adult students without a high school degree or equivalent have been left out of the financial aid system, even when they qualify. When the federal government first announced the COVID-19 relief grants, it neglected to specify whether students like Hutchinson were eligible.
Since enrolling, Hutchinson said navigating financial aid has been “a massive headache.” It wasn’t until May 2022, when she was taking college-level classes, that she got any financial aid from MiraCosta College. Over the course of a year, she received just over $2,000 in COVID-relief funds, all of which she put towards child care.
Hutchinson has two young children. That year, she paid more than $20,000 in child care. The money “helped in the beginning for sure,” she said, “ but I wouldn’t say it lasted long.”
Adam Echelman covers California’s community colleges in partnership with Open Campus, a nonprofit newsroom focused on higher education.
Courtney Eileen Fulcher
is an on-call associate producer, who'd love to see pics of your toy collection, especially if you happen to have the winged monkey or winkie guard from Madame Alexander/Wizard of Oz McDonald’s Happy Meal Toys from 2008. Email her!
Published October 13, 2026 9:37 AM
Pokemon cards have soared in value in recent years, thanks in part to adult collectors.
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Martin Lelievre
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AFP via Getty Images
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Topline:
Research group Circana found that in the first half of the year, adult-only households made up 55% of toy sales and are driving industry growth.
Listen
17:03
Adults are buying more toys than ever and not for their kids
How did this happen? James Zahn, editor-in-chief of industry trade magazines The Toy Book and Licensing Book, says this trend accelerated in 2020 because of stimulus checks.
“ Families were flush with cash…and they weren't going out, so they started reconnecting with the things they were interested in," Zahn said during a conversation on AirTalk, LAist 89.3's daily news show.
They also got into:
Should you let your kids play with the expensive stuff?
Are toys able to compete with digital devices for today’s kids?
How is marketing for adults changing the experience for kids?
Listen: to the full conversation above to learn more about adults' renewed love for toys.
Destiny Torres
covers all things SoCal, from breaking news to local government, with a focus on Orange County.
Published October 13, 2026 9:32 AM
More than 465 Orange County workers from the Teamsters Local 952 walked off the job early on Tuesday, Oct. 13.
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Courtesy of Teamsters Local 952
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Topline:
More than 465 Orange County workers from the Teamsters Local 952 walked off the job early this morning. Union officials said the strike is expected to cause delays to road and flood channel maintenance, landfill operations and other public services.
What we know: The union members are from OC Public Works, OC Waste & Recycling, OC Community Resources and other county departments. They include heavy equipment operators, waste workers, custodial workers and more.
How did we get here? Union officials said they asked the county to begin bargaining in 2025 and claimed months went by with no “meaningful movement” until August. A county spokesperson said in a statement to LAist, “Our priority remains ensuring the continuity of essential public services for our residents. We have contingency plans in place to minimize service disruptions.”
What are workers saying? Eric Jimenez, secretary-treasurer of Teamsters Local 952, said in a statement that workers’ efforts to bargain for an agreement were met with months of delays. “The county has forced our members to walk off the job to fight for the respect and fair contract they deserve,” Jimenez said. “We cannot allow the erosion of our public services because the county refuses to invest in the workers who provide them.”
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Duane Davis, right, and his attorney Michael Sanft sit in a courtroom, after a jury found Davis guilty of first-degree murder in his trial related to the 1996 killing of rapper Tupac Shakur, at Clark County District Court Regional Justice Center on Aug. 31, 2026, in Las Vegas.
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Bizuayehu Tesfaye
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Las Vegas Review-Journal via AP, Pool
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Topline:
Duane “Keffe D” Davis is set to be sentenced Tuesday for orchestrating the murder of rap icon Tupac Shakur, who was gunned down off the Las Vegas Strip over 30 years ago.
The verdict: Davis, 63, was convicted in August of first-degree murder with the use of a deadly weapon. He is the only person ever charged in the death of Shakur, whose popularity was peaking at age 25. Davis faces life in prison without the possibility of parole.
Shakur's death: On the night of Sept. 7, 1996, Shakur was in the passenger seat of a black BMW with music mogul Marion “Suge” Knight when a white Cadillac pulled up at a red light, and shots erupted. Shakur was shot multiple times and died six days later, while Knight survived.
LAS VEGAS (AP) — Duane “Keffe D” Davis is set to be sentenced Tuesday for orchestrating the murder of rap icon Tupac Shakur, who was gunned down off the Las Vegas Strip over 30 years ago.
Davis, 63, was convicted in August of first-degree murder with the use of a deadly weapon. He is the only person ever charged in the death of Shakur, whose popularity was peaking at age 25. Davis faces life in prison without the possibility of parole.
On the night of Sept. 7, 1996, Shakur was in the passenger seat of a black BMW with music mogul Marion “Suge” Knight when a white Cadillac pulled up at a red light, and shots erupted. Shakur was shot multiple times and died six days later, while Knight survived.
Shakur is considered one of the most influential and versatile rappers of all time and had a burgeoning film career as an actor at the time of his death. His legend has only grown since. His songs still resonate among fans with themes of hardship, love and Black struggles.
The killing went unsolved for years until Davis, a former leader of the South Side Compton Crips, gave interviews and published his role in the shooting in his 2019 tell-all memoir. He explained how Shakur and his entourage beat up Davis’ nephew hours before the shooting in Las Vegas. He said he sought retaliation, and that he was in the passenger seat of the Cadillac and passed the gun to the backseat, where shots were fired. Davis had spoken to detectives years before but avoided prosecution because of an agreement he made with law enforcement.
During the weekslong trial, prosecutors relied on Davis’ own statements he made to law enforcement and documentarians. They argued Davis orchestrated the shooting and provided the gun used in Shakur’s death, which was the result of a rivalry between the South Side Compton Crips and Mob Piru. Davis’ defense attorney pointed to a lack of physical evidence that connected his client to the 30-year-old crime, and he portrayed Davis as a liar who was trying to make money.
After nine days of hearing testimony in August, the jury deliberated for three hours before turning over the guilty verdict. Davis said in court that he plans to appeal.
Shakur was an icon, a brother
Shakur’s family is expected to speak at the sentencing, including his siblings Maurice “Mopreme” Shakur and Sekyiwa “Set” Shakur.
Following the verdict, prosecutor Binu Palal said that to many people, Shakur was an icon or an idea, “but to the family, Tupac Shakur was a brother, a son, a cousin, a loved person ripped from them 30 years ago.”
Palal said the family had to sit through years of Davis “bragging about killing someone they loved.”
“They loved that man. And the arrogance that Mr. Davis had in expressing his joy in killing that man ultimately was his undoing,” Palal said.
Prosecutors say they have insufficient evidence to charge anyone else
Davis is the only person to be charged and convicted in the killing of Shakur. The three other people who allegedly were in the Cadillac — including Davis’ nephew Orlando “Baby Lane” Anderson who Davis said was the one who pulled the trigger — have died.
Sean “Diddy” Combs and his alleged role were brought up often throughout the trial. Witnesses testified Combs used members of the South Side Compton Crips for security for Bad Boy Records. In his book and public statements, Davis alleged Combs offered him money to kill Shakur and Knight. Combs, who is serving a four-year prison sentence after being convicted of prostitution-related offenses, has repeatedly denied any involvement in the death of Shakur.
Clark County District Attorney Steve Wolfson has said his office doesn’t believe it has sufficient evidence to charge anyone else.
“But like any other case, if we come into more information, more evidence, we can always consider filing additional charges,” he said following the guilty verdict. “But today, we don’t believe that’s the appropriate move to make.”
District Attorney, LAPD division leaders to attend
Jordan Rynning
holds local government accountable, covering city halls, law enforcement and other powerful institutions.
Published October 13, 2026 5:00 AM
LAFD paramedics treat a man in MacArthur Park. The park is an important community space, but has long dealt with health and safety issues.
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Jordan Rynning
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LAist
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Topline:
Following months of public safety issues and drug enforcement operations in MacArthur Park, business owners, faith leaders and community members will join a town hall meeting tonight on the future of the park. The event is open to the public.
Who's leading it? Hosted by the local nonprofit California Rising, the event aims to address safety and accessibility issues. L.A. County District Attorney Nathan Hochman and LAPD Rampart division leaders will also attend, according to spokespeople for their offices.
What will be discussed: Raul Claros from California Rising told LAist the town hall will be an opportunity for the community to weigh in. Claros ran for City Council to represent District 1, which includes the park, and was defeated in the June primary.
Topics will include:
Needle and pipe distribution programs
Perimeter fencing and gates around the park
Area law enforcement resources
Plans to close the section of Wilshire Boulevard that runs through MacArthur Park
Opening of the Westlake Theatre
Establishing safe street vending areas
Claros said California Rising will ask local officials to hear the community’s input and meet with stakeholders within 30 days after the town hall to discuss how they might put ideas into action.
When and where:
Tuesday, Oct. 13, from 6 to 7:30 p.m.
Iglesia Pentecostés Más Que Vencedores en Cristo, 2020 W 7th Street, Los Angeles, CA 90057