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Newsom’s New Budget Proposal Nixes More Money For Middle Class Scholarship

Topline:
Despite a projected $37.9-billion deficit, Gov. Gavin Newsom’s 2024-25 spending plan includes a slight bump for higher ed, including $2.5 billion for the Cal Grant and $636.2 million for the Middle Class Scholarship. The governor has, however, decided to forgo a planned one-time investment of $289 million to increase the Middle Class Scholarship.
What does that mean? The Middle Class Scholarship is for families that earn a little over $200,000 a year. It's part of wider efforts to keep students from taking out loans to earn a bachelor’s degree. It provides undergrads and students pursuing a teaching credential with funding to attend a UC, CSU, or community college.
Why now: Weaker-than-expected state revenues and delayed tax deadlines due to natural disasters have contributed to the budget shortfall.
What's next: The governor’s proposal is just a starting point. A final budget compromise with the legislature is expected this summer.
See it for yourself: 2024-25 Higher Education Budget Summary
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