California Assembly Bill AB791

California 2025-2026 Regular Session

• Introduced: 2/18/25
• Refer: 3/3/25
• Report Pass: 4/23/25
• Refer: 4/28/25
• Refer: 5/7/25
• Failed: 2/2/26

Caption

An act to amend Section 69432.7 of the Education Code, relating to student financial aid.

Summary

AB 791 would revise the Cal Grant Program’s definition of a “qualifying institution” by adding a new requirement that participating colleges and universities develop and implement a cost of attendance (COA) policy and adjustment process consistent with federal standards. The bill is aimed at making institutional COA budgets more accurate and more responsive to students’ actual expenses, especially for housing, transportation, food, books, dependent care, disability-related costs, and other common budget gaps. It also requires institutions to publish the data sources and assumptions behind their COA calculations and to provide a clear process for students to request adjustments. The bill would require institutions, by the start of the 2026-27 academic year, to set off-campus housing allowances at no less than one-half of the median rent for a two-bedroom apartment in the local metropolitan area. It would also require colleges to accept both electronic and paper adjustment requests, decide them within 14 days, allow requests at any time during enrollment, provide a second review if denied, and waive third-party documentation when students cannot reasonably obtain it. The bill ties these requirements to Cal Grant eligibility, meaning institutions that do not comply could jeopardize their status as qualifying institutions for state financial aid purposes.

Impact

AB 791 would amend Education Code Section 69432.7, which governs Cal Grant eligibility and the criteria institutions must meet to participate in the program. The practical effect is to impose new state-level compliance obligations on California private, nonprofit, and public postsecondary institutions that want their students to remain eligible for Cal Grant awards. It would not change the basic Cal Grant award structure, but it would add a new institutional accountability standard focused on cost-of-attendance accuracy and student access to aid adjustments. The bill also reinforces alignment with federal Higher Education Act requirements and would likely require institutions to update financial aid policies, website disclosures, and internal review procedures.

Sentiment

The available vote history suggests strong support at the committee level: AB 791 passed the Assembly Appropriations Committee 10-0 on a do-pass as amended motion. No committee transcript was provided, but the bill’s findings indicate a policy rationale centered on helping students cover real living costs and reducing the need for work, borrowing, or reduced enrollment. Overall, the bill appears to have been received favorably as a student aid and affordability measure.

Contention

The main policy issue in the bill is whether the state should mandate a more prescriptive COA methodology and adjustment process for institutions, including a minimum off-campus housing allowance tied to local rent data. Supporters are likely to view these requirements as necessary to make aid more realistic and equitable, especially given the bill’s cited report finding that many California institutions understate costs and do not publicly explain adjustment policies. Potential concerns would likely come from institutions over administrative burden, compliance costs, and reduced flexibility in setting COA budgets, particularly the requirement to use a rent-based floor and to process requests quickly with limited documentation. No recorded opposition or transcript-based objections were provided, so the specific points of contention are inferred from the bill’s mandates and institutional obligations.