California Senate Bill SB1362

California 2025-2026 Regular Session

• Introduced: 2/20/26
• Refer: 3/4/26

Caption

An act to amend Section 70035.5 of the Education Code, relating to student financial aid.

Summary

SB 1362 makes a narrow, technical amendment to Section 70035.5 of the Education Code governing the California DREAM grant program. The bill states the Legislature’s intent to establish the program and preserves the existing framework under which grant-eligible students at participating institutions may receive DREAM grants beginning with the 2024-25 academic year. Under the bill, participating institutions may award DREAM grants only when they have unawarded money in the DREAM revolving fund from prior state, institutional matching, or loan repayment deposits. Grants must be used in the academic year following the year in which the unawarded balance existed, may not exceed a student’s financial need, are set by the institution, and must be prioritized for instructional programs. The bill also keeps the rule that DREAM grants do not count toward annual or aggregate borrowing limits under the related DREAM loan statute.

Impact

The bill does not create a new program or materially change eligibility, funding, or administration; instead, it makes a nonsubstantive wording change to the existing DREAM grant statute. Its practical effect is to leave current student financial aid law largely intact while continuing to authorize California State University and University of California participating institutions to use unawarded DREAM revolving fund balances for grants to eligible students.

Sentiment

Based on the bill text and available legislative context, the measure appears routine and noncontroversial. There are no recorded committee transcripts or votes indicating opposition or debate, and the digest characterizes the change as nonsubstantive. The bill was referred to Senate Rules shortly after introduction, suggesting it was treated as a technical education-funding measure rather than a policy dispute.

Contention

No specific points of contention are reflected in the available materials. Because the bill is described as a nonsubstantive amendment, any disagreement would likely be limited to technical drafting or administrative details rather than the underlying DREAM grant policy. No legislators, committees, or stakeholder groups are identified in the record as raising objections.