The Los Angeles Post

California Student Aid Commission Issues Statement on Gov. Newsom’s May Revision and Rings Alarm for College Affordability Concern

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Sacramento, Calif. May 14, 2026 — California Student Aid Commission Executive Director, Dr. Daisy Gonzales, issued the following statement on Governor Newsom’s revised budget proposal for 2026-27:

“The California Student Aid Commission (CSAC) appreciates Governor Newsom’s partnership and continued dedication to higher education in the face of ongoing economic uncertainties and challenges,” said Executive Director Dr. Daisy Gonzales. “While we understand California’s shifting fiscal landscape forces difficult choices, we are concerned that the state’s commitment to expand access to higher education and skilled career pathways is not matched with the funding students need to succeed.”

Opportunities for Legislators to center Student Success in the 2026-27 State Budget: 

  • Middle Class Scholarship Investments: The May Revise retains the $524 million reduction for the Middle Class Scholarship, with awards for students at a 17.5% reduction in unmet need.
  • Affordable Educational Pathways for Adult Learners: The May Revision proposes implementation of a new federal program, Workforce PELL, with insufficient administrative support for California’s adult learners and institutions. To maximize federal funding sources and protect California students from losing aid, we call on the legislature to resource CSAC and institutions to administer financial aid to students enrolled in short-term career training programs, present the Joint Legislative Budget Committee with a transparent implementation plan, and align state career education grants to maximize resources for adult learners.
  • Protect Student Data: The necessary technology infrastructure, including a backup server that supports data recovery in the event of a cyberattack, is not sustainably funded in the current version of the 2026-27 May Revise budget. With more than 2.2 million student records at risk every year, funding to prevent fraud and enhance cybersecurity to protect student data is critical. Modernizing this infrastructure is a baseline necessity to safeguard the sensitive personal and financial information of millions of California’s students and their families.
  • Golden State Teacher Grant Program: Previously a $500 million state program, the Golden State Teacher Grant Program is proposed to be funded at $16.2 million in ongoing federal funding through Individuals with Disabilities Act (IDEA) reimbursement and $1.6 million through one-time Title II reimbursement. This is a program that has trained 28,000 teachers since 2020-21 and requires teaching at California priority schools. 91% of grantees who complete their required grant term plan to stay teaching at a priority school after their grant term ends.

“At a time when education is being systematically defunded at the federal level, we urge the state administration and legislature to consider pathways that maximize drawing down federal aid and prioritize investments to mitigate challenges for students, skill our future workforce, and preserve California’s position as the fourth largest economy in the world,” said CSAC Executive Director Dr. Daisy Gonzeles. “We look forward to continued discussions with the state legislature to find solutions before the 2026-27 budget is signed.”