Legislators probe Workforce Pell implementation and tweaks to Cal Grant and Middle Class Scholarship

Hugo Solis Galena of the Department of Finance and Justin Hurst of the California Student Aid Commission briefed the subcommittee on May Revision proposals affecting state financial aid. The package includes a $4.8 million one‑time General Fund increase in 2025 and a reduction of $31.5 million ongoing in 2026–27 for Cal Grants, a net one‑time programmatic reduction to the Middle Class Scholarship award program, and provisional language for the Middle Class Scholarship to align appropriation timing to awards.

Of particular note, the administration requested $664,000 one‑time General Fund in 2026–27 to support CSAC state activities for implementing the federal Workforce Pell Grant program, plus $1.3 million one‑time to the Cradle to Career data system to build workforce and earnings data linkages. Justin Hurst told the panel Workforce Pell would target short‑term, stackable credential programs and that implementation would require a review and emergency regulations; he noted the federal regulations had only just been released and that CSAC would need time to adopt processes.

Natalie Gonzales of the Legislative Analyst's Office cautioned that one‑time funds may not cover ongoing administrative workload and that the proposed approach asks the legislature to appropriate funds before a detailed expenditure plan is reviewed. "We recommend the legislature take the next couple of weeks to get more information about the new workload needed, the associated cost, and then take action," Gonzales said, noting urgency because the federal program will launch in July.

Committee members asked whether trailer bill language would be revised in light of the new federal rules and sought additional detail on CSAC's staffing and data needs before approving one‑time implementation funds. No final action was taken; members requested follow‑up materials including expenditure plans, staff needs, and proposed trailer bill adjustments.