CaliforniaCommunity colleges may exclude local spending after certain federal grants end
Community college districts may leave eligible local spending on student services out of a state expense calculation when certain federal grants end.
What it does
Community college districts may leave eligible local spending out of the state expense calculation when maintaining student services after certain federal grants end. The amount cannot exceed the grant funding previously awarded.
A district using the exclusion must take the step at a regular public board meeting, give advance campus notice, and certify its eligibility each year.
Argument forDistricts could keep eligible student services going after certain federal grants end, while leaving that replacement spending out of the state expense calculation.
Argument againstDistricts may need to use local unrestricted money to keep eligible student services running, leaving less of that money for other needs.
More detail
A community college district may exclude eligible local spending from its current-expense calculation. The option is for California community college districts using local unrestricted money to maintain eligible services, such as tutoring, counseling, or transfer support. It does not cover federal aid paid directly to individual students. The money must come from the district’s unrestricted general fund and maintain student support functions funded by a competitive federal grant for a specific student-support purpose. The grant must have been terminated, not renewed, or defunded because of federal action on or after September 10, 2025. The excluded amount cannot exceed the federal grant amount previously awarded for those functions. This exclusion does not remove the district’s instructor-pay and faculty duties, or allow it to cut faculty positions or instructional quality. The option lasts for five fiscal years after 2025–26, or until the specified federal funding is fully restored to every district, whichever comes first.
A district choosing the exclusion must act at a public board meeting and certify eligibility each year. These steps apply to each community college district that chooses to use the exclusion. The district must give advance notice to the campus community, including faculty, and list the proposed exclusion as a separate agenda item. The Chancellor’s Office must keep the certifications it receives and include them in its annual report to the Legislature. The section becomes inactive on July 1, 2031, or on the first day of the fiscal year after the specified federal funding is fully restored to every district, whichever comes first. It is repealed the following January 1.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State - Chapter 580, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 10Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 31
- Vote recorded AB 2121 Berman Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 1. Page 6916.).Major
- Vote recorded 3rd Reading AB2121 Berman By Cabaldon. Result: pass.Upper
- Aug 30In Assembly. Concurrence in Senate amendments pending.
- Aug 30Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 0.).Passed Senate
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read third time and amended. Ordered to second reading.Major
- Aug 5Read second time. Ordered to third reading.Minor
- Aug 4Read third time and amended. Ordered to second reading.Major
- Jun 23Read second time. Ordered to third reading.Minor
- Jun 22From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jun 10From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 10). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- May 27Referred to Com. on ED.Minor
- May 14In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2121 Berman Third Reading Urgency. Result: pass.Lower
- May 14Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 72. Noes 1. Page 5048.).Passed Assembly
- May 7Read second time. Ordered to third reading.Minor
- May 6From committee: Do pass. (Ayes 14. Noes 0.) (May 6).Minor
- Vote recorded Do pass. Result: pass.Lower
- Apr 13Re-referred to Com. on APPR.Minor
- Apr 9Read second time and amended.Major
- Apr 8From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (April 7).Major
- Apr 7
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Mar 2Referred to Com. on HIGHER ED.Minor
- Feb 19From printer. May be heard in committee March 21.
- Feb 18Read first time. To print.Introduced
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