The Overview

If you're a community college student hoping to transfer to a four-year university, California just widened the window to qualify for a state transfer grant, and it added money for housing and mental health support. The law, AB 167, is a higher education budget bill that Gov. Gavin Newsom (D) signed on Sept. 18. ​

For years, the Cal Grant age limit shut out students 28 and older from the guaranteed transfer award, even though many older students wanted to move on to four-year universities, according to CalMatters. The law takes effect right away because it is part of the state budget.

What the Law Does

The law raises the age limit for the Cal Grant community college transfer award from 28 to 30, covering award years 2027–28 through 2031–32. The Student Support Block Grant, which pays for basic needs and mental health services at community colleges, gets $325,000 more in 2026–27, bringing that year's total to $147,533,000.

Colleges now have until June 30, 2030 to spend that money, and they can use it for any student support purpose. The law also pulls back a separate $49,734,000 that had been set aside for the Student Centered Funding Formula in 2025–26. The law also extends the University of California's Umbilical Cord Blood Collection Program for five years, pushing its end date from Jan. 1, 2027 to Jan. 1, 2032.

Community colleges that seek construction funding on or after June 30, 2026 must prove they own the site and show there is unmet housing demand.

Legislative Status

The law also lets Public Interest Attorney Loan Repayment Program funds go directly to participants, and it moves the California State University enrollment-reporting deadline from Feb. 15 to March 15. The Committee on Budget sponsored the bill. The Assembly first passed the bill 53-17 on March 20, 2025. After changes were made, the Senate Budget and Fiscal Review Committee approved it 15-0 on Aug. 31, 2026, and the full Senate passed it 36-0 that same day. The Assembly then agreed to the Senate's changes 79-0, after its first vote had been 53-17.

In its Sept. 18 legislative update, Gov. Newsom's office called the bill the "Higher education budget trailer bill," according to the Governor's office.

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