The Overview

If your community college district lost federal grant money for student-support programs, it can now temporarily exclude a capped amount of local unrestricted spending on those programs from the state's 50% classroom-salary rule, but only if its board approves it at a public meeting and the district certifies eligibility each year. California's Assembly Bill 2121, the Community Colleges Current Expense of Education Exclusions bill, became law when Gov. Gavin Newsom (D) signed it Sept. 27. ​

Federal grant cuts had already forced California campuses to end support programs for minority and transfer students and canceled more than $40 million in TRIO funding that helped rural students with college tours and applications, according to EdSource and CalMatters. The law takes effect immediately as an urgency measure.

What the Law Does

California's existing 50-percent law requires every community college district to spend at least half of its annual education budget on classroom instructor salaries. The law lets a district exclude from its current expense of education up to a set amount of local unrestricted money it spends to keep student-support programs running after federal discretionary grants were terminated, nonrenewed, or defunded due to federal action on or after Sept. 10, 2025.

Each district using the exclusion must certify its eligibility annually to the Chancellor of the California Community Colleges, and the governing board must approve the action at a regular public meeting. The exception expires July 1, 2031, or on the first day of the fiscal year after federal funding is fully restored to every community college district, whichever comes first.

Legislative Status

Asm. Marc Berman, a Democrat, was the lead author and primary sponsor of the bill. The Assembly passed it 72-1 on May 14, and the Senate passed it 31-0 on Aug. 30.

The Faculty Association of California Community Colleges urged Newsom to veto the bill, framing its campaign as support for the 50% law. Berman said when introducing the bill: "The Trump administration's assault on higher education is an attack on historically marginalized students who rely on these critical programs to stay in school and succeed."

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