CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill
No. 685

Introduced by Senator Cortese

February 21, 2025

An act to add and repeal Article 17 (commencing with Section 69850) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, relating to public postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


SB 685, as introduced, Cortese. California State University: financial aid for homeless students: pilot program.
Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in the state.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
This bill would establish the Financial Assistance for Students Experiencing Homelessness Pilot Program, administered by each participating campus, to provide financial assistance at 3 California State University campuses to California residents who (1) have been accepted for enrollment at one of those campuses, (2) were homeless at any time during high school, and (3) will be between 17 and 26 years of age, inclusive, upon receipt of assistance.
This bill would require, commencing with the 2026–27 academic year, each participating campus to provide financial assistance for the balance of the qualifying student’s cost of attendance that exceeds the financial aid, excluding federal loans, the qualifying student receives during the first 4 years the qualifying student participates in the pilot program. The bill would require the qualifying student to meet certain requirements to receive financial assistance under the pilot program, as specified. Subject to an appropriation by the Legislature, the bill would require the commission to allocate funding to each participating campus equal to 50% of each participating qualifying student’s balance in excess of the financial assistance the qualifying student receives. The bill would require each participating campus to adopt policies to administer the pilot program and to designate one employee as a liaison for qualifying students and prospective qualifying students, as provided.
This bill would require the commission to adopt the regulations necessary to carry out its duties under the program, and to employ at least one full-time equivalent position to assist students experiencing homelessness and to support prospective qualifying students in applying for and enrolling in a participating campus, as provided. The bill would require the commission to enter into a data sharing agreement with the State Department of Education, as specified.
This bill would make these provisions inoperative on July 1, 2031, and would repeal them as of January 1, 2032.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 17 (commencing with Section 69850) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:
Article  17. Financial Assistance for Students Experiencing Homelessness Pilot Program

69850.
 For the purposes of this article, the following definitions apply:
(a) “Cost of attendance” means the student’s tuition and fees, books and supplies, living expenses, transportation expenses, and any other student expenses used to calculate a student’s financial need for purposes of student aid programs under Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).
(b) “Financial aid” means any private, state, or federal assistance, excluding any federal student loans, that a qualifying student receives.
(c) “Institution of higher education” or “institution” means San Jose State University and two additional California State University campuses to be selected by the office of the Chancellor of the California State University to participate in the pilot program.
(d) “Pilot program” means the Financial Assistance for Students Experiencing Homelessness Pilot Program established pursuant to this article.
(e) “Qualifying student” means a California resident who meets all of the following requirements:
(1) Has been accepted for enrollment at an institution of higher education.
(2) Has been identified by designated school personnel as a homeless child or youth pursuant to Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a), while residing in California at any time between the start of 9th grade and the end of 12th grade.
(3) Will be between 17 and 26 years of age, inclusive, at the time the student receives financial assistance under the pilot program.
(f) “Satisfactory academic progress” has the same meaning as defined in Section 69406.

69851.
 (a) The Financial Assistance for Students Experiencing Homelessness Pilot Program is hereby established for the purpose of increasing access to postsecondary education for students who experienced homelessness during high school. The pilot program shall be administered by each institution of higher education.
(b) Commencing with the 2026–27 academic year, each institution of higher education shall provide financial assistance to a qualifying student for the remaining balance of the student’s total cost of attendance that exceeds the amount of financial aid received by the qualifying student during the first four years that the qualifying student is enrolled in the pilot program.
(c) In order to receive the remaining balance of financial assistance, the qualifying student shall meet all of the following requirements:
(1) The student shall complete and submit the Free Application for Federal Student Aid (FAFSA) or the California Dream Act application, including, if applicable, acknowledging past or current experience of homelessness.
(2) The student shall timely apply for all other federal, state, or institutionally administered grants or fee waivers for which the student is eligible.
(3) The student shall be enrolled in courses leading toward the qualifying student’s first baccalaureate degree at an institution of higher education.
(4) The student shall be enrolled full time, as determined by the institution.
(5) The student shall maintain satisfactory academic progress.
(d) Subject to an appropriation by the Legislature for purposes of this subdivision in the annual Budget Act or other statute, the commission shall allocate funding to an institution equal to 50 percent of the remaining balance of financial assistance provided by the institution to all of the institution’s qualifying students who participate in the pilot program.
(e) The commission shall adopt regulations necessary to carry out its duties pursuant to this article.
(f) Each institution shall adopt policies to administer the pilot program.

69852.
 (a) Each institution shall designate one employee as a liaison to serve as a point of contact for qualifying students and prospective qualifying students. The liaison may have other duties unrelated to their work as the liaison. The liaison shall provide qualifying students and prospective qualifying students with information regarding application assistance, financial assistance, support services, and other resources and assistance that are available to qualifying students. Each institution shall publicize the availability of the pilot program for students experiencing homelessness on the institution’s internet website and notify qualifying students of their eligibility to participate in the pilot program.
(b) The commission shall employ at least one full-time equivalent position to assist students experiencing homelessness and to support designated high school personnel and prospective qualifying students in applying for and enrolling in institutions of higher education. The commission shall work with high school counselors or other designated personnel to identify prospective qualifying students. The commission shall provide support to designated high school personnel and prospective qualifying students in selecting institutions and programs in which prospective qualifying students may want to enroll. The commission shall, at the request of a prospective qualifying student, assist the prospective qualifying student with the completion of an institution’s application for admission, the FAFSA, or the California Dream Act application.
(c) Each institution shall provide the commission with the contact information for the institution’s liaison designated pursuant to subdivision (a).
(d) The commission shall enter into a data sharing agreement with the department to share personally identifiable student information for the purpose of identifying and supporting prospective qualifying students. The data sharing agreement shall ensure that any personally identifiable student information shared pursuant to the agreement is shared in compliance with all state and federal privacy laws, including, but not limited to, the federal Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g, as amended).

69853.
 This article shall become inoperative on July 1, 2031, and, as of January 1, 2032, is repealed.