CA AB3086

Prohibits institutions of higher education from reducing a student's institutional financial aid due to private scholarship awards, effective with the 2021-22 academic year.

Allows aid reduction only if the student's expected family contribution is too high to qualify for a federal Pell Grant, or if the student's total gift aid exceeds their financial need by the amount being reduced.

Applies to any public or private postsecondary institution that receives state-funded financial assistance or enrolls students receiving state-funded student financial aid.

Defines key terms including cost of attendance, financial need, institutional financial aid, and private scholarships to establish uniform standards across institutions.

Includes severability clause ensuring the law remains enforceable even if portions conflict with federal requirements.