AB 1456 Summary

• Enacts the Cal Grant Reform Act, establishing new Cal Grant 2 and Cal Grant 4 programs to replace existing Cal Grant programs beginning with the 2024-25 academic year, with implementation contingent on legislative appropriation of sufficient funds.

• Cal Grant 2 Program serves California Community College students with household incomes at or below the federal Pell Grant threshold and provides access awards of at least $2,000 per year for nontuition expenses.

• Cal Grant 4 Program serves students at non-community college institutions with household incomes up to 225-350% of federal poverty level (depending on household status) and covers tuition/fees at public universities or fixed amounts at private institutions.

• Requires postsecondary institutions participating in Cal Grant programs to report annually on student enrollment, persistence, graduation rates, and institutional aid usage disaggregated by race and financial aid status.

• Makes existing Cal Grant programs inoperative on July 1, 2024, or later date specified in Budget Act, with students able to apply for new Cal Grant 2 and 4 awards beginning October 1, 2023.