CA AB1671

Prohibits institutions of higher education receiving state funding from reducing institutional gift aid offers to foster youth and former foster youth (age 25 or younger) who are eligible for federal Pell Grants or California Dream Act assistance, effective with the 2023–24 academic year.

Allows institutions to reduce gift aid only when total gift aid exceeds the student's annual cost of attendance, and only by the amount of aid that exceeds that cost.

Requires institutions not to consider receipt of private scholarships when determining eligibility for institutional gift aid for qualifying students.

Encourages institutions to consult with scholarship providers and students to prevent scholarship displacement and avoid restricting aid to specific purposes.

Applies to all public and private postsecondary institutions in California that receive state-funded financial assistance or enroll students receiving such assistance.