CA AB288

Prohibits public and private institutions of higher education in California that receive state-funded financial assistance from reducing institutional gift aid for students eligible for federal Pell Grants or California Dream Act assistance due to private scholarship awards, effective with the 2023-24 academic year.

Allows institutions to reduce institutional gift aid only if the student's total gift aid (institutional plus private scholarships) exceeds their annual cost of attendance, and only by the amount of excess aid.

Requires institutions to not consider receipt of private scholarships when determining a student's eligibility for institutional gift aid.

Encourages institutions to work with scholarship providers and students to prevent situations where aid can only be used for specific purposes that create displacement.

Includes severability provision ensuring the act remains enforceable if any provision conflicts with state or federal law requirements.