CA AB25

Establishes a funding mechanism for the Middle Class Scholarship Program (MCSP) triggered by two consecutive years of General Fund revenue growth, with the Department of Finance phasing in full funding over five fiscal years (20%, 40%, 60%, 80%, then 100%).

Expands MCSP eligibility and award amounts beginning in the 2022-23 academic year to cover the difference between a student's cost of attendance and other aid sources, replacing the previous 40 percent of tuition and fees formula.

Increases income limits for MCSP eligibility for the 2022-23 award year and beyond, with dependent students and independent students with dependents eligible up to $201,000 in annual household income (previously $150,000).

Requires the Student Aid Commission to annually adjust the student contribution amount ($7,898) starting in the 2024-25 award year based on minimum wage changes.

Removes the prohibition on UC and Cal State universities from considering basic needs emergency aid when awarding MCSP scholarships, and requires those institutions to maintain institutional student aid levels proportional to 2021-22 undergraduate enrollment.