CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Senator Gonzalez

February 20, 2026

An act to amend Section 70035.5 of the Education Code, relating to student financial aid.

Vote: majority   Appropriation: no   Fiscal committee: no   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law establishes the California DREAM Loan Program, which provides a student attending a participating campus of the University of California or California State University with a loan, referred to as a DREAM loan, if the student satisfies specified requirements. Existing law also authorizes participating institutions to award DREAM grants to grant-eligible students, as defined, if the institution has unawarded funds in the institution’s DREAM revolving fund, as specified.

This bill would make a nonsubstantive change to the provision establishing the DREAM grant program.

The people of the State of California do enact as follows:

SECTION 1.

Section 70035.5 of the Education Code is amended to read:

70035.5.

(a) It is the intent of the Legislature to establish the DREAM grant program.

(b) Commencing with the 2024–25 academic year, a grant-eligible student attending a participating institution may receive a DREAM grant pursuant to this section.

(c) Each participating institution may award DREAM grants to grant-eligible students if that the participating institution has unawarded funds in the institution’s DREAM revolving fund that were new state, institutional matching, or loan repayment funds deposited during the previous academic year pursuant to Section 70035.

(d) DREAM grants shall be provided during the academic year immediately following the academic year in which there was an unawarded DREAM revolving fund balance.

(e) In a given academic year, a DREAM grant shall not exceed a student’s financial need.

(f) The amount of a DREAM grant offered to an individual student by a participating institution shall be determined by the institution. Priority shall be given to DREAM grants for instructional programs.

(g) A DREAM grant awarded pursuant to this section shall not count towards the annual and aggregate borrowing limits described in subdivision (a) of Section 70034.