Student financial aid: Cal Grants: Middle Class Scholarship Program: eligibility: dependents of members of the armed services stationed outside of California.
What changed between versions
A new Section 5.5 provides an alternate version of Section 70022 (MCSP) that only becomes operative if SB 67, SB 148, or AB 148 are all enacted by January 1, 2026, all amend Section 70022, and SB 67 is enacted last. This creates a conditional legislative mechanism to avoid conflicting amendments to the same code section.
The alternate MCSP formula (Section 5.5) changes award calculations for 2022-23 and later: awards equal cost of attendance minus other aid, minus an expected student contribution of $7,898 (adjusted annually by minimum wage changes starting 2024-25), minus 33 percent of parent contribution from adjusted available income for households over $100,000. Starting 2024-25, the 'other aid' calculation specifically includes non-need-based institutional scholarships and emergency housing/basic needs assistance.
The alternate MCSP version requires students to submit a FAFSA or California Dream Act application by March 2, and to make timely applications for all other federal, state, or institutionally administered grants or fee waivers for which they are eligible.
The alternate MCSP version introduces tiered income eligibility thresholds starting 2022-23: $201,000 for dependent students or independent students with dependents, $133,000 for married independent students with no dependents other than a spouse, and $116,000 for single independent students with no dependents. Similar tiered asset thresholds are set at $201,000 and $96,000 respectively.
The alternate MCSP version adds a requirement that the student must be exempt from paying nonresident tuition (paragraph (E)), effectively limiting MCSP eligibility to California residents or those qualifying for nonresident tuition exemptions.
A new Section 6 establishes the operative conditions for the alternate MCSP section: it only takes effect if SB 67 is enacted last among the three bills amending Section 70022, at which point the version from SB 148 or AB 148 remains in effect only until SB 67's operative date.
Cal Grant eligibility in Section 69433 was restructured: the military dependent exception (dependent child, stepchild, or spouse of a service member stationed outside California on active duty who maintains California as legal residence) is now in its own subdivision (c), separate from the basic residency requirement and the nonresident tuition exemption.
The alternate MCSP version adds a federal financial aid compliance provision: if a student's total award combined with other grants treated as estimated or other financial assistance exceeds the allowable gift aid under federal regulations, the MCSP award is reduced to maintain compliance. It also adds a de minimis rule that awards under $300 identified after calculation do not require recalculation.
