Bill
SB 5785
Rebalances aid: caps WCG at 60% of state MFI, cuts awards for private and for-profit providers and apprenticeships, phases out for-profit WCG/CBS, and enforces six-year CBS use.
Effective date: July 1, 2025 (Governor signed May 20, 2025)
Purpose
- Modify the Washington College Grant (WCG) and College Bound Scholarship (CBS) programs to (1) codify the income threshold for maximum grant eligibility, (2) change maximum award amounts and formulas for certain provider sectors, (3) limit institutional eligibility, and (4) adjust award terms.
Key provisions (major substantive changes)
- Maximum award income eligibility
- Beginning AY 2025–26, students with family incomes up to 60% of the state median family income (MFI) are guaranteed the maximum WCG award.
- Private institutions and sector-specific award changes
- Private four‑year, not‑for‑profit institutions: beginning AY 2026–27 the WCG maximum for these students is reduced to 50% of the average maximum award granted to students at Washington public research institutions (applies to WCG; related CBS timing is phased—see below).
- Private for‑profit institutions (two‑ and four‑year): phased out of eligibility for the WCG (beginning AY 2026–27) and for the CBS (phased exclusion begins in later AYs per statute).
- Western Governors University — Washington (WGU)
- WCG: maximum award reduced to $4,150 starting AY 2026–27 (statutory cap; may thereafter grow by the statutory tuition growth factor).
- CBS: statute as amended sets a lower WGU cap (reporting shows $4,650 beginning in a later AY for CBS recipients).
- Apprenticeships
- WCG for Apprenticeships: beginning AY 2026–27 the maximum award is set at 50% of the Community & Technical College (CTC) maximum award (applies to costs such as tuition, fees, supplies, equipment).
- Similar reductions to CBS apprenticeship awards are phased in in subsequent AY(s).
- College Bound Scholarship (CBS) term and reversion
- Beginning AY 2025–26, CBS awards must be used within six years of receipt; unused tuition units revert to the Washington College Bound Scholarship Account.
- Tuition growth factor / related tuition provisions
- The bill maintains the statutory “tuition growth factor” (based on Washington median hourly wage growth) as the cap on annual statutory increases for certain maximum award amounts and references specific limits on tuition operating fee increases for public sectors in the 2026–27 AY.
Who is affected
- Primary: low‑ and moderate‑income students statewide who rely on WCG and CBS for tuition and related costs.
- Institutions: private four‑year not‑for‑profit colleges (reduced maximum awards), private for‑profit colleges (loss of eligibility), WGU (reduced statutory cap), community & technical colleges and public universities (indirectly via award formula alignment and tuition growth factor provisions).
- State agencies: Washington Student Achievement Council (WSAC)/Office of Student Financial Assistance must implement formula, award caps, and administration changes.
Timeline / implementation highlights
- Effective as law July 1, 2025.
- AY 2025–26: codifies 60% MFI maximum eligibility for WCG; CBS six‑year use requirement begins.
- AY 2026–27: major WCG award reductions and apprenticeship award reductions take effect (private four‑year not‑for‑profit WCG cap, WGU WCG cap, apprenticeship WCG at 50% CTC maximum). CBS sector reductions and some caps are phased to later academic years (e.g., AY 2027–28 in reporting).
Fiscal and procedural notes
- The bill passed both chambers and was enacted as Chapter 395, 2025 Laws. A fiscal note is available; the bill summary notes “Appropriation: None” while acknowledging fiscal impacts will be described in the fiscal note. WSAC is the administering agency for WCG, WCG‑A, and CBS and will carry out statutory changes.
Bottom line
- SB 5785 tightens and recalibrates state grant support by (a) codifying the income cutoff for full WCG awards at 60% MFI, (b) lowering statutory maximum awards for certain nonpublic providers (and removing some for‑profit eligibility), (c) reducing apprenticeship award levels relative to public two‑year awards, and (d) adding a use‑by term for CBS benefits. These changes shift the distribution of state grant support across institution types and the apprenticeship sector beginning primarily in AY 2026–27.
Compiled from official sources — confirm details with the bill’s official record.
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