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AB 2794

Postsecondary education: nonresident tuition: exemption: federal GI Bill.

2025-2026 Regular Session

AB 2794 expands in-state nonresident tuition exemptions to include MGIB-SR for eligible student veterans/dependents, aligning with federal law through 2026.

In committee: Set, first hearing. Hearing canceled at the request of author.
#postsecondaryeducation #exemption #federalgibill #nonresidenttuition
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WeVote Research Nonpartisan
Bill Summary · AB 2794

Summary of AB 2794 (2025-2026) – California Postsecondary Education: Nonresident Tuition Exemption: Federal GI Bill

Primary purpose

AB 2794 would expand and clarify the exemption from nonresident tuition for students at California Community Colleges (CCC) and California State University (CSU) campuses who are eligible for certain federal GI Bill education benefits. Specifically, it adds the Montgomery GI Bill-Selected Reserve (MGIB-SR) program to the list of GI Bill programs that qualify a student for the exemption, and aligns the exemption with federal law as read on January 5, 2026.

Key provisions and changes

  • The bill amends Education Code Section 68075.7 to preserve and extend the existing nonresident-tuition exemption framework. Under current law, a nonresident student who resides in California, is a “covered individual” under federal law, and is eligible for benefits under one of several GI Bill programs is exempt from nonresident tuition and any fee exclusively applicable to nonresident students.
  • AB 2794 adds the Montgomery GI Bill–Selected Reserve program (MGIB-SR) to the list of GI Bill programs that qualify for the exemption. The reference point for the GI Bill programs remains the federal law as it read on January 5, 2026.
  • The exemption criteria (a student must meet all of the following) remain: 1) The student resides in California. 2) The student is a “covered individual” under federal law. 3) The student is eligible for education benefits under one of the specified GI Bill programs (now including MGIB-SR).
  • The bill retains the ongoing eligibility status provision:
    • A student who qualifies for the exemption remains a “covered individual” so long as they maintain continuous enrollment at a campus, including when enrolled across multiple programs.
    • “Continuously enrolled” is defined as at least fall and spring semesters of an academic year, or at least three quarters in an academic year for quarter-system institutions.
  • Administrative and fiscal implications:
    • If the bill creates new duties on CCC districts to determine exemption eligibility, it would constitute a state-mandated local program.
    • The California Constitution requires reimbursement to local agencies for mandated costs; if the Commission on State Mandates determines costs are mandated, reimbursement would proceed under established state-mandated-cost procedures.
  • Report and reporting:
    • The attendance of exempt CCC students may be reported by the district of attendance for apportionment purposes.

Who would be affected

  • Students attending the California Community Colleges or the California State University system who are:
    • California residents,
    • Classified as “covered individuals” under federal law,
    • Eligible for education benefits under one of the GI Bill programs (now including MGIB-SR as added by AB 2794),
    • Maintaining continuous enrollment as defined by the bill.
  • California community college districts and CSU campuses, which would administer eligibility determinations for the exemption and, if applicable, report attendance for apportionment.

Timeline and procedural notes

  • Effective date: The bill references terms and program eligibility as read on January 5, 2026. The bill applies to academic terms beginning on or after August 1, 2021, for the exemption framework, with updates to program eligibility as specified.
  • Legislative process: Introduced March 18, 2026; passed committee milestones in spring 2026; deliberations included in the Higher Education Committee and Appropriations/Policy processes. Action history shows status advancements through May 2026, including second reading and consent calendar steps.

Fiscal and mandate considerations

  • Status as a potential state-mandated-local program: If the bill imposes new duties on districts to determine eligibility, it would trigger local program costs.
  • Reimbursement: If the Commission on State Mandates finds mandated costs, reimbursement would follow the standard statutory process for state-mandated costs.

Bottom line

AB 2794 broadens access to in-state nonresident tuition exemptions for eligible student veterans and dependents by including MGIB-SR among the qualifying GI Bill programs and by aligning the exemption framework with federal law current as of 2026. It maintains continuity criteria, supports districts in administering eligibility, and contemplates potential state-mandated costs with standard reimbursement mechanisms.

Compiled from official sources — confirm details with the bill’s official record.

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