HB 2671
In CommitteeHouse
State financial aid
Concerning state financial aid.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill updates Washington State’s financial aid program by revising definitions and award limits for the Washington College Grant to ensure equitable and sustainable support for students across public, private, and apprenticeship pathways. It establishes new formulas for grant amounts starting in 2026–27 and ties future increases to wage growth rather than tuition inflation.
- Clarifies and expands the definition of 'institution of higher education' to include public institutions, private nonprofit and for-profit colleges, and approved apprenticeship programs, with specific eligibility requirements for out-of-state affiliated branches.
- Updates the 'maximum Washington college grant' amounts for different institution types, including public two- and four-year schools, private nonprofit and for-profit institutions, apprenticeship programs, and Western Governors University-Washington.
- Sets new award formulas for 2026–27 and beyond: for public and private four-year institutions, awards will be 50% of the average award given to students at public research universities; for apprenticeship programs, awards will also be 50% of the two-year public institution grant amount.
- Maintains the 'tuition growth factor' as the annual cap on grant increases, defined as the average annual percentage growth rate of the median hourly wage in Washington over the prior 14 years (per federal data).
- Reaffirms that financial aid is based on demonstrated financial need, defined as an inability to pay the full cost of education, as determined by the Office of Student Financial Assistance.
Who is affected
- Public higher education students — Students at public colleges, universities, community colleges, and technical colleges in Washington who demonstrate financial need may receive state financial aid (grants or loans) to help cover education costs.
- Private college students — Students attending private, nonprofit, or for-profit colleges and universities in Washington may receive state financial aid, with award amounts varying by institution type and year, and subject to specific eligibility criteria.
- Apprenticeship program participants — Students enrolled in approved apprenticeship programs in Washington may receive state financial aid covering tuition, fees, supplies, and other program-related costs, with award amounts changing after 2026.
- Western Governors University-Washington students — Western Governors University-Washington students may receive state financial aid, with a fixed award amount starting in 2026-27 and annual adjustments based on the tuition growth factor.
Pro/Con Analysis
Stronger case for concerns
Potential Benefits (4)
The bill formalizes and expands eligibility to include approved apprenticeship programs and clarifies inclusion of public institutions, broadening access to state aid for nontraditional students—including incumbent workers, veterans, and low-income adults seeking career transitions—while maintaining need-based criteria. This strengthens Washington’s workforce development strategy.
EducationPeopleRef: Sec. 1(5)(a), (g)(ii)The bill reaffirms that financial aid is strictly need-based (defined as inability to pay full cost), and sets maximum awards for public institutions based on actual tuition and fees for 15 credits—including operating, building, and service fees—ensuring that aid aligns with real student costs and prioritizes equity for low-income students.
EducationPeopleRef: Sec. 1(3), (5)(a)Tying grant caps to median hourly wage growth (not tuition inflation) may slow long-term cost growth for the state, helping preserve program solvency—though this benefit is modest, as wage growth has historically lagged behind education cost inflation, and the offset savings are unlikely to fully offset underfunding.
FinancialPeopleRef: Sec. 1(7)The expanded definition of 'institution of higher education' includes private for-profit and nonprofit colleges, and explicitly includes approved apprenticeship programs—potentially increasing access for students in career-technical and alternative education pathways who were previously underrepresented in state aid programs.
EducationPeopleRef: Sec. 1(4)(b)(i), (iii), (iv)
Potential Concerns (5)
The bill replaces fixed-dollar grant caps with formulas tied to public research university averages (50% for private four-year and apprenticeships), which may reduce award amounts for students at many private and for-profit institutions compared to current levels—especially for students at institutions with historically higher tuition than public research universities. This could increase out-of-pocket costs for students at private nonprofit and for-profit schools, particularly those not in the top tier of private institutions.
FinancialLean industryRef: Sec. 1(5)(b)(ii), (c), (d), (e), (f)(ii), (g)(ii)The bill sets a *reduction* in the base award for Western Governors University-Washington from $5,619 (2019–20) to $4,150 (2026–27), then caps future increases to the tuition growth factor. Since WGU-WA serves nontraditional, often lower-income and rural students, this cut may disproportionately burden a vulnerable student population already using competency-based, low-residency pathways.
FinancialIndustryRef: Sec. 1(5)(f)(ii)The bill reduces apprenticeship grant amounts starting in 2026–27 to 50% of the two-year public institution grant (currently ~$10,000), which may fall short of actual program costs—especially for apprenticeships requiring specialized tools, safety gear, or extended time away from work. This could discourage participation in high-demand trades (e.g., electrical, plumbing, welding) where upfront costs are high and wages are still modest.
FinancialIndustryRef: Sec. 1(5)(g)(ii)The bill retains the tuition growth factor (median hourly wage growth over 14 years) as the cap on grant increases, which is likely to lag behind actual tuition and fee inflation—especially at public institutions where non-tuition costs (housing, childcare, transportation) now exceed tuition for low-income students. This structural underfunding may increase student debt burdens and reduce completion rates for low-income students.
FinancialIndustryRef: Sec. 1(5)(a), (6), (7)The bill adds a 20-year operational history and 700 FTE enrollment requirement for out-of-state affiliated branches to qualify for aid, which may exclude newer or smaller branches of reputable institutions (e.g., University of Washington Bothell’s early expansion phase, or new branches of out-of-state public universities). This could limit student access to established pathways and disproportionately affect students in rapidly growing suburban counties.
EducationIndustryRef: Sec. 1(4)(b)(ii)
Who Is Most Affected
Low-income students at public community and technical colleges benefit most: the bill maintains need-based aid tied to actual costs and expands eligibility to apprenticeships. However, they may face reduced support if out-of-pocket costs rise due to wage-based caps lagging behind living expenses.
Students at private nonprofit four-year colleges may see lower grant awards starting in 2026–27, as awards shift to 50% of public research university averages—potentially increasing their need for loans or family support, especially at institutions with higher sticker prices than UW/WSU.
Apprentices in high-cost trades (e.g., electrical, pipeline, welding) may find the new 50% cap insufficient to cover tools, safety gear, and lost wages, discouraging participation in high-demand, high-credential pathways—especially for older or nontraditional learners.
WGU-WA students—often rural, working adults, and veterans—face an immediate $1,469 cut in base award, which may reduce their ability to afford the program without additional loans or out-of-pocket payment, undermining the university’s mission of accessible, competency-based education.
State government benefits from slower long-term cost growth due to wage-based caps, but may face higher long-term costs if reduced aid leads to lower completion rates, increased student loan defaults, and greater reliance on public assistance programs.