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Evergreen Ledger

SSB 5785

Signed

Senate

Higher education costs

Amending the Washington college grant and college bound scholarship.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: April 17, 2025
Last Action: May 20, 2025
Status: C 395 L 25
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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill caps tuition increases for resident undergraduates at Washington’s public colleges and expands the Washington College Grant to more low-income students by lowering the income threshold and adjusting award amounts based on income tiers. It also repeals an outdated financial need definition and updates how the state forecasts enrollment and program costs.

  • Limits tuition increases for resident undergraduates at public colleges to a capped growth factor tied to wage growth, with a maximum 5% increase allowed in 2026–27 for community/technical colleges and universities.
  • Allows nonresident undergraduate tuition to increase in 2026–27 only to the extent necessary to meet state appropriations for employee compensation and operations.
  • Expands Washington College Grant eligibility to students with household incomes at or below 65% of the state median income, with grant amounts scaled based on income level (e.g., $0 for households below 25% of median income).
  • Repeals the old financial need definition (RCW 28B.92.205) and replaces it with new income-based eligibility tied to household income thresholds and adjusted for household size.
  • Exempts tuition charges for high school students in dual enrollment, dropout reengagement programs, and incarcerated individuals in credit-eligible college programs.

Who is affected

  • Low- and middle-income students and families — Low- and middle-income Washington residents applying for the Washington College Grant, especially those with household incomes at or below 65% of the state median income, who may receive larger grants or new eligibility under revised income thresholds.
  • Public higher education institutions — Community and technical colleges, and public universities will face new tuition growth limits for resident and nonresident undergraduates in 2026–27, and must adjust budgets accordingly.
  • Vulnerable or special-population students — Students in dropout reengagement programs, incarcerated individuals in credit-eligible college programs, and high school students taking college courses—these groups continue to be exempt from paying tuition under the bill.
  • State agencies and staff — State agencies like the Office of Financial Management and the Higher Education Coordinating Board will take on new responsibilities for calculating tuition caps and administering the revised Washington College Grant program.
Effective: July 1, 2026Fiscal impact: The bill increases state spending by expanding the Washington College Grant to more low-income students and adjusting grant amounts based on income tiers; however, exact fiscal impact depends on enrollment and final budget appropriations in the 2025–27 omnibus operating appropriations act.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 20, 2026 at 2:37 AM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • Expanding Washington College Grant eligibility to students with household incomes at or below 65% of state median income (roughly $52K for a household of two) will significantly reduce out-of-pocket costs for low- and moderate-income students—many of whom would otherwise work excessive hours, delay enrollment, or forgo college entirely—improving access and completion for historically underserved populations.

    EducationPeopleRef: Sec. 2 (income-tiered grant formula); Sec. 3(1)(a)(i)

  • Capping resident undergraduate tuition increases at 5% in 2026–27 (vs. historical averages of 8–12% in recent years) provides predictability and affordability for families, especially those near the poverty line—helping prevent student loan debt accumulation and enabling more students to graduate without debt.

    EducationPeopleRef: Sec. 1(2)(b), (c); RCW 28B.15.067(2)(b), (c)

  • Exempting tuition for high school dual-enrollment students, dropout reengagement participants, and incarcerated individuals removes a direct financial barrier to education for vulnerable groups—supporting remediation, reentry, and early college access, which are strongly associated with long-term economic mobility.

    EducationPeopleRef: Sec. 1(4), (5)(a), (5)(b); RCW 28B.15.067(4), (5)(a), (5)(b)

  • The income-based grant structure (e.g., $0 household share for incomes <25% of median) creates a progressive, transparent benefit that directly offsets tuition for low-income students—reducing reliance on part-time work and student loans, and improving graduation rates among the most economically disadvantaged.

    FinancialPeopleRef: Sec. 2 (income-tiered formula); Sec. 3(1)(a)(i)

  • Updating the caseload forecast to reflect the new Washington College Grant eligibility methodology improves state budget planning accuracy—helping avoid underfunding or overfunding of higher education aid, which benefits state agencies and institutions by reducing last-minute budget adjustments.

    Local GovernmentPeopleRef: Sec. 4 (caseload forecast updates); RCW 43.88C.010(7)(c)
Potential Concerns (5)

  • Tuition caps may reduce institutional revenue, especially in 2026–27 when capped increases may fall below actual cost drivers (e.g., inflation, wage growth), forcing institutions to cut programs, freeze hiring, or reduce support services—disproportionately affecting students in high-need academic programs and lower-income students who rely on institutional aid and advising.

    EducationPeopleRef: Sec. 1(2)(a), (b), (c); RCW 28B.15.067(2)

  • The expanded Washington College Grant eligibility (to 65% of state median income) and income-tiered awards will increase state spending, requiring either higher general fund allocations or reallocations from other public services—potentially straining K–12, healthcare, or housing budgets, which could indirectly harm low- and middle-income families who depend on those services.

    FinancialPeopleRef: Sec. 2 (income-tiered grant formula); Sec. 3(1)(a)(i)

  • The household share calculation uses a fixed household size of two for all applicants, ignoring actual household size—this disadvantages larger low-income families (e.g., households of 5+), who may face higher effective costs despite being eligible, reducing the real purchasing power of the grant for those most in need.

    FinancialPeopleRef: Sec. 2 (income-tiered formula); Sec. 3(1)(a)(i)

  • The 2026–27 tuition cap includes a “within appropriations” clause, meaning institutions can only raise tuition to the extent of state funding—creating a risk that if the state underfunds, institutions will be forced to cut staff, delay maintenance, or reduce course offerings, disproportionately impacting community college students and first-generation learners.

    Local GovernmentLean peopleRef: Sec. 1(2)(b), (c); RCW 28B.15.067(2)(b), (c)

  • The renewal provision allowing eligibility if family income increases by ≤3% may inadvertently benefit middle-income families more than the lowest-income students, as the latter group is already at or below 65% of median income and has little room to grow without losing eligibility—reinforcing a “cliff effect” for the most vulnerable.

    EducationLean peopleRef: Sec. 3(7)

Who Is Most Affected

Low- and moderate-income students and familiesPositive Impact

Low- and moderate-income students (households ≤65% SMI) benefit strongly: reduced or zero tuition liability, improved access, and lower debt burden. However, those in larger households may see less benefit due to the fixed household-size assumption.

Public higher education institutionsMixed Impact

Public institutions gain predictability in resident tuition revenue but face constraints on nonresident tuition growth—potentially reducing flexibility to offset state funding shortfalls. Community colleges may be more vulnerable to revenue shortfalls due to lower nonresident tuition revenue.

Vulnerable or special-population studentsPositive Impact

Vulnerable populations (incarcerated individuals, dropouts, high school dual-enrollment students) benefit significantly from tuition exemptions, improving equity and access—but only if institutions maintain program capacity amid potential budget pressures.

State agencies and staffMixed Impact

State agencies gain improved forecasting tools but face increased administrative burden. The Office of Financial Management and Higher Education Coordinating Board will need new models and staffing to implement income-tiered grants and tuition caps.

Higher education support staffMixed Impact

Higher-education support staff (e.g., advisors, counselors, financial aid offices) may face increased demand due to expanded enrollment eligibility, but could also face staffing cuts or hiring freezes if institutions reduce budgets to compensate for capped tuition.