Overview: 2026 Fiscal Year Budget for the Georgia Student Finance Commission

Introduction

The Georgia Student Finance Commission (GSFC) is the state’s leading agency for higher education finance, overseeing more than 20 scholarships, grants, and loans funded by state and lottery sources. The GSFC plays a crucial role in preparing students for post-secondary education by offering free financial aid counseling to K-12 students, post-secondary institutions, and community organizations.

Amended Fiscal Year 2025 Budget

• $6 million increase for the HOPE Scholarship program at the University System of Georgia (USG) to meet projected needs.
• $2 million increase for the HOPE Grant program at the Technical College System of Georgia (TCSG). This includes financial coverage for students enrolled in certain certificate and diploma programs at public two-year colleges.
• $21 million increase for the Dual Enrollment program, enabling high school students to participate in post-secondary courses while earning both high school and college credits.

Governor Brian Kemp’s proposed FY2026 budget is anticipated to allocate $1.56 billion for Georgia’s lottery-funded educational initiatives, up from FY2025’s $1.49 billion. Approximately $1 billion is designated for HOPE and $563 million for pre-kindergarten education programs.

Fiscal Year 2026 Budget

• $60 million increase for the HOPE Scholarship at USG public institutions.
• $3 million increase for the HOPE Scholarship at Georgia’s private institutions.
• $17 million increase for the HOPE Grant at TCSG.
• No changes to the $10 million for the College Completion Grant Program, aiding students within 80% of program completion at two-year and four-year colleges.
• No changes to the $2.6 million for Inclusive Postsecondary Education Grants for students with intellectual and developmental disabilities.
• No changes to the $24 million for Tuition Equalization Grants for Georgia residents attending eligible private institutions.
• $6 million for REACH Georgia Scholarship, offering need-based aid to participants in its mentorship and scholarship program.

Education Lottery Reserves

The education lottery reserve began FY ‘24 with $2.1 billion, comprising $1.5 billion for expenditures including the HOPE Scholarship and the HOPE Grant programs. With FY 2024 proceeds, reserves have reached $2.4 billion. Lawmakers mandate a shortfall reserve of 50% of the prior year’s lottery proceeds to safeguard the HOPE Scholarship’s sustainability. For 2024, this requirement totaled $779 million. An additional $1.6 billion remains in unrestricted reserves.

Lottery Reserves Should Fund a Statewide Need-Based Financial Program

Georgia ranks third nationally for student loan debt per borrower, significantly impacting the socio-economic landscape as many Georgians defer critical life milestones like homeownership and retirement. The absence of robust state-sponsored need-based financial aid exacerbates this crisis.

Creating pathways to eliminate financial barriers in education not only addresses the student loan debt crisis but also enhances college affordability. The College Completion Grant program is a step forward but remains limited with a budget of $10 million and a lifetime cap of $2500 per student. Consequently, numerous students are still burdened with substantial tuition balances.

During the 2025 legislative session, Georgia’s lawmakers have an opportunity to develop extensive need-based financial aid solutions to alleviate student loan burdens. Every Georgian deserves equitable access to affordable education that leads to rewarding employment and improved economic well-being.

Conclusion

As Georgia continues to invest in higher education through programs like GSFC and associated financial grants, the goal remains to create a more inclusive and financially accessible landscape for all students. By addressing gaps in need-based aid and leveraging lottery reserves, Georgia can significantly reduce student debt and enhance economic opportunities for future generations.

Source: https://gbpi.org/overview-2026-fiscal-year-budget-for-the-georgia-student-finance-commission/