New Federal Rule Requires California College Programs to Meet State Earnings Benchmark

A new federal requirement took effect in July 2026 requiring colleges, universities, and certificate programs to prove graduates earn at least as much as the median worker in their state with only a high school diploma. In California the earnings benchmark is about $18 an hour, or roughly $36,000 a year.

An analysis by Michael Itzkowitz, president of the HEA Group, found that about 90 percent of nearly 3,000 California higher education programs met the earnings standard while about 300 did not.

Many of the underperforming programs are concentrated in cosmetology, medical assisting, theater, and fine arts, and many are run by for-profit colleges. Theater and fine arts programs at eight California State University campuses and three University of California campuses came under scrutiny.

Over 30 California programs in fine arts, music, theater, film, and photography failed the earnings test.

By comparison, about 100 similar programs cleared the bar, including UC Berkeley’s film program and fine arts programs at San Diego City College and the University of Southern California, where graduates reported earning over $70,000 four years after graduation.

Graduates of fine arts, film, and photography programs at the California Institute of the Arts earned just under $30,000 a year four years after completing their degrees. ” If programs continue to fall short, students could lose access to federal loans as early as July 1, 2028.

Schools have at least two years to boost graduate earnings. The requirement stems from the One Big Beautiful Bill Act, signed into law on July 4, 2025.