OAKLAND, Calif. — California voters have approved an $11.25 billion housing bond that includes $175 million for University of California student housing, providing additional funding for campuses seeking to expand affordable housing options amid rising costs and growing enrollment.
The University of California welcomed the passage of Proposition 1, the Veterans and Affordable Housing Bond Act of 2026, saying the funding will support new student housing projects and help address housing pressures in communities throughout the state.
The bond allocates $350 million for student housing at California’s public universities, divided equally between the University of California and California State University systems.
UC’s $175 million share will be distributed through the state’s Higher Education Student Housing Grant Program, which provides funding to support the development of affordable student housing.
“The passage of Proposition 1 is a vital step in addressing the state’s housing crisis,” UC President James B. Milliken said in a statement.
“As the University of California works with the state to enroll more California students, the demand for affordable student housing has risen. This historic investment will enable the construction of necessary and new housing on our campuses.”
Milliken thanked state officials and members of the university community who supported the measure, while acknowledging that additional work remains to address California’s housing shortage.
Housing costs remain a significant component of college expenses, particularly in communities where rental housing is limited and students compete with other residents for available units.
UC officials said expanding campus housing can help reduce financial pressures on students while easing demand in surrounding rental markets.
The university enrolled a record 301,093 students in fall 2025, including more than 200,000 California undergraduates.
Since 2021, UC has added nearly 19,000 California resident students, an increase the university compared to the enrollment of an additional campus.
Despite that growth, UC reported that state funding per student remains below pre-recession levels, creating additional challenges as the university seeks to accommodate more students.
State Sen. Christopher Cabaldon said the bond responds to longstanding student concerns about housing affordability.
“Students have continuously advocated for desperately needed affordable housing,” Cabaldon said. “With the passage of Proposition 1, voters are delivering 350 million dollars to address this significant need. Now students can focus on their education and not worry about where they’re going to sleep at night.”
According to UC, state grants can help lower the cost of student housing projects by reducing the amount of construction financing that must be repaid through student rents.
The university said the funding could allow campuses to offer additional housing at below-market rates while supporting construction jobs and economic activity.
UC’s nine undergraduate campuses have received more than $700 million through the Higher Education Student Housing Grant Program in recent years, supporting the construction of thousands of student beds, including below-market-rate housing.
The university currently has more than 13,000 student beds in development across 14 active projects systemwide.
UC also reported leveraging a $41.6 million state investment for student housing debt service to support the addition of more than 7,000 beds, including approximately 3,000 subsidized beds.
Assemblymember Buffy Wicks said the new funding would help address the connection between housing affordability and access to higher education.
“Students should be able to pursue higher education without the added burden of housing insecurity,” Wicks said. “The passage of Proposition 1 brings us one step closer to that reality, funding the affordable housing fundamental to student success.”
The university said it worked with the Governor’s Office and state legislative leaders to include student housing in the broader housing bond.
UC also organized support through a coalition of students, faculty, staff, alumni, parents, business organizations and community groups.
According to the university, thousands of Californians contacted state lawmakers through the UC Advocacy Network and campus partners to support the housing investment.
Kai Wang, the UC Student Association’s student housing officer and a UC Davis student, said the measure would help advance housing projects across the university system.
“On behalf of over 300,000 UC students across the state, the UC Student Association is deeply grateful to California voters for approving Proposition 1 which supports urgently needed affordable student housing across our campuses,” Wang said.
“This measure will authorize several shovel-ready projects across our ten campuses, placing thousands of our students in beds as they pursue their postsecondary education and strengthen California’s workforce.”
With the bond approved, UC campuses are expected to apply for funding through the state’s student housing grant program to advance additional construction projects.
The university said it will continue working with state officials to identify opportunities to expand student housing and reduce costs for students.
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