What is the difference between AB 540, the CA Dream Act and DACA?

This page is general information, not legal advice.

What is the short answer?

These are three different things. People mix them up all the time.

You do not need DACA to get AB 540 or the CA Dream Act. Many students who never had DACA go to college in California with both.

What is AB 540?

AB 540 is a California law (Education Code 68130.5). It lets some students skip nonresident tuition at California community colleges, Cal State and UC. That can save thousands of dollars a year.

To qualify, you must meet all of these:

• Time in California schools: three full time years, or the same amount, at a California high school, adult school or community college, in any mix.
• Completion: a California high school diploma or equivalent (like a GED, HiSET or CHSPE), an associate degree from a California community college, or the minimum transfer requirements to UC or CSU.
• Enrollment: you are signing up for or attending an accredited California college.
• Affidavit: if you do not have lawful status, you sign a form saying you have filed, or will file, to fix your status when you are able.

Two things AB 540 does not do. It does not make you a California "resident." It only exempts you from nonresident tuition. And it does not open any federal financial aid.

The information you give for AB 540 is confidential under California law.

What is the CA Dream Act?

The CA Dream Act is the California law that opens state financial aid to students who meet the AB 540 rules. You apply with the free California Dream Act Application, run by the California Student Aid Commission (CSAC).

It can open:

• Cal Grants
• the California College Promise Grant (pays community college enrollment fees for students who qualify)
• university grants at Cal State and UC
• the Middle Class Scholarship
• some private and campus scholarships

The application is for students who cannot use the federal FAFSA: undocumented students, and students with DACA (valid or expired), a U visa or TPS. You do not need a Social Security number.

The link between the two: the CA Dream Act Application has a short AB 540 section. When you sign it, CSAC sends your AB 540 affidavit to the colleges you list. So one application can start both your lower tuition and your aid.

CSAC says it uses the information on this application only to decide state aid. It is not shared with the federal government or used for immigration enforcement.

What is DACA?

DACA (Deferred Action for Childhood Arrivals) is a federal program. It is not about school. If USCIS approves you, it gives:

• temporary protection from deportation, and
• a work permit, which lets you get a Social Security number for work.

DACA is not lawful status. It is not a green card and does not lead to one on its own. It can be ended.

Right now: USCIS accepts and processes DACA renewals. It accepts first time requests but does not process them, because of a court order (checked October 21, 2026). If you never had DACA, you can still use AB 540 and the CA Dream Act.

What if I have TPS or a U visa?

You can use the CA Dream Act Application too. CSAC lists TPS and U visa holders among the students who file it instead of the FAFSA. You still need to meet the AB 540 school rules for state aid. T and U visa holders can use AB 540 even though most other visa holders cannot. Some TPS holders may also be able to build California residency for tuition at UC and Cal State; ask the campus residency office. See Do I meet the AB 540 requirements?

Does DACA help me in college at all?

Yes, in some ways. A work permit lets you take paid campus jobs and internships that need work authorization. UC and Cal State also list DACA among the statuses that may let a student build California residency for tuition. Ask your campus about your own case.

But with or without DACA, you still use the CA Dream Act Application, not the FAFSA. CSAC says students with DACA should use the CA Dream Act Application.

Is any of this changing?

Be ready, not afraid. In November 2025, the U.S. Department of Justice sued California over AB 540 and the CA Dream Act (United States v. Newsom). California asked the court to dismiss the case, and the judge has had that request since January 16, 2026 (court docket). The docket copy we could read runs through April 1, 2026, and shows no ruling. The Presidents' Alliance tracker (updated October 5, 2026) says "Awaiting order," and we found no news of a ruling as of October 21, 2026. The laws are still in effect. Apply on time. Before you enroll, ask your Dream Center or financial aid office whether anything has changed.

What should I do next?

1. Check AB 540. Count your years in California schools. Use Do I meet the AB 540 requirements?
2. Fill out the CA Dream Act Application by March 2, 2027 at dream.csac.ca.gov. Sign the AB 540 section.
3. Have DACA? Keep it current. File your renewal 120 to 150 days before it expires. See Can I renew my DACA?
4. Talk to your counselor or your college's Dream Resource Center about which forms your campus still needs.

Where can I get free help?

These are free. Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• Cash for College workshops: free help with the CA Dream Act Application, October through June. cash4college.csac.ca.gov
• California Student Aid Commission: (888) 224-7268 or studentsupport@csac.ca.gov.
• Your college's Dream Resource Center or Dreamer liaison: every community college and Cal State campus must have a Dreamer Resource Liaison.
• For DACA questions: a lawyer or DOJ accredited representative. See Free legal help in the Bay Area.

You can go to college here. These laws were written for students like you.

Related questions

• How do in state tuition and the Dream Act work together?
• Do I meet the AB 540 requirements?
• Can undocumented students get state financial aid?
• Do DACA recipients count as undocumented?