State need-based financial aid programs are a key driver of college access and completion for lower-income students and racially marginalized students in California, most of whom attend public two- and four-year colleges and universities and come from families with annual incomes of less than $40,000. As the state's largest need-based financial aid program, Cal Grants are a cornerstone of college affordability for hundreds of thousands of Californians every year; the program provides financial aid that helps students cover tuition and living expenses without the need to repay. However the state has proposed adding more funding to the less equitable Middle Class Scholarship (MCS) program. This Equity Alert provides an overview of why Cal Grant Reform is needed; describes the limitations of the MCS program in serving low-income, BIPOC, and community college students in California; and provides recommendations that state policymakers can act on this year to advance equity-centered financial aid reforms.