Cal Grants provide state financial aid to be used at any qualifying California college, university or technical school.
Current law caps Cal Grant eligibility at age 28 for all applicants.
The bill, introduced by Los Angeles Democratic Assemblywoman Autumn Burke, would lift the age limit for military veterans.
"Forty-six percent of our veteran students are 25 years or older when they first enroll in college,” said Burke. “So, with right now the rules being age 28 that cuts out so many of our veterans."
Burke says there are 27,000 military veterans in California who would be eligible for Cal Grants if the age cap were lifted.
"Veterans historically have a high rate of homelessness and increased rates of unemployment,” said Burke. “And I felt like this was something that we could do to give them a path to keep out of some of these situations that veterans are so often finding themselves in."
The bill is supported by the California Student Aid Commission.
Burke said 426,000 students were offered Cal Grants during the 2013-14 school year.
The Assembly Committee on Higher Education considers the bill Tuesday.