CalWORKs and CalFresh income exemption for awards to attend college

The California Department of Social Services (CDSS) issued guidance regarding the new income exemption for awards to attend college.  Effective March 1, 2026, any grant, award, scholarship, loan or fellowship awarded for the purpose of attending an institution of higher education is excluded from consideration as income for CalWORKs and CalFresh.  These awards are exempt as a resource for 12 months.  These funds are excluded whether they are distributed to the institution of higher education, or the benefits recipient.

This exemption does not apply to cash payments made directly by friends or relatives for the purpose of attending an institution of higher education.

For CalWORKs, verification must establish that the financial assistance is for the purpose of attending an institution of higher education.  Verification is not required for CalFresh unless the income exclusion is questionable.

For recipients, counties must reevaluate eligibility and benefit calculations at their next SAR or annual recertification.  Current recipients can make a voluntary mid-period request to recalculate their benefits with the new income exclusion.

Until automation is complete, counties must manually implement the new income exclusion.

The new income exclusion also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Protection Act benefits.  (ACL 26-16, March 19, 2026.)

New CalWORKs Welfare-to-Work forms

The California Department of Social Services (CDSS) has designated seven Welfare-to-Work (WTW) forms for statewide use.  Six of those forms are informing notices.

The new WTW 112 form is for clients to get medical verification that a household member who is not a mandatory WTW participant requires care in the home. The form must be completed by a doctor or other medical professional who can verify the need for care in the home. When that need is established, a mandatory WTW participant may be exempt from WTW to care for that household member.  If the person who needs in home care is also a mandatory WTW participant, the CW 61 form must be used to verify their WTW exemption.  (ACL 26-08, January 23, 2026.)

Business relationship between the state and family child care providers

The California Department of Social Services released a bulletin stating that family child care providers are not public employees and do not have an employment relationship with the state, political subdivisions of the State (including counties), or contractors or subcontractors administering state-funded early care and education programs.   Family child care providers are not public employees and do have an employment relationship with the state. They are therefore not eligible for any of the following:

  • Workers’ compensation, 
  • Unemployment insurance, 
  • Liability under the Labor Code or state wage orders, and
  • Vicarious liability in tort. 

(CCB 25-31, November 25, 2025)

CAPI Presumptive Disability

The California Department of Social Services (CDSS) has informed counties about presumptive disability payments in the Cash Assistance Program for Immigrants (CAPI).

When a CAPI applicant has certain medical conditions, the county can make a presumptive disability determination which makes the applicant eligible for six months of benefits while their disability evaluation is pending.  The conditions are listed in MPP section 49-025.1.  Additional conditions are stated in this letter.  Presumptive disability payments cannot be for more than six months.  These payments are not overpayments if the applicant is eventually found not disabled unless non-disability factors cause the overpayment.

If someone who received presumptive disability payments is found to be not disabled and then reapplies for CAPI, they can get presumptive disability payments again only if there is documentation or a worsening physical or mental condition, there is documentation of a new impairment, or there is a strong likelihood the claim will be approved.

When presumptive disability payments are granted, the notice of action must state the presumptive disability payments will end after six months.  If six months pass and there has not been a disability determination, the county must send a notice of action ending presumptive disability payment and stating that the case remains open pending a disability determination.

The county should send a notice of denial when the applicant is determined to be not disabled, or when a decision could not be made because the applicant did not cooperate with the disability evaluation.  (ACL 26-14, February 20, 2026.)

CalFresh time limit waiver for Alpine, Merced, Monterey, and Plumas Counties

The United States Department of Agriculture has granted a CalFresh time limit waiver for Alpine, Merced, Monterey, and Plumas Counties from November 1, 2025 to October 31, 2026.  This waiver was approved based on each of these counties having an average unemployment rate over 10 percent from January to March, 2025.  This means that Alpine, Merced, Monterey, and Plumas will not need to implement the CalFresh time on aid limit until November 1, 2026.

Alpine, Merced, Monterey, and Plumas Counties must remain ready to implement the time limit when the waiver expires.  These counties must identify clients subject to the time limit; screen for exemptions; inform clients of the time limit and work rules; and track work registration, time limit, and Employment and Training data.  (ACL 26-15, February 26, 2026.)

Parolee eligibility for California Food Assistance Program (CFAP)

The California Food Assistance Program (CFAP) is a state funded program that provides benefits equivalent to CalFresh to qualified immigrants who are not eligible for CalFresh.

based solely on the immigration status restrictions in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). Under PRWORA, parolees who are in the United States for over five years were eligible for CalFresh, but parolees in the United States for under five years were not eligible for CFAP.

Currently, California Department of Social Services policy is parolees in the United States for less than one year are ineligible for CFAP.  Parolees in the United States between one and five years are eligible for CFAP.

Starting on June 1, 2026, or when automation is completed, people paroled into the United States for less than one year will be eligible for CFAP.  These individuals will be eligible for CFAP as soon as they are paroled for up to five years.  After being paroled for five years, they will not be eligible for CFAP because after five years they will be ineligible for CalFresh because of HR 1 instead of being ineligible because of PRWORA.

Any household member who was excluded because they were paroled into the United States for less than one year must be added as a CFAP household member at the household’s next recertification, if all other eligibility is met. The DT Code is sufficient verification of parolee status and the county cannot ask for additional verification beyond the DT Code. (ACL 26-03, January 15, 2026.)