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.)