The California Department of Social Services has issued the new CalWORKs Income Reporting Threshold for Fiscal Year 2026. The new IRT amounts are effective October 1, 2025. They are in a chart attached to this ACL. Income over the IRT amount must be reported mid-period, that is, when it occurs between semi-annual reports or annual recertifications. Income that must be reported is the total combined earned and unearned income of the assistance unit. The IRT reporting amount is the lower of either of two tiers: 1) 55% of the federal poverty level for a family of 3, plus the amount of income used most recently used to determine the assistance unit’s grant, or 2) 130% of the federal poverty level (which is also the level where a household may become financially ineligible for CalFresh). Income over the IRT must be reported within 10 days of receipt.
Assistance Units with no income or only unearned income are required to report income changes only if they receive new earned income that, when combined with other earned income, exceeds the IRT.
When income over the IRT is reported to the county, the county must determine if the income is reasonably anticipated to continue. If it is reasonably anticipated to continue, the county must redetermine the CalWORKs grant amount using the new income amount. If the grant will be decreased, the county must give timely and adequate notice to decrease the grant at the end of the month. If the new income amount exceeds 130% of the Federal Poverty Level, the county must discontinue CalWORKs at the end of the month after timely and adequate notice is given.
It is possible that there will be some cases that are over the IRT, but under 130% of the Federal Poverty Level, where the assistance unit will not be eligible for a cash grant. Those cases will have zero grant, but will be eligible for supportive services and CalWORKs special needs.
Counties must inform recipients of their IRT at application approval, at least once per semi-annual reporting period, and whenever the IRT amount changes. The IRT level which the recipient was last notified of is used for reporting purposes.
These instructions also apply to Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime Victims Assistance Act.
The tier one income reporting threshold (55% of the federal poverty level for a family of 3) is $1,222, plus the amount of income used most recently used to determine the assistance unit’s grant.
The tier two income reporting threshold (130% of the Federal Poverty Level) for a CalWORKs assistance unit of 0 or 1 is $1,696, for 2 is $2,292, for 3 is $2,888, for 4 is $3,483, for 5 is $4,079, for 6 is $4,675, for 7 is $5,271, for 8 is $5,867, and add $596 for each additional member. (ACL 25-61, September 5, 2025.)