Increase in CalWORKs resource limit

Effective January 1, 2026, the CalWORKs resource limit for applicants and recipients will increase to $12,552, and to $18,829 for an assistance unit with at least one member who is over 60 or disabled.  This increase also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Assistance Program.

For purposes of the CalWORKs resource limit, is when any family member receives disability based income, or is exempt from participating in Welfare-to-Work.

CalWORKs applicants or recipients must report real and personal property.  Counties must request documentation of these resources to show that the family meets the maximum resource limit.  Money held in a checking, savings, or digital account such as CashApp or PayPal are considered property and count toward the resource limit.

Rules about CalWORKs restricted accounts are unchanged.  (ACL 25-65, September 22, 2025.)

Changes to ABAWD forms

The California Department of Social Services (CDSS) has provided information about major changes to the CalFresh Able-Bodied Adults Without Dependents (ABAWD). The ABAWD rule limits anyone age 18 to 54 with no children and/or no disabilities to receiving CalFresh for three months every three years unless they are participating in work activities or are exempt.

  • The ABAWD exemption for residing in a household with a member under the age of 18 has changed to an exemption that only applies to parents of or responsible for a child under the age of 14 who is part of the household.
  • Exemptions from the ABAWD rule for individuals experiencing homelessness, veterans, and former foster youth have been removed.
  • A new exception has been added for indigenous people members or descendants of federally recognized tribes and/ or persons of Indian descent in urban centers designated by the U.S. Department of Health and Human Services and/or an Indian eligible for services provided by the Indian Health Service in California.

CDSS has amended several forms to reflect these changes.  (ACL 25-64, September 18, 2025.)

 

Kin-GAP new income and property provisions

Assembly Bill (AB) 161 enacts new income and property provisions of the Kinship Guardian Assistance Payment (Kin-GAP) Program.

The Kin-Gap program provides funding on behalf of eligible children and nonminors to their relative guardian once dependency or wardship has been terminated in the juvenile court and all other eligibility criteria are met. Kin-GAP no longer has a $10,000 cash savings limit after the initial determination as long as all other eligibility is met.  Now all income or property received by the child or nonminor after Kin-GAP benefits start is disregarded. This change creates more consistency with foster care funding and allows easier transition to guardianship. (ACL 25-35, September 3, 2025.)

CalWORKs Income Reporting Threshold for Fiscal Year 2026

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.)

CalFresh Cost of Living Adjustment for Fiscal Year 2026

Effective October 1, 2025, the maximum monthly allotment for a one-person household in California is $298, for a two-person household $546, for a three-person household is $785, for a four-person household is $994, for a five-person household is $1,183, for a six-person household is $1,421, for a seven-person household is $1,571, for an eight-person household is $1,789 and add $218 for each additional household member above eight.

HR 1, the federal budget reconciliation bill, mandates that households with nine or more members will receive an additional 22 percent per member and that benefits amounts are now capped for households with 18 or more members.  HR 1 also requires that the Thrifty Food Plan amount (the federal determination of the cost of a nutritious, minimal cost diet that can be prepared at home) cannot be reevaluated until October 1, 2027, and any reevaluation after that must be cost neutral.

The maximum shelter deduction for households without an elderly or disabled household member is increased to $744.

The homeless shelter deduction is increased to $198.99.

The standard deduction is increased to $209 for households of 1-3 people, $223 for households of 4 people, $261 for households of 5 people, and $299 for households of six or more people.

The Standard Utility Allowance (SUA) is increased to $663.  The Limited Utility Allowance (LUA) is increased to $170.  The Telephone Utility Allowance (TUA) is increased to $20.

The resource limit for households subject to it remains at $3,000.  The resource limit for households with a least one household member over age 60 or disabled remains at $4,500.  This is also the threshold for substantial lottery or gambling winnings that must be reported. (ACIN I-46-25, September 3, 2025.)

Emergency Child Care Bridge Program

The Emergency Child Care Bridge Program is meant to reduce child care barriers for children and parenting youth in the foster care system, their caregiver families, and nonminor dependent parents. The goal is to make sure children can stay in safe and stable homes, avoid unnecessary placement moves, support permanency, increase the ability of child care programs to meet the needs of children in foster care, and maximize funding to support the child care needs for eligible families, and support reunification or permanency.

Families who qualify can:

  • Get temporary financial help to cover child care costs (from birth through age 12, or up to 21 for youth with special needs);
  • Receive support from a child care navigator;
  • Benefit from having more child care providers trained in trauma-informed care.

This program is designed to give foster families immediate child care options during emergencies or placements, while helping them transition into longer-term, stable child care.

The Bridge Program child care subsidy is provided for up to six months. If a long-term child care arrangement is not secured, the county can extend eligibilty for another six months. After 12 months, the subsidy can only continue if there is a compelling reason, such as the family being unable to transition to other child care, or if ending the subsidy would disrupt the child’s stability, permanency plan, or reunification. Any extension beyond 12 months must be documented by the county in its monthly status report, including the reason and duration of the extension.

Counties may determine eligibility for the Bridge Program based on several criteria, all of which are considered equally without priority. Eligible participants include approved resource families, as well as families who have taken in a child under emergency or compelling circumstances while still completing the resource family approval process. Parenting youth in the foster care system and nonminor dependent parents also qualify, along with homes that have received approval through a tribal process.

For fiscal year 2025-26, all counties that want Bridge Program funding must opt in again, even if they previously participated. Once a county opts in, it will stay enrolled unless it formally chooses to opt out.  (CCB 25-14, June 6, 2025.)