The California Department of Social Services has informed counties that any future CalWORKs Work Participation Rate (WPR penalties will no longer be passed-through to counties effective starting in Federal Fiscal Year 2026.

The WPR measures the portion of work-eligible CalWORKs recipients who are engaged in federally defined work activities for the minimum number of required hours per week. If the WPR is not met, states are subject to a federal penalty of reducing their Temporary Assistance to Needy Families Block Grant amount. Previously, a portion of a WPR penalty was passed-though to counties.

Effective October 1, 2025, any WPR penalties imposed on California will not be passed-through to the counties.  Any WPR penalties assessed for Federal Fiscal Year 2025 can still be passed-through to the counties. (ACL 25-74, November 4, 2025.)

The California Department of Social Services has issued Questions and Answers about the CalWORKs Student Training and Education (STEP) Program.  STEP provides advance standard payments for necessary books and supplies for postsecondary education.

CalWORKs recipients in private not-for-profit educational institutions are eligible for STEP.  Students in adult education and adult schools administered by a community college and/or funded by the Adult Education Block Grant are eligible for STEP because they are publicly funded postsecondary institutions.  STEP-eligible educational institutions include institutions located outside of California.

Massive open online courses qualify for STEP if the student is considered enrolled at a qualifying institution as part of the course.

For students in open enrollment classes that are varied hours, the hours of participation first by determining if the school considers the student to be enrolled full-time or part-time.  If there is no way to confirm full-time or part-time enrollment, the estimated weekly participation hours are used to determine whether the student is attending full-time or part-time.  The estimated weekly participation hours are entered on the WTW plan.  If the county does not get a signed WTW plan at least 10 days prior to the start of the course, the county will issue the part-time advance standard payment unless and until it receives the signed WTW plan.

Education activities are effective when the county receives proof of enrollment in a STEP-eligible institution. New STEP participants can voluntarily participate in Welfare-to-Work until the academic term begins.

A student is considered enrolled when they provide proof of enrollment in the qualifying education institution.  STEP participants must not be required to participate in additional Welfare-to-Work activities during school breaks immediately following the most recent term of enrollment.  Part-time STEP participants who were assigned non-STEP activities to fulfill their hourly participation requirement must continue in the non-STEP activities during school breaks.

When hourly participation requirements change during an academic term, the county must engage the individual and adjust their Welfare-to-Work plan accordingly.

For students who are transferring, the school break falls between adjacent academic terms.

A sanction is considered cured when the county receives proof of enrollment in a STEP-eligible institution.

The county defers to the education institution in determining whether a summer session is considered condensed, and whether the participant is enrolled full-time or part-time.

STEP participants are entitled to the full advance standard payment even if they will reach their 60-month time on aid limit during the term because eligibility for the payment is determined at the beginning of the term.

Counties can require verification of attendance for processing transportation requests if that is consistent with the county’s written policy for transportation reimbursement.

There are no special child care rules for STEP participants.  They remain eligible for child care during school breaks.

Students can be required to complete an updated orientation and/or appraisal if they have had a one-year break in either receipt of aid or supportive services.  For intercounty transfers, the county can only require orientation and/or appraisal if more than one year has passed since receipt of aid or supportive services.

School attendance can be verified by a CalWORKs coordinator at the institution, or by county staff.  Attendance verification cannot be used to justify initiating noncompliance or sanction.  (ACL 25-76, October 20, 2025.)

 

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.)