Impact of Social Security COLA on CalWORKs and CalFresh

The California Department of Social Services (CDSS) has issued information to County Welfare Departments (CWDs) that Social Security and Supplemental Security Income (SSI) recipients will receive a Cost-of-Living Adjustment (COLA) effective December 30, 2022, and payable January 1, 2023. Depending on household composition, it will impact the CalWORKs grant and/or CalFresh benefit amount.

Social Security and SSI recipients will receive an 8.7% COLA effective January 1, 2023. Counties must give timely and adequate notice when the CalWORKs grant or the CalFresh benefit amount is adjusted because of a due to Social Security COLA.

For new CalWORKs and CalFresh applicants, the Social Security benefit amount, including the COLA increase, will be used to determine eligibility January 2023.

The Social Secuity COLA is considered reasonably anticipated income. The Social Security COLA is considered “known to the county” and shall be acted upon mid-period. Counties must take county-initiated mid-period action to adjust benefits effective January 1, 2023, for all cases in which Social Security benefits are being used to determine the CalWORKs grant or CalFresh benefit. For cases with a report due in December 2022, counties will include the COLA amount in the budget for the upcoming Semi-Annual Reporting (SAR) payment period.

CalWORKs cases subject to Annual Reporting/Child Only (AR/CO) rules, the amount of the SSA COLA will be considered “known to the county” and acted upon mid-period.

If counties do not decrease the CalWORKs grant or CalFresh benefit amount as a result of the increased January 2023 Social Security payment, they must reduce grant amounts in the month after they give timely and adequate notice.  In those cases, there will be an overpayment or overissuance for January.

SSI payments are exempt in CalWORKs; however, income should still be updated for excluded assistance unit (AU) members.  (ACIN I-72-22, November 8, 2022 and I-72-22E, January 4, 2023.)

 

CalWORKs for Humboldt earthquake victims and evacuees

The California Department of Social Services has issued a reminder about policy for processing CalWORKs cases for victims and evacuees of state and/or federally declared disasters. On December 20, 2022, Governor Newsom issued an Emergency Proclamation for Humboldt County due to the effects of the 6.4 magnitude earthquake

For evacuees who apply for CalWORKs, if the applicant and the county make a good faith effort to obtain verification and are unable to do so, including identity, time on aid, and CalWORKs eligibility factors, the county must accept the evacuee’s statements signed under penalty of perjury in lieu of verification.

When an evacuee applies for CalWORKs, counties must establish that the evacuee was living in a county designated as a federal disaster and/or state-declared emergency zone and ask if the evacuee or anyone else in their family is receiving CalWORKs from that county or another disaster county.

Counties are reminded that COVID-19 flexibilities remain in place and apply to evacuees, including flexibility regarding pregnancy verification, in-person photo identification requirements, and signature requirements.

Disaster evacuees applying for or receiving CalWORKs aid must be informed of their semi-annual and annual reporting responsibilities. Counties must advise evacuees to try to get documentation of eligibility factors impacting for benefits, and to ask for help from the county in getting documentation if they need it.

CalWORKs recipients may be eligible for nonrecurring special needs payments because of emergencies from the fires, such as damage to or loss of shelter or belongings. Nonrecurring special needs funds can be used to repair or replace clothing or household equipment, to provide assistance for damages to the home, or to pay for interim shelter when the AU’s home was destroyed or made uninhabitable or inaccessible. The maximum nonrecurring special needs payment is $600 for each individual incident.

Disaster assistance from federal, state or local government or disaster assistance organizations is excluded from consideration as income.

For CalWORKs applicants, counties are encouraged to offer CalWORKs diversion to evacuees to address their specific crisis or item of need. Applicants in an emergency should be evaluated for Immediate Need Payments. Both applicant and recipient evacuees should be entitled to an exception to the once in twelve months limitation on receiving Homeless Assistance. Recipient evacuees may also be eligible the CalWORKs Housing Support Program.

A written statement from the applicant is sufficient to establish intent to establish residency in California and in the county of application for the foreseeable future. Receipt of benefits at an address outside of California for two months or longer is not apparent evidence of intent to reside outside of California when return to California is prevented by a disaster.

For income, it is expected that some evacuees will no longer have reasonably anticipated income because of the disaster. For property and resources, counties must consider the applicant’s ability to access, occupy or sell their property at the time of application because of the disaster.

For families temporarily separated because of the disaster, a family member is considered temporary absent if they expect to reunite within one full calendar month. CalWORKs recipients can maintain a home in a different county than the county they are physically residing in if they intend to return to that home within four months.

Most evacuated families will not be able to participate in welfare-to-work activities. Counties should make a good cause determination for evacuated families for nonparticipation in welfare-to-work activities. Counties should also determine if an applicant needs barrier removal services such as mental health services or housing stabilization program services and provide these services as expeditiously as possible.  (ACWDL, December 29, 2022.)

CalWORKs direct deposit bank account standards

The California Department of Social Services (CDSS) has released an update on bank account standards for direct deposit of CalWORKs benefits.

The Welfare and Institutions Code allows direct deposit by electronic fund transfers to qualifying financial institution accounts selected by CalWORKs recipients. However, some non-bank organizations charge an overdraft fee. To protect against these actions, SB 497 and this ACL set out criteria that extend protection from overdraft fees, and sets standards accounts to be considered qualifying accounts for direct deposit of government benefits.

There are two types of account that are considered qualifying accounts.  One is a demand deposit or savings account at an insured depository financial institution

County treasurer and county welfare departments are not responsible for allowing direct deposits into accounts that do not meet the necessary requirements for a “qualifying account” under SB 497.  Counties are recommended to give information about qualifying accounts when telling applicants and recipients about their option to use direct deposit accounts at application and redetermination, and additionally upon request.  The EBT 2216 form can be used to give this information.

Form EBT 2216 was created to inform clients and recipients about using EBT cards and direct deposit accounts to receive government assistance benefits. This form now includes information on overdraft fees and qualified accounts. EBT 2216 is a mandatory form and cannot be changed.  (ACL 22-82, October 20, 2022.)

Implementation of CalWORKs Homeless Assistance changes

SB 1065 (2020) made several changes to CalWORKs Homeless Assistance benefits.  Implementation of those changes was contingent on programming into the CalSAWS computer system.  The California Department of Social Services has announced that the programming has been completed, and the changes to the Homeless Assistance program are operational effective September 1, 2022.  These changes are described in ACL 21-121, summarized here.

Any family denied Homeless Assistance on or after September 1, 2022 based on rules that were changed shall have that denial reversed.  (ACIN I-70-22, November 1, 2022.)

 

Treatment of CAPP payments for various programs

The California Department of Social Services (CDSS) has issued guidance to County Welfare Departments (CWDs) regarding treatment of California Arrearages Payment Program (CAPP) payments issued to California assistance program applicants and recipients to help pay eligible past due energy bills that increased during the COVID-19 pandemic

CAPP payments do not count as income when determining eligibility and/or grant amount for the CalWORKs program and do not count against the resource limit for the 12 months after receipt of payment. Furthermore, CAPP authorized payments are not considered in-kind income for CalWORKs recipients.

For both CalFresh and the California Food Assistance Program (CFAP), CAPP payments are considered third-party payments that are not owed to the household and therefore are not counted income. CAPP payments are not considered resources for CalFresh and CFAP.

For Modified Adjusted Gross Income (MAGI) Medi-Cal, CAPP payments are treated as a qualified disaster relief payment similar to other disaster payments that the IRS exempts from gross income. This means that CAPP payments are not counted in the MAGI Medi-Cal eligibility determination. For Non-MAGI Medi-Cal, CAPP payments are considered exempt disaster and emergency assistance and do not count as income or a resource.

CAPP payments do not count as income for the Cash Assistance Programs for Immigrants (CAPI), because they are considered to be a tax refund. CAPP payments do not count as a resource for CAPI for the 12 months after the payment is made.

RCA, ECA, and TCVAP programs do not count CAPP payments as income and do not count as a resource limit for 12 months after receipt of the payment because their programs use the same rules as CalWORKs. (ACL 22-83, October 21, 2022.)

Treatment of Better for Families Tax Refund, and the Young Child and Foster Youth Tax Credits

The California Department of Social Services (CDSS) has issued guidance for various programs about the treatment of Better for Families Tax Refund, and the Young Child and Foster Youth Tax Credits.

AB 192 established the Better for Families Tax Refund program, called the middle-class tax refund. SB 201 expanded the definition of a qualified taxpayer to include taxpayers with no earned income and those in foster care between the ages of 18 and 25.

The CalWORKs program treats the Better for Families Tax Refund the same as the federal earned income tax credit. It does not count as income and does not count as a resource for 12 months.  Refunds from the Young Child and Adopted Youth Tax Credit are treated the same as federal earned income refunds and do not count as income, and do not count as a resource for 12 months.

CalFresh and the California Food Assistance Program do not count either the of Better for Families Tax Refund, or the Young Child and Foster Youth Credits as income. CalFresh and the California Food Assistance Program counts them as a resource beginning in the month received. However, most households are in California are not subject to a resource limit because they have either Categorical Eligibility or Modified Categorical Eligibility.

The Better for Families Tax Refund does not count as income for Medi-Cal Modified Adjusted Gross Income (MAGI) applicants or recipients. It will be considered property for non-MAGI Medi-Cal recipients.  Counties are reminded that the property limit for non-MAGI Medi-Cal is now $130,000 for one person and $65,000 for each additional person.

The Department of Health Services (DHCS) is seeking a federal waiver to exempt the Young Child and Foster Youth Tax Credit from being treated as income.

The CalWORKs program rules apply to RCA, ECA, and TCVAP programs, and they must follow the CalWORKs rule above both the Better for Families Tax Refund, and the Young Child and Foster Youth Tax Credits.

The Cash Assistance Program for Immigrants (CAPI) treats both the Better for Families Tax Refunds and the Young Child and Foster Youth Tax Credit in the same way as federal earned income refunds, and federal tax refunds are excluded from counting as income and from the resource limit.  (ACL 22-91, October 28, 2022.)