Overview of Transforming CalWORKs changes

The California Department of Social Services has informed counties about changes to the CalWORKs program from the Transforming CalWORKs initiative encompassed in SB 119 and SB 146.

Effective immediately, the county must gather the recipients determination of their skills, prior work experience, and employability as part of the appraisal.  Participants whose Welfare-to-Work (WTW) activity is not immediately available will not longer be required to participate in job search.  Participants who do not obtain unsubsidized employment at the end of their WTW plan will no longer be required to do a reappraisal and are not limited in the WTW activity they can choose.

Effective July, 2026, or when any required automation is completed, orientation and appraisal will be combined.  Participants will be able to complete the appraisal independently.  The appraisal will be available online.  Job search and job club will not longer be required for participants following orientation and appraisal.  Participants will be able to complete their WTW plan independently.  If the participant does not complete the appraisal and WTW plan within 45 days, or if the participant asks for help, the county will set an appointment to help them.  Counties will review and update participants’ WTW plan regularly.

There will be several more allowable WTW activities, including mental health, substance abuse, CalWORKS home visiting, and domestic violence services; financial literacy classes and coaching; activities that develop and enhance workplace skills, activities to help ensure child well-being, health, education and welfare; activities that lay the foundation for employment; and activities related to legal issues or housing stability.

All transportation supportive service payment will be required to be advanced to the participant.  Participants will not be able to be sanctioned if child care was not available during a missed activity.

There will be no sanctions during the first 90 days receiving CalWORKs.  A sanctioned participant will be able to cure their sanction by stating verbally or in writing that they want to participate in WTW activities.  (ACL 25-78, October 31, 2025.)

Impact of Social Security COLA on CalWORKs and CalFresh

Effective January 1, 2026, Social Security and Supplemental Security Income (SSI) benefits will increase by a 2.8 percent cost of living adjustment (COLA).  For new CalWORKs and CalFresh applications, the actual amount of Social Security, including the COLA, must be used beginning for January, 2026.

For CalWORKs Assistance Units and CalFresh households in their final month of their semi-annual reporting period, counties must reasonably anticipate the increase in Social Security and SSI.

The amount of the Social Security COLA is considered to be known to the county, and must be acted upon mid-period.  This means that benefits must be adjusted to reflect the new Social Security and SSI amounts effective January 1, 2024.

If the county cannot change the CalWORKs or CalFresh amount to reflect the Social Security COLA, counties must decrease the benefit amount after it gives timely and adequate notice.  In that case, January benefits will need to be recalculated and there may be overpayment or overissuance.

These rules also apply to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Assistance Program applicants and recipients who receive Social Security or SSI.

These rules do not apply to CalFresh households with at least one member who receives SSI.  (ACIN I-56-25, November 17, 2025.)

End of pass-through of CalWORKs Work Participation Rate penalty

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.)

Questions and Answers about CalWORKs education (STEP)

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.)

 

CalFresh and CalWORKs impacts because of federal government shutdown

The California Department of Social Services has issued guidance regarding impacts on the CalFresh and CalWORKs programs because of the federal government shutdown that started on October 1.

Because of the federal government shutdown, CalFresh benefits for November, 2025 will not be issued until further notice. Households who apply for CalFresh benefits in October, 2025, and are found to be newly eligible for October, 2025 will receive their October, 2025 benefits.

Counties must continue to process new CalFresh application, including expedited service and recertifications.  For applications received beginning November 1, 2025, counties must authorize benefits, but those benefits will be held until further notice.

Federally funded replacement benefits for household misfortune for November, 2025 and beyond will be held until further notice.

State funded replacement benefits for electronic theft will be processed as normal.

CFAP benefits for November, 2025 will be delayed because, although CFAP is state funded, the accounting mechanism is interconnected with CalFresh.

Supplemental Nutrition Benefits and Transitional Nutrition Benefits will be processed as normal.

CalFresh Water Pilot issuance will be processed as normal.

Funding should be available for CalWORKs benefits to be issued for November, 2025.  (ACL 25-75, October 20, 2025.)

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.)