Transforming CalWORKs – Changes to Welfare-to-Work Sanctions.

The Transforming CalWORKs legislation, SB 119 (2025) makes several changes to Welfare-to-Work (WTW) sanctions.

Effective July 1, 2026, or when automation is completed, whichever is later, counties cannot impose WTW sanctions in the first 90 days after CalWORKs is granted. The 90 day no sanction period applies if an individual stops receiving CalWORKs and later reapplies for CalWORKs.  During the initial 90 day period, counties must proactively reach out to recipients for WTW steps and plan development, barrier removal, family stabilization, and supportive services.

Counties can initiate WTW sanctions for noncompliance with program requirements, including not signing a WTW plan.

Effective July 29, 2025, counties may allow recipients to reschedule sanction good cause appointments more than once.

Effective July 1, 2026, prior to imposing a WTW sanction, prior to imposing a WTW sanction, the county must provide the recipient with a child care request form, the reimbursement rules for child care, and if eligible, confirm that the recipient has child care available at the time of their WTW participation.  Note that existing policies regarding informing recipients about child care and verifying child care availability have not changed.

Effective July 1, 2026 or when automation is completed, counties must end WTW sanctions when the sanctioned individual states, either verbally or in writing, that they want to cure the sanction.  A cure plan will no longer be required.  Anyone in the sanction cure process when this policy takes effect will have their sanction resolved.  Counties must still formalize the WTW activity in a WTW plan as soon as administratively possible.  Failure to sign a new WTW plan will be a basis for a new sanction.

Counties cannot impose WTW sanctions on recipients who are meeting federal work participation requirements.  Counties will be required to end sanctions when they verify or otherwise discover that the recipient is or has been meeting federal work participation requirements.

Effective July 1, 2026, sanctioned individual who stop receiving CalWORKs and later reapply will be deemed to have stated that they want to participate and their sanction will be cured.

Counties must restore benefits the first of the month following cure of the sanction.

Individuals who cure their sanctions will not have their Stage One Child Care authorization discontinued if they later fail to participate.  (ACL 26-28, April 24, 2026.)

 

Revisions to Welfare-to-Work forms

There are several reasons why a CalWORKs recipient can have good cause for not participating in their assigned Welfare-to-Work activity.  AB 2300 added excessive hours or commute time, interruption of an approved education or training program, and violation of state and federal workplace protections as good cause reasons for not participating in their assigned Welfare-to-Work activity.

The WTW 1 Welfare-to-Work Rights and Responsibilities, WTW 26 Good Cause Determinatin Guidelines, and WTW 27 Request for Good Cause Determination forms have been modified to include these new good cause reasons.  (ACL 26-20, April 16, 2026.)

Processing of Recipient IEVS matches

The California Department of Social Services (CDSS) issued guidance regarding processing of matches from the Recipient Income and Eligibility Verification System (R-IEVS) system.  R-IEVS contains income information from several databases that is matched with information provided by current CalWORKs and CalFresh recipients.

In general, counties must process IEVS matches within 45 days, and establish overpayments and overissuances no later than the quarter after the quarter when the income discrepancy is discovered.  However, R-IEVS matches on closed cases are not subject to the 45 day processing time or the quarter after quarter requirement.

Counties must try to process IEVS matches on closed cases within 12 months of the run date of the date of receipt of the match.  However, counties can process the match after 12 months if the counties believes it is cost effective or if the county suspects fraud.  If the county determines that pursuing the match is not cost-effective, there must be a note in CalSAWS to that effect.

On or before March 31, 2026, CDSS and CalSAWS will do a one-time disposal of all IEVS abstracts that are more than 12 months old.

Counties must implement and update written policies that reflect these new guidelines. (ACL 26-05, January 26, 2026.)

Deactivation of Magnetic Stripe EBT cards

California issues CalWORKs and CalFresh benefits on Electronic Benefits Transfer (EBT) cards.  As of April 29, 2025, all EBT cardholders with an active EBT card were issues a replacement chip/tap EBT card.  The magnetic stripe cards for those cardholders were deactivated effective October 25, 2025.

There are approximately 34,000 magnetic stripe EBT cards still in circulation.  These cards were not considered active when the chip/tap cards were issued, or were subsequently reactivated because of reapplication for food or cash benefits.  Effective April 19, 2026, these remaining magnetic stripe cards will be deactivated.  People who have these magnetic stripe cards can get a replacement chip/tap card by EBT Customer Service Helpline at (877) 328-9677, online at BenefitsCal or the ebtEDGE mobile application and cardholder portal, or by contacting their local county welfare department office.

The California Department of Social Services (CDSS) will give counites a list of cardholders with magnetic stripe cards that will be deactivated.  CDSS strongly recommends that counties conduct outreach to these cardholders.

Some counties may have chip/tap cards that were not picked up by cardholders.  Those chip/tap cards must be securely destroyed by April 19, 2026.  (ACWDL, March 19, 2026.)

CalWORKs and CalFresh income exemption for awards to attend college

The California Department of Social Services (CDSS) issued guidance regarding the new income exemption for awards to attend college.  Effective March 1, 2026, any grant, award, scholarship, loan or fellowship awarded for the purpose of attending an institution of higher education is excluded from consideration as income for CalWORKs and CalFresh.  These awards are exempt as a resource for 12 months.  These funds are excluded whether they are distributed to the institution of higher education, or the benefits recipient.

This exemption does not apply to cash payments made directly by friends or relatives for the purpose of attending an institution of higher education.

For CalWORKs, verification must establish that the financial assistance is for the purpose of attending an institution of higher education.  Verification is not required for CalFresh unless the income exclusion is questionable.

For recipients, counties must reevaluate eligibility and benefit calculations at their next SAR or annual recertification.  Current recipients can make a voluntary mid-period request to recalculate their benefits with the new income exclusion.

Until automation is complete, counties must manually implement the new income exclusion.

The new income exclusion also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Protection Act benefits.  (ACL 26-16, March 19, 2026.)

Note that stipends for the Community College Higher UP pilot program are considered an award to attend college and are exempt.  (PI 26-18.)

New CalWORKs Welfare-to-Work forms

The California Department of Social Services (CDSS) has designated seven Welfare-to-Work (WTW) forms for statewide use.  Six of those forms are informing notices.

The new WTW 112 form is for clients to get medical verification that a household member who is not a mandatory WTW participant requires care in the home. The form must be completed by a doctor or other medical professional who can verify the need for care in the home. When that need is established, a mandatory WTW participant may be exempt from WTW to care for that household member.  If the person who needs in home care is also a mandatory WTW participant, the CW 61 form must be used to verify their WTW exemption.  (ACL 26-08, January 23, 2026.)