Increase in CalWORKs vehicle value limit

The vehicle value limit for CalWORKs, Refugee Cash Assistance, Entrant Cash Assistance, Traffcking and Crime and Victims Assistance Program is increased by 1.93% to $25,483 effective July 1, 2021.  The increase is because the vehicle value limit must be adjusted annually in accordance with the Transportation Consumer Price Index.  (ACL 21-38, April 2, 2021.)

Franchise Tax Board and Treasury Offset Program collection updates

Franchise Tax Board intercepts will continue to be suspended through July 31, 2021 because of COVID-19.  Counties can approve refund requests for individuals with circumstances related to COVID-19 for Franchise Tax Board collections that occurred starting March 1, 2020 through the end of the suspension of Franchise Tax Board intercepts.

Collection of CalFresh overissuances through the Treasury Offset Program are no longer suspended and collections began in early April, 2021.  (ACWDL, April 8, 2021.)

Changes to federal Public Charge rule

The Department of Homeland Security will not enforce the 2019 public charge rule. As a result, the 1999 interim field guidance on the public charge inadmissibility provision will now apply.  Under the 1999 Interim Guidance, the Department of Homeland Security and United States Citizenship and Immigration Services will not consider receipt of Medi-Cal (except for long-term care, public housing or CalFresh as part of determining public charge inadmissibility.  Public cash assistance for income maintenance, including CalWORKs, Supplemental Security Income (SSI), Cash Assistance Program for Immigrants and general assistance/general relief.

However, receipt of benefits alone will not automatically cause a public charge determination.  Receipt of benefits is only one factor among several considered as part of the totality of circumstances determination for whether someone is likely to become a public charge.  Receipt of benefits by family or household members is not considered for public charge purposes.

Medical testing, treatment, and preventative services for COVID-19, including vaccines, is not considered for public charge purposes. (ACL 21-32, March 15, 2021.)

Information from third-party payroll sources

The California Department of Social Services (CDSS) has issued new instructions regarding how counties should act on information received from a third-party payroll source.

Counties must verify all discrepant information received from Income Eligibility and Verification System (IEVS).  Clients are given the first opportunity at verification by the county sending the client a 10-day verification letter.  If the client fails or refuses to respond to the 10-day letter, the county must contact the appropriate income or benefits source.  CDSS considers employers and third-party payroll sources such as The Work Number to be appropriate sources for verifying IEVS discrepancies.  If the source verifies the IEVS discrepancy, the county must take action or document that no action is required.

For CalFresh, if the client does not respond and the income source does not provide sufficient information to verify a discrepant IEVS match, the county terminate CalFreh benefits.

For CalWORKs, if the income source does not provide sufficient information to verify a discrepant IEVS match, the client’s sworn statement is sufficient.  If the client fails to respond, the county must document the discrepancy for resolution with the client by the next semi-annual report or annul redetermination.  If the client does not provide sufficient information to resolve the discrepancy, the semi-annual report or annual redetermination will be considered incomplete and CalWORKs will be discontinued.

If an appropriate third-party payroll source provides information beyond what as reported in an IEVS match, the county must try to verify the discrepancy by sending the client a verification letter.  If the client fails or refuses to respond with sufficient information to resolve the discrepancy, the county must consider the income from the third-party payroll source to be verified and determine its effect on eligibility accordingly.  This includes any overpayments or overissuances for months the client did not report income over the Income Reporting Threshold, and any effect on current benefit amounts.

ACLs 16-118 and 19-08 regarding the Work Number being used in conjunction with, but not in lieu of, existing income and eligibility sources, is superseded.  (ACL 21-16, March 25, 2021.)

Treatment of the Golden State Stimulus and Golden State Grant for CalWORKs

Households receiving the California Earned Income Tax Credit for 2020 will receive a $600 one-time relief payment through the Golden State Stimulus program.  In addition, the Golden State Stimulus program will provide a one-time $600 payment to households that filed with an Individual Tax Identification Number, have income below $75,000 per year, and were precluded from receiving a federal stimulus payment.  Eligible households can receive both payments.

As a tax rebate, credit or temporary tax refund measure, Golden State Stimulus payments are not counted as income and are exempt from being counted as a resource for 12 months for CalWORKs CalFresh, and CAPI.

The CalWORKs Golden State Grant payment will provide a $600 one-time payment to eligible CalWORKs Assistance Units that will be distributed by mid-April 2021.  This payment is exempt from being considered income, and is exempt from being considered a resource for 12 months.

The CalWORKs Golden State Grant payment cannot be considered an overpayment and must be excluded from overpayment establishment and collection.

All active CalWORKs recipients as of March 27, 2021 are eligible for the CalWORKs Golden State Grant.  A family that contains a CalWORKs assistance unit may also be eligible for additional Golden State Grant payments if it includes a SSI or CAPI recipient.

Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime Victims Assistance Program recipients are not eligible for the CalWORKs Golden State Grant.  (ACL 21-23, March 25, 2021.)

CalWORKs, CalFresh, and other programs treatment of rebates, refunds and credits under American Rescue Plan Act

The American Rescue Plan Act of 2021 contains several tax credits and rebates, including Earned Income Tax Credit, additional child tax credits, and child and dependent tax credits.  These individual rebates are excluded from consideration as income, and as an asset for 12 months after receipt for CalWORKs, CalFresh, Refugee Cash Assistance, Entrant Cash Assistance, Trafficking and Crime Victims Assistance Program, Supplemental Security Income/State Supplementary Payments, Cash Assistance Program for Immigrants, programs that fund foster care payments, Approved Relative Caregiver program, and Emergency Assistance funding.  (ACL 21-37, March 26, 2021.)