CAPI

Treatment of CAPP payments for various programs

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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

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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.)

Treatment of CalKIDS accounts

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In 2019, the passage of SB 77 provided one-time state funding to create CalKIDS, a qualified scholarship program. It opens a college savings account for every newborn child in California regardless of income. CalKIDS will provide an initial seed deposit of at least $25 in each savings account and other potential financial awards to participants. In 2021, the passage of the American Rescue Plan Act significantly expanded the program to include an additional 3.7 million low-income public school students in grades 1 through 12 who qualify for free or reduced lunch, are homeless, or are in foster care. Eligible students receive an initial seed deposit of $500. Later in 2021, CalKIDS clarified eligibility to include students attending state special schools.  The CalKIDS expansion was implemented on July 1, 2022. 

College Savings and CalKIDS Accounts allow families to save and invest money for their children’s future higher education expenses. Savings withdrawn from a CSA program that utilizes a 529 college savings account, such as CalKIDS, are not subject to federal or state taxes if they are used for qualified higher education expenses. 

Because CalKIDS Accounts are owned by the State and are not available to the Assistance Unit (AU) are not counted as income or resources for CalWORKs purposes. Any funds, including funds deposited and investment returns, originating from a CalKIDS account will not be considered in the eligibility determination or grant calculation for CalWORKs applicants or recipients. 

CalKIDS Accounts are entirely excluded as income or resources for the CalFresh and California Food Assistance Program CalKIDS shows accounts must be excluded from income and resources entirely. 

CalKIDS does not count as income for CalWORKs Homeless Assistance Program (HA) and the CalWORKs Housing Support Program (HSP) because they are CalWORKs programs.  CalKIDS also does not count as income when determining eligibility for assistance provided by other Housing and Homelessness Programs, including Project Roomkey/Homelessness COVID Response, Bringing Families Home, and the Housing and Disability Advocacy Program.

CalKIDS accounts do not count as income for CalWORKs Stage 1 Child Care.  For other child care programs,  CalKIDS accounts are not considered countable income because they are owned by the state.. CalKIDS funds that are withdrawn and not utilized for educational purposes may be considered countable income if not excluded on some other basis.

The impact of CalKIDS on RCA/ECA and TCVAP follows the income and assets eligibility and administration rules of the CalWORKs program unless specifically superseded by RCA regulations. The eligibility criteria for ECA and TCVAP Cash Assistance states benefits shall be the same as those for RCA, with certain exceptions. These CalWORKs regulations regarding the treatment of CalKIDS accounts and funds also apply to RCA, ECA, and TCVAP recipients.

CalKIDS accounts are not counted as a resource for SSI/SSP or CAPI because they are owned by the state.  Distributions that are used for educational expenses of the designated beneficiary are excluded as a resource in the month received, and if retained beyond the month of receipt, they are excluded for 9 months beginning with the month of receipt. However, since the funds will be distributed directly to the higher education institutions on behalf of the participants to pay for qualifying higher education expenses and not retained by the beneficiary, the distributions will likewise not be considered a resource to the beneficiary.  (ACL 22-79, October 4, 2022.)

Cuban and Haitian Entrant eligibility for benefits programs

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The California Department of Social Services has issued information regarding eligibility of Cuban/Haitian entrants for public benefits programs. 

Cuban/Haitian entrants may be eligible for Entrant Cash Assistance (ECA),. This refers to federally funded cash assistance available to those who do not meet the categorical requirements of other state/federal cash assistance programs. ECA follows the rules of the Refugee Resettlement Program. ECA applicants are not required to have a Social Security Number.

Cuban/Haitian entrants can be eligible for CalWORKs upon entry into the United States.  They must submit proof of applying for a Social Security Number within 30 days or have good cause for not applying for a Social Security Number.  Cuban/ Haitian Entrants who apply for or receive CalWORKs must be eligible for Homeless Assistance or the Housing Support Program (HSP). Cuban/Haitian Entrants can be eligible for Project Roomkey, the Bringing Families Home (BFH) program, the Housing and Disability Advocacy Program (HDAP), and/or the Home Safe program if they otherwise meet the eligibility requirements for each program.”

Cuban/Haitian entrants can be eligible for CalFresh immediately without a waiting period. Non-citizens who are eligible based on immigration status must meet all other requirements. These individuals are not eligible for the California Food Assistance Program while Entrant status is in effect because they are eligible for CalFresh.. 

Cuban/Haitian Entrants who are aged, blind, or disabled and meet income limits, may be eligible for SSI/SSP. Entrants are eligible for SSI for seven years. A Cuban/Haitian Entrant who is found ineligible for SSI because of their immigration status can be eligible for CAPI.

Cuban/Haitian Entrants who become eligible for ECA must meet work registration requirements.  Cuban/Haitian Entrants who do not have work authorization should be enrolled in services to help achieve self sufficiency.   (ACIN I-63-22, September 20, 2022.)

Duties regarding county Statement of Position to Limited English Proficient claimants

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County hearings representative for both California Department of Social Services (CDSS) and Department of Health Care Services (DHCS) programs must enclose the GEN 1365 Notice of Language Services form with the Statement of Position.  For non-county administered DHCS programs, county hearings representatives must enclose the DHCS Non-Discrimination Policy and Language Access Process document.

CDSS is working on a new version of the GEN 1365 specifically for fair hearings that will be released soon.

When the applicant or recipient indicates their preference for communication in a language other than English, counties must provide forms in that language when the translation is provided by CDSS or DHCS in that language.  Counties must provide oral interpretation services of any document on request, including non-standardized forms and individually tailored documents.  If requested, the county or agency must provide an oral interpretation of the Statement of Position, including any exhibits attached to the Statement of Position, at least two days before the hearing.

When the county is aware of the need for assistance in a language that is not listed in the GEN 1365, the county or agency should attempt to inform the claimant of how to get a free oral interpretation of the Statement of Position in the claimant’s preferred language.  (ACL 22-56, July 8, 2022.)

Eligibility of Ukranian nationals for federal and state benefits

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THIS LETTER HAS BEEN SUPERCEEDED FOR FEDERAL BENEFITS.  SEE ACWDL, July 6, 2022, summarized here.

The California Department of Social Services (CDSS) has provided guidance regarding eligibility of Ukranian nationals for various public benefits programs.

Ukranian arrivals who have refugee or asylee status qualify for CalWORKs, CalFresh, SSI, and Refugee Cash Assistance (RCA).

Ukranian refugees and asylees are eligible for RCA. Persons with Temporary Protected Status are not eligible for RCA.  Counties must accept a declaration under penalty of perjury of the applicant’s immigration status while documentary verification is pending.

Ukranian nationals who have Temporary Protected Status are not eligible for most federal or state public benefits.

Ukranian humanitarian parolees can be eligible for CalWORKs with state funds.  This is because humanitarian parolees have Permanent Residence Under Color of Law (PRUCOL).  This includes eligibility for Homeless Assistance and Housing Support Program, both of which can supplement federal refugee resettlement funding.

Ukranian humanitarian parolees are eligible for the Cash Assistance Program for Immigrants (CAPI).  They are not eligible for SSI.

Ukranian humanitarian parolees are eligible for CalFresh or California Food Assistance Program (CFAP) if they have been paroled into the United States for at least one year.  Paroled for at least one year means the duration of parole.  A humanitarian parolee is eligible for CalFresh or CFAP from the day they are paroled into the United States if their parole will last at least one year.  Ukranian humanitarian parolees for less than one year are not eligible for CalFresh or CFAP.

Public interest parolees must be admitted to the United States for at least one year and must meet two additional criteria to be eligible for CalFresh, including five years of residence, working 40 quarters, children under age 18, elderly or disabled as defined.  People who do not meet two of the additional criteria can be eligible for CFAP.

Ukranians with refugee, asylee or humanitarian parolee status are eligible for Project Roomkey, Bringing Families Home, Housing and Disability Advocacy Program, and Home Safe.

Ukranian arrivals, including humanitarian parolees, can be eligible for Medi-Cal.

Regardless of the documentation presented, counties must verify immigration status with the SAVE system.  (ACIN I-40-22, April 22, 2022, ACIN I-40-22E, May 24, 2022.)