COVID 19 – CalFresh treatment of Pandemic Unemployment Compensation Payments

The Consolidated Appropriations Act 2021 reauthorized Pandemic Unemployment Compensation (PUC) payments through March 14, 2021.  These payments will be $300 per week from January 1, 2021 through March 14, 2021.  Under the Consolidated Appropriations Act, these payments are not income for CalFresh purposes.  These payments are excluded from being considered a resource through October 31, 2021.  (ACWDL, January 19, 2021.)

COVID-19 additional exceptions to the CalFresh student rule

The California Department of Social Services (CDSS) has issued guidance regarding additional exceptions to the CalFresh student rule added by Consolidated Appropriations Act 2021.  These additional exceptions because of COVID-19 are in effect from January 16, 2021 until 30 days after the federal public health emergency is lifted.

In general students enrolled half time who are aged 18 to 49 are are physically and mentally fit are ineligible for CalFresh.  There are several exceptions to this rule.  The Consolidated Appropriations Act 2021 expands the exception for work study to any student eligible to participate in a state or federally financed work study during the regular school year, as determined by the school.  While this exception is in effect, it is no longer required that students be approved for work study and anticipate working.  CDSS has temporarily changed the work study verification letter to reflect this change.

The Consolidated Appropriations Act 2021 adds an exception to the CalFresh student rule for students who have a zero dollar expected family contribution.  This is determined by information on the Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application.  The California Student Aid Commission determines who has a zero dollar expected family contribution.  Verification can include, but is not limited to, a letter from the California Student Aid Commission confirming a zero dollar expected family contribution, a student’s Student Aid Report or a financial aid offer letter.  The California Student Aid Commission will send all students with a zero dollar expected family contribution an informing letter about this new exception to the CalFresh student rule.  The California Student Aid Commission letter now includes a bolded statement instructing students to submit the letter in its entirety.  However, failure to submit the California Student Aid Commission letter is not a basis for requesting further verification or denial.

Requests to add a newly eligible student or to report a previously ineligible student being newly eligible are voluntary mid-period reports of a household composition change.  These reports can be made verbally or in writing and must be considered verified upon receipt.  However, a student’s exception to the student eligibility rule must be verified.  If verification is submitted timely, benefits are adjusted no later than the first allotment issued 10 days after the change is reported.  No supplement is issued for the month of the report.  If the household does not provide verification within 10 days of the report, but provides verification at a later date, the timeframe for taking action runs from the date verification is submitted.

(ACL 21-11, January 22, 2021 and ACL 21-11E, March 3, 2021.)

COVID-19 extension of sick leave for IHSS providers

The California Department of Social Services (CDSS) has issued information about the extension of two weeks of emergency paid sick leave in the Families First Coronavirus Response Act for In Home Supportive Services (IHSS) and Waiver Personal Care Services (WPCS) providers.  The Consolidated Appropriations Act extends the paid sick leave provisions of the Families First Coronavirus Response Act until March 31, 2020.  An IHSS or WPCS provider may request sick leave once from April 2, 2020 until March 31, 2021 if the provider is unable to work because of one of six listed COVID-19 related reasons.  The extension to March 31, 2021 does not create additional sick leave hours for providers who already used their Families First Coronavirus Response Act emergency sick leave.

Full-time employees (working 40 or more hours per week) are entitled to 80 hours of paid sick leave.  Part-time employees are entitled to the average number of hours that they work over a two-week period.

When a provider needs to take COVID-19 sick leave, they should complete the COVID-19 sick leave form, TEMP 3021 and submit the form to their IHSS county office.  WPCS providers submit the form to the Department of Health Care Services.  (ACL 21-06, January 19, 2021.)

COVID-19 Emergency Rental Assistance Program

The Emergency Rental Assistance Program in the Continued Assistance Act makes available $25 billion to assistant households that are unable to pay rent and utilities because of COVID-19.  Payments will be made directly to states, U.S. Territories, local governments with more than 200,000 residents, the Department of Hawaiian Home Lands, and Indian Tribes.  Not less than 90 percent of awarded funds must be used for direct financial assistance.  The remaining funds are available for housing stability services.

An eligible household is a renter household in which at lease one or more individuals 1) qualify for unemployment or has experienced a reduction in household income, incurred significant costs, or experienced financial hardship because or COVID-19, 2) demonstrates a risk of homelessness or housing instability, or 3) has a household income at or below 80 percent of the area median.

Eligible households that include an individual who has been unemployed for 90 days, and households with income at or below 50 percent of the area median are to be prioritized.

Eligible households may receive up to 12 months of assistance, plus an additional 3 months if the grantee determines the extra months are needed to ensure housing stability and grantee funds are available.

Payment of existing housing-related arrears that could result in eviction of an eligible household is prioritized.  Assistance must be provided to reduce an eligible household’s rental arrears before the household may receive assistance for future rent payments.  Once a household’s rental arrears are reduced, future assistance can be provided for only three months at a time.  Households can reapply for additional assistance at the end of the three-month period if needed and the overall time limit for assistance is not exceeded.

An application for rental assistance can be submitted to the grantee by either an eligible household or be a landlord on behalf of the household.  Funds will be paid directly to the landlords and utility service providers.  If a landlord does not want to participate, funds may be paid directly to the eligible household.  (Emergency Rental Assistance Program, United States Department of the Treasury.)

COVID-19 CalFresh emergency allotment for January 2021

California has been approved to issue an emergency allotment of CalFresh for January, 2021.  The emergency allotment will be issued on February 7, 2021 to raise each household’s monthly CalFresh allotment to the maximum allowable for the household size.  Per guidance from the Food and Nutrition Service (FNS), households already receiving the maximum allotment are not eligible to receive an emergency allotment.  However, the Consolidated Appropriations Act increases CalFresh allotments by 15% for the period January 1, 2021 through June 30, 2021.  Information about this increase will be issued in a future letter.

Moving forward, emergency allotments may be approved by FNS on a month-to-month basis until the Secretary of Health and Human Services rescinds the public health emergency. (ACWDL, January 4, 2021.)

COVID-19 Continued Assistance Act Unemployment Insurance Provisions

The United States Department of Labor has issued instructions regarding the Unemployment Insurance provisions of the Continued Assistance Act 2021.  Pandemic Unemployment Assistance (PUA), which provides benefits to independent contractors and self-employed persons who are unable to work because of COVID-19, is extended to the weeks of unemployment ending on or before March 14, 2021.  Individuals receiving PUA as of the end of the program who have not yet exhausted their PUA may continue to collect PUA for any week they have entitlement until the week of April 5, 2021.  The maximum number of weeks of PUA is increased from 39 weeks to 50 weeks.  The number of weeks available continues to be reduced by any weeks of unemployment insurance or extended benefits received.

States have been given the authority to waive PUA and LWA overpayments when the individual is not at fault and repayment would be contrary to equity and good conscience.

An individual must have exhausted all entitlement to unemployment insurance, Pandemic Emergency Unemployment Compensation (PEUC), and extended benefits before filing for PUA.  However, the Continued Assistance Act provides a hold harmless provision for an individual who previously exhausted PUA but became eligible for additional amounts of PEUC beginning on or after December 27, 2020.  States may continue paying PUA to an individual currently receiving PUA who is newly eligible to receive PEUC because of the additional weeks of PEUC.  States have four weeks to implement the additional amounts of PEUC and move an individual from PUA to PEUC.

Individuals filing for PUA must have their claim backdated to the first week during the Pandemic Assistance Period that the individual was unemployed, partially unemployed, or unable or unavailable to work because of COVID-19.

Any individual who receives PUA after December 27, 2020 must provide documentation substantiating employment or self-employment, or the planned beginning of employment or self-employment.  For persons applying on or after January 31, 2021 are required to provide documentation within 21 days of applying or the date the individual is directed to submit the documentation by the State Agency, whichever is later.  Individuals applying before January 31, 2021 and receiving a payment after December 27, 2020 are required to provide documentation within 90 days of applying or the date the individual is directed to submit the documentation by the State Agency, whichever is later.

States must have a system of identity verification for PUA.

Pandemic Unemployment Compensation is reauthorized for $300 per week in supplemental benefits for weeks of unemployment beginning after December 26, 2020 and ending on or before March 14, 2021.

States have the option to establish a Mixed Earners Unemployment Compensation.  If enacted, this program provides an additional $100 additional payment per week for persons who received at least $5,000 in self-employment income in the most recent taxable year, who are receiving another unemployment insurance benefit except for PUC, and who submit documentation of their self-employment income. PEUC is extended to weeks of unemployment ending on or before March 14, 2021. Individuals receiving PEUC as of the end of the program who have not yet exhausted their PEUC may continue to collect PEUC for any week they have entitlement until the week of April 5, 2021.  The maximum amount of PEUC is increased from 13 times the individual’s average earnings to 24 times the individual’s average earnings.

States can allow continued PEUC when an individual qualifies for regular unemployment insurance and regular unemployment insurance is at least $25 less than PEUC.  If an individual previously exhausted PEUC and began receiving extended benefits, they must exhaust extended benefits before being eligible for PEUC.  If permitted by state law, if the state remains in an extended benefit period when an individual exhausts PEUC, the individual may still be eligible for extended benefits.

States must have a method to address when an individual refuses to return to work or accept an offer of suitable work without good cause.  States must provide a reporting method for employers to notify the state agency when an individual refuses an offer of employment.  States must notify claimants who refuse to work or to accept an offer of suitable work without good cause including instructions for contesting a denial based on a report of refusal to accept suitable work and exceptions to the rule.  A state may exercise temporary emergency flexibility in its application of good cause.  (UIPL 9-21, December 30, 2020.)