Guaranteed Income pilot for nonminor dependents exiting foster care

iFoster is operating a Guaranteed Income Pilot Project statewide.  Youth can be eligible for the iFoster Guaranteed Income pilot if they 1) are exiting extended foster care in California, and are California residents, except for youth exiting foster care in San Francisco, Ventura, Riverside, San Bernardino, Napa, San Mateo, and Alameda (because those counties operate their own guaranteed income projects for exiting foster youth); 2) are youth in foster care who are expected to exit foster care on their 21st birthday and who apply within 90 days prior to, or 30 days after, their 21st birthday, for the enrollment window specified above; 3) have income below a predetermined threshold; and 4) are not currently enrolled in another Guaranteed Income Pilot Project.

iFoster will give $750 per month for 18 months to 354 people who qualify for the program. Individuals will be selected for receipt of guaranteed income using random assignment or a lottery. Participants will be selected by random assignment or lottery on a regular basis over 12 months.  Youth exiting extended foster care in any county except Napa, San Mateo, and Alameda.

The California Department of Social Services (CDSS) encourages counties and probation departments to give information about iFoster to youth exiting foster care during their transition planning. iFoster will work with CDSS to verify a youth’s eligibility and help them complete the application.

Applications will be accepted until October 31, 2024.  Individuals who are not selected for the program may still be able to be compensated for participation in research activities. iFoster will provide resource navigation services including referral and application, and government benefits counseling and application support, to all youth referred by counties regardless of eligibility for or enrollment in iFoster’s guaranteed income pilot. (ACIN I-60-23, October 16, 2023, and ACIN I-60-23E, August 7, 2024.)

Treatment of income from Guaranteed Income Pilot Programs for HUD housing programs

The United States Department of Housing and Urban Development (HUD has sent a letter to the California Department of Social Services regarding treatment of Guaranteed Income Pilot Programs for its programs.

HUD denied California’s request for a waiver that would allow disregard of Guaranteed Income Pilot Program payments as income for HUD programs.  However, HUD stated several possibilities regarding Guaranteed Income Pilot Programs payments.

Prior to January 1, 2024 (the implementation date of The Housing Opportunities Through Modernization Act of 2016) both public housing authorities and multifamily owners and operators can exclude Guaranteed Income Pilot Program payments as temporary income.  This can happen until the first income examination for the family on or after January 1, 2024.

Prior to January 1, 2024, public housing authorities may establish a permissive deduction for Guaranteed Income Pilot Program payments.

After January 1, 2024, both public housing authorities and multifamily owners and operators can exclude Guaranteed Income Pilot Program payments in the final year of the program if the Pilot Program will not provide payments after that.

After January 1, 2024, both public housing authorities and multifamily owners and operators may calculate family income using certain other programs determination of income, as long as those determinations are made are made during the previous 12 -month period by the other program as effective with the Housing Opportunities Through Modernization Act of 2016 changes effective on January 1, 2024.  Those other programs include CalWORKs; Medi-Cal; CalFresh; Earned Income Tax Credit; Women, Infants, and Children; and Supplemental Security Income.

After January 1, 2024, public housing authorities may establish or continue a permissive deduction for Guaranteed Income Pilot Program payments for public housing, Housing Choice Voucher, and Moderate Rehabilitation programs.  (Letter from HUD, no date given.)

Change to CalFresh treatment of Guaranteed Income

Effective immediately, Guarantee Income (GI) payments that have any amount of non-government funding and are exempt from being considered as income for CalWORKs are also not counted as income for CalFresh. This means that CalFresh GI exemptions are no longer limited to funds from individually approved CalWORKs demonstration projects.

Some programs have already been screened and approved by the California Department of Social Services to meet the requirements to be exempt for CalFresh purposes.  Counties can rely on those approvals.  To exempt future GI payments for CalFresh, counties will need to determine whether GI payments contain any non-governmental funds.

For resource determinations, this change will not impact households that have Modified Categorical Eligibility status because they do not have a resource limit for CalFresh.  Households that do not have Modified Categorical Eligibility must meet a resource test, and they will be at risk of losing CalFresh if GI payments that they save put them over the resource limit at initial application, semi-annual reporting, or annual recertification.  Households that do not have Modified Categorial Eligibility are households that contain sanctioned individuals, or elderly or disabled households with income over 200% of the Federal Poverty Level.  (ACL 23-60, July 5, 2023.)

Process for request and approval process for guaranteed income projects operating in multiple counties

The California Department of Social Services has issued a notice describing the process for counties to request an income exemption for people who receive to CalWorks and CalFresh and are also participating in guaranteed income (GI) projects that operate multiple counties. GI projects that operate in multiple counties can request that their participants have the GI payments exempted on a project-by- project basis. The purpose of the policy is to provide a way for counties GI projects to be exempted from CalWorks and CalFresh benefits. 

The organization operating the GI project needs to pick one county to take the lead and submit the following documents: A letter explaining why the organization needs an exemption, a letter of support for the main county, and a letter of support from the other counties in the project. All requests will be reviewed on a rolling basis.

GI income exemption is granted only if applicants comply with the mandated criteria in the Welfare and Institutions code. If the GI program is operated by a non-government entity, it must coordinate with their local Health and Human Service Agency. CDSS will only accept exemption requestions from county Health and Human Services agency.

For income from GI projects to be exempt for CalFresh purposes, there must be some amount of private funds included in each direct payment to project participants.  (ACIN I-82-22, December 23, 2022.) 

County requests for approval of exemption of Guaranteed Income project income for CalWorks and CalFresh

The California Department of Social Services (CDSS) has issued a notice to describe how counties with Guaranteed Income (GI) projects can request that their programs be approved as CalWORKs GI Projects and therefore not be counted as income for CalWORKs and CalFresh. GI payments will count as income CalWORKs unless CDSS grants an exemption requested by the county.  Counties that would like to receive the CalWORKs exemption must submit the TEMP 3023 form.  County requests that GI not be counted as income for CalWORKs must include a comprehensive plan, a research plan and an Institutional Review Board approval.  CDSS will approve requests by formal order of the Director.  The order cannot extend beyond three years.

Note that CalWORKs Guaranteed Income Projects are different than California Guaranteed Income projects.  Income from California Guaranteed Income projects is also exempt for CalWORKs and CalFresh if the program including any private funding.

GI income will count for CalFresh unless any part of the GI payments are funded by a  nongovernment source, and the GI program is approved by CDSS. (ACIN I-35-22, April 14, 2022.)

Exclusion of foster care and guaranteed income payments for child care eligibility

The California Department of Social Services (CDSS) has issued guidance and information on the exclusion of foster care payments and guaranteed income payments when determining eligibility for subsidized child care and development programs. CDSS will implement these changes via childcare bulletin immediately until regulations are adopted, and these changes are effective immediately.

Foster care payments, Approved Relative Caregiver Funding Program payments, Emergency Assistance Program payments, and Tribal Approved Relative Caregiver Funding Program payments are no longer counted as income when determining eligibility for subsidized child care.

Guaranteed income payments received by an individual will not be included as income when determining eligibility for subsidized child care. Guaranteed income payments are unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients. Guaranteed income payments include, but are not limited to, payments provided through pilot programs and projects receiving funding from the California Guaranteed Income Pilot Program. (CCB 22-30, October 10, 2022.)