Income Reporting Threshold for Fiscal Year 2025

Effective October 1, 2024, a new CalWORKs Income Reporting Threshold (IRT) will be effective.  The new IRT amounts are in a chart attached to this ACL.  Income over the IRT amount must be reported mid-period, that is, when it occurs between semi-annual reports or annual recertifications.  Income that must be reported is the total combined earned and unearned income of the assistance unit.  The IRT reporting amount is 55% of the federal poverty level for a family of 3, plus the amount of income used most recently used to determine the assistance unit’s grant.  Income over the IRT must be reported within 10 days of receipt.

Assistance Units with no income or only unearned income are required to report income changes only if they receive new earned income that, when combined with other earned income, exceeds the IRT.

When income over the IRT is reported to the county, the county must determine if the income is reasonably anticipated to continue.  If it is reasonably anticipated to continue, the county must redetermine the CalWORKs grant amount using the new income amount.  If the grant will be decreased, the county must give timely and adequate notice to decrease the grant at the end of the month.  If the new income amount exceeds 130% of the Federal Poverty Level, the county must discontinue CalWORKs at the end of the month after timely and adequate notice is given.

It is possible that there will be some cases that are over the IRT, but under 130% of the Federal Poverty Level, where the assistance unit will not be eligible for a cash grant.  Those cases will have zero grant, but will be eligible for supportive services and CalWORKs special needs.

Counties must inform recipients of their IRT at application approval, at least once per semi-annual reporting period, and whenever the IRT amount changes.  The IRT level which the recipient was last notified of is used for reporting purposes.

These instructions also apply to Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime Victims Assistance Act.

The income reporting threshold for a CalWORKs assistance unit of 1 is $1,632, for 2 is $2,215, for 3 is $2,798, for 4 is $3,380, for 5 is $$3,963, for 6 is $4,456, for 7 is $5,129, for 8 is $5,712, and add $583 for each additional member. (ACL 24-63, September 6, 2024.)

Increase in CalWORKs resource limit

Effective January 1, 2025, the CalWORKs resource limit for applicants and recipients will increase to $12,137, and to $18,206 for an assistance unit with at least one member who is over 60 or disabled.  This increase also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Assistance Program.

Rules about CalWORKs restricted accounts are unchanged.  (ACL 24-54, August 2, 2024.)

 

EBT card replacement with chip/tap cards

The California Department of Social Services (CDSS) has provided information about the replacement of current magnetic stripe EBT cards with chip/tap cards.  The new cards will be for CalWORKs, CalFresh, General Assistance, Refugee Cash Assistance (RCA), Trafficking and Crime Victims Assistance Program (TCVAP), Entrant Cash Assistance (ECA), Cash Assistance Program for Immigrants (CAPI), and Low-Income Home Energy Assistance Program (LIHEAP).  County equipment will be replaced in May, 2024.  New cardstock will be delivered to counties in May, 2024

In Summer, 2024, new chip/tap cards will be mailed to anyone with an active case, that is anyone who has accessed benefits in the last nine months.  The new cards will be mailed in three phases.  The first phase will be combined CalWORKs and CalFresh cases, GA, RCA, TCVAP, CAPI and LIHEAP.  The second phase will be cash-only benefits cases.  The third phase will be CalFresh only cases.

The existing PIN will carry-over to the new chip/tap card.  Cardholders will need to enter the PIN for each transaction with the chip/tap card.

SunBucks and Women, Infants and Children benefits will not be moved to the new chip/tap cards.

Counties should tell cardholders to use their replacement cards as soon as they receive them.  A successful transaction with the new card will activate it.  Cardholders can also activate their new card using the EBT Edge application, or by contacting the EBT customer service center.  Cardholders will have approximately 45 days after they receive their new card before their old magnetic stripe card will be unusable.

CDSS will monitor activation data and do direct outreach to cardholders who receive their new card but do not activate it.

Counties should refer questions to the EBT customer service center.

Any remaining magnetic stripe cards will be deactivated approximately 60 days after mass replacement is completed.  Cardholders who do not receive a new card can ask for their chip/tap card through the EBT Customer Service or the county.

Some retailers may not have equipment to accept chip/tap cards.  In most of those cases, the EBT card will need fall back to a magnetic stripe or manual key-in transaction.

Cardholders who are unhoused can have their replacement cards mailed to the county welfare department.  County welfare departments will get a list of cardholders who use the county welfare department mailing address for triage.  (ACWDL, June 24, 2024.)

Increase in CalWORKs vehicle value limit

The California Department of Social Services has informed counties that the vehicle value for the CalWORKs program increases to $32,968 effective July 1, 2024. This increase also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victims Assistance Program (TCVAP). The vehicle value is the amount of the value of a vehicle that does not count toward the program resource limit.

The welfare department computer systems will be programmed for the increased vehicle value effective July 1, 2024. (ACL 24-36, May 31, 2024.)

CalWORKs MBSAC increase

The California Department of Social Services (CDSS) has informed counties that the CalWORKs Minimum Basic Standard of Care (MBSAC) will increase by 4.32% effective July 1, 2024. This is an annual cost of living increase. This will increase the MBSAC in Region 1 to $899 for a 1 one-person assistance unit, $1,476 for a two-person assistance unit, $1,829 for a 3 person assistance unit and increasing with increases in assistance unit size. The MBSAC for Region 2 will increase to $853 for a 1 one person assistance unit, $1,401 for a 2 person assistance unit, $1,736 for a 3 person assistance unit and increasing with increases in assistance unit size.

The MBSAC is the maximum income before deductions that a family can have to be eligible for CalWORKs.

The same increase will apply to the MBSAC for Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime Victims Assistance Program. The same increase will apply to the CalWORKs Income in-kind level, which is the maximum amount of in kind income that is counted against the grant. (ACL 24-37, May 31, 2024.)

Changes to CalWORKs recipient financial eligibility test

The California Department of Social Services (CDSS) has issued guidance regarding continuing financial eligibility for CalWORKs recipients.  When a family receiving CalWORKs has an income increase that takes over 130% of the Federal Poverty Level (the Income Reporting Threshold or IRT), they must report that to the county.  This is a report that must be made mid-period when it happens, this is between required semi-annual reports.

Counties must now determine continuing eligibility after an income report of income report determining: 1) whether the income is over the IRT; 2) if it is over the IRT, is it reasonable anticipated to continue; 3) if it is does the income reported, minus any of that income which is exempt from consideration for CalWORKs purposes, is more than the IRT.  If it is, the CalWORKs grant will be recalculated accordingly.  The critical change is subtracting any exempt income before redetermining eligibility and benefit amount.

Families must continue to report when their total gross and unearned income exceeds the IRT, but continuing financial eligibility will be determined after determining if the income is reasonably anticipated to continue, and whether it exceeds the IRT after subtracting exempt income.

This change also applies to Refugee Cash Assistance, Entrant Cash Assistance, and Trafficking and Crime Victim Assistance Program benefits.  (ACL 23-96, December 26, 2023.)