CAPI Cost of Living Increase

The Cash Assistance Program for Immigrants (CAPI) payment standard will increase by 8.7% effective January 1, 2023.  This increase is because the SSI/SSP payment standard will increase by 8.7%.

According to the Welfare and Institutions Code (WIC) §18941, CAPI payment standards are equivalent to SSI/SSP. Accordingly, an increase in cost-of-living adjustment (COLA) standards will lead to an increase in CAPI and SSI / SSP standards. The federal SSI COLA plan will also affect eligibility for the program.

Presumed maximum value (PMV) for in-kind and maintenance will change accordingly from $300.33 to $324.66 for a person and from $440.33 to $477.00 for a couple.

Allowance for ineligible children in deeming situations will change from $420.00 to $457.00. This allowance is used when a CAPI case includes deemed income from an ineligible spouse with a child(ren), or when a CAPI case includes deemed income from an ineligible parent(s) to a child.

Sponsor’s allocation in sponsor deeming situation will increase from $841.00 to $914.00. This allocation is used in a case involving deemed income from a sponsor.

Allowance for parent(s) in parent-to-child deeming situations will increase from $841.00 to $914.00 for one parent and from $1,261.00 to $1,371.00 for two parents. The allowance is used when a CAPI case includes deemed income from an ineligible parent(s).  (ACIN I-71-22, November 8, 2022.)

Treatment of CAPP payments for various programs

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

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.)

COVID-19 CalFresh emergency allotment for November, 2022

California has been approved to issue an emergency allotment of CalFresh for October, 2022.  All households will receive at least the maximum CalFresh allotment.  Households eligible to receive the maximum allowable allotment based on household size are now eligible to receive an emergency allotment of $95 per month. Households who are not eligible to receive the maximum allowable allotment based on household size, but whose emergency allotment would be less than $95 per month to receive the maximum allotment, will receive additional CalFresh benefits to raise their emergency allotment to the $95 minimum.

The Food and Nutrition Service will allow a one-month emergency allotment phaseout after the State-issued emergency or disaster declaration expires. States may request emergency allotment approval for one additional issuance month if the Secretary for Health and Human Services public health emergency declaration remains in place, and the State-issued emergency or disaster declaration has expired or will expire in the current month. The Department will release county guidance via letter if the phase-out emergency allotment is implemented.

The emergency allotment will be issued on December 18, 2022.

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.  There will be a one-month phase out of emergency allotments after the public health emergency is rescinded.  (ACWDL, November 1, 2022.)

Reclassifying CalWORKs overpayments during COVID as IPVs

The California Department of Social Services (CDSS) has issued a clarification that CalWORKs overpayments established during COVID which were originally classified as administrative error must be reclassified as Intentional Program Violation (IPV) if the overpayments are later determined to be fraudulent.

CalWORKs overpayments established on or after August 1, 2021 for the period April, 2020 to or June 30, 2022, must initially be classified as administrative error. However, based on Welfare and Institutions Code section 11004.1, as amended by Senate Bill (SB) 187 (Chapter 50, Statutes of 2022), any of these claims can now be reclassified to IPV if they are later determined to be fraudulent.

Existing processes for issuing adequate and timely notice of action, referring cases to Special Investigations Unit (SIU), and IPV determination are unchanged.

This rule also applies to Refugee Cash Assistance (RCA), Entrant Cash Assistance (ECA), and Trafficking and Crime Victims Assistance Program (TCVAP) cash assistance programs.  (ACL 22-87, October 17, 2022.)

CalWORKs Home Visiting Program increase in material goods payment limit

The California Department of Social Services (CDSS) has informed counties participating in the CalWORKs Home Visiting Program (HVP) of an increase in the material goods fund limit from $500 to $1,000 beginning July 1, 2022. The funds may be spent on multiple items throughout the family’s participation in the HVP. Families currently enrolled in the program who have reached the $500 material goods limit may receive an additional $500 in material goods if they are eligible because the, $1,000 limit is cumulative per case.

Counties should coordinate with home visitors and CalWORKs staff for the distribution of funds for each family served by HVP. The material goods fund is to be used to remove barriers for vulnerable enrolled families and help support family stability. Not all needs will fall into the scope of this. Still, if a need is identified by the home visitor in a participating county, the material goods funds should be offered to eligible families. These funds cannot be used to supplant services already being provided through Welfare-to-Work supportive services, such as, diapers and transportation.

Counties and their contracting agencies must collaborate to establish the process of issuing the material goods funds and have the flexibility to decide how to track the payments of the material goods. CDSS recommends tracking the payments of the material goods in CalWORKs case documentation or the HVP monthly data reporting. CDSS also encourages counties and their subrecipient and/or contractor to make a reasonable effort to track aggregate information on the usage of these funds for ease of reporting and future program improvements.  (ACL 22-86, October 15, 2022.)