Franchise Tax Board and Treasury Offset Program collection updates

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Franchise Tax Board intercepts will continue to be suspended through July 31, 2021 because of COVID-19.  Counties can approve refund requests for individuals with circumstances related to COVID-19 for Franchise Tax Board collections that occurred starting March 1, 2020 through the end of the suspension of Franchise Tax Board intercepts.

Collection of CalFresh overissuances through the Treasury Offset Program are no longer suspended and collections began in early April, 2021.  (ACWDL, April 8, 2021.)

Changes to federal Public Charge rule

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The Department of Homeland Security will not enforce the 2019 public charge rule. As a result, the 1999 interim field guidance on the public charge inadmissibility provision will now apply.  Under the 1999 Interim Guidance, the Department of Homeland Security and United States Citizenship and Immigration Services will not consider receipt of Medi-Cal (except for long-term care, public housing or CalFresh as part of determining public charge inadmissibility.  Public cash assistance for income maintenance, including CalWORKs, Supplemental Security Income (SSI), Cash Assistance Program for Immigrants and general assistance/general relief.

However, receipt of benefits alone will not automatically cause a public charge determination.  Receipt of benefits is only one factor among several considered as part of the totality of circumstances determination for whether someone is likely to become a public charge.  Receipt of benefits by family or household members is not considered for public charge purposes.

Medical testing, treatment, and preventative services for COVID-19, including vaccines, is not considered for public charge purposes. (ACL 21-32, March 15, 2021.)

COVID-19 CalFresh emergency allotment for April 2021

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COVID-19 CalFresh emergency allotment for April 2021

California has been approved to issue an emergency allotment of CalFresh for April, 2021.  All households will receive at least the maximum CalFresh allowment.  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 is less than $95 per month to receive the maximum allotment will receive additional CalFresh benefits to raise their emergency allotment to the new $95 minimum.

The emergency allotment will be issued on May 16, 2021.

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, April 16, 2021.)

Increase in SNAP emergency allotment

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The United States Department of Agriculture has authorized paying an emergency Supplemental Nutrition Assistance Program (SNAP, CalFresh in California) to households that are receiving the maximum allotment.  Starting in April, 2021, households that had not receive at least $95 in increase benefits through emergency allotments during COVID-19 will receive emergency allotments such that they receive at least a $95 emergency allotment.

This policy changes reverses the Trump Administration’s interpretation of the Families First Coronavirus Act and resolves two lawsuits filed about that interpretation. (USDA Press Release No. 0064.21, April 1, 2021.)

CalFresh extension of allotment increase and treatment of unemployment insurance and child tax credit

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The 15% increase in CalFresh benefits because of COVID-19 has been extended by the American Rescue Plan Act of 2021 to September 30, 2021.  The minimum benefit is increased to $19.  Income deductions are unchanged.

The $300 per week Pandemic Unemployment Compensation benefit is excluded as income or a resource.  Pandemic Unemployment Assistance benefits for persons who were independent contractors or self-employed and lost employment because of COVID-19 count as income for CalFresh.  Pandemic Emergency Unemployment Compensation that provides additional weeks of Unemployment Insurance counts as income for CalFresh.

Individual rebates and child tax credits under the American Rescue Plan Act of 2021 are excluded as income for CalFresh and do not count as a resource for 12 months.  (ACL I-24-21, April 1, 2021.)

Information from third-party payroll sources

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The California Department of Social Services (CDSS) has issued new instructions regarding how counties should act on information received from a third-party payroll source.

Counties must verify all discrepant information received from Income Eligibility and Verification System (IEVS).  Clients are given the first opportunity at verification by the county sending the client a 10-day verification letter.  If the client fails or refuses to respond to the 10-day letter, the county must contact the appropriate income or benefits source.  CDSS considers employers and third-party payroll sources such as The Work Number to be appropriate sources for verifying IEVS discrepancies.  If the source verifies the IEVS discrepancy, the county must take action or document that no action is required.

For CalFresh, if the client does not respond and the income source does not provide sufficient information to verify a discrepant IEVS match, the county terminate CalFreh benefits.

For CalWORKs, if the income source does not provide sufficient information to verify a discrepant IEVS match, the client’s sworn statement is sufficient.  If the client fails to respond, the county must document the discrepancy for resolution with the client by the next semi-annual report or annul redetermination.  If the client does not provide sufficient information to resolve the discrepancy, the semi-annual report or annual redetermination will be considered incomplete and CalWORKs will be discontinued.

If an appropriate third-party payroll source provides information beyond what as reported in an IEVS match, the county must try to verify the discrepancy by sending the client a verification letter.  If the client fails or refuses to respond with sufficient information to resolve the discrepancy, the county must consider the income from the third-party payroll source to be verified and determine its effect on eligibility accordingly.  This includes any overpayments or overissuances for months the client did not report income over the Income Reporting Threshold, and any effect on current benefit amounts.

ACLs 16-118 and 19-08 regarding the Work Number being used in conjunction with, but not in lieu of, existing income and eligibility sources, is superseded.  (ACL 21-16, March 25, 2021.)