As a result of the Cadaret lawsuit, this ACL was issued to remind counties that Adoption Assistance Program (AAP) payments made to families applying for or receiving CalWORKs are to exempt as income.  Although “effectively immediately,” this instruction is based on a 1990 federal clarification that was implemented through ACL 90-101.  Additionally, if a CWD becomes aware of any cases in which AAP payments incorrectly included AAP as income when determining eligibility for an applicant or when calculating a cash grant for a recipient, the CWD must take corrective action to reevaluate the eligibility and recalculate prior cash grants excluding the AAP payment, and restore any lost benefits. [Download]