CalWORKs: CalFresh: eligibility: income and resource exclusions.

Assembly Member Bryan’s measure would align CalWORKs and CalFresh income rules by excluding certain higher-education-related financial aid from eligibility calculations, while maintaining a separate mechanism to exclude comparable funds for CalFresh to the extent allowed by federal law. Specifically, it would exclude grants, awards, scholarships, loans, and fellowships provided to an assistance unit member for attending an institution of higher education (excluding cash gifts from friends or relatives) from income used to determine CalWORKs eligibility and benefit amounts, and would treat those funds as noncountable resources for CalWORKs eligibility for 12 months after receipt. It would also direct the state to align CalFresh income exclusions with the TANF and certain medical assistance exclusions to the extent permitted by federal authority.

The bill creates parallel implementation requirements for CalFresh, instructing the Department of Social Services to exercise the federal option to exclude from CalFresh income the same types of income excluded for TANF cash assistance and for related medical benefits, to the extent allowed by federal law, regulation, or guidance. The alignment is described as contingent on federal permission and guidance, with the state implementing guidance to counties through an interim mechanism before regulations are adopted. In the CalWORKs context, the new exclusion operates within the existing framework for income and asset determinations and is anchored to the broader structure of the Welfare and Institutions Code’s eligibility rules for cash aid and related grants.

Implementation is structured as an all-county letter or similar directive issued on or before March 1, 2026, to govern initial rollout until regulations are in place. The bill also notes that no ongoing General Fund appropriation is automatically dedicated to implementing the changes, and that local costs would be subject to the state-mandated local program framework if the Commission on State Mandates determines that the act imposes state-mandated costs. Counties administering CalWORKs and CalFresh would be responsible for adjusting their policies and systems, with any mandated-cost reimbursements processed under the standard constitutional and statutory procedures if applicable. The provisions sit within a broader policy intent to harmonize income exclusions across related programs, subject to federal constraints and future regulatory development.