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What changed?
Effective January 1, 2026, the maximum resource limit will increase by 3.42 percent, based on the California Necessities Index (CNI) for the most recent fiscal year.
Note: Changes are shown highlighted in grey throughout the document.
Under CalWORKs, applicants/participants may retain countable property within the following limits to be eligible for aid:
$18,829 if at least one Assistance Unit (AU) member is age 60 or older or disabled; and
$12,552 for all other families.
This limit is separate and apart from the amount in a restricted bank account or a California Achieving a Better Life Experience (CalABLE) account.
All property must be reported by the applicant/participant to the County at the time of:
Intake;
Renewal (RE); and
Semi-Annual Reporting (SAR) (SAR 7, Eligibility Status Report).
Staff are to submit a property inquiry to the Property Services Unit (PSU) via email when the assessed value of real property is not known or when the real or the personal property is over the limit and the ownership of the property is questionable.
Note: All staff must ensure the PSU’s contact information is not shared with the public.
Assembly Bill (AB) 1542 established the State’s Welfare Reform Program, CalWORKs. Limits on property holdings have been set high enough that a person does not need to be completely destitute to qualify for aid. These property limits ensure that persons who own sufficient property to provide the necessities of life for themselves do not receive aid intended for those in greater need. The property limits that applicants/participants can retain and remain eligible for aid are described in this release.
Effective January 1, 2016, applicants/participants can open a CalABLE account as a result of the federal ABLE Act of 2014, California Senate Bill (SB) 324, and AB 449 signed October 11, 2015. CalABLE accounts allow qualified individuals who became disabled prior to the age of 26 to open tax-advantaged savings accounts in California or in any state offering a national plan. The CalABLE Act Board has been established to create and administer an online portal where CalABLE accounts can be opened.
The following chart exhibits resource limits CalWORKs applicants/participants may retain as countable property to be eligible for aid:
Bill Effective Date Resources limit for AUs with at least one household member age 60 or older Resource limit for all other AUs SB 80 (Chapter 27, Statutes of 2019) 06/27/2019 $15,000 $10,000 SB 80 (Chapter 440, Statutes of 2019) 07/01/2021 $15,317 $10,211 01/01/2023 $16,333 $10,888 01/01/2024 $17,452 $11,634 01/01/2025 $18,206 $12,137 01/01/2026 $18,829 $12,552
Background information on vehicle equity values and allowable vehicle limits may be found within Administrative Release (AR) 42-215 Determining Value of Property – Vehicles .
California Kids Investment and Development Savings (CalKIDS)
CalKIDS is a college savings program for California children born on or after July 1, 2022, and low-income eligible students identified by the Local Control Funding Formula (LCFF) who are enrolled in grades 1 through 12. This program is subject to availability of funding. Additional details about this program are outlined within the CalKIDS Section below.
Property can be categorized as one or more of the following:
Real property;
Personal property;
Excluded property;
Jointly owned property; and
Lump-sum income.
Real Property :
Real property is defined as land and improvements including immovable property attached to land, such as trees, fences, buildings, and/or property held for profit etc.
Real property is not cash, bonds, or similar assets.
Personal Property :
Personal property consists of all property excluding real property.
Cash assets which are a form of personal property consist of cash on hand and cash equivalent items, such as money in checking or savings accounts, savings certificates, trust deeds, notes receivable, stock or bonds, non-recurring lump-sum payments, funds held in Individual Retirement Accounts (IRA), and funds held in Keogh Plans.
Other personal property includes personal effects, household equipment and furnishings, tools, and equipment.
Excluded Property :
The following are excluded from determination of the AU’s property/resource:
Real property held in a trust if the child or parent does not have control of the trust of which they are the beneficiary.
Separate and community share of real property: Of a parent who has surrendered full custody of a child due to a court order; Of a parent who has relinquished their child for adoption; Of a father of a child who is not married to the mother and the parents are not maintaining a home together; Of a stepfather; or Of an absent parent which are unavailable to the CalWORKs family or child.
Native American Indians interest in land held in a trust by the United States (U.S.) government.
Vehicle (mobile home, camper, car, etc.) - May be excluded, even during periods of temporary absence, if it is determined that the AU is occupying these as a residence.
Survivors of Domestic Abuse - The personal property (e.g., vehicle, etc.) of an applicant with children who is temporarily residing in a Domestic Violence shelter is considered inaccessible if at the time of application, the personal property: Is jointly owned by the applicant and a member of the former household from which the applicant/participant fled; and The access to the resource/property requires the consent of both the applicant and the member of the former household.
Household items - The following household items may be excluded: Household goods (such as furniture); and Personal effects (such as clothing).
One burial plot per AU member;
The cash value of: Life insurance policies; and Pension plans/funds.
Home – The home that the AU resides in is excluded. Note: Only one home may be excluded from real property consideration, and if the property is not being used as the primary residence, the value must be included in the property limit.
Home – The applicant/participant leaves the home due to marital separation. The home is excluded from the evaluation as real property as follows: The usual home of an applicant is exempt when determining eligibility for three months following the end of the month in which aid begins; The usual home of a participant is exempt during the month of separation and for three months following the month in which the separation occurs; At the end of the three months, a determination as to the home’s availability to meet current needs must be made; and At the time the exemption is given, the applicant/participant is informed verbally and in writing that the: Home was not considered in determining eligibility; Home will be evaluated in three months; and Cash grant may be terminated if the home is treated as real property and the combined property exceeds the property limit.
Home – During periods of temporary absence.
The home is excluded from the property evaluation even during periods of temporary absence for reasons such as illness, seasonal employment, visits, extreme climatic conditions, etc. For additional information regarding temporary absence rules, refer to AR 82-812 Temporary Absence .
Therefore, the home that the applicant/participant is not living in can be excluded from property evaluation as long as the applicant/participant plans to return to the home when such circumstances no longer exist.
Note: Only one home may be excluded from consideration as real property.
When the home is not occupied by the AU for reasons other than marital separation or temporary absence and is not used as the primary residence, the property cannot be excluded , and the home must be included in the property limit evaluation.
Jointly Owned Property :
Jointly owned property is property acquired by the husband or wife during marriage. It includes property purchased with community funds, which include earnings of the spouses while married and living together, income derived from community property, and funds received from the sale of community property.
Each spouse is presumed to own one-half interest in community property.
All property held in the name of the spouse of a married person is presumed community property unless established otherwise.
When a child lives with their mother and stepparent, each spouse is recognized as owning one-half interest in the property held by either spouse. Note: Exceptions to community property are burial trusts and burial plots which are considered the separate property of a spouse or beneficiary.
Lump-Sum Income :
Lump-sum income (non-recurring) is treated as a resource in the month received. The SAWS 2 PLUS, Application for CalFresh, Cash Aid, and/or Medi-Cal Health Care Programs, RE, or SAR 7 are used to determine continuing resource eligibility for the family for the entire upcoming SAR or Annual Reporting/Child Only (AR/CO) Payment Period.
If the participant reports lump-sum income mid-period, the County cannot take any action to discontinue the case for exceeding the resource limit. Under SAR and AR/CO rules, resource eligibility is determined only once per Payment Period, based on the information reported on the application, SAR 7, or RE.
Some examples include:
Income tax refunds; Note : Effective January 1, 2013, both State and federal Earned Income Tax Credit (EITC) payments and refund payments are exempt from resource consideration for CalWORKs applicants/participants for 12 months, starting with the month of receipt of the payment.
Rebates or credits;
Retroactive lump-sum social security;
Railroad retirement benefits;
Retroactive payments from the approval of any assistance program, even if it was due to a court order;
Supplemental or corrective payments received for a previous month assistance program;
Lump-sum insurance settlements;
Refunds of security deposits, rental properties, or utilities;
Lottery winnings received in single payments; and
Disaster relief payments.
Disability :
Adults
Adults are considered disabled if the disability significantly impairs their ability to be employed on a regular basis or to participate in Welfare-to-Work (WtW) activities and receive:
State Disability Insurance;
Workers’ Compensation Temporary Disability Insurance;
In-Home Supportive Services; or
Supplemental Security Income (SSI)/State Supplementary Payment (SSP).
Refer to AR 41-400 Deprivation for policy and procedures on determining the Deprivation due to Incapacity.
Children
Children are considered disabled if they meet any of the following:
Receive or have received SSI/SSP in the past;
Receive or have received services in the past through a Regional Center Program pursuant to the Lanterman Act;
Receive or have received services in the past at school in accordance with their Individual Education Plan (IEP) or Section 504 Accommodation Plan; or
Provide verification of a current or past disability by a health care provider or a trained, qualified learning disabilities evaluation professional, or authorize the County to obtain information to verify the child’s disability.
Refer to AR 40-105.5 School Attendance Requirement for policy and procedures on how to identify disabled students.
CalABLE Account
CalABLE accounts are federally known as ABLE accounts. A CalABLE account is a tax-advantaged savings account that allows individuals with disabilities to save and invest money for disability-related expenses called Qualified Disability Expenses (QDEs) without losing eligibility for benefits to public programs, such as CalWORKs, CalFresh, and SSI.
Individuals can open a CalABLE account through the CalABLE online portal.
Eligibility
CalABLE accounts are not considered resources , and any interest earnings from fund performance are not subject to federal income tax when used as a QDE.
Eligibility to open a CalABLE account is determined by the financial institution at the time the applicant applies for an account. An account can be opened if an individual is:
Eligible for, or currently receiving, SSI or Social Security Disability Insurance (SSDI) benefits as a result of their disability and the disability occurred before age 26;
Able to verify that they have been living with their disability for at least one year or they must expect their disability to last for at least one year;
Able to verify that their condition is listed on the Social Security Administration’s (SSA) List of Compassionate Allowances Conditions; or
Able to provide “self-certification” of their disability and diagnosis when opening the account. Self-certification means that the individual has a written, signed diagnosis from a licensed physician, and one of the following conditions was met: The individual is either blind, within the meaning of Section 1614(a)(2) of the Social Security Act; or The individual has a medically determinable physical or mental impairment that results in “marked and severe functional limitations which can be expected to result in death or has lasted or expected to last for a continuous period of not less than 12 months.”
Limits
For CalWORKs purposes, the designated beneficiary of a CalABLE account is able to save up to $100,000 and a maximum yearly contribution of $15,000. Contributions can be made by the account owner, beneficiary, family member, or friends. The account owner/beneficiary can contribute more than $15,000 when the owner/beneficiary does not participate in an employer-sponsored retirement plan. The additional contribution must be whichever is lower between the following:
An amount equal to the annual gross salary; or
Federal Poverty Level of $15,650 in 2025.
Note: Each state determines the maximum contribution limits as well as the maximum annual contributions.
Reduction of Unearned Income
Participants can reduce their unearned income by making or increasing their contributions to a CalABLE account.
This decrease also applies to participants receiving SSDI and other disability benefits.
Examples of those disability benefits include:
State Disability Insurance benefits;
Private Disability Insurance benefits;
Workers’ Compensation Temporary benefits;
Social Security Disability benefits; and
Veteran’s Disability Compensation benefits.
Withdrawals
Each time a QDE withdrawal is made, the applicant/participant must inform Eligibility staff of the intended usage of the withdrawal and provide verification of how the disbursements were used. Any withdrawals used toward QDEs are not counted as income.
The Internal Revenue Service receives monthly disbursement records to use for audit purposes and the SSA receives monthly account balances of beneficiaries receiving SSA benefits, including SSI.
Note:
In California, the CalABLE online portal www.CalABLE.ca.gov was officially launched December 18, 2018, which allows individuals to open a CalABLE account .
California residents can open CalABLE equivalent accounts in any state offering a national plan. CalABLE equivalent accounts opened in other states must abide by ABLE requirements set in that state.
Staff can review the ABLE National Resource Center website to identify states where disabled individuals can open a CalABLE account or its state equivalent. Staff can also visit the California State Treasurer CalABLE website: www.treasurer.ca.gov/able/ for more information on the CalABLE Program.
Participant Outreach
The purpose of a CalABLE account is to help individuals with disabilities maintain or improve their health, independence, and quality of life. As such, staff must inform disabled participants that they can open a CalABLE account and save up to $100,000. Staff should refer disabled participants to the California State Treasurer CalABLE website: www.treasurer.ca.gov/able/ or the ABLE National Resource Center website: http://www.ablenrc.org/ .
CalKIDS Account
It is a college savings program for California children born on or after July 1, 2022, and low-income eligible students identified by LCFF who are enrolled in grades 1 through 12 as of July 1, 2022; this program is subject to availability of funding.
Households do not have direct access to the funds in the account. Instead, the funds are distributed directly to the higher education institutions on behalf of the participants to pay for qualifying higher education expenses.
The following two populations will benefit from CalKIDS:
Newborns SB 77 (2019): CalKIDS was created in 2019 which opens a college savings account for every newborn child in California as of July 1, 2022, regardless of income and provides an initial seed deposit of at least $25 in each account. Additional financial incentives are provided as follows: $25 for registering on the CalKIDS Parent Portal; and $50 when linking an existing or new ScholarShare 529 college savings account to a CalKIDS account.
Low Income Public School "or" State Special School Students: AB 132 and the passage of the American Rescue Plan Act (2021) : Established CalKIDS as an ongoing program to include low-income public school students in grades 1 through 12 who qualify for free or reduced lunch, are homeless, or are in foster care who will receive an initial seed deposit of $500 as long as they are identified by LCFF. If the child is identified as foster youth and/or homeless, an additional $500 for each circumstance is deposited in their account for a maximum deposit amount of $1,500 ($500 initial seed deposit, $500 if foster youth, and $500 if homeless).
SB 169 (2021) : Expanded eligibility for CalKIDS to include students attending State special schools.
Additional information on the program can be found on the CalKIDS Website .
Treatment of Income
Since the assets and money in these accounts are owned by the State, the funds are not counted as income or resources as the income is not available to the AU. Funds deposited and investment returns originating from a CalKIDS account are also not considered in the eligibility determination or grant calculation for CalWORKs applicants and participants.
Note: The same rules apply to all CalWORKs State and County Homeless Assistance Programs, and the CalWORKs Housing Support Program.
Owner of Real Property
The person(s) who has the right to possess, use, control, and dispose of the real property is considered the owner. The ownership of the property may be one individual or shared with others.
Fair Market Value (FMV)
The amount for which property (real or personal) would sell on the open market if put up for sale.
For purposes of real property addressed in this release, FMV is the applicant’s/participant’s choice of:
The assessed value; or
A valuation of the market value obtained by the applicant/participant from a licensed real estate broker.
Net Market Value – For Real Property Only
The net market value is the highest price that real property, less encumbrances, will bring in a sale by a willing seller to a willing buyer in the ordinary course of business.
Liquidated Sum
The amount of money that can be gained from the sale or disposition of real property.
Transfer of Property
A transfer of property is a change of ownership whereby an applicant/participant through such transfer has rid themselves in whole or part of a resource actually available to them.
Period of Ineligibility (POI)
A POI is applied when:
The participant/AU gives away or transfers, for less than the FMV, non-excluded property (including cash) to become eligible to receive cash aid. The POI is computed based on the amount that is added to other countable property and exceeds the property limit if the property was transferred at FMV.
There is an unallowable restricted account withdrawal.
See the Procedures Section for detailed information on how to compute a POI.
Minimum Basic Standard of Adequate Care (MBSAC)
The POI can be shortened when there has been an increase in the MBSAC (cost-of-living increase) or the participant/AU is eligible for a special need.
Conversion of Property
When an applicant/participant changes an existing resource from one form to another.
Separate Property – General
Separate property includes:
Property acquired by the husband or wife prior to marriage.
If either spouse acquires property by gift or inheritance, after marriage, the property is the separate property of that spouse.
Property acquired during marriage remains separate property if purchased with funds which are the separate property of the owner, such as funds received from the sale of separate property or property received by gift or inheritance.
Separate Property – Derived from Income
If the spouses are living apart from each other, the income of each spouse is the separate income of that spouse in the month of receipt and separate property if retained past the month of receipt.
Marital Separation
Spouses are considered separated if they:
Have obtained a temporary court order;
Have a final judgment of marriage dissolution;
Are legally separated; or
Are living separate and apart from each other, and they consider their marital relationship to have ended.
Restoration (Reapplication) of Aid
A restoration (reapplication) of aid is when a former participant who was a participant of the same category of aid in the same county reapplies for aid. This is also referred to as a “reapplication” of aid.
Aid is considered restored only if CalWORKs has been discontinued for 12 months or less at the time of the current application.
The reapplication is still considered a new application as long as there has been a valid break-in-aid of at least one day and is subject to the Applicant Test.
The applicant should not be required to furnish any documentation previously provided to the County except under the following conditions:
The documentation is missing from the case record; and
The documentation affects eligibility or amount of aid for the month of restoration.
Note: For purposes of this AR the term “restoration” is different than the restoration of aid following discontinuance due to non-receipt or incomplete SAR 7.
Property that is Actually Available
Non-exempt real property must be considered available unless the applicant/participant can obtain and provide verification that their property is currently unavailable.
The applicant/participant must be given a reasonable period to obtain such verification.
The property is excluded from consideration during this period. The exclusion period must be determined on a case-by-case basis.
The extent to which an applicant/participant must obtain such verification should be a determining factor in establishing the exclusion period.
Whose Resources to Count
The resources of the following family members are included when determining resource eligibility:
AU Members All AU members including those who are penalized due to: Immunizations; or Intentional Program Violation (IPV) after 1/1/98.
Non-AU Members Ineligible noncitizen parents; Ineligible noncitizen siblings; and Excluded father in a Pregnant Person Only case.
Excluded People Failure to: Assign child support rights; or Verify citizen/and noncitizen status. WtW sanctioned; Social Security Number disqualified; Time expired parent(s); Fleeing felons; Probation and parole violators; and IPV prior to 1/1/98.
Whose Resources to Exclude
The resources of the following family members are excluded when determining resource eligibility:
AU Members Adults or children temporarily residing in a shelter for battered persons.
Non-AU Members Unaided stepparent and stepsiblings; Unaided senior parent(s) and their other children; and Unaided halfsiblings excluded for no deprivation.
Excluded People SSI/SSP and Cash Assistance Program for Immigrants participants; Children receiving Foster Care, Approved Relative Caregiver, Kin-GAP, Emergency Caregiver, or AB 110 payments; Non-needy caretaker relative and their spouse; Spouse of a needy caretaker relative; Siblings ineligible due to age; and Unaided, unmarried parent of a child in common for whom there is no deprivation.
Real Property Exceeds the Resource Limit
When the real property (other than a home) exceeds the resource limit, the AU must make a “good faith” effort to sell the real property, not otherwise excluded, even if the property is producing income.
The property may be exempt from consideration in the resource limit for no more than nine consecutive months.
Note: If within nine consecutive months, the applicant/participant decides not to sell the property, the property is counted toward the resource limit.
Before aid is approved/authorized, the applicant/participant must complete/sign (in duplicate), the following:
CW 81, Lien Agreement – The agreement grants a lien against the property which is payable to the County when the property is sold.
CW 82, Agreement to Sell Property – The applicant/participant agrees to immediately make a “good faith” effort to sell the property.
In order to make a “good faith” effort to sell property, the applicant/participant, at minimum, must :
List the property for sale with a licensed real estate broker and be willing to negotiate the terms of the sale with potential buyers;
Make an effort to sell property, which must include all of the following: Advertise once a week, in at least one newspaper, that the property is for sale; Place a “for sale” sign that is visible from the street; and Be willing to negotiate the price/terms of the sale with potential buyers.
Immediate Need (IN)
An applicant with excess real property, who is otherwise eligible for IN, may be issued IN payment as long as they sign the CW 81 or CW 82.
Retirement and Education Accounts
Retirement and education accounts are exempt from consideration in the property/resource.
The following accounts are exempt when evaluating property for both CalWORKs applicants and participants :
401(k);
403(b);
457; and
CalKIDS.
The following accounts are exempt when evaluating property for CalWORKs participants only :
529, College Savings Plan;
IRA; and
Educational savings accounts. Exception: CalKIDS is exempt for both applicants and participants.
Transfer of Property
The receipt of aid does not limit or restrict the right of applicants/participants to give, receive, sell, exchange, or change the form of property.
While transfer of property rules do not apply to applicant families, a POI is applied when a participant in the AU gives away or transfers, for less than the FMV, non-excluded property, including cash.
See the Procedures Section for detailed information on how to determine a POI.
Restricted Accounts
In addition to the $12,552 ( $18,829 if an individual is 60 years of age or older or disabled) property limit, a participant can maintain funds in a restricted account. There is not a limit to the amount of funds held in a restricted account. The account can be held at any financial institution, such as a bank, credit union, savings, and loan, etc.
The money in a restricted account is exempt provided the following requirements are met:
The money saved in a restricted account can only be spent for one or more of the following allowable purposes : Purchase of a home; Education or training; Startup of a new business; or Homeless prevention.
Before an account can be designated as “restricted,” the parent/caretaker relative must sign an agreement which sets forth the requirements, restrictions, and penalties: A CW 86 LA Agreement – Restricted Account, must be completed and signed which outlines the requirements, restrictions, and penalties;
Verification of the account must be provided within 30 calendar days from the date the CW 86 LA was signed and dated, which must include: Name of persons on the account; Institution; Account number; Balance and activity; and Specific purpose (purchase of a home, education or training, startup of a new business, or homeless prevention).
The applicant/participant must establish and maintain a separate account from the restricted account.
Interest Exemption
Interest earned on a restricted account is exempt as income. The interest must be deposited to the restricted account by the financial institution.
Direct Deposit: Interest that is not directly deposited into the account is a non-qualifying withdrawal.
Erroneous Receipt : When the interest is not deposited directly into the account due to a financial institution error, known as erroneous receipt, the AU is allowed 30 calendar days from the date of receipt to deposit the interest into the restricted account.
Restricted/CalABLE Account Withdrawals
Qualifying Withdrawal: The AU is allowed 30 calendar days from the date of withdrawal to spend funds and provide verification for one of the allowable purposes. Verification such as a receipt, cancelled check, or signed statement from the provider who provided goods and services, must reflect the withdrawal date and amount. .
Non-Qualifying Withdrawal: The County determines that a non-qualifying withdrawal has occurred when it is found that: Non-cooperation exists; Non-allowable purpose exists; or There is a receipt of interest income that is not deposited directly into the restricted account.
Note: Before starting a restricted account, the participant should have cash and other resources to pay for unexpected expenses. The money cannot be used to pay for emergencies, not even when the emergency is due to a death or life-threatening situation.
Good Cause: The County will determine that “Good Cause” exists for exceeding the 30 calendar-day time limit to provide verification when: Circumstances beyond the AU’s control exist; or The AU complies before the effective date of the Notice of Action (NOA).
POI: When the County determines that a non-qualifying withdrawal exists, the County must: Calculate the POI to determine how many months the participant is ineligible to receive CalWORKs benefits; and Apply the POI – The POI begins on the first day of the month of the next SAR or AR/CO Payment Period following the reported non-qualifying withdrawal on the SAR 7 or SAWS 2 PLUS and will continue for the determined number of months.
Termination of a Restricted Account
A restricted account is terminated when:
CalWORKs is terminated;
The restricted account is closed;
The participant does not provide timely verification/proof of the account information; and/or
State or federal law changes the conditions or no longer permits these restricted accounts.
CalABLE QDE Withdrawal
A QDE can be used for a medical expense as well as for basic living costs, such as:
Education;
Housing;
Transportation;
Employment training and support;
Assistive technology and personal support services;
Health;
Financial management and administrative services;
Legal services; and
Funeral and burial expense, and other expenses.
Note: In California, the CalABLE online portal was officially launched on December 18, 2018.
Vehicles
See AR 42-215 Determining Value of Property - Vehicles
Sponsored Noncitizens
Sponsored Noncitizens: The property of the noncitizen’s sponsor and those of the sponsor’s spouse who lives with the sponsor are treated as the sponsored noncitizens resources.
Multiple Sponsored Noncitizens: When there are multiple sponsored noncitizens, the deemed resources from the sponsor must be divided by the total number of sponsored noncitizens receiving CalWORKs, including the number of sponsored noncitizens in the applicant’s AU.
Trust Funds
Resources which have a cash value that are not accessible to the AU may include irrevocable trust funds.
Any funds in a trust and income produced by the trust are considered inaccessible to the AU if all of the following are met:
The trustee administering the funds is a court, institution, corporation, or organization which is not under the direction/ownership of an AU member or an individual appointed by the court who has imposed limitations;
The funds held in an irrevocable trust are: Established from the AU’s own funds (funds must be used to make investments on behalf of the trust or pay educational/medical expenses) of any AU member named by the AU who created the trust; or Established from a non-AU member funds by a non-AU member regardless of how funds will be used.
The trust investments do not involve/assist any business/corporation under the control/direction/influence of an AU member;
The trust arrangement will not end during the RE period; and
An AU member does not have the power to revoke the trust arrangements/change the name of the beneficiary during the RE period.
PSU
Real Property :
Eligibility staff can initiate a referral to the PSU via email when the assessed value of real property is not known, or when the property is over the limit and the ownership of the property is questionable. This includes situations in which records are complex or unclear.
For additional information regarding the PSU referral process and support services provided by the PSU, refer to the Office Operations: DPSS Property Services Unit.
Real property can include a home or land, and can also include property that is:
Outside of the U.S.;
In another state when the assessment rate is unknown;
Located in military occupied areas; or
Jointly owned by parents who are separate.
Personal Property
A referral to the PSU should be initiated when the ownership of personal property is questionable. Personal property can include vehicles, bank accounts, or stock.
The PSU can verify ownership; however, the PSU is not able to verify account balances or confirm motor vehicle value.
As a result, the PSU should only be contacted for personal property when:
Ownership of the property is questionable and
The value of the property is over the limit or
The value is not known but is believed to be over the property limit (once ownership is confirmed by the PSU, acceptable verification to verify the value would be requested from the applicant/participant).
For additional information regarding the PSU referral process and support services provided by the PSU, refer to the Office Operations: DPSS Property Services Unit.
Property Verification
Examples of property and resource verification include, but are not limited to the following:
Vehicle registration;
Proof of loans or debts/liens on property;
Statement of joint ownership;
Mortgage bill(s);
Property deed;
Bank statements, bank deposits, bank withdrawals;
Life insurance policy, stocks, bonds, IRAs;
Most recent retirement account statement(s);
Sponsor statement form;
Settlements, such as lawsuits and insurance claims;
Burial plots/crypts; and
Affidavits.
Affidavit
When no verification exists or cannot be obtained, a sworn statement shall be considered adequate, except for verification of citizenship or alienage status and/or medical verification of pregnancy.
Although the SAWS 2 PLUS and SAR 7 reports do not normally suffice as an affidavit, if those documents indicate that verification does not exist or cannot be obtained but does not impact eligibility (for example, a declaration of no property or property within the resource limit), Eligibility staff must consider these signed forms as a complete affidavit.
Good Faith
“Good faith” effort is defined as when the applicant/participant has attempted to comply within the limits of their resources.
The applicant/participant must be notified in writing of the requirement that they must make a “good faith” effort to obtain the necessary verifications and that the County may assist the applicant/participant if they so choose.
The CW 2200 Request for Verification , informs applicants/participants of their responsibilities, requirements, and rights regarding verifying their eligibility for benefits.
If the applicant/participant asks for help getting proof and an authorization to release is needed, there are different release of information forms required for different types of information, including, but not limited to the ABCDM 228 Applicant’s Authorization for Release of Information, the CW 60 Release of Information – Financial Institution, and the CW 61 Authorization to Release Medical Information.
A current ABCDM 228, Applicant’s Authorization for Release of Information, must be on file to submit an inquiry to the PSU.
See Examples Section for additional information.
Reapplication/Restoration
When a participant reapplies for aid within one year from the effective date of discontinuance, and the required verification is either not easily accessible, has a cost, or may delay the processing of the application. Eligibility staff must review the prior case record to determine if the required verifications in the possession of the County. If the required verification is in the case file, Eligibility staff may not require the participant to resubmit. Applicants must be informed of these provisions in writing at the time of the application.
Restricted Account Withdrawal
Withdrawals must be spent within 30 calendar days from the date of the withdrawal. If the amount withdrawn is less than the expense, the participant must redeposit the money to the restricted account within 30 calendar days of withdrawal.
Within 30 calendar days of spending the withdrawn funds, the participant must provide:
The account balance before the withdrawal;
The date and amount of the withdrawal; and
The receipt (check or provider’s signed statement) verifying the amount withdrawn and the type of goods provided.
If the participant does not spend the withdrawn money for the appropriate purpose within the 30 calendar-day period, or provide verification of the expenditure, the withdrawal is NOT allowed unless “Good Cause” exists. See the Good Cause Section for further information.
Examples of Proof
Allowable Purpose Examples of Proof For the purchase of a home to live in Deposits, fees, down payment, and principal payment; Closing costs; or Repairs and fixtures. Note: Allowable expenses do not include the purchase of furniture or household goods. Education or job training Fees, tuition, books, and school supplies; Equipment and special clothing needs; Student housing and meals; Cost of transportation to and from; School/vocational training; and/or Child care services needed to attend school. Starting a new business Purchase, repair, and upkeep of business equipment; Tools, uniforms or other protective or required clothing and shoes; Payment on loan principal and interest for business assets or durable goods; Rent and utility payments for office or floor space; Employee salaries; Inventory, shipping, and delivery costs; and/or Business fees, taxes, insurance, bookkeeping, or other professional services. Note: Allowable expenses do not include personal expenses, such as entertainment.
QDEs
Examples of acceptable documents.
Allowable Purpose Examples of Proof Education Fees, tuition, books, and school supplies; Equipment and special clothing needs; Student housing and meals; Cost of transportation to and from school; School/vocational training; and/or Child care services needed to attend school. Housing Deposits, fees, down payment, and principal payment; Closing costs; or Repairs and fixtures. Transportation Receipts from the use of mass transit; Purchase or modification of vehicles; or Receipts from moving expenses. Employment training and support Expenses related to obtaining and maintaining employment; or Job related training. Assistive technology and personal support services Expenses for technology devices and personal support that help people with disabilities carry out daily activities. Health Premiums for health insurance; Mental health, medical, vision, and dental expenses; Habilitation and rehabilitation services; Medical equipment; Therapy; Respite care; Long-term services and devices; Nutritional management; Communication services and devises; Adaptive equipment; or Personal Assistance. Financial management and administrative services Bank Statements. Legal services Fees related to legal services. Funeral and burial expense, and other expenses Burial plot; or Coffin
Verification of Disability
Adults
The following types of verifications can be received:
An award letter or pay stubs that the participant receives Old Age Survivors and Disability Insurance, SSI/SSP, Workers’ Compensation, or State Disability Income benefits based on the parent’s disability (physical/mental) or blindness; or
CW 61, Medical Report or other written statement from a physician, licensed/certified psychologist, or an authorized member of their staff with access to the patient’s medical records.
Children
The following types of verification can be received:
An SSI/SSP award letter;
A statement from the Regional Center;
An approved copy of the child’s IEP or Section 504 Plan; or
An independent verification of a current or past disability by a health care provider or a trained, qualified learning disabilities evaluation professional.
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What changed?
Effective July 1, 2026, the maximum value allowed for non-exempt vehicles increased by 0.38 percent from $33,499 to $33,626 . The system was programmed on June 30, 2026, with the increased value of $33,626 which is applicable July 1, 2026.
Note: Changes are shown highlighted in grey throughout the document.
The following rules apply to registered and unregistered vehicles even if the vehicle is not operational:
CalWORKs applicants/participants can retain non-exempt vehicles with an equity value of $33,626 or less. Any equity value in excess of $33,626 will be counted toward the Assistance Unit’s (AU’s) resource limit.
CalWORKs participants must complete a CW 80, Self-Certification Form for Motor Vehicles – CalWORKs, for any vehicle(s) owned that was not previously reported during the initial Application, SAR 7, Eligibility Status Report, or Renewal (RE). This form allows a participant to self-certify the: Exemption reason; Fair Market Value (FMV) of the vehicle(s); and Amount of encumbrances, if any.
CalWORKs applicants/participants can request a vehicle exemption for any vehicle(s) that has been transferred to the applicant/participant as a gift, donation, or family transfer.
All County Letter (ACL) 13-111, dated December 31, 2013, provided changes in the vehicle property limit and evaluation, which became effective January 1, 2014. The changes included an increase in the vehicle’s property limit to $9,500 and the release of the CW 80 for applicants/participants to identify and self-certify the value of vehicles.
The CW 80 was revised via ACL 15-27, dated February 28, 2015, to exempt a vehicle from the equity value if it is used by a member of the AU under the age of 18 under certain conditions. This exemption was removed with the release of ACL 18-76, dated July 2, 2018, as Assembly Bill 74 (Chapter 21, Statutes of 2013) did not include this exemption into current law.
ACL 19-67, dated July 26, 2019, increased the maximum allowed for non-exempt vehicle equity value to $25,000 effective June 1, 2020. The change is pursuant to Senate Bill 80 (Chapter 27, Statutes of 2019).
ACL 21-38, dated April 2, 2021, increased the maximum allowed for non-exempt vehicle equity value from $25,000 to $25,483, effective July 1, 2021. The increase was adjusted in accordance with the increase of 1.93 percent reflected in the United States (U.S.) Transportation Consumer Price Index (CPI).
ACL 23-47, dated May 30, 2023, increased the maximum allowed for non-exempt vehicle equity value from $25,483 to $32,045, effective July 1, 2023. The increase was adjusted in accordance with the increase of 25.75 percent reflected in the U.S. Transportation CPI for all Urban Consumers.
ACL 24-36, dated May 31, 2024, increased the maximum allowed for non-exempt vehicle equity value from $32,045 to $32,968, effective July 1, 2024. The increase was adjusted in accordance with the increase of 2.88 percent reflected in the U.S. Transportation CPI for all Urban Consumers.
ACL 25-37, dated May 30, 2025, increased the maximum allowed for non-exempt vehicle equity value from $32,968 to $33,499, effective July 1, 2025. The increase was adjusted in accordance with the increase of 1.61 percent reflected in the U.S. Transportation CPI for all Urban Consumers.
ACL 26-38, dated June 10, 2026, increased the maximum allowed for non-exempt vehicle equity value from $33,499 to $33,626, effective July 1, 2026. This increase represents a 0.38 percent adjustment in accordance with the percentage reflected in the U.S. Transportation CPI for all Urban Consumers.
Encumbrances
For purposes of determining the equity value of the AU’s motor vehicle(s), the encumbrance is the amount that the AU is obligated to pay for the vehicle, or the amount owed on the vehicle.
Fees that must be paid in order to have the vehicle’s ownership transferred, for overdue registration, or other changes, are not considered encumbrances when determining equity value.
Equity Value
Equity is the amount of the FMV of the vehicle less encumbrances.
U.S. Transportation CPI
The $33,626 equity threshold will be adjusted upward annually on July 1st of every year, based on an increase, if any, in the U.S. Transportation CPI for all Urban Consumers.
CalWORKs Program will continue to notify staff when future adjustments are made to the equity threshold.
Leased Vehicle
A lease/purchase option vehicle is not regarded as a resource until a transfer of ownership occurs. A vehicle reported as a leased vehicle is considered a vehicle exemption, and not property. The CW 80 must still be completed.
CW 80
The CW 80 must be completed when a vehicle is reported:
During the application process;
On a SAR 7;
At RE; and
Mid-period.
Note: The CW 80 (02/18) reflects the revised guidance regarding a vehicle no longer being exempt for a member of the AU under the age of 18, while the SAWS 2 PLUS, Application for CalFresh, Cash Aid, and/or Medi-Cal/Health Care Programs Appendix E Vehicle Information and Self Certification of Equity Value, does not.
CW 80 Completion
The CW 80 is completed by the participant to self-certify the vehicle(s):
Exemption reason;
FMV; and
Amount of encumbrances, if any.
Note: When a vehicle is being reported at application or RE, staff must ensure the applicant/participant completes the CW 80, instead of the Appendix E that is embedded within the SAWS 2 PLUS.
SAWS 2 PLUS Appendix E
At no time should staff use Appendix E (a version of the CW 80) within the SAWS 2 PLUS as the verbiage is not current.
Instead, staff must provide the correct version of the CW 80 to the applicant/participant.
Vehicle Exemptions
The entire value of any licensed/registered/unregistered vehicle is exempt if the vehicle meets any exemptions.
The applicant/participant will not need to declare the FMV of the vehicle or amount owed for the vehicle when one of the following criteria or exemption reasons is reported:
It is primarily used for income-producing purposes;
It annually produces income that is consistent with its FMV, even if used on a seasonal basis;
It is necessary for long distance travel, other than daily commuting, that is essential to the employment of a family member;
It is used as a family’s residence;
It is necessary to transport a family member who is physically disabled, including an excluded family member who is disabled, regardless of the purpose of the transportation;
It would be exempted under any of the above exemptions, but the vehicle is not used because of temporary unemployment;
It is used to carry fuel to heat the home, when the transported fuel or water is the primary source of fuel or water for the family; or
It is received as part of a gift, donation, or family transfer. The applicant/participant must provide verification from the Department of Motor Vehicles (DMV) of the gift, donation, or family transfer. Verification includes a copy of the original title transfer or Bill of Sale documentation from the DMV.
The vehicle exemption no longer applies for children under the age of 18 who use the vehicle to commute to and from training or education which is preparatory to employment or to seek employment. The vehicle that was previously exempted must now be evaluated to determine if the family is eligible for another exemption and/or meets the resource limit.
The CW 80 is needed to verify the FMV and encumbrance on a vehicle. In addition, the applicant/participant will not need to declare the FMV or amount owed for the vehicle when an exemption is declared.
The CW 80 is also sufficient to verify exemption reasons with the exception of the exemption due to “gift, donation, or family transfer.”
Verifications and Acceptable Documents
Amount of encumbrance, if any
CW 80
FMV of the vehicle(s)
CW 80
Exemption reason (other than vehicle transfer as a gift, donation, or family transfer)
CW 80
Exemption Verification when vehicle was transferred to the applicant/participant as a gift, donation, or family transfer
Verification from the DMV: Copy of the original title transfer or Bill of Sale documentation from the DMV indicating the vehicle was a gift, donation, or family transfer. When verification is not provided, the applicant/participant must indicate the FMV and any encumbrances of the vehicle in order to determine the excess equity value that is countable towards the AU’s resource limit. Note: Neither the CW 80 nor SAWS 2 PLUS Appendix E are acceptable documents when the applicant/participant reports that a vehicle was a gift, donation, or family transfer.
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What changed?
Effective June 1, 2022, the $550 Recipient Earned Income Disregard (EID) for CalWORKs participants will increase to $600. Eligibility staff will see the changes in May 2022, when Eligibility Determination/Benefit Calculation (EDBC) is run for June 2022.
Effective July 1, 2022, the Applicant EID for CalWORKs applicants will increase from $90 per each employed person to $450 per each employed person. Eligibility staff will see the changes in June 2022, when EDBC is run for July 2022.
Note: Changes are shown highlighted in grey throughout the document.
Recipient EIDs (Recipient Financial Eligibility Test)
Senate Bill (SB) 80 implements the following increases to the EID for CalWORKs participants:
Effective June 1, 2020, the EID increased from $225 to $500;
Effective June 1, 2021, the EID increased from $500 to $550; and
Effective June 1, 2022, the EID increased from $550 to $600.
The $600 and 50 percent Recipient EIDs are used to determine the Net Non-Exempt Income (NNI) that is used to determine the Assistance Unit’s (AU’s) Maximum Aid Payment (MAP). The NNI is calculated by disregarding the first $600 of disability-based unearned income and/or any earned income and 50 percent of any remaining earned income. If the AU has earned income only, the first $600 and 50 percent of the remaining earned income is disregarded when calculating the MAP. When the NNI is less than the MAP, the family is considered to have passed the Recipient Test.
Applicant EID (Applicant Financial Eligibility Test)
Effective July 1, 2022, Assembly Bill (AB) 135 increases the Applicant EID for CalWORKs applicants from $90 per each employed person to $450 per each employed person.
The $450 Applicant EID is used as part of the initial Financial Eligibility Test for applicant families. For all applicant families, the $450 (per each employed person) Applicant EID is deducted from the family’s monthly gross earned income. The remaining earned income amount plus any unearned income is compared to the Minimum Basic Standard of Adequate Care (MBSAC) for the family. If the remaining income is less than the MBSAC, then the family moves onto the Recipient EID Test where the recipient disregards will be applied.
In 1997 when the legislature enacted the California Work Opportunity and Responsibility to Kids (CalWORKs) bill, one of the tenets was that work should pay. If we expect people getting public assistance to work, there should be an incentive and there should be supports for that work. They should not lose their grant dollar for dollar for what they earn. The mechanism for operationalizing that tenet is EIDs. This allowed working families to keep $225 and 50 percent of everything else as opposed to a system where they would lose more of their CalWORKs grant.
As the earnings go up the grant gradually comes down. During this time, the family can combine their earnings, their CalWORKs grant, and their work supports like transportation or childcare or to stabilize their housing situation, so that they could gradually move from receipt of aid to self-sufficiency rather than abruptly discontinuing them from the program (bridge versus cliff).
As a result of SB 80 (Chapter 27, Statutes of 2019), effective June 1, 2020, the CalWORKs $225 recipient disregard was increased to $500 and $50 thereafter for two consecutive years up to $600. Effective June 1, 2021, the CalWORKs recipient disregard was increased from $500 to $550. Effective June 1, 2022, the CalWORKs recipient disregard was increased from $550 to $600.
As a result of AB 135 (Chapter 85, Statutes of 2021), effective July 1, 2022, the CalWORKs Applicant EID will increase from $90 per each employed person to $450 per each employed person.
Applicant Financial Eligibility Test
Applicant families must pass the Applicant Financial Eligibility Test to be financially eligible for CalWORKs. As part of this process, the $450 Applicant EID (per each employed person) is deducted from the family’s monthly gross earned income. The remaining earned income amount plus any unearned income is compared to the MBSAC for the family.
If the remaining income is more than the MBSAC, then the family does not pass the Applicant Financial Eligibility Test and the CalWORKs application is denied.
If the remaining income is less than the MBSAC, then the family moves onto the Recipient EID Test where the recipient disregards will be applied. If the NNI is less than the MAP, the family is financially eligible for CalWORKs.
Refer to Administrative Release (AR) 44-212 Minimum Basic Standard of Adequate Care and AR 44-315 CalWORKs Maximum Aid Payment Levels policies for additional detailed information regarding the MBSAC and MAP.
Recipient Financial Eligibility Test
Recipient families must pass the Recipient Financial Eligibility Test to be financially eligible for CalWORKs. As part of this process, the first $600 of disability-based unearned income and/or any earned income and 50 percent of any remaining earned income Recipient EIDs are used to determine the NNI for the family. The NNI is compared to the MAP for the family. When the NNI is less than the MAP, the family is considered to have passed the Recipient Financial Eligibility Test.
Refer to AR 44-212 Minimum Basic Standard of Adequate Care , and AR 44-315 CalWORKs Maximum Aid Payment Levels policies for additional detailed information regarding the MBSAC and MAP.
Zero Basic Grant Case
A month in which a case is active, but the family does not receive a CalWORKs payment, is considered a “Zero Basic Grant” (ZBG) month. ZBG months include the following:
Months when the grant was less than ten dollars , and there is no grant issued;
Months when the entire grant amount was kept as an Overpayment (OP) adjustment;
The grant amount is reduced to zero due to a combination of the family’s net countable income and a penalty; or
Effective June 1, 2020, there is a new ZBG population of cases that will remain active/approved although the net countable income exceeds the MAP. The case will remain active/approved so long as the family’s total gross income does not exceed the new Tier 2 Income Reporting Threshold (IRT). The intent of this new rule is to maintain the case in an approved status with a ZBG, so the family remains eligible for supportive services through Welfare-to-Work and eligible to other benefits such as homeless and recurring and non-recurring special need payments.
Refer to AR 44-315.8 Zero Basic Grant policy for additional information.
Cases with a ZBG month may be entitled to special needs and services provided they meet the specific need/service criteria. The cases:
Are not discontinued; and
Remain active at the ZBG level.
IRT
Under the Semi-Annual Reporting (SAR) and Annual Reporting/Child-Only (AR/CO) reporting systems, CalWORKs participants are required to report certain changes in their income or family circumstances mid-period. One mandatory report is when the AU’s total income reaches or exceeds the IRT. There are two tiers of the IRT under SAR and AR/CO reporting, the lowest of which will be the AU’s current IRT amount:
Tier 1 is 55 percent of the Federal Poverty Level (FPL) for a family of three, plus the amount of income last used to calculate the AU’s monthly grant amount; and
Effective June 1, 2020, Tier 2 is 130 percent of the FPL. The new Tier 2 IRT replaced the previous Tier 2 IRT that rendered a family ineligible when the countable income exceeded the MAP for the AU size.
Effective June 1, 2020, cases that exceed the MAP will no longer be discontinued. Instead, the cases will remain active (approved) as a ZBG case until the family’s gross income exceeds the new Tier 2 IRT, or 130 percent of the FPL.
MBSAC
The MBSAC is the amount necessary to provide an AU with the following: housing; clothing; food; utilities; items for household operation, education, incidentals, recreation, personal needs, and insurance; and essential medical/dental or other remedial care not otherwise provided at public expense.
The MBSAC is used in the Applicant Financial Eligibility Test and is also applied to the period of ineligibility for non-qualifying withdrawals from CalWORKs restricted accounts.
The MBSAC is set by California State law and is based on the size of the applicant family. The amounts are used as a measure of neediness and not the amount of cash aid a family may receive. CalWORKs payments are based on MAP levels.
Refer to AR 44-212 Minimum Basic Standard of Adequate Care policy for additional information.
AU MAP
CalWORKs/Refugee Cash Assistance (RCA) participants receive their grants based on Exempt (higher) or Non-Exempt MAP. An AU receives the Exempt MAP when each parent, aided stepparent, caretaker relative, Pregnant Woman Only, or adult in an RCA case receives one of the following benefits:
Supplemental Security Income/State Supplementary Payments;
In-Home Supportive Services;
State Disability Insurance (SDI);
Temporary Workers’ Compensation; or
Temporary Disability Indemnity.
In addition, the AU receives the Exempt MAP when it includes an unaided (non-needy) non-parent caretaker. All other participants receive the Non-Exempt MAP. The MAP increase is considered a County-Initiated mid-period action.
When there is disability-based unearned income or earned income, the $600 (effective June 1, 2022) and 50 percent Recipient EIDs are used to determine the NNI that is used to determine the AU MAP. The NNI is calculated by disregarding the first $600 of disability-based unearned income and/or any earned income and 50 percent of any remaining earned income. If the AU has earned income only, the first $600 and 50 percent of the remaining earned income is disregarded when calculating the MAP. If the family has unearned income, it is counted dollar for dollar towards the MAP.
If the NNI is more than the MAP, the family is not eligible for a CalWORKs grant. The AU MAP includes those individuals who are aided.
Family MAP
The family MAP size includes:
AU members;
Non-AU members; and
Excluded family members.
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Revision of existing policy and/or form(s)
What changed?
This year’s Cost-of-Living Adjustment (COLA) increases the Minimum Basic Standard of Adequate Care (MBSAC) levels by 3.59 percent, effective July 1, 2026. These changes were programmed in the system on July 9, 2026.
The Maximum Aid Payment (MAP) levels effective October 1, 2023, remain unchanged. Refer to Administrative Release (AR) 44-315 CalWORKs Maximum Aid Payment Levels for detailed information about the MAP levels.
Note : Changes are highlighted in grey throughout the document.
This year’s COLA increases the MBSAC levels by 3.59 percent. The 2026-2027 CalWORKs MBSAC Payment Standards Chart for Region 1 reflects the new amounts. These amounts were programmed in the system on July 9, 2026 . The MBSAC changes also apply to Refugee Cash Assistance and Trafficking and Crime Victims Assistance Program applicants and participants.
In accordance with the Welfare and Institutions Code 11453, MBSAC levels are to be adjusted annually to reflect any increases or decreases in COLA.
As a result of Senate Bill 80 (Chapter 27, Statutes of 2019), the CalWORKs Recipient Earned Income Disregard (EID) for recipient cases was increased as follows:
$225 to $500 effective June 1, 2020;
$500 to $550 effective June 1, 2021; and
$550 to $600 effective June 1, 2022.
In addition, effective July 1, 2022, Assembly Bill 135 increased the Applicant EID for CalWORKs applicants from $90 per each employed person to $450 per each employed person.
Refer to AR 44-111.23 Earned Income Disregard for detailed information about the Applicant and Recipient EID.
MBSAC
MBSAC is a measure of neediness and is set by California State law. It is based on the size of the applicant family.
MBSAC is the amount necessary to provide an Assistance Unit (AU) with the following:
Housing;
Clothing;
Food;
Utilities;
Items for household operation, education, incidentals, recreation, personal needs, insurance; and
Essential medical/dental or other remedial care not otherwise provided at public expense.
MBSAC is used in the Applicant Financial Eligibility Test.
MBSAC is also applied to the period of ineligibility for non-qualifying withdrawals from CalWORKs restricted accounts.
MBSAC is a measure of neediness and not the amount of cash aid a family may receive. CalWORKs payments are based on MAP levels.
Applicant Financial Eligibility Test
The Applicant Financial Eligibility Test is used to determine financial eligibility for CalWORKs applicants. The family’s income (minus the first $450 Applicant EID of gross earned income for each employed person, effective July 1, 2022) must be less than MBSAC for the AU.
The system applies the Applicant Financial Eligibility Test to all applicant cases.
Reminder: The system is programmed to determine eligibility for a 60-day period and is able to recognize ineligibility for the month of application and eligibility for the second month of application which constitutes a 60-day period. Refer to AR 40-103.3 Application for further details.
Income-In-Kind (IIK)
Need items received in full at no charge with no obligation to repay in cash are considered IIK.
IIK is considered for benefits which are deemed as basic need items and include:
Housing;
Utilities;
Food; and
Clothing.
When a family receives a basic need item in full at no charge or in exchange for something other than cash, the value of the need item is considered income in the CalWORKs Eligibility Determination and Benefit Calculation (EDBC).
Note: Partial payments for In-Kind need items are not counted in the calculation of the grant.
The IIK values vary with the AU size and need item. These values are adjusted by the same percentage increase or decrease that is applied to the MBSAC levels and are effective at the same time as a result of COLA.
The AU can also establish a lower value for the need item. Refer to AR 44-115 Income-In-Kind for additional information regarding IIK.
Region 1
3.59 percent MBSAC Payment Standards and IIK Values 07/01/26-06/30/27
N/A IKK Values AU Size MBSAC Housing Utilities Food Clothing 1 $963 $437 $92 $239 $73 2 $1,581 $580 $106 $511 $142 3 $1,960 $635 $109 $655 $211 4 $2,325 $668 $115 $809 $282 5 $2,653 $668 $115 $981 $358 6 $2,983 $668 $115 $1,134 $430 7 $3,280 $668 $115 $1,265 $501 8 $3,569 $668 $115 $1,380 $557 9 $3,872 $668 $115 $1,519 $640 10 $4,202 $668 $115 $1,643 $701 More than 10 Add $37 for each extra person N/A
Region 1 and Region 2 Counties
There are two levels of MBSAC, IIK, and MAP that are assigned to California counties known as Region 1 and Region 2. The Region is determined based on the lower or higher cost of living. Region 1 is for counties with a higher cost of living and the MBSAC, IIK, and MAP levels are approximately 5.2 percent higher than the Region 2 levels.
Region 1 includes the following counties: Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, and Ventura.
Region 2 includes all other counties.
Los Angeles County DPSS staff should be aware of the Region 1 and Region 2 levels when processing Inter-County Transfer cases from Region 2 counties. Refer to the following charts for the MBSAC Payment Standards for Region 1 and Region 2.
MBSAC Payment Standard July 1, 2026 to June 30, 2027
Region 1 Fiscal Year (FY) 2026-27 California Needs Index (CNI) 3.59% Assistance Unit Size MBSAC Housing Utilities Food Clothing 1 $963 $437 $92 $239 $73 2 $1,581 $580 $106 $511 $142 3 $1,960 $635 $109 $655 $211 4 $2,325 $668 $115 $809 $282 5 $2,653 $668 $115 $981 $358 6 $2,983 $668 $115 $1,134 $430 7 $3,280 $668 $115 $1,265 $501 8 $3,569 $668 $115 $1,380 $557 9 $3,872 $668 $115 $1,519 $640 10 $4,202 $668 $115 $1,643 $701 More than 10 Add $37 for each extra person N/A
Region 2 FY 2026-27 CNI 3.59% Assistance Unit Size MBSAC Housing Utilities Food Clothing 1 $914 $419 $92 $239 $73 2 $1,501 $553 $106 $511 $142 3 $1,859 $605 $109 $655 $211 4 $2,211 $635 $115 $809 $282 5 $2,529 $635 $115 $981 $358 6 $2,839 $635 $115 $1,134 $430 7 $3,110 $635 $115 $1,265 $501 8 $3,397 $635 $115 $1,380 $557 9 $3,671 $635 $115 $1,519 $640 10 $3,997 $635 $115 $1,643 $701 More than 10 Add $37 for each extra person N/A
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What changed?
The CalWORKs Maximum Aid Payment (MAP) levels will increase by 0.3 percent, effective October 1, 2024.
The system was programmed to centrally mail the TEMP 2250 (6/24), State Law Changes Maximum Aid Payment Levels for Cash Aid Recipients, to all active CalWORKs/Refugee Cash Assistance (RCA) participants (Approved cases) starting August 29, 2024, to inform them of the new payment levels: The TEMP 2250 must be provided to new CalWORKs/RCA applicants beginning September 2024 through October 2024, to inform them of the new payment levels.
The TM44-315O (7/24), Law Change to MAP Levels, Notice of Action (NOA) will be generated by the system and mailed to participants to inform them of the MAP change, effective October 1, 2024, anytime the Eligibility Determination Benefit Calculation (EDBC) is run for October 2024 benefits.
Senate Bill (SB) 380 Child MAP charts were modified to reflect the new MAP levels. These charts are used in determining eligibility for applicants/participants who opted to exclude step/half-siblings for consideration in the determination of the MAP for the Assistant Unit (AU) when the amount of child support payment received each month is more than the cash aid amount for the child.
Note: Changes are shown highlighted in grey throughout the document.
CalWORKs/RCA participants receive their grants based on Exempt (higher) or Non-Exempt MAP. An AU receives the Exempt MAP when each parent, aided stepparent, caretaker relative, pregnant person, or adult in an RCA case receives one of the following benefits:
Supplemental Security Income (SSI)/State Supplemental Payments (SSP);
In-Home Supportive Services (IHSS);
State Disability Insurance (SDI);
Temporary Workers’ Compensation (TWC); or
Temporary Disability Indemnity (TDI).
In addition, the AU receives the Exempt MAP when it includes an unaided (non-needy) non-parent caretaker. All other participants receive the Non-Exempt MAP.
The MAP increase is considered a County-initiated mid-period action. CalWORKs/RCA participants who receive CalFresh may receive a decrease in their CalFresh allotment due to the increase in the CalWORKs/RCA grant.
Effective October 1, 2024 , the CalWORKs/RCA MAP levels for Los Angeles County are:
AU Size Exempt MAP Non-Exempt MAP 1 $ 809 $ 734 2 $ 1,039 $ 930 3 $ 1,314 $ 1,175 4 $ 1,579 $ 1,416 5 $ 1,850 $ 1,659 6 $ 2,123 $ 1,902 7 $ 2,395 $ 2,145 8 $ 2,669 $ 2,389 9 $ 2,939 $ 2,631 10 or more $ 3,215 $ 2,876
Minimum Basic Standards of Adequate Care (MBSAC) Payment Standards
MBSAC standards remain the same as released in Administrative Release (AR) 44-212 Minimum Basic Standard of Adequate Care . MBSAC figures are normally adjusted to account for any increases or decreases in the cost of living. These figures, when adjusted, are effective in July of each year and will be released at that time.
As a result of Assembly Bill 161 (Chapter 46, Statutes of 2024), effective October 1, 2024, the CalWORKs/RCA MAP levels will increase by 0.3 percent.
MAP
The maximum cash aid benefits a family can receive. This amount depends on the number of persons in the AU
Exempt MAP
The family must have an eligible child and each adult relative caretaker receives one of the following benefits: SSI/SSP, IHSS, SDI, TWC, TDI, or is a non-needy/non-parent caretaker relative to receive the Exempt MAP.
Region 1 and Region 2 Counties
There are two levels of the MAP that are assigned to California counties known as Region 1 and Region 2. The Region is determined based on the lower or higher cost of living.Region 1 is for counties with a higher cost of living.
Region 1 includes the following counties: Alameda, Contra Costa, Los Angeles , Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, and Ventura.
Region 2 i ncludes all other counties.
Los Angeles County DPSS staff should be aware of the Region 1 and Region 2 levels when processing Inter-County Transfer cases from Region 2 counties.
Informing Requirements:
TEMP 2250, State Law Changes MAP Levels for Cash Aid Recipients
The TEMP 2250 is a notification provided to applicants/participants to inform them of the change to the MAP and the potential decrease to their CalFresh benefits due to the increase of the CalWORKs/RCA benefits:
A separate CalFresh NOA will be sent to families whose CalFresh benefits are affected.
TM44-315O , Aid Payment – Law Change to MAP Levels
The TM44-315O is a NOA that must be provided to all participant cases to inform them of the MAP level increase.
AR 2 SAR, Reporting Changes for CalWORKs and CalFresh
The AR 2 SAR is a notification that must be provided to all Annual Reporting/Child Only cases every time there is a change to the Income Reporting Threshold (IRT).
SAR 2, Reporting Changes for Cash Aid and CalFresh
The SAR 2 is a notification that must be provided to all Semi-Annual Reporting (SAR) cases every time there is a change to the IRT.
SB 380, Child MAP Charts
The charts were revised to reflect the increase to the MAP levels. Refer to existing procedures outlined within AR 44-315.9 Step/Half-Siblings Receiving Child Support . Staff must use the revised charts to determine whether the participating child is still eligible for the SB 380 option, during the next Renewal (RE) or SAR 7, Semi-Annual Eligibility Status Report.
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CHILD CARE
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The California Work Opportunity and Responsibility to Kids (CalWORKs) Child Care Program helps families to access immediate, quality, and affordable child care as they move through their Welfare-to-Work (WtW) activities towards unsubsidized employment. It promotes parental choice and ensures that families have child care that is stable enough to move off cash assistance. The program is administered by the California Department of Social Services (CDSS) and the California Department of Education (CDE).
The CalWORKs Child Care Program is administered in three Stages, as follows:
Stage 1 Child Care
Stage 1 Child Care (S1CC) is funded by CDSS and locally administered by DPSS through contracts with ten local Resource and Referral/Alternative Payment Program (R&R/APP) agencies. S1CC begins with a parent’s entry into a County-approved WtW activity or employment. Each family may be served in S1CC for up to six months or until the family’s work activity becomes stable. Families may also remain in S1CC if there is insufficient funding in Stage 2 and Stage 3 Child Care. When a family receiving S1CC services terminates from CalWORKs cash assistance, the family must be transitioned to Stage 2 to continue child care services.
Key Points
Child care is available to current and former CalWORKs participants who are employed and/or in an approved WtW activity.
Child care is available to a child in the CalWORKs Assistance Unit (AU) under the age of 13 and for special needs children under 18 years of age who are physically or mentally incapable of caring for themselves.
There are two types of child care providers that a participant may choose including license or license-exempt. The participant exercises parental choice when selecting a provider.
Parents may utilize multiple providers if a single provider cannot accomodate the need for care.
Child care is considered available and the participant is not eligible for subsidized child care when there is an able and available parent, guardian, or adult member of the AU in the home. Reimbursements cannot be made when the child care services are provided by an individual who is under 18 years of age.
License-exempt child care providers who are not the aunt, uncle, or grandparent, by blood, marriage, or court decree of the child for whom child care is provided must pass a criminal background check and be TrustLine-registered to receive a subsidized child care reimbursement.
CalWORKs/GAIN and contracted staff must ensure that child care is offered at every point of contact and referrals to R&R/APP agencies are made timely, to avoid delays in child care reimbursements.
Stage 2 Child Care
Stage 2 Child Care (S2CC) is funded by CDE and locally administered by the R&R/APP agencies. S2CC begins when the parent’s employment and child care arrangements are stable or when a family terminates from CalWORKs cash assistance. Families may remain in S2CC for up to 24 months after their CalWORKs cash assistance is terminated.
Stage 3 Child Care
Stage 3 Child Care (S3CC) is funded by CDE and locally administered by the R&R/APP agencies. S3CC provides child care benefits for: 1) former CalWORKs participants who are working, no longer receiving cash assistance, and who have exhausted their 24-month eligibility in S1CC and/or S2CC; and 2) families who receive a CalWORKs diversion payment.
LOCAL R&R/APP AGENCIES The R&R agencies provide parents with information to assist in making an informed decision in the selection of a licensed or license-exempt child care provider. The APP agencies determine child care eligibility and issue provider reimbursements. R&R/APP agencies provide co-located services in DPSS GAIN regional offices and weekly visits to CalWORKs district offices to disseminate child care information and expedite child care services to families. The R&R/APP agencies ensure families are seamlessly transitioned between the various Stages of CalWORKs Child Care as they stabilize and progress towards achieving self-sufficiency.
Refer to the Definitions Template for a list of child care definitions.
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Administrative staff may contact the Child Care Program Section at (562) 908-6088.
November 16, 2017
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CHILD CARE
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Regional Market Rate (RMR) ceilings are the maximum amount that child care providers can be reimbursed from the State for subsidized child care. RMR changes apply to:
CalWORKs Stage 1 Child Care (S1CC) Program administered by the California Department of Social Services (CDSS); and
CalWORKs Stage 2, CalWORKs Stage 3, and other voucher-based child care programs administered by the California Department of Education (CDE).
Reimbursements are determined by reviewing the number of hours the participant is working and/or participating in a County-approved Welfare-to-Work (WtW) activity, plus reasonable commute hours. Since parents are allowed commute time (both ways) between their respective activities and the child care provider, the hours of care will differ from the hours the parent is actually on the job and/or participating in approved WtW activities. Child care cannot be approved for commute time from the parent’s home to the location where child care will take place.
The information below reflects the RMR ceilings to be used for licensed and license-exempt providers for the following periods:
For the period of July 1, 2016 through December 31, 2016 the applicable RMR ceiling was:
104.5 percent of the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent for licensed child care providers; and licensed-exempt child care providers shall not exceed 65 percent of the RMR ceiling established for child care homes.
For the period of January 1, 2017 through December 31, 2017 Licensed Child Care providers shall be established at the greater of either of the following:
The 75th percentile of the 2014 RMR survey;or
The RMR ceiling as it existed as of December 31, 2016
Accordingly, Los Angeles County implemented the reinbursement ceilings at 75th percentile of the 2014 RMR survey as all the new ceilings are higher than or equal to the 2009 RMR ceilings.
Lisenced-exempt child care providers shall not exceed 70 percent of the RMR established for family child care homes. These ceilings will remain in effect until rescinded or amended.
For the period of January 1, 2018 through December 31, 2018 Licensed Child Care providers shall be established at the greater of either of the following:
The 75th percentile of the 2016 RMR survey;or
The RMR ceiling as it existed as of December 31, 2017.
Accordingly, Los Angeles County implemented the reinbursement ceilings at 75th percentile of the 2016 RMR survey as all the new ceilings are higher than or equal to the 2014 RMR ceilings.
Lisenced-exempt child care providers shall not exceed 70 percent of the RMR established for family child care homes. These ceilings will remain in effect until rescinded or amended.
For the period of January 1, 2019 until rescinded or amended:
Licensed Child Care providers shall be established at the greater of either of the following:
The 75th percentile of the 2016 RMR survey;or
The RMR ceiling as it existed as of December 31, 2017.
Accordingly, Los Angeles County implemented the reinbursement ceilings at 75th percentile of the 2016 RMR survey.
Lisenced-exempt child care providers shall not exceed 70 percent of the RMR established for family child care homes.
Applicable RMR Ceilings
The following RMR ceilings are to be used for the following providers:
Child Care Center Rate ceilings shall be used for providers who:
Operate licensed centers.
Are public or private schools operating extended day programs.
Operate centers on tribal or federal lands.
Operate recreation programs exempt from licensure pursuant to the Health and Safety code and meet the requirments for participation in the Alternative Payment Program that include all of the following: Using sign-in/sign-out documents to record attendance; Providing adult supervision for all children during all hours of operation; and Ensuring that all employees who have contact with children have completed criminal history background examinations.
If these center-based requirements are not met, exempt centers will be capped at the RMR ceiling for license-exempt providers. The same rules apply to both public and private recreation programs exempt from licensure.
After school on-site child care programs operated by school employees are treated as license-exempt but reimbursed for child care at actual cost up to the maximum licensed child care center RMR ceiling, instead of the license-exempt RMR ceiling.
Family child care home reimbursement rate ceilings shall be used for providers who operate licensed family child care homes or a child care business in a home setting on tribal or federal land.
The license-exempt RMR ceiling is used for child care providers who provide care either in-home or outside the child’s home. If no ceiling is provided for the applicable reimbursement rate category, the Resource & Referral/Alternative Payment Program (R&R/APP) agency shall determine a ceiling by multiplying the RMR hourly ceiling by the hours of need for child care.
NOTE: Current Regional Market Rate ceilings can be viewed at: Reimbursement Ceilings for Subsidized Child Care
Children Six-Years-Old and Under Enrolled in Kindergarten
The applicable age category to determine the appropriate RMR ceiling for children enrolled in kindergarten who are under age six, but who require subsidized child care outside of their regular school hours, are as follows:
Child Care Centers shall utilize:
The 6+ age category when the child is considered school-age for licensing purposes.
The 2-5 age category when the child is under six years of age.
Family Child Care Home and In-Home/Out-of-Home Exempt providers shall utilize:
The 6+ age category when the child is six years of age or older.
The 2-5 age category when the child is under six years of age.
Time Based Reinbursement Rates
Hourly Care shall only be used when:
Child care is needed for less than 30 hours per week and less than 6 hours on any given day within the week.
An unscheduled, but documented need (such as, the parent’s need to work overtime) of less than 6 hours per occurrence that exceeds the child’s need for child care
The portion of needed child care that exceeds 52.5 hours per week and is not included in the provider’s stated full-time weekly or monthly rate. This is only applicable if the family uses no more than one provider to meet the entire need for child care. Additional payment made at the hourly rate for this purpose cannot exceed the provider’s full-time weekly or full-time monthly rate. (Refer to the "Example" section for example scenarios).
Child care is provided by a license-exempt in-home or out-of-home provider who does not supply the R&R/APP agency with an hourly rate. If necessary, the R&R/APP agency will derive an hourly rate by dividing the provider’s rate by the corresponding RMR ceiling to yield a percentage and multiplying this percentage by the hourly ceiling.
Note:
As the calculations for license-exempt hourly rates do not appear to result in an exact sum that is equal to 70 percent of the family child care home ceilings, CDSS clarified that license-exempt hourly rates are not governed by the general rule that applies to the other rate categories including daily, weekly, and monthly ceilings. Instead, the part-time hourly rates are calculated by taking the calculated TrustLine/relative full-time weekly ceiling and dividing that number by 45.
This methodology was established under the authority of the 2003-2004 Budget Act, Item 6110-196-0001, Provision 7(a) and was approved by the Department of Finance, the Legislative Analyst’s Office, the Department of Education and the Department of Social Services, and implemented with the 2005 survey.
Daily Care shall only be used when:
A family has an unscheduled, but documented need for six hours or more per occurrence, such as the parent’s need to work on a regularly scheduled day off that exceeds the certified need for child care.
A family has a documented need of six hours or more per day and the number of days does not exceed 14 days per month.
Reimbursements to a provider based on the daily rate over one month’s time shall not exceed the provider’s equivalent full-time monthly rate or applicable monthly ceiling.
Part-time Weekly Care shall only be used when child care is needed for fewer than 30 hours per week.
Full Time Weelky Care care shall only be used when child care is needed for 30 hours or more per week.
Part-time Monthly Care shall only be used when:
Child care is needed less than 30 hours per week and the need occurs in every week of the month; or
The need for child care averages less than 30 hours per week when calculated by dividing the total number of hours of child care needed in the month by 4.33, and the need occurs in every week of the month.
Full-time Monthly Care shall only be used when:
Child care is needed for 30 hours or more per week and that need occurs in every week of the month; or
The need for child care averages 30 hours or more per week when calculated by dividing the total number of hours of need in the month by 4.33, and that need occurs in every week of the month.
Rate Adjustments for Evening and/or Weekend Care for Licensed Providers
When licensed child care services are provided from 6:00 p.m. to 6:00 a.m., on any day of the week or from 6:00 a.m. Saturday to 6:00 a.m. Monday, the R&R/APP agency shall multiply the RMR ceiling for the applicable rate category (except the hourly rate) by the appropriate adjustment factor.
The adjustment factors for evening/weekend care do not apply to license-exempt in-home or out-of-home providers.
The appropriate ceiling adjustment factors are:
1.25 when 50 percent or more of the need for child care occurs during this period; or
1.125 when at least ten percent, but less than 50 percent of the need for child care occurs during this period.
Reimbursement to the provider shall be the lesser of the amount the provider charges unsubsidized, private-pay families for the same hours of child care, or the maximum subsidy amount as determined in the adjustment factors above.
Both the evening/weekend and exceptional needs/severely disabled children’s adjustments may be applied concurrently for the care of the same child(ren), as appropriate.
Rate Adjustments for Exceptional Needs or Severely Disabled Children
Ongoing Finacial Impact
The Americans with Disabilities Act (ADA) makes it unlawful for child care providers to set higher rates for exceptional needs or severely disabled children. These adjustment rates may only be applied when it is documented that additional services and/or accommodations for that particular child(ren) are being provided with an ongoing financial impact to the child care provider.
Individualized Education Plan or Individualized Family Service Plan
An exceptional needs child and a severely disabled child must be identified with an Individualized Education Plan (IEP) or Individualized Family Service Plan (IFSP). A physician’s note is not acceptable documentation to permit rate adjustments that result in a higher ceiling.
R&R/APP agencies shall notify parents of children identified as exceptional needs and parents of children identified as severely disabled, who participate in IEPs or IFSPs that they will need to provide a copy of updated plan(s) for review on an annual basis, to determine if their child care needs have changed.
Rate Adjustment Factors to be Applied
When child care services are provided to exceptional needs or severely disabled children, and a provider demonstrates an ongoing financial burden as a result of caring for these children, an adjustment factor may be applied to the provider’s rate or standard ceiling, whichever is lower.
These adjustment factors may be applied to both licensed and license-exempt provider rates. R&R/APP agencies may concurrently apply both the evening/weekend and exceptional needs/severely disabled children’s adjustments for the care of the same child(ren), as appropriate.
A special needs or exceptional needs adjustment may be applied when applicable by multiplying the provider’s rate by one of the following:
1.2 Adjustment Factor - when the child has exceptional needs, the provider’s rate may be multiplied by 1.2 to determine the new, adjusted ceiling.
1.5 Adjustment Factor - when the child is severely disabled, the provider’s rate may be multiplied by 1.5 to determine the new, adjusted ceiling.
The CDE is responsible for the contract awarded on a competitive basis to conduct the biennial RMR survey of child care providers. The survey is based on a methodology of zip code groupings that have similar socio-economic characteristics (e.g., housing costs, population density, and employment rates). The survey results are utilized to create the RMR ceilings based on an aggregate of the survey data for each county. The RMR ceilings issued by CDE are equally applicable to the CalWORKs S1CC Program administered by CDSS.
The Fiscal Year 2006-07 Budget Trailer Bill, Assembly Bill (AB) 1808, required that the RMR ceilings be based on a county aggregate of the survey data. As such, Los Angeles County implemented reimbursement rates according to the type of care, age of the child(ren), and time base (i.e., hourly, daily, weekly, or monthly).
The Budget Act of 2014, Senate Bill (SB) 852, maintained the RMR ceilings at the 85th percentile of the 2005 RMR survey and the license-exempt child care provider ceilings at 60 percent of the family child care home ceilings through December 31, 2014.
On January 1, 2015, AB 1476 and SB 876 required California to implement reimbursement ceilings at the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent. If a new ceiling was less than the 2005 RMR ceiling, then the 2005 ceiling was to remain in effect. The license-exempt child care provider ceilings continued to be 60 percent of the family child care home ceilings. Accordingly, Los Angeles County implemented reimbursement ceilings at the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent as all of the new ceilings were higher than or equal to the 2005 RMR ceilings.
On October 1, 2015, SB 97 and AB 104 provided a 4.5 percent increase to the RMR ceilings by applying 104.5 percent to the 85th percentile of the 2009 RMR survey, reduced by 10.11 percent. Additionally, SB 97 and AB 104 increased reimbursement ceilings for license-exempt child care providers to 65 percent of the family child care home ceilings.
Effective January 1, 2017 through June 30, 2018, SB 828, Chapter 29, Statutes of 2016, established the RMR ceiling for licensed providers at the greater of either of the following:
The 75th percentile of the 2014 RMR survey for that county; or
The RMR ceiling for that county as it existed as of December 31, 2016.
However, AB 99, Chapter 15, Statutes of 2017, revised the RMR ceiling period to reflect a new period end date of December 31, 2017 and maintained the RMR ceilings as established in SB 828. Effective January 1, 2018 through December 31, 2018, AB 99 revised the RMR ceiling for licensed providers as follows:
At the greater of the 75th percentile of the 2016 RMR survey for that region; or
The RMR rate ceiling as it existed in that region on December 31, 2017.
Reimbursement to license-exempt child care providers must not to exceed 70 percent of the family child care home ceilings.
Additionally, AB 99 established that as of January 1, 2019, the RMR ceiling shall be established at the 75th percentile of the 2016 RMR survey for that region.
AB 1808, Chapter 32, Statutes of 2018, instead requires that the RMR ceilings continue to be established indefinitely at the 75th percentile of the 2016 RMR survey for that region or at the RMR ceiling that existed in that region on December 31, 2017, whichever is greater.
Child Care Center
Located usually in a commercial building where non-medical care and supervision are provided from infant to school-age children in a group setting for periods of less than 24 hours.
Commute Hours
The time it takes for the participant to travel from the child care provider to the activity or activities for which child care is being provided and from there back to the child care provider. Child care reimbursement cannot be approved for parents who commute between the child care provider and their home.
Exceptional Needs Children
Exceptional Needs Children are children who may be developmentally disabled, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, other health impaired, deaf-blind, multi-disabled or children with specific learning disabilities who either have an active IEP or IFSP and are receiving special education/early intervention services.
Family Child Care Home
Reflects a home-like environment where non-medical care and supervision are provided in the provider's own home for periods of less than 24 hours.
Full-time Plus
The amount of time that exceeds 10.5 hours per day or 52.5 hours per week.
License-Exempt
A child care provider who is not required to obtain a child care license, as specified in the California Code of Regulations, Title 22, Division 12, Section 101158.
Licensed Provider
An individual or organization that has obtained a child care license, as specified in the California Code of Regulations, Title 22, Division 12, Section 101156.
Regional Market Rate Ceilings
The child care rate ceilings that the State issues periodically, which provide the maximum amount that the State of California will reimburse for subsidized child care services on behalf of CalWORKs participants.
Severely Disabled Children
Severely Disabled Children are children with either an active IEP or IFSP and require instruction and training in programs serving pupils with profound disabilities, such as autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances or severe developmental disabilities.
Trustline Registry
California’s registry of license-exempt child care providers who have passed criminal background screening and clearance process through a fingerprint check of records from the California Department of Justice’s California Criminal History System; the Child Abuse Central Index of California and FBI Criminal History System.
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If revised rates impact payment to child care providers the R&R/APP Agencies must:
Take actions in accordance with the S1CC contract.
Send a Child Care Payment Change Notice of Action (ST1-15) to the participant for changes affecting S1CC provider payments.
Send an S1CC Provider Notification form (ST1-06) to the child care provider for changes affecting S1CC provider payments.
If selected provider's rates exceed the RMR R&R/APP Agencies must inform the participant that the participant is responsible for payment to the provider for any amount above the RMR ceilings.
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How to Apply the Hourly Care Reinbursement Rate
Hourly Care reimbursement rates are applied when the portion of needed child care exceeds 52.5 hours per week.
Example 1:
A family requests child care for 60 hours per week. The provider’s regular operating hours are from 6:00 a.m. to 6:00 p.m., Monday through Friday. The provider’s stated full-time standard rate covers a family for up to 54 hours of care per week.
The provider would be paid at the standard rate for 54 hours because the provider’s standard full-time rate already covers the time period between 52.5 and 54 hours. The difference of six hours between the provider’s stated standard rate (54 hours) and the 60 hours of the family’s total need would be reimbursed at the “full-time plus” rate because the needs of the family exceed the 52.5-hour rule. The “plus” refers to the amount of time that exceeds 52.5 hours, or as in this example, exceeds the provider’s stated standard rate. The provider will be reimbursed for six additional hours.
Example 2:
The same family needs child care 55 hours per week. However, the provider operates from 6:00 a.m. to 6:00 p.m., Monday through Friday, for 60 hours a week and their full-time rate covers the full period of time of operation.
The provider would not be paid an additional hourly rate beyond 52.5 hours because the provider’s stated full-time rate already covers the total child care hours needed.
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All County Letter (ACL) 18-119 dated September 21, 2018.
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Administrative staff may contact the Child Care Program Section at (562) 908-6088.
Revised policy to be effective 1/1/2019.
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