Fiscal Year (FY) 25-26 data variances may be linked to the implementation of policies within CalWORKs Stage One, Two, and Three Child Care programs.
Among those are:
TrustLine Retroactive Payment Limits Temporary Waiver Expiration: The waiver allowed prospective license-exempt providers, required to be TrustLine registered before child care payments can be issued, to receive retroactive payment for up to 180 days prior to the date of clearance. Effective immediately, counties and child care and development contractors, who have not done so, are required to reinstate the 120-calendar day retroactive payment policy (pre-pandemic regulatory requirement) for prospective license-exempt child care providers.
Senate Bill (SB) 119: The bill makes changes to the CalWORKs program that have an impact on Stage One Child Care. The most impactful changes are an expansion to the list of allowable Welfare to Work activities, expanded sanction protections, and a simplified sanction curing process. Simplified sanction is recipient asking for a sanction, easier process for clients.
Implementation of Assembly Bill (AB) 1808: AB 1808 (Chapter 356, Statutes 2024) amends WIC Section 10271 to extend the minimum 12-month eligibility period to 24-months for eligible individuals enrolled in the CalWORKs Child Care Programs.
Cost of Care Plus Rate Payments to Child Care Providers: Pursuant to SB 140 and the Memorandum of Understanding (MOU) between the State and the Child Care Providers United (CCPU) Union, a monthly distribution of per-child payments were submitted to family child care providers and centers.
The variance in Stage Two and Three caseloads may also be influenced by other factors such as families remaining in Stage One longer before transitioning to Stage Two, the availability of child care providers that meet the needs of the family, the expansion of alternative options like Transitional Kindergarten (TK), and other policies and actions leading families to forgo child care services or avoid enrolling in a CalWORKs Child Care program.
County Letters for Reference
- TrustLine Temporary Waiver Expiration: CCB 26-09 (April 29, 2026): Expiration of the Coronavirus Disease of 2019 (COVID-19) TrustLine Retroactive Payment Limits Temporary Waiver
- Senate Bill (SB) 119: All County Letter (ACL) 26-28 (April 24, 2026) Transforming CalWORKs: Changes to Welfare to Work Non-Compliance and Sanctions
- Cost of Care Plus: CCB 25-29 (November 21, 2025): Cost of Care Plus Rate Payments to Child Care Providers Pursuant to Senate Bill 151
- Cost of Care Plus: CCB 25-26 (October 22, 2025): Cost of Care Plus Rate Payments to Child Care Centers Pursuant to Senate Bill (SB) 120 (Chapter 13, Statutes Of 2025)