This graphic extrapolates on the information presented in the SRL item, CalWORKs Cases Without the Adult Portion of Aid, by highlighting the impact of the increase of the CalWORKs Time Limit from 48 to 60 months where there is a marked decrease of families entering the Safety Net in May 2022, followed by a marked increase in May 2023, reflective of the 12 months of additional time on aid where CalWORKs families might otherwise have been in the CalWORKs Safety Net but instead received the full CalWORKs grant, along with WTW supportive services.
Not evident in this graphic but anticipated following implementation after automation is completed, certain Safety-Net and Child-Only cases will have child support arrears passthrough and all child support income will be exempt when determining eligibility and the calculation of the CalWORKs grant.
Increase of the CalWORKs Time Limit to 60 Months
The CalWORKs Time-on-Aid (TOA) limit was increased from 48 months to 60 months in May 2022. Safety Net cases in which the parent or caretaker relative was excluded from the assistance unit (AU) for reaching their 48-month TOA limit were re-evaluated, and the parent/caretaker relative was added back to the AU for an additional 12 months of aid. This likely resulted in a decrease of safety-net cases which is reflected above starting in Q2/Q3 of SFY 2021-2022. Additionally, these families received a higher grant amount because of the increase in the AU size, and the parent/caretaker relative became eligible for WTW supportive services.
Once a parent/caretaker relative that was added back to the AU exhausts the additional 12 months of aid, the case would once again transition to a safety-net case, resulting in an increase in safety-net cases which is reflected in Q2/Q3 of SFY 2022-2023 above.
Increase in Aid Amounts
Effective October 1, 2023, the CalWORKs maximum aid payment (MAP) was increased by 3.6 percent. With the new increase, the MAP levels for a CalWORKs family of three is at 57 percent of the federal poverty level, effectively ending deep poverty for program recipients.
Child Support Arrears Passthrough & Full Disregard
Federal TANF rules (Title 42 of USC Section 608(a)(3)) and State statutes (WIC Section 11477) require families to assign their child support rights to the State as a condition of eligibility for CalWORKs. This means that in order to receive aid under TANF and CalWORKs, families must redirect their child support income to the State to cover the federal, state, and county costs of CalWORKs aid for that family. The State uses the child support collected to repay months of CalWORKs assistance that the family received, and the repaid months are added back to the family’s CalWORKs time-on-aid clock. However, CalWORKs families in which all adults are unaided due to exceeding the time on aid limits, in WTW sanction status for 12 consecutive months or longer (long-term WTW sanction) or fleeing felon status are not required to assign child support rights per state law. This means that any current child support payments are passed through to the family because current support is not assigned to the state, but only up to $200 is disregarded from consideration in the eligibility determination and grant calculation. Effective April 1, 2024, child support “arrears” will be passed through to certain Child-Only and safety-net families. In addition, all child support will be disregarded for these families.
The term child support “passthrough” refers to the assigned support collection that the State collects and forwards to the family, rather than utilizing the child support to reimburse itself and the federal government for the cost of providing cash assistance paid to the family. Under existing law, past due child support owed, known as “arrears,” are collected by the State to repay CalWORKs assistance that current and former recipients received. Arrears that accrued during periods of time a family received CalWORKs benefits are held by the state for all CalWORKs case types.
The term “disregard” refers to the amount of child support passthrough that is not considered when determining eligibility for CalWORKs and the amount of cash assistance a family will receive. Any remaining child support paid to the family above the allowable disregard amount is counted dollar-for-dollar against the aided family members’ grant. For a family with one child, up to $100 is disregarded, and for a family with two or more children, up to $200 is disregarded.