DPSS ePolicy

1. As of June 1, 2019, Supplemental Security Income/State Supplementary Payment (SSI/SSP) recipients will no longer be considered excluded household (HH) members. Their income will be counted in its entirety for CalFresh purposes. SSI/SSP income is considered unearned for CalFresh purposes.
   
   
2. As of January 1, 2022, The Countable Child Support Disregard increased from $50 to $100 for one child and $200 for two or more children in the CalWORKs (CW) Assistance Unit (AU).
   
   
3. At Intake or Renewal (RE), Eligibility staff must request income from the prior 30 days. Income that spans over multiple months (e.g., April and May) must be entered onto the system on one Income Detail page instead of entering the income for each month on separate Income Detail pages.
   
   
4. Child Support Arrears received monthly will no longer be excluded.
   
   
5. Treatment of Guaranteed Income.
   
   
6. Treatment of Stipends.

Means-tested

When the HH’s financial circumstances are considered in determining eligibility and benefit amount. These means-tested programs make publicly-funded payments to the HH: California Work Opportunity and Responsibility to Kids (CalWORKs), General Relief (GR), or SSI.

Adoption Assistance Program (AAP)

The program provides financial assistance to families who adopt children or Non-Minor Dependents (NMDs).

Alimony or Spousal Support

Court ordered alimony or spousal support payments made to the applicant/participant from a non HH member is considered unearned income. Payments that are legally obligated and otherwise directly payable to the HH that are diverted by the provider of the payment to a third party for an HH expense must be counted as unearned income and are not excluded as a vendor payment.

The applicant/participant may also receive alimony or spousal support payments directly from their ex spouse, such payments are also considered unearned income.

Annuities

An annuity is a contract with an insurance company that can provide income or tax-deferred savings for retirement. Annuity payments expected or reasonably anticipated to be received in the upcoming certification period are counted as unearned income to determine CalFresh eligibility and benefit amount.

However, a lump-sum annuity payment that is received one-time or non-recurring is exempt from being treated as a source of income.

Big Leap Guaranteed Income Program

The program is solely funded by private organizations and provided 1,000 eligible residents with $1,000 a month for three years. Breathe payments are exempt from being treated as a source of income.

Breathe Guaranteed Income Program

The program is solely funded by private organizations and provided 1,000 eligible residents with $1,000 a month for three years. Breathe payments are exempt from being treated as a source of income.

California Work Opportunity and Responsibility to Kids (CalWORKs)

The program provides temporary financial assistance and employment-focused services to families with minor children whose income and property are below State maximum limits for their family size. CalWORKs is also known as Temporary Aid for Needy Families (TANF).

Cash Assistance Program for Immigrants (CAPI)

The program provides cash assistance to certain aged, blind, and disabled legal immigrants ineligible for SSI/SSP due to their immigration status. CAPI applicants/participants may also be eligible for Medi-Cal, In-Home Supportive Services (IHSS), and/or CalFresh benefits.

Child Support

The HH may receive court ordered Child Support payments directly from the California Child Support Services Department (CSSD) or an out of state child support agency. Both arrears (payments that are owed) and/or current court ordered Child Support payments received by the HH from a non-HH member is considered unearned income. Payments that are legally obligated and otherwise directly payable to the HH that are diverted by the provider of the payment to a third party for an HH expense must be counted as unearned income and are not excluded as a vendor payment. However, this excludes support that is transferred to another agency, such as the District Attorney’s (DA) office.

The HH may also receive Child Support payments directly from the child’s absent parent, such payments are also considered unearned income.

Deemed Income

Regular cash contributions from the sponsor (who has signed an I-864) paid to their sponsored non-citizen is counted as unearned income to determine CalFresh eligibility and benefit amount.

Direct Money Payments

Any type of payment from any source which can be understood to be gain or benefit to the HH is counted as unearned income to determine CalFresh eligibility and benefit amount.

Disability Insurance Benefits (DIB) or State Disability Insurance (SDI)

Temporary disability benefits administered by the Employment Development Department (EDD).

Disability Benefits or Workers’ Compensation

Permanent or temporary income (regardless of the source, such as, private disability) provided to employees who are injured or become ill. These payments typically cover lost wages at a reduced rate. Employers are usally responsible for providing disability or workers' compensation insurance coverage.

Dividends

Payments received as a shareholder as their share of the profits of a company in which they have invested money. When a company announces a dividend, it also announces the payment date. Dividends are generally paid quarterly.
Dividends may be paid in cash or additional shares. Divind payments expected or reasonably anticipated to be received in the upcoming certification period are counted as unearned income to determine CalFresh eligibility and benefit amount. If paid quarterly, divide the amount over the period it is intended to cover. For example, $3,000 divided over 3 months equals $1,000 of unearned income that is counted each month for a period of 3 months to determine CalFresh eligibility and benefit amount.

However, a lump-sum dividend payment that is received one-time or non-recurring is exempt from being treated as a source of income.

Monies that are withdrawn or dividends that could be received by an HH from an excluded trust fund, such trust withdrawals must be considered unearned income in the month received. Dividends which the HH has the option of either receiving as income or reinvesting in the trust are to be counted as unearned income in the month they become available to the HH.

Educational Assistance

Financial Assistance that eligible students receive must be used when determining CalFresh eligibility and benefit amount unless the Financial Educational Assistance has been excluded by federal statute or other laws.

When Financial Educational Assistance has not been excluded by federal statute or other laws, eligible students are still allowed to claim educational expenses, which are excludable when determining CalFresh eligibility and benefit.

Excludable expenses claimed by the student must not exceed the value of the total amount of educational assistance received.

BEOG, federal and State college work-study, or any other student financial aid program funded under Title IV of the federal Higher Education Act, the Bureau of Indian Affairs student assistance programs, or Title XVIII of the Indian Higher Education Programs are exempt incomes.

Some Examples of Excluded Financial Aid:

• Pell Grants;
• Supplemental Educational Opportunity Grants (SEOG);
• Stafford Loans (subsidized and unsubsidized);
• National Direct Student Loans (NDSL): NDSLs is also known as Perkins Loans;
• Guaranteed Student Loans (GSL): The GSL Program is the source of Parent Loan for Undergraduate Students (PLUS) Loans and Supplemental Loans for students;
• The Robert C. Byrd Honor Scholarship Program;
• Special Programs for Students from Disadvantaged Backgrounds (the source of TRIO loans);
• Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farm Work; and
• Grants to States for State Student Incentives and the Income Contingent on Direct Loan Demonstration Project.

If financial aid is not exempt, allowable educational expenses may be deducted from countable income. Allowable education expenses include:

• Tuition and mandatory fees (including the purchase or rental of any equipment, materials, and supplies related to the course of study);
• Books;
• Supplies;
• Transportation;
• Dependent care;
• Miscellaneous personal expenses (other than living expenses, such as rent, mortgage, personal clothing, or food eaten at home);
• Origination fees; and/or
• Insurance premiums on student loans, etc.

Note: The students’ verbal statement is sufficient to allow the educational expenses unless the statement is questionable.

Other educational assistance, such as deferred payment loans, private grants, or private scholarships, is excluded if it is earmarked by the lender, used for, or intended to be used for “an allowable educational expense.”

Excluded Resources of Native Americans or Alaska Natives

1. Indian lands held jointly with the tribe or land that can be sold only with the approval of the Department of Interior’s Bureau of Indian Affairs.
   
   
2. Funds or assets of, or payments to Native American tribal members or Alaska Natives are excluded as resources and/or income if specifically excluded by any other federal law, and these exclusions include (but are not limited to):
   
   
   • Payment Received under the Alaska Native Claims Settlement Act; or
     
     
   • Payments received by certain Indian tribal members under federal law regarding sub-marginal land held in trust by the United States;
     
     The following tribes may benefit from the sub-marginal land provision:
     
     
     • Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin;
       
     • Blackfeet Tribe;
       
     • Cherokee Nation of Oklahoma;
     • Cheyenne River Sioux Tribe;
     • Crow Creek Sioux Tribe;
     • Lower Brule Sioux Tribe;
     • Devils Lake Sioux Tribe;
     • Fort Belknap Indian Community;
     • Assiniboine and Sioux Tribes;
     • Lac Corte Oreilles Band of Lake Superior Chippewa Indians;
     • Keweenaw Bay Indian Community;
     • Minnesota Chippewa Tribe;
     • Navajo Tribe;
     • Oglala Sioux Tribe;
     • Rosebud Sioux Tribe;
     • Shoshone-Bannock Tribe; and
     • Standing Rock Sioux Tribe.
        
   • Payments received from the disposition of funds to the Grand River Band of Ottawa Indians;
     
     
   • Payments received by the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation from the Indian Claims Commission;
     
     
   • According to the Main Indian Claims Settlement Act of 1980, payments made to the Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of Maliseet, or any Indian HH or member;
     
     
   • Relocation assistance payment to the members of the Navajo and Hopi Tribes;
     
     
   • Funds that meet any of the below criteria:
     
     
     1. Appropriated funds under the judgments from the Indian Claims Commission or Claims Court, which:
        
        
        • Are distributed per capita, not exceeding $2,000, or held in trust according to an approved plan;
          
          
        • As of January 12, 1983, were distributed per capita, up to $2,000, or held in trust according to a plan approved by Congress before January 12, 1983;
          
          
        • Were distributed according to a plan approved by Congress after December 31, 1981, but before January 12, 1983, and any purchases made with such funds; or
          
          
        • Are per capita payments not exceeding $2,000 from funds held in trust by the Secretary of the Interior (trust fund distribution).
           
     2. The $2,000 limit on per capita shares (applies to each payment made to each HH member); or
        
        
     3. Purchases made with payments were distributed between January 1, 1982 and January 12, 1983 (excluded from resources to the extent excluded funds were used to make such purchases).
         
3. Interests of individual Indians in trust or restricted lands (excluded as resources only); and any income from such interests, up to $2,000 per calendar year per individual (excluded as income only), and with an application of the following:
   
   
   • Interests include the individual’s right to, or legal share of, the trust or restricted land and any resulting income; and
     
     
   • The exclusion applies to each HH member who holds an interest or legal share.
      
4. Assistance received under the Indian Child Welfare Act child and family service grant programs on or near reservations. These programs include, but are not limited to:
   
   
   • Family assistance;
   • Daycare;
   • After-school care;
   • Respite care;
   • Recreational activities;
   • Home improvement;
   • Employment of Domestic Relations & Child Welfare Personnel; and
   • Education and Training.
      
5. Payments made to the following:
   
   
   • Turtle Mountain Band of Chippewas, Arizona;
     
   • Blackfeet, Grosventre, Assiniboine tribes of Montana, and the Papago Tribe, Arizona;
     
   • Red Lake Band of Chippewa Indians;
   • White Earth Band of Chippewa Indians of Minnesota pursuant to the White Earth Reservation Land Settlement Act of 1985; and Saginaw Chippewa Indian Tribe of Michigan.
      
6. Per capita and interest payments made to members of the Assiniboine Tribe of the Fort Belknap Indian Community and the Fort Peck Indian Reservation, Montana.
   
   
7. Funds paid to heirs of deceased Native Americans under the Old Age Assistance Claims Settlement Act, except for per capita shares exceeding $2,000.
   
   
8. Funds distributed per capita or held in trust for the Chippewas of Lake Superior and the Chippewas of the Mississippi.
   
   
9. Funds, assets, or income from the trust fund established according to the Puyallup Tribe of Indians Settlement Act of 1989.
   
   
10. Payments made to the Seminole Nation of Oklahoma, the Seminole Tribe of Florida, the Miccosukee Tribe of Indians of Florida, and the independent Seminole Indians of Florida to satisfy the judgments of the Indians Claims Commission, except for per capita payments exceeding $2,000.
    
    
11. Payments, distributions, or income under the Seneca Nation Settlement Act of 1990.

Family Leave

Paid family leave refers to policies that enable workers to receive wage replacement when they take extended time off from work for qualifying reasons. This income is counted as unearned income to determine CalFresh eligibility and benefit amount.

Foster Care

Payments received by the caregiver are intended to help cover the cost of the child’s food, clothing, personal needs, etc. Foster Care payments are countable only when the HH chooses to include the foster child(ren) on their CalFresh case.

Gambling or Lottery Winnings

It is mandatory for HHs to report substantial gambling or lottery winnings in excess of the current federal fiscal year's resource limit for aged or disabled HHs.

General Relief (GR)

The program is County-funded and provides cash aid if you are an adult without any income or resources, and children in certain special circumstances who are ineligible for federal or State programs..

Gift

Cash given to someone without the expectation of repayment. Gifts are usually one-time and are not expected to continue or reasonably anticipated to be received in the upcoming certification period.

However, if cash gifts are expected or reasonably anticipated to be received in the upcoming certification period, the gift is considered to be a cash contribution that the HH receives and counted as unearned income to determine CalFresh eligibility and benefit amount. 

Government-Sponsored Programs

Federal, State, and/or County sponsored programs are counted as unearned income to determine CalFresh eligibility and benefit amount.

Guaranteed Income (GI)

Programs that are funded with any combination of monies received from federal, State, and/or County sources are counted as unearned income to determine CalFresh eligibility and benefit amount. 

However, payments solely funded by private organizations are exempt from being treated as a source of income. There are no restrictions on how the money must be spent. 

Inheritance

The act of inherting money and/or property. Inheritance payments expected or reasonably anticipated to be received in the upcoming certification period are counted as unearned income to determine CalFresh eligibility and benefit amount.

However, a lump-sum heritance payment that is received one-time or non-recurring is exempt from being treated as a source of income.

Interest

Income from interest refers to the earnings that an individual receives from investing in financial products such as bonds or savings accounts. Payments expected or reasonably anticipated to be received in the upcoming certification period are counted as unearned income to determine CalFresh eligibility and benefit amount.

Kinship Guardianship Assistance Payment (Kin-GAP)

The program is like Foster Care, however, it provides a permanency option for children in long-term placement and a monthly payment to the guardian or relative.

Legally Obligated Income

Payments that are legally obligated to be paid directly to the HH which are diverted by the provider of the payment to a third party for an HH expense must be counted as unearned income and not excluded as a vendor payment.

Loans

All loans, including loans from commercial institutions or private individuals, are excluded as income. When verifying whether a loan is excluded as income, a legally binding agreement is not required. A simple statement signed by both parties (the borrower and the lender) that indicates that the payment is a loan and must be repaid is sufficient verification.

However, if the HH receives payments on a recurrent or regular basis from the same source and claims the payments are loans, the Department may also require that the provider of the loan sign an affidavit that states that repayments are being made or that payments will be made in accordance with an established repayment schedule.

Note:  If verification is not provided to substantiate the validity of the loan payments, then the payments received by the HH are not considered a loan and counted as unearned income.

Gambling or Lottery Winnings

It is mandatory for HHs to report substantial gambling or lottery winnings in excess of the current federal fiscal year resource limit for aged or disabled HHs.

Pension or Retirement

A regular benefit or payment (regardless of the source) made during a person's retirement and to some widows from an investment fund to which that person and/or their employer has contributed during their employment.

Refugee Cash Assistance (RCA)

The program provides temporary assistance to individuals who are not eligible for other assistance.

Reimbursements

When recurring reimbursements of past, current and/or future are exempt from being counted as income.

However, out of pocket expenses that exceed the actual total expense, the excess amount received is counted as unearned income.

When recurring reimbursements are intended to cover living expenses, such as food, rent, and clothing the amount is also counted as unearned income.

Rental Property Income

The HH must not also reside on the property for it to be considered a rental property. The income derived from an owned rental property is considered unearned income when the rental property is managed by the applicant/participant an average of less than 20 hours per week. The applicant/participant may claim actual costs of doing business (which requires verification) or the standard 40% standard self-employment deduction (which does not require income).

Residuals or Royalties

Income from residuals or royalties refers to compensation that an individual receives from reuse of their creative works. Payments expected or reasonably anticipated to be received in the upcoming certification period are counted as unearned income to determine CalFresh eligibility and benefit amount.

Retirement, Survivors, and Disability Insurance (RSDI)

Social Security Administration (SSA) program that provides benefit support to retirees, spouse and dependent survivors of deceased workers, and individuals with disabilities.

Stipends

Payments that are earmarked to cover past, current, and/or future educational expenses such as book fees, tuition, etc., or out-of-pocket expenses such as gas, per diems, work supplies, etc., are a type of reimbursement and are exempt from being counted as income.

However, if any of the stipend payment is allotted for living expenses such as rent, utilities, etc., then that portion of the stipend payment is counted as unearned income. Divide the amount allotted for living expenses over the period it is intended to cover. For example, $6,000 divided over 6 months equals $1,000 of unearned income that is counted each month for a period of 6 months to determine CalFresh eligibility and benefit amount. The total amount of the living expenses billed to the HH are aollowed when determining CalFresh eligibility and benefit amount.

Striker’s Benefits

Payments are usually provided by a local union to employees that are strike. Payments expected or reasonably anticipated to be received in the upcoming certification period are counted as unearned income to determine CalFresh eligibility and benefit amount.

Supplemental Security Income/State Supplementary Payment (SSI/SSP)

The SSI program is federally funded and provides income support to eligible individuals who are aged 65 or older, blind or disabled. SSI benefits are also available to qualified blind or disabled children. The SSP Program is the State program which augments SSI. Both SSI and SSP benefits are administered by the Social Security Administration (SSA). 

As of June 1, 2019, SSI/SSP recipients are no longer considered excluded HH members. Their income will be counted to determine CalFresh eligibility and benefit amount.

Tribal Temporary Aid for Needy Families (TANF)

The program is like CalWORKs for Native American Indian famalies which provides temporary financial assistance.

Unemployment Insurance Benefits (UIB)

Administered by the EDD, the benefits are provided to individuals who are unemployed that meet specific eligibility criteria. The joint federal and State program is not based on financial need; rather, it is an insurance program that workers earn eligibility for through their previous employment and wages.

Veteran's Benefits

Benefits can be received received by current or ex military members. Countable benefit types vary due to disability compsensation, retirement pension benefits, and survivor pension benefits or survivor benefits for spouses, dependents, and in some instances parents.

There are instances in which income (earned or unearned) may be anticipated to better determine correct eligibility. Two main factors must be present before income can be anticipated, which includes the HH being reasonably certain of:

• The amount to be received; and
  
  
• The date on which the income will be received.

Note: Income cannot be reasonably anticipated or used for CalFresh eligibility determination if one of these two factors is missing.

Rental income applies when a HH owns the rental property and rents out a dwelling separate from their main residence. A room inside or in the back of the same house would not be considered rental property.

Rental income is only considered unearned when the property owner is involved in less than 20 hours per week managing the property. In this event, this will be first treated as self-employment, and the gross  income is counted as Unearned Income. The applicant/participant may claim actual costs of doing business (which requires verification) or the standard 40% standard self-employment deduction (which does not require income).

If the owner manages the property for more than 20 hours per week, then the income will be counted as earned income. In this circumstance, the income will first be treated as self-employment and the gross income counted as earned income and allowing the standard earned income deduction. The applicant/participant may claim actual costs of doing business (which requires verification) or the standard 40% standard self-employment deduction (which does not require income).

Unearned income from minor children is counted to determine CalFresh eligibility and benefit amount. The income exclusion of children in school aged 18 and under only applies to earned income.

There are instances in which a portion or the entire amount of the unearned income is being withheld from the HH.  Unearned Income that is withheld from a public assistance grant or income that is repaid by the recipient to the Public Assistance Program are both considered countable Unearned Income if the following conditions apply:

1. The income is voluntarily withheld or
   
   
2. Returned to repay a prior overpayment that was caused by the HH’s intentional failure to comply with the requirements of another federal or State means-tested program.
   

The overpayment is not considered excluded income. When the above conditions do not apply, then the recoupment will be excluded as income.

Note: This does not apply to SSI/SSP, Eligibility staff are to always use the paid amount.