Existing law requires the State Department of Social Services, subject to an appropriation, to administer the California Guaranteed Income Pilot Program until January 1, 2028, to provide grants to eligible entities for the purpose of administering pilot programs and projects that provide a guaranteed income to participants. Existing law requires the department to prioritize, for these purposes, California residents who age out of the extended foster care program at or after 21 years of age or who are pregnant individuals.

Under existing law, guaranteed income payments received by an individual from a pilot program or project, as described above, are not considered income or resources for purposes of determining the individuals, or any member of their households, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as specified.

Existing law establishes various public social services programs within the jurisdiction of the State Department of Social Services, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program and the CalFresh program. Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services.

Under this bill, to the extent not in conflict with federal law, guaranteed income payments received by an individual would not be considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, and vice versa. The bill would require the State Department of Social Services and the State Department of Health Care Services, for programs under their jurisdiction, to seek any federal waivers necessary to implement these provisions. The bill would define guaranteed income payments to include, but not be limited to, payments provided through pilot programs or projects receiving funding from the California Guaranteed Income Pilot Program or payments provided through locally funded programs, as specified.

Under the bill, means-tested programs would include, but would not be limited to, the CalWORKs program, the CalFresh program, the California Food Assistance Program (CFAP), the Medi-Cal program, the General Assistance Program, the Kinship Guardianship Assistance Payment (Kin-GAP) Program, the Adoption Assistance Program (AAP), and the Cash Assistance Program for Immigrants (CAPI).

By creating new duties for counties with regard to eligibility determinations for means-tested programs, the bill would impose a state-mandated local program.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would instead provide that the continuous appropriation would not be made for purposes of implementing these provisions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires the State Department of Social Services, subject to an appropriation, to administer the California Guaranteed Income Pilot Program until January 1, 2028, to provide grants to eligible entities for the purpose of administering pilot programs and projects that provide a guaranteed income to participants. Existing law requires the department to prioritize, for these purposes, California residents who age out of the extended foster care program at or after 21 years of age or who are pregnant individuals.

Under existing law, guaranteed income payments received by an individual from a pilot program or project, as described above, are not considered income or resources for purposes of determining the individuals, or any member of their households, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as specified.

Existing law establishes various public social services programs within the jurisdiction of the State Department of Social Services, including, among others, the California Work Opportunity and Responsibility to Kids (CalWORKs) program and the CalFresh program. Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services.

Under this bill, to the extent not in conflict with federal law, guaranteed income payments received by an individual would not be considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, and vice versa. The bill would require the State Department of Social Services and the State Department of Health Care Services, for programs under their jurisdiction, to seek any federal waivers necessary to implement these provisions. The bill would define guaranteed income payments to include, but not be limited to, payments provided through pilot programs or projects receiving funding from the California Guaranteed Income Pilot Program or payments provided through locally funded programs, as specified.

Under the bill, means-tested programs would include, but would not be limited to, the CalWORKs program, the CalFresh program, the California Food Assistance Program (CFAP), the Medi-Cal program, the General Assistance Program, the Kinship Guardianship Assistance Payment (Kin-GAP) Program, the Adoption Assistance Program (AAP), and the Cash Assistance Program for Immigrants (CAPI).

By creating new duties for counties with regard to eligibility determinations for means-tested programs, the bill would impose a state-mandated local program.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would instead provide that the continuous appropriation would not be made for purposes of implementing these provisions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law states the intent of the Legislature to close the Division of Juvenile Justice within the Department of Corrections and Rehabilitation, by shifting responsibility for all youth adjudged wards of the court to county governments and providing annual funding for county governments to fulfill that responsibility. In this regard, existing law prohibited, beginning July 1, 2021, a ward from being committed to the Division of Juvenile Justice, except as specified, and required, by January 1, 2022, the Director of the Division of Juvenile Justice to develop a plan for the transfer of jurisdiction of youth remaining at the Division of Juvenile Justice who are unable to discharge or otherwise move prior to its final closure. Existing law requires the Division of Juvenile Justice to close on June 30, 2023.

This bill would make technical, nonsubstantive changes to those provisions.

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

AB 1357 (Celeste Rodriguez) - Guaranteed income payments: consideration as income or resources

Bill Summary:

AB 1357 would prohibit guaranteed income payments from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, as specified.

Fiscal Impact:

• Unknown ongoing General Fund costs for increased program benefits, which would vary depending on the specific means-tested program.
• Unknown one-time General Fund costs for automation system changes, which would vary depending on the specific means-tested program. For the Medi-Cal program, the Department of Health Care Services estimates a one-time automation cost of $345,000 ($86,250 General Fund and 258,750 federal funds). 
• Unknown potential costs to counties for administration related to program eligibility/benefit determinations. Cost to counties would be potentially reimbursable by the state, subject to a determination by the Commission on State Mandates.

Background:

California Guaranteed Income Pilot Program. Current law establishes the California Guaranteed Income Pilot Program. CDSS administers the program to provide grants to eligible entities for the purpose of administering pilot programs and projects that provide a guaranteed income to participants. Current law requires CDSS to prioritize funding for pilot programs and projects that serve California residents who age out of the extended foster care program at or after 21 years of age or who are pregnant individuals. CDSS, in consultation with relevant stakeholders, must determine the methodology for, and manner of, distributing grants awarded. “Eligible entities” include a city, county, city and county, tribe, consortium of tribes, tribal organization, or nonprofit organization, as specified.

State law provides that guaranteed income payments received by an individual under the California Guaranteed Income Pilot Program are not considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program. Current law requires CDSS to identify federal benefit and assistance programs that require an exemption or waiver in order for a guaranteed income payment funded under the pilot program to be excluded from consideration as income or resources for purposes of the federal program. A state department or agency that administers a program identified by the CDSS must, if possible, approve an exemption or waiver, or provide any other authority deemed necessary, to exclude guaranteed income payments from consideration as income or resources for purposes of the federal program. If the state department or agency does not have that authority, it must seek a federal waiver or exemption.

Current law provides that for the purposes of the Medi-Cal program, a guaranteed income payment under the California Guaranteed Income Pilot Program cannot be considered income or resources for a period of 12 months from receipt. Current law requires that this provision only be implemented by the Department of Health Care Services to the extent consistent with federal law and any waivers received, and federal financial participation for the Medi-Cal program is available.

Treatment of Guaranteed Income Payments under CalWORKs and CalFresh. Current state law governing the CalWORKs program exempts guaranteed income payments from consideration as income and resources for purposes of determining CalWORKs eligibility and grant amounts. This law does not limit guaranteed income payments to those under the California Guaranteed Income Pilot Program. For this purpose, CDSS guidance defines guaranteed income payments as one or more unconditional cash payments issued from a program intended to support the basic needs of recipients and disrupt poverty. The guidance provides that guaranteed income programs can be administered by entities including, but not limited to, local governments, tribal entities, community-based organizations, non-profit organizations, or private entities. Guaranteed income may also be referred to as Universal Basic Income, Guaranteed Basic Income, or Cash Transfer Program.

CDSS guidance provides that guaranteed income payments are exempt from income calculations (but may count as resources under specified circumstances) for CalFresh eligibility determinations when the guaranteed income payments are exempted by CalWORKs and contain any amount of non-governmental funds. Guaranteed income payments that do not contain any amount of non-governmental funds are not exempt for CalFresh, even if the guaranteed income payment is exempted by CalWORKs.

Proposed Law:

Specific provisions of the bill would:

• Prohibit guaranteed income payments received by an individual from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including, but not limited to, any of the following:
  • CalWORKs program.
  • CalFresh program.
  • California Food Assistance Program (CFAP)
  • Medi-Cal program
  • General Assistance Program.
  • Cash Assistance Program for Immigrants (CAPI)
• Prohibit benefits received by an individual under any means-tested program, including, but not limited to, those listed above, from being considered income or resources for purposes of determining eligibility for guaranteed income payments or the amount of those guaranteed income payments.
• Require CDSS and the Department of Health Care Services, for programs under their jurisdiction, to seek any federal waivers necessary to implement these provisions.
• Define “guaranteed income payments” to mean unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs or projects receiving funding from the California Guaranteed Income Pilot Program or payments provided through locally funded programs.

Related Legislation:

AB 42 (Bryan) would exempt a grant, award, scholarship, loan, or fellowship benefit provided for the purpose of attending an institution of higher education, from consideration as income for purposes of determining eligibility or grant amounts under the CalWORKs program. The bill is scheduled to be heard in this committee on July 14, 2025.

AB 320 (Bennett) would prohibit any compensation awarded to a pupil member of a county board of education or school district governing board from being considered as income or assets when determining eligibility and benefit amount for any means-tested program, and any scholarships for public colleges and universities. The bill is scheduled to be heard in this committee on July 14, 2025.

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SENATE COMMITTEE ON HUMAN SERVICES

Senator Arreguín, Chair

2025 - 2026 Regular

Subject: Guaranteed income payments: consideration as income or resources

SUMMARY

This bill prohibits guaranteed income payments from being considered as income or an asset for the purposes of determining eligibility or award for means-tested programs, including CalWORKS.

ABSTRACT

Existing Law:

1. Establishes the federal Temporary Assistance for Needy Families (TANF) program, which provides block grants to states to develop and implement their own state welfare-to-work programs designed to provide cash assistance and other supports and services to low-income families. (42 USC 601 et seq.)
2. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) to promote the general welfare and to safeguard the health and wellbeing of the nation’s population by raising the levels of nutrition among low-income households. (7 USC 2011 et seq.)
3. States that SNAP shall be limited to households whose income limits their access to nutritious foods and defines what is considered income for the purposes of SNAP eligibility. (7 CFR 273.9(a) and (b))
4. Establishes the CalWORKS program to provide cash assistance and other social services for low-income families through the federal TANF program. Under CalWORKs, each county provides assistance through a combination of state, county, and federal TANF funds. (Welfare and Institutions Code (WIC) 11200 et seq.)
5. Establishes income, asset, and real property limits used to determine eligibility for the CalWORKs program, and CalWORKs grant amounts, based on family size and county of residence. (WIC 11150 to 11160; 11450 et seq.)
6. Exempts the following from being considered as income for purposes of CalWORKS eligibility:
   1. Income that is received too infrequently to be reasonably anticipated.
   2. Income from a college work study program.
   3. An award or scholarship provided by a public or private entity to or on behalf of a dependent child based on the child’s academic or extracurricular achievement or participation in a scholastic, educational, or extracurricular competition. (WIC 11157(b))
7. Establishes CalFresh as California’s implementation of the federal SNAP program. (WIC 18900)
8. Requires, subject to an appropriation for the purpose in the annual Budget Act, the California Department of Social Services (CDSS) to administer the California Guaranteed Income Pilot Program to provide grants to eligible entities for the purpose of administering pilot programs and projects that serve California residents who age out of the extended foster care program at or after 21 years of age or who are pregnant individuals. (WIC 18997(a))
9. Requires, notwithstanding any other law, Guaranteed Income payments received by an individual from a funded pilot program or project to not be considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extend of benefits or assistance, under any state or local benefit or assistance program. (WIC 18997 (c)(1))
10. Requires CDSS to identify federal benefit and assistance programs that require an exemption or waiver in order for a Guaranteed Income payment funded with a grant provided through the Guaranteed Income Pilot Program to be excluded from consideration as income or resources for purposes of the federal program. Exempts the state’s failure to be granted a federal exemption or waiver to not affect CDSS’ ability to administer the Guaranteed Income Pilot Program, and permits CDSS to consider alternatives to prevent adverse consequences for participants. (WIC 18997(c)(2))
11. Prohibits a guaranteed income payment funded with a grant by the California Guaranteed Income Pilot Program from being considered income or resources for a period of 12 months from receipt, for the purposes of determining eligibility to receive benefits, or the amount or extent of medical assistance, under the Medi-Cal program. This subdivision shall only be implemented by the State Department of Health Care Services to the extent consistent with federal law and any waivers received for the implementation of this subdivision, and federal financial participation for the Medi-Cal program is available and not otherwise jeopardized. (WIC 18997(d)))

This Bill:

1. Prohibits guaranteed income payments received by an individual from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including but not limited to:
   1. CalWORKS
   2. CalFresh
   3. California Food Assistance Program (CFAP)
   4. Medi-Cal
   5. The General Assistance Program
   6. The Kinship Guardianship Assistance Payment (Kin-GAP) Program
   7. The Adoption Assistance Program (AAP)
   8. The Cash Assistance Program for Immigrants (CAPI)
2. Prohibits benefits from the above listed program from being considered income or resources for purposes of determining eligibility for guaranteed income payments or the amount of those guaranteed income payments.
3. Defines “guaranteed income payments” to mean unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs or projects receiving funding from the California Guaranteed Income Pilot Program or payments provided through locally funded programs.
4. Requires the bill’s provisions to be implemented in conjunction with current law regarding how income from guaranteed income programs are treated as described in (9) (10) and (11) above, for the purposes of the California Guaranteed Income Pilot Program. .
5. States that the bill will only be implemented to the extent allowed by federal law.
6. Requires CDSS and the Department of Health Care Services to seek any federal waivers needed to implement the provisions of this bill.
7. States no appropriation shall be made for the purposes of this act.

FISCAL IMPACT

According to the Assembly Appropriations Committee:

1. CDSS estimates ongoing General Fund costs of an unknown amount, but likely in the tens of thousands of dollars annually for benefits for newly eligible recipients of CDSS administered means tested programs. CalWORKs, CalFresh, and CAPI currently allow for some GI Program income and resource exemptions where not restricted by federal law. Costs resulting from this bill will depend on the number of newly eligible cases which is unknown at this time. CDSS notes the Kin-GAP and APP programs are not means-tested, so there is no impact to these programs.
2. CDSS anticipates minor and absorbable costs to provide updated guidance to counties on newly exempt GI.
3. CDSS estimates one-time GF automation costs of approximately $259,000 to update the online page as necessary and to identify current recipients eligible for this exemption.
4. Potential increase in county administrative costs of an unknown amount to county social workers for increased caseloads for means-tested programs. These costs will depend on the number of new cases. County administrative costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates.

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, “during my time as the San Fernando City Mayor, I was proud to join the long list of Mayors for Guaranteed Income coalition. Guaranteed Basic Income are unconditional payments made to individuals to pay for basic needs and establish an income floor. California is the 5th largest economy of the world and yet we have some of the largest income disparities with an overwhelming amount of families living in poverty. As a mother and a legislator, it is imperative that we further policies to reduce barriers to resources that can improve the quality of life for women, families and children. AB 1357 will bolster the public safety net for constituents in California by ensuring that they do not have to face the tough choice of declining guaranteed income for the fear of losing other program eligibility or benefits.”

CalWORKs

As the California’s version of the federal TANF program, CalWORKs is the state’s largest anti-poverty program. CalWORKs provides temporary cash assistance aimed at moving children out of poverty and helping qualified low-income families meet their basic needs, such as rent, clothing, utility bills, food, and other items needed to ensure children are cared for at home and safely remain with their families. In addition to cash assistance, adult CalWORKs recipients are provided education, employment, and training services designed to help remove barriers to work and promote self-sufficiency. These services are typically outlined in a welfare-to-work plan. CDSS is the designated state agency responsible for program supervision at the state level, and counties are responsible for administering the program at the local level.

CalWORKs is funded through federal, state, county and realignments funds. The federal government gives the state a TANF block grant and CalWORKs receives a majority of that allocation. California and local governments spend a maintenance-of-effort amount as is required by federal law. The state also uses General Fund money for state-only programs and provides counties with a single allocation to fund many CalWORKs services. Funds from the 1991 realignment are also used to fund assistance payments and are part of the single allocation.

Eligibility for CalWORKs is based on family size, income level, and region. Families must show economic hardship through income and asset tests. For example they must show proof of any income like paystubs or benefit award letter and assets like proof of ownership of cars or land. Participation in the program is also time limited; adults are only allowed to use CalWORKs for 60 months in their lifetime. Children of adults who receive cash aid can continue to receive benefits until they are 18 years old in California. Based on the welfare-to-work plan, families can have cash aid temporarily cut through “sanctions” for not complying with certain required elements of CalWORKs or their plan.

Universal Basic Income

According to Stanford Law School’s Basic Income Lab, an initiative of the Stanford McCoy Family Center for Ethics in Society, Universal Basic Income can vary by funding source, level and frequency of payment, and the particular associated policies that are proposed around it. Despite these variables, they provide the following as defining characteristics of Universal Basic Income:

• Periodic: A recurrent payment, rather than a one-off grant;
• Cash Payment: provided to recipients as cash, so that recipients may convert their benefits into whatever they chose;
• Universal: paid to all, and not targeted to a specific population;
• Individual: paid on an individual basis versus household-basis; and
• Unconditional: it involves no work requirement or sanctions, it is accessible to those in work and out of work, voluntarily or not.

Proponents of Universal Basic Income suggest that recipient choice in terms of how to spend the funds received and the unconditional nature of Universal Basic Income are key characteristics that differentiate Universal Basic Income projects from other, more traditional safety net programs. By not placing restrictions on how the funds may be spent, Universal Basic Income projects allow the recipient to determine how to spend the funds, and individuals are able to make the choices that are most important to their own well-being and success. Additionally, by not tying Universal Basic Income to work or other conditions, recipients are given the space and time needed to focus on things like education or skill attainment that might not otherwise be feasible.

Universal Basic Income has a long history, but has been receiving increased focus since 2016 with the launch of the Economic Security Project, which has devoted millions of dollars to research and advocacy on Universal Basic Income, and the testing of Universal Basic Income in Oakland by the technology incubator Y Combinator. Perhaps the most high profile test of Universal Basic Income begin in 2019 when the then Mayor of Stockton announced the Stockton Economic Empowerment Demonstration (SEED). SEED, funded by the Economic Security Project, provided 125 Stockton residents with $500 per a month, in the form of unconditional cash payments.

The initial key findings of SEED’s outcomes showed guaranteed income reduced income volatility; enabled recipients to find full-time employment (recipients’ full-time employment increased by 12 percentage points); resulted in recipients being healthier, showing less depression and anxiety and enhanced wellbeing; and, alleviated financial scarcity, creating new opportunities for self-determination, choice, goal-setting, and risk-taking.

Additionally, the preliminary analysis found that recipients spent most of the money on basic needs, including food, merchandise, utilities, and auto costs. Recipients reported that these payments helped them stretch their resources to cover needs like caring for aging or ill family members, school or sports supplies, and transportation to and from doctor’s appointments, all things that might have otherwise skipped. This particularly impacted women, who typically bear the brunt of unpaid care work, allowing them to both care for their families and meet their own basic needs. For example, one participant reported that the extra $500 a month allowed her to continue buying diapers for her grandchildren while also being able to purchase an adequate amount of feminine hygiene products for herself for the first time in months.

Furthermore, SEED considered the potential impacts that this additional income might have on participant eligibility for other public social services, as well as the impact the income could have on determining benefit amounts for those who retained eligibility. SEED was able to secure a waiver for CalWORKs, through collaboration with the San Joaquin County Human Services agency, which enabled SEED disbursements to be exempted from consideration as income for all CalWORKs services, including support services (child care, transportation, and counseling/therapy) and family stabilization (intensive case management). Additionally, SEED developed a Hold Harmless Fund that allowed them to reimburse recipients for any unanticipated benefit losses.

In addition to SEED, there have been several ongoing Universal Basic Income pilot programs targeting specific populations in different parts of the state, including:

• San Francisco’s Abundant Birth Project
• Compton Pledge
• Oakland Resilient Families
• Santa Clara County TAY

This bill creates a definition for guaranteed income programs in statute that aligns closely with the characteristics of universal basic income defined by Stanford Law. Specifically, that the program must provide unconditional, recurring, regular cash payments that are publicly or privately funded to support the basic needs of its recipients. The bill also prohibits CalWORKs benefits from being considered as income for qualification of a guaranteed income program and guaranteed income payments from being considered income for CalWORKs, similar to the experience in the SEED program.

California Guaranteed Income Pilot Program

The 2021-22 Budget (AB 153, Committee on Budget, Chapter 86, Statutes of 2021) established the California Guaranteed Income Pilot Program to provide grants to eligible entities for the purpose of administering pilot programs and projects that provide a guaranteed income to participants. The Guaranteed Income Pilot Program received $35 million General Fund in the 2021 Budget to be spent over five years. CDSS is the administering department and is responsible for prioritizing funding for pilot programs and projects that serve California residents that age out of the extended foster care program at or after 21 years of age or individuals who are pregnant. CDSS, in consultation with stakeholders, is also responsible for determining the methodology for, and manner of, distributing Guaranteed Income Pilot program grants. CDSS and the entities receiving funding, are also required to seek waivers or exemptions as necessary to prevent guaranteed income payments from being calculated as income or resources for the purpose of determining a recipient, or member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, provided under any state or local benefit or assistance program, the Medi-Cal program, and federal benefit and assistance programs.

Entities eligible to receive the California Guaranteed Income Pilot Program grants are: cities, counties, or a city and county; and, a nonprofit organization, as provided, that provides a letter of support for its pilot or project from any county or city and county in which the organization will operate its pilot project. Additionally, in order to receive funding, the eligible entity must present commitments of additional funding for Guaranteed Income Pilot program pilots and projects from a nongovernmental source equal to or greater than 50 percent of the amount of funding provided by a Guaranteed Income Pilot grant. The eligible entity must also agree to assist CDSS in obtaining, or to pursue, all available exemptions or waivers to ensure that guaranteed income payments made under the funded pilots and projects are not considered income or resources for the recipient of the guaranteed income payments or any member of their household in any means-tested federal, state, or local public benefit programs.

The California Guaranteed Income Pilot Program in part arose from SB 739 (Cortese, 2021) which would have created a Universal Basic Income pilot project for foster youth who exited care at 21 years of age, administered by CDSS. SB 739 would have provided for monthly $1,000 Universal Basic Income payments to former foster youth for three years and defined “Universal Basic Income” as “unconditional cash payments of equal amounts issued monthly to individual residents of California with the intention of ensuring the economic security of the recipients.” In November 2022, CDSS announced their intent to award more than $25 million in grant funding to seven Guaranteed Income Pilot projects across the state, serving approximately 1,975 individuals across California with monthly payments ranging from $600-$1,200 per month, for a period of 12-18 months. The 2024-2025 budget appropriated $5 million for a guaranteed income program serving adults 60 years of age or older residing in California and either eligible for or receiving a means-tested benefit called the Guaranteed Income Pilot Program for Older Californians. The programs is currently in the early planning stages.

CalWORKS and CalFresh Income Exemptions

Under current law, certain types of income are considered exempt in the CalWORKs program, which means they are not counted when calculating a person’s program eligibility for the program and cash benefit amount they receive. Exempt income includes:

• Income that is received too infrequently to be reasonably anticipated
• Income from college work-study programs
• An award or scholarship provided by a public or private entity to or on behalf of a dependent child
• Federal pandemic unemployment compensation
• Income or stipends paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to improving participation in the decennial census that is earned in the year preceding a decennial census and during the year of the decennial census.
• Income from GI programs, including the California Guaranteed Income Pilot Program.

CalWORKS and CalFresh participants are not required to submit verification for their excluded income by state law but counties can monitor and request verification as necessary. The only type of income that requires verification is gross nonexempt income and any income that is questionable. All income exemptions allowable for CalFresh are allowable for CalWORKS as well. However, there are exemptions that are allowed for CalWORKS that do not apply to CalFresh. For example, income from Guaranteed Income programs are exempt under CalWORKS but if the program uses government funds to fund the income payments, it cannot be exempt from CalFresh eligibility determinations due to federal restrictions.

This bill would expand income exemptions for CalWORKS and CalFresh to any guaranteed income program and allows income exemptions from other means tested programs. The bill also ensures funds from a guaranteed income program are not used to determine the eligibility or benefits for these programs.

Related/Prior Legislation:

SB 33 (Cortese, 2025) would establish, subject to appropriation, the California Success, Opportunity, and Academic Resilience (SOAR) Guaranteed Income Program and the California SOAR Guaranteed Income Fund for purposes of awarding monthly payments to twelfth grade students who are homeless. SB 33 was held on the suspense file in the Senate Appropriations Committee.

AB 661 (Lee, 2025) creates Guaranteed Income Research and Expansion Act and requires the State Department of Social Services shall contract with one or more qualified entities to implement the Guaranteed Income Research and Expansion Act. AB 661 was held on the suspense file in the Assembly Appropriations Committee.

AB 2263 (Friedman, 2024) would have created the California Guaranteed Income Study and Funding Act and establishes the Guaranteed Income Study and Funding Act Coordinating Council, as specified. AB 2263 was vetoed by the Governor.

AB 120 (Committee on Budget, Chapter 43, Statutes of 2023) required CDSS to evaluate the applicability of the lessons learned from the Guaranteed Income Pilot Program for the state’s California Work Opportunity and Responsibility to Kids (CalWORKs) program, with the objective of reaching the goals of improved outcomes for families and children living in poverty. The bill would authorize the department to accept and expend funds from any source, public or private, to administer the program.

AB 128 (Committee on Budget, Chapter 21, Statutes of 2021) appropriated funds for the California Guaranteed Income Pilot Program to provide grant funding to local county or city pilots, as provided.

COMMENTS

AB 1357 would ensure individuals and families that benefit from any guaranteed income program are not punished with a decrease in benefits from other state programs that they rely on. CalWORKs and other means-tested programs provide benefits beyond cash assistance including, case management, subsidized childcare, and other services that can help them improve a family’ life. Guaranteed income programs provide unconditional cash assistance that can be especially helpful in high cost of living areas. This bill takes steps to ensure that neither program conflicts with the other, allowing the high need population these programs are meant to serve receive all the benefits they are eligible for. This bill includes the Kinship Guardianship Assistance Payment Program and Adoption Assistance Program. These programs are not means tested, the author may wish to remove mention of these programs from the bill.

Proposed Amendments: The committee proposes amendments to remove the reference to the Kinship Guardianship Assistance Payment Program and the Adoption Assistance Program from the bill.

WIC 18996.5. (a) Notwithstanding any other law, guaranteed income payments received by an individual shall not be considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including, but not limited to, any of the following:

1. The California Work Opportunity and Responsibility to Kids (CalWORKs) program, as described in Chapter 2 (commencing with Section 11200) of Part 3.
2. The CalFresh program, as described in Chapter 10 (commencing with Section 18900).
3. The California Food Assistance Program (CFAP), as described in Chapter 10.1 (commencing with Section 18930), through whichever version of Section 18930 is operative.
4. The Medi-Cal program, as described in Chapter 7 (commencing with Section 14000) of Part 3.
5. The General Assistance Program, as described in Chapter 1 (commencing with Section 17000) of Part 5.
6. The Kinship Guardianship Assistance Payment (Kin-GAP) Program, as described in Article 4.5 (commencing with Section 11360) of Chapter 2 of Part 3.
7. The Adoption Assistance Program (AAP), as described in Chapter 2.1 (commencing with Section 16115) of Part 4.
8. The Cash Assistance Program for Immigrants (CAPI), as described in Chapter 10.3 (commencing with Section 18937).

PRIOR VOTES

POSITIONS

Support:

End Poverty in California Action Aka Epic Action, a Project of Tides Advocacy (Sponsor)

All Home
California Association of Food Banks
Center for Employment Opportunities
Coalition of California Welfare Rights Organizations
County of Los Angeles Board of Supervisors
Courage California
Friends Committee on Legislation of California
Golden State Opportunity
John Burton Advocates for Youth
Mbolden Change (formerly My New Red Shoes)
National Council of Jewish Women Los Angeles
San Diego for Every Child

The Gathering for Justice
United Parents and Students
United Way California Capital Region
Universal Income Project
Western Center on Law & Poverty

Oppose:

None received

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ASSEMBLY THIRD READING

ATR Bill Id:AB 1357

Author:(Celeste Rodriguez)

As Amended Ver:May 1, 2025

Majority vote

SUMMARY

Prohibits guaranteed income (GI) payments from being counted as income or resources when determining eligibility or benefit levels for any means-tested program. Prohibits benefits from any means-tested program from affecting eligibility for GI payments.

Major Provisions

1. Prohibits, notwithstanding any other law, GI payments received by an individual from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including, but not limited to, any of the following:
   1. The California Work Opportunity and Responsibility to Kids (CalWORKs) program;
   2. The CalFresh program;
   3. The California Food Assistance Program (CFAP);
   4. The Medi-Cal program;
   5. The General Assistance (GA) Program;
   6. The Kinship Guardianship Assistance Payment (Kin-GAP) Program;
   7. The Adoption Assistance Program (AAP); and,
   8. The Cash Assistance Program for Immigrants (CAPI).
2. Prohibits, notwithstanding any other law, benefits received by an individual under any means-tested program, including, but not limited to, those listed in 1) above, from being considered income or resources for purposes of determining eligibility for GI payments or the amount of those GI payments.
3. Defines, for purposes of this section, "guaranteed income payments" to mean unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs or projects receiving funding from the California GI Pilot Program or payments provided through locally funded programs.
4. Requires these provisions, for purposes of the California GI Pilot Program, to be implemented in conjunction with existing law as described in 2) through 4) below.
5. Requires these provisions to be implemented only to the extent not in conflict with federal law.
6. Requires CDSS and the California Department of Health Care Services (DHCS) to, for programs under their jurisdiction, seek any federal waivers necessary to implement this bill.
7. Specifies that no appropriation pursuant to existing law related to appropriations for Public Assistance shall be made for purposes of this act.

COMMENTS

Background: Social Safety Net Programs. California administers key social safety net programs that aim to mitigate the effects of living in poverty, which impacts about 5 million individuals. These include: CalFresh, California's SNAP that helps households afford food; CFAP that provides food assistance for certain noncitizens; Medi-Cal, which offers comprehensive health coverage; GA, a county-administered cash aid program for indigent adults; Kin-GAP Program, which supports relatives who care for foster youth; AAP, which provides financial support to families adopting children from foster care; and, CAPI, which offers cash aid to aged, blind, or disabled noncitizens ineligible for federal Supplemental Security Income.

Guaranteed Income Programs. GI programs have gained significant traction in California as a strategy to address poverty, promote economic security, and reduce disparities among historically marginalized communities. These programs provide unconditional, recurring cash payments to individuals or families, with no strings attached regarding how the money is spent. The core idea is to give recipients financial flexibility, allowing them to meet their most pressing needs—whether that is rent, groceries, transportation, or childcare—without bureaucratic hurdles.

In 2021, California became the first state in the country to publicly fund a GI pilot program through a $35 million investment in the California GI Pilot Program. This program, administered by CDSS, funds a variety of local pilots targeting vulnerable populations such as transition-age foster youth, low-income pregnant individuals, and adults 60 years of age or older. These state-funded efforts have built upon earlier GI pilots launched by cities like Stockton, Oakland, and Los Angeles, many of which were supported by philanthropic and local government partnerships.

Under current state law, payments from the California GI Pilot Program are explicitly excluded as income and resources for CalWORKs eligibility and grant calculations. GI payments are also excluded from Medi-Cal income and resource determinations for 12 months following receipt, contingent on federal law compliance, waiver approval, and the availability of federal financial participation. According to the All County Welfare Directors Letter dated July 21, 2023, GI pilot payments are not considered income for CalFresh, but may be considered countable resources, depending on the funding source. Specifically, the exemption applies only if the GI pilot program includes at least some non-governmental (e.g. philanthropic) funding. This nuance places a significant burden on program administrators to verify funding sources and interpret eligibility guidance, and on participants to navigate these rules without jeopardizing their food assistance. To mitigate confusion and risk, GI Pilot Program grantees currently offer benefits counseling—a critical service that helps prospective participants understand how GI payments may affect their eligibility for public benefits. While this approach promotes informed decision-making, it is inherently individualized, and does not substitute for a systemwide policy. It also implicitly acknowledges that some individuals may still have to choose between accepting GI payments and maintaining eligibility for essential supports such as food or healthcare.

This bill requires public benefits to be excluded from income and resource determinations for state-supported, locally funded, and privately funded GI eligibility.

Participation Barriers to Social Safety Net Programs. While GI programs are designed to promote financial stability and reduce poverty, their potential impact has been limited by a key structural barrier: the interaction between GI payments and existing safety net eligibility rules. Many public assistance programs in California, such as CalWORKs, CalFresh, Medi-Cal, and GA, are means-tested, meaning that eligibility and benefit levels are determined based on a person’s income and resources. In the absence of clear statutory exemptions, GI payments—despite being small and targeted—can be counted as income or assets, which may disqualify participation or reduce their benefits.

This creates a "benefits cliff" scenario, where individuals who receive GI payments face a reduction or total loss of essential supports like food, healthcare, or housing assistance. For low-income individuals, the value of these benefits often far exceeds the monthly GI payment itself. As a result, people are sometimes forced to choose between participating in a GI program and maintaining access to critical services they rely on to survive. This not only discourages participation in GI pilots, but also undermines the goals of both systems.

The lack of standardized treatment of GI payments across benefit programs has led to administrative misunderstandings. Program administrators may interpret rules differently at the local level, resulting in inconsistent determinations. Participants report hesitancy and fear about enrolling in GI pilots because of uncertainty around how it will impact their public benefits. In some cases, individuals have declined GI payments altogether to avoid jeopardizing their Medi-Cal or food assistance. These challenges are especially acute for vulnerable populations, including foster youth, immigrants, and people experiencing homelessness, who may already face barriers to navigating complex eligibility systems. Without a statewide policy that protects GI payments from being considered countable income or resources, the full potential of GI as a poverty alleviation tool cannot be realized.

This bill prohibits GI payments from being factored into eligibility determinations for any means-tested state or local public benefit program, including CalFresh, Medi-Cal, CalWORKs, CFAP, GA, Kin-GAP, AAP, and CAPI. This approach mirrors protections already granted to other types of exempt income, such as certain tribal benefits or one-time disaster assistance, and ensures that participation in GI programs does not come at the cost of essential safety net services. This bill further requires CDSS and DHCS to seek any federal waivers.

According to the Author

According to the Author, "The current social safety net programs available for Californians in need is inadequate, and at times, in conflict with one another. Current guaranteed income programs piloted throughout the state address economic insecurity by empowering participants with a reliable source of income to meet their most pressing needs. Results from these pilots have shown positive outcomes. Unfortunately, these temporary programs can impact participants' enrollment in other support programs for themselves and their children due to benefit cliffs, leaving families with the difficult decision to opt out of support. In order to adequately address intergenerational poverty, [this bill] requires the state to remove barriers to accessing guaranteed income programs and bolster economic progress."

Arguments in Support

According to the Economic Security California Action, "AB 1357:

1. Allows recipients to access guaranteed income without jeopardizing critical public benefits on which they rely;
2. Supports families moving toward lasting financial independence; and
3. Maximizes the return on public investments."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee on May 14, 2025:

1. California Department of Social Services (CDSS) estimates ongoing General Fund costs of an unknown amount, but likely in the tens of thousands of dollars annually for benefits for newly eligible recipients of CDSS administered means tested programs. CalWORKs, CalFresh, and CAPI currently allow for some GI Program income and resource exemptions where not restricted by federal law. Costs resulting from this bill will depend on the number of newly eligible cases which is unknown at this time. CDSS notes the Kin-GAP and APP programs are not means-tested, so there is no impact to these programs.
2. CDSS anticipates minor and absorbable costs to provide updated guidance to counties on newly exempt GI.
3. CDSS estimates one-time GF automation costs of approximately $259,000 to update the online page as necessary and to identify current recipients eligible for this exemption.

Potential increase in county administrative costs of an unknown amount to county social workers for increased caseloads for means-tested programs. These costs will depend on the number of new cases. County administrative costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates.

VOTES

ASM HUMAN SERVICES: 5-2-0

YES: Lee, Calderon, Elhawary, Jackson, Celeste Rodriguez

NO: Castillo, Tangipa

ASM APPROPRIATIONS: 12-2-1

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Tangipa

NO: Dixon, Ta

ABS, ABST OR NV: Sanchez

UPDATED

VERSION: May 1, 2025

CONSULTANT: Bri-Ann Hernández-Mengual / HUM. S. / (916) 319-2089 FN: 0000823

ASSEMBLY THIRD READING

ATR Bill Id:AB 1357

Author:(Celeste Rodriguez)

As Amended Ver:May 1, 2025

Majority vote

SUMMARY

Prohibits guaranteed income (GI) payments from being counted as income or resources when determining eligibility or benefit levels for any means-tested program. Prohibits benefits from any means-tested program from affecting eligibility for GI payments.

Major Provisions

1. Prohibits, notwithstanding any other law, GI payments received by an individual from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including, but not limited to, any of the following:
   1. The California Work Opportunity and Responsibility to Kids (CalWORKs) program;
   2. The CalFresh program;
   3. The California Food Assistance Program (CFAP);
   4. The Medi-Cal program;
   5. The General Assistance (GA) Program;
   6. The Kinship Guardianship Assistance Payment (Kin-GAP) Program;
   7. The Adoption Assistance Program (AAP); and,
   8. The Cash Assistance Program for Immigrants (CAPI).
2. Prohibits, notwithstanding any other law, benefits received by an individual under any means-tested program, including, but not limited to, those listed in 1) above, from being considered income or resources for purposes of determining eligibility for GI payments or the amount of those GI payments.
3. Defines, for purposes of this section, "guaranteed income payments" to mean unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs or projects receiving funding from the California GI Pilot Program or payments provided through locally funded programs.
4. Requires these provisions, for purposes of the California GI Pilot Program, to be implemented in conjunction with existing law as described in 2) through 4) below.
5. Requires these provisions to be implemented only to the extent not in conflict with federal law.
6. Requires CDSS and the California Department of Health Care Services (DHCS) to, for programs under their jurisdiction, seek any federal waivers necessary to implement this bill.
7. Specifies that no appropriation pursuant to existing law related to appropriations for Public Assistance shall be made for purposes of this act.

COMMENTS

Background: Social Safety Net Programs. California administers key social safety net programs that aim to mitigate the effects of living in poverty, which impacts about 5 million individuals. These include: CalFresh, California's SNAP that helps households afford food; CFAP that provides food assistance for certain noncitizens; Medi-Cal, which offers comprehensive health coverage; GA, a county-administered cash aid program for indigent adults; Kin-GAP Program, which supports relatives who care for foster youth; AAP, which provides financial support to families adopting children from foster care; and, CAPI, which offers cash aid to aged, blind, or disabled noncitizens ineligible for federal Supplemental Security Income.

Guaranteed Income Programs. GI programs have gained significant traction in California as a strategy to address poverty, promote economic security, and reduce disparities among historically marginalized communities. These programs provide unconditional, recurring cash payments to individuals or families, with no strings attached regarding how the money is spent. The core idea is to give recipients financial flexibility, allowing them to meet their most pressing needs—whether that is rent, groceries, transportation, or childcare—without bureaucratic hurdles.

In 2021, California became the first state in the country to publicly fund a GI pilot program through a $35 million investment in the California GI Pilot Program. This program, administered by CDSS, funds a variety of local pilots targeting vulnerable populations such as transition-age foster youth, low-income pregnant individuals, and adults 60 years of age or older. These state-funded efforts have built upon earlier GI pilots launched by cities like Stockton, Oakland, and Los Angeles, many of which were supported by philanthropic and local government partnerships.

Under current state law, payments from the California GI Pilot Program are explicitly excluded as income and resources for CalWORKs eligibility and grant calculations. GI payments are also excluded from Medi-Cal income and resource determinations for 12 months following receipt, contingent on federal law compliance, waiver approval, and the availability of federal financial participation. According to the All County Welfare Directors Letter dated July 21, 2023, GI pilot payments are not considered income for CalFresh, but may be considered countable resources, depending on the funding source. Specifically, the exemption applies only if the GI pilot program includes at least some non-governmental (e.g. philanthropic) funding. This nuance places a significant burden on program administrators to verify funding sources and interpret eligibility guidance, and on participants to navigate these rules without jeopardizing their food assistance. To mitigate confusion and risk, GI Pilot Program grantees currently offer benefits counseling—a critical service that helps prospective participants understand how GI payments may affect their eligibility for public benefits. While this approach promotes informed decision-making, it is inherently individualized, and does not substitute for a systemwide policy. It also implicitly acknowledges that some individuals may still have to choose between accepting GI payments and maintaining eligibility for essential supports such as food or healthcare.

This bill requires public benefits to be excluded from income and resource determinations for state-supported, locally funded, and privately funded GI eligibility.

Participation Barriers to Social Safety Net Programs. While GI programs are designed to promote financial stability and reduce poverty, their potential impact has been limited by a key structural barrier: the interaction between GI payments and existing safety net eligibility rules. Many public assistance programs in California, such as CalWORKs, CalFresh, Medi-Cal, and GA, are means-tested, meaning that eligibility and benefit levels are determined based on a person’s income and resources. In the absence of clear statutory exemptions, GI payments—despite being small and targeted—can be counted as income or assets, which may disqualify participation or reduce their benefits.

This creates a "benefits cliff" scenario, where individuals who receive GI payments face a reduction or total loss of essential supports like food, healthcare, or housing assistance. For low-income individuals, the value of these benefits often far exceeds the monthly GI payment itself. As a result, people are sometimes forced to choose between participating in a GI program and maintaining access to critical services they rely on to survive. This not only discourages participation in GI pilots, but also undermines the goals of both systems.

The lack of standardized treatment of GI payments across benefit programs has led to administrative misunderstandings. Program administrators may interpret rules differently at the local level, resulting in inconsistent determinations. Participants report hesitancy and fear about enrolling in GI pilots because of uncertainty around how it will impact their public benefits. In some cases, individuals have declined GI payments altogether to avoid jeopardizing their Medi-Cal or food assistance. These challenges are especially acute for vulnerable populations, including foster youth, immigrants, and people experiencing homelessness, who may already face barriers to navigating complex eligibility systems. Without a statewide policy that protects GI payments from being considered countable income or resources, the full potential of GI as a poverty alleviation tool cannot be realized.

This bill prohibits GI payments from being factored into eligibility determinations for any means-tested state or local public benefit program, including CalFresh, Medi-Cal, CalWORKs, CFAP, GA, Kin-GAP, AAP, and CAPI. This approach mirrors protections already granted to other types of exempt income, such as certain tribal benefits or one-time disaster assistance, and ensures that participation in GI programs does not come at the cost of essential safety net services. This bill further requires CDSS and DHCS to seek any federal waivers.

According to the Author

According to the Author, "The current social safety net programs available for Californians in need is inadequate, and at times, in conflict with one another. Current guaranteed income programs piloted throughout the state address economic insecurity by empowering participants with a reliable source of income to meet their most pressing needs. Results from these pilots have shown positive outcomes. Unfortunately, these temporary programs can impact participants' enrollment in other support programs for themselves and their children due to benefit cliffs, leaving families with the difficult decision to opt out of support. In order to adequately address intergenerational poverty, [this bill] requires the state to remove barriers to accessing guaranteed income programs and bolster economic progress."

Arguments in Support

According to the Economic Security California Action, "AB 1357:

1. Allows recipients to access guaranteed income without jeopardizing critical public benefits on which they rely;
2. Supports families moving toward lasting financial independence; and
3. Maximizes the return on public investments."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee on May 14, 2025:

1. California Department of Social Services (CDSS) estimates ongoing General Fund costs of an unknown amount, but likely in the tens of thousands of dollars annually for benefits for newly eligible recipients of CDSS administered means tested programs. CalWORKs, CalFresh, and CAPI currently allow for some GI Program income and resource exemptions where not restricted by federal law. Costs resulting from this bill will depend on the number of newly eligible cases which is unknown at this time. CDSS notes the Kin-GAP and APP programs are not means-tested, so there is no impact to these programs.
2. CDSS anticipates minor and absorbable costs to provide updated guidance to counties on newly exempt GI.
3. CDSS estimates one-time GF automation costs of approximately $259,000 to update the online page as necessary and to identify current recipients eligible for this exemption.

Potential increase in county administrative costs of an unknown amount to county social workers for increased caseloads for means-tested programs. These costs will depend on the number of new cases. County administrative costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates.

VOTES

ASM HUMAN SERVICES: 5-2-0

YES: Lee, Calderon, Elhawary, Jackson, Celeste Rodriguez

NO: Castillo, Tangipa

ASM APPROPRIATIONS: 12-2-1

YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Tangipa

NO: Dixon, Ta

ABS, ABST OR NV: Sanchez

UPDATED

VERSION: May 1, 2025

CONSULTANT: Bri-Ann Hernández-Mengual / HUM. S. / (916) 319-2089 FN: 0000823

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1357

Author:(Celeste Rodriguez) – As Amended Ver:May 1, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill prohibits guaranteed income (GI) payments from being counted as income or resources when determining eligibility or benefit levels for any means-tested program. Prohibits benefits from any means-tested program from affecting eligibility for GI payments.

Specifically, this bill:

1. Prohibits GI payments received by an individual from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including, but not limited to, the following:
   1. The California Work Opportunity and Responsibility to Kids (CalWORKs) program.
   2. The CalFresh program.
   3. The California Food Assistance Program (CFAP).
   4. The Medi-Cal program.
   5. The General Assistance (GA) Program.
   6. The Kinship Guardianship Assistance Payment (Kin-GAP) Program.
   7. The Adoption Assistance Program (AAP).
   8. The Cash Assistance Program for Immigrants (CAPI).
2. Prohibits benefits received by an individual under any means-tested program, including, but not limited to, those listed in item 1, above, from being considered income or resources for purposes of determining eligibility for GI payments or the amount of those GI payments.
3. Requires these provisions, for purposes of the California GI Pilot Program, to be implemented in conjunction with existing law regarding similar exemptions.
4. Requires CDSS and the State Department of Health Care Services, for programs under their jurisdiction, to seek any federal waivers necessary to implement this section.

FISCAL EFFECT:

1. California Department of Social Services (CDSS) estimates ongoing General Fund costs of an unknown amount, but likely in the tens of thousands of dollars annually for benefits for newly eligible recipients of CDSS administered means tested programs. CalWORKs, CalFresh, and CAPI currently allow for some GI Program income and resource exemptions where not restricted by federal law. Costs resulting from this bill will depend on the number of newly eligible cases which is unknown at this time. CDSS notes the Kin-GAP and APP programs are not means-tested, so there is no impact to these programs.
2. CDSS anticipates minor and absorbable costs to provide updated guidance to counties on newly exempt GI.
3. CDSS estimates one-time GF automation costs of approximately $259,000 to update the online page as necessary and to identify current recipients eligible for this exemption.
4. Potential increase in county administrative costs of an unknown amount to county social workers for increased caseloads for means-tested programs. These costs will depend on the number of new cases. County administrative costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates.

COMMENTS:

1. Purpose. According to the author:

The current social safety net programs available for Californians in need is inadequate, and at times, in conflict with one another. Current GI programs piloted throughout the state address economic insecurity by empowering participants with a reliable source of income to meet their most pressing needs. Results from these pilots have shown positive outcomes. Unfortunately, these temporary programs can impact participants’ enrollment in other support programs for themselves and their children due to benefit cliffs, leaving families with the difficult decision to opt out of support. In order to adequately address intergenerational poverty, [this bill] requires the state to remove barriers to accessing GI programs and bolster economic progress.

1. Background. GI programs have gained traction in California as a strategy to address poverty, promote economic security, and reduce disparities among historically marginalized communities. GI programs provide direct cash transfers to individuals and families. Sixteen cities and three counties in California have local GI programs. In addition, AB 153 (Committee on Budget), Chapter 86, Statutes of 2021, established the California Guaranteed Income Program to provide grants to eligible entities to implement pilot programs and projects that offer GI to California vulnerable populations such as transition-age foster youth, low-income pregnant individuals, and adults 60 years of age or older.

This bill requires means-tested public benefits be excluded from income and resource determinations for any GI program eligibility.

Many public assistance programs in California, such as CalWORKs, CalFresh, Medi-Cal, and GA, are means-tested, meaning that eligibility and benefit levels are determined based on a person’s income and resources. Existing state law explicitly excludes payments from the California GI Pilot Program as income and resources for CalWORKs eligibility and grant calculations, and for Medi-Cal income and resource determinations for 12 months following receipt, contingent on federal law compliance and other factors. GI pilot payments are not considered income for CalFresh, but may be considered countable resources, depending on the funding source. In the absence of clear statutory exemptions, GI payments may be counted as income or assets, which may disqualify participation or reduce benefits in these programs. Participants report hesitancy and fear about enrolling in GI pilots because of uncertainty around how it will impact their public benefits.

This bill further prohibits GI payments from being factored into eligibility determinations for any means-tested state or local public benefit program, including CalFresh, Medi-Cal, CalWORKs, CFAP, GA, Kin-GAP, AAP, and CAPI. This approach mirrors protections already granted to other types of exempt income, such as certain tribal benefits or one-time disaster assistance.

1. Related Legislation. AB 661 (Lee), of this legislative session, requires contracted entities to develop and provide recommendations to design, fund, and implement a permanent, statewide GI Program. AB 661 is pending before this committee.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 29, 2025

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Alex Lee, Chair

ABPCA Bill Id:AB 1357 (

Author:Celeste Rodriguez) – As Amended Ver:March 24, 2025

SUBJECT: Guaranteed income payments: consideration as income or resources

SUMMARY: Prohibits guaranteed income (GI) payments from being counted as income or resources when determining eligibility or benefit levels for any means-tested program. Prohibits benefits from any means-tested program from affecting eligibility for GI payments. Specifically, this bill:

1. Prohibits, notwithstanding any other law, GI payments received by an individual from being considered income or resources for purposes of determining eligibility for benefits, or the amount of benefits, under any means-tested program, including, but not limited to, any of the following:
   1. The California Work Opportunity and Responsibility to Kids (CalWORKs) program;
   2. The CalFresh program;
   3. The California Food Assistance Program (CFAP);
   4. The Medi-Cal program;
   5. The General Assistance (GA) Program;
   6. The Kinship Guardianship Assistance Payment (Kin-GAP) Program;
   7. The Adoption Assistance Program (AAP); and,
   8. The Cash Assistance Program for Immigrants (CAPI).
2. Prohibits, notwithstanding any other law, benefits received by an individual under any means-tested program, including, but not limited to, those listed in 1) above, from being considered income or resources for purposes of determining eligibility for GI payments or the amount of those GI payments.
3. Defines, for purposes of this section, “guaranteed income payments” to mean unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients, including, but not limited to, payments provided through pilot programs or projects receiving funding from the California GI Pilot Program or payments provided through locally funded programs.
4. Requires these provisions, for purposes of the California GI Pilot Program, to be implemented in conjunction with existing law as described in 2) through 4) below.
5. Requires these provisions to be implemented only to the extent not in conflict with federal law.
6. Specifies that no appropriation pursuant to existing law related to appropriations for Public Assistance shall be made for purposes of this act.

EXISTING LAW:

State law:

1. Requires the California Department of Social Services (CDSS), subject to an appropriation for the purpose in the annual Budget Act, to administer the California GI Pilot Program to provide grants to eligible entities for the purpose of administering pilot programs and projects that serve California residents who age out of the extended foster care program at or after 21 years of age or who are pregnant individuals. (Welfare and Institutions Code [WIC] § 18997(a))
2. Requires, notwithstanding any other law, GI payments received by an individual from a funded pilot program or project to not be considered income or resources for purposes of determining the individual’s, or any member of their household’s, eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program. (WIC § 18997(c)(1))
3. Requires CDSS to identify federal benefit and assistance programs that require an exemption or waiver in order for a GI payment funded with a grant provided through the GI Pilot Program to be excluded from consideration as income or resources for purposes of the federal program. Exempts the state’s failure to be granted a federal exemption or waiver to not affect CDSS’ ability to administer the GI Pilot Program, and permits CDSS to consider alternatives to prevent adverse consequences for participants. (WIC § 18997(c)(2))
4. Prohibits under the Medi-Cal program, notwithstanding any other law, for the purposes of determining eligibility to receive benefits, or the amount or extent of medical assistance, a GI payment funded with a grant provided under the GI Pilot Program from being considered income or resources for a period of 12 months from receipt. (WIC § 18997(d))
5. Requires the California GI Pilot Program to become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed. (WIC § 18997.4)
6. Establishes the CalWORKs program to provide cash assistance and other social services for low-income families through the federal Temporary Assistance for Needy Families (TANF) program. Under CalWORKs, each county provides assistance through a combination of state, county and federal TANF funds. (WIC § 11200 et seq.)
7. Establishes income, asset, and real property limits used to determine eligibility for the CalWORKs program, and CalWORKs grant amounts, based on family size and county of residence. (WIC §§ 11150-11160, 11450 et seq.)
8. Exempts the following from consideration as income for purposes of public social services, including CalWORKs programs, as specified:
   1. Income that is received too infrequently to be reasonably anticipated, as exempted in federal Supplemental Nutrition Assistance Program (SNAP) regulations;
   2. Income from college work-study programs;
   3. An award or scholarship provided by a public or private entity to or on behalf of a dependent child;
   4. Income or stipend paid by the United States (U.S.) Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the decennial census; and,
   5. Any federal pandemic unemployment compensation, as long as the federal pandemic unemployment compensation is exempt as income for purposes of establishing eligibility for the CalFresh program. (WIC § 11157(b-d))
9. Establishes the CalFresh program to administer the provision of SNAP benefits to families and individuals meeting certain criteria, as specified. (WIC § 18900 et seq.)
10. Requires CDSS to establish CFAP to provide assistance for persons who are not eligible for federal SNAP benefits solely due to their immigration status. Requires, when possible, that the income, resources, and deductible expenses of those who receive CFAP benefits to be excluded when calculating CalFresh benefits. (WIC § 18930 et seq.)
11. Establishes Medi-Cal, providing health for California residents who lack sufficient income to meet the costs of healthcare. (WIC § 14000 et seq.)
12. Requires every county and every city and county to relieve and support all incompetent, poor, indigent persons, and those incapacitated by age, disease, or accident, lawfully resident therein, when such persons are not supported and relieved by their relatives or friends, by their own means, or by state hospitals or other state or private institutions. (WIC § 17000)
13. Establishes the Kin-GAP Program, ensuring children in kinship care who are not eligible for federally funded Kin-GAP receive aid. (WIC § 11360 et seq.)
14. Establishes the AAP, administered by CDSS, to support families adopting children who might otherwise remain in long-term foster care. (WIC § 16115 et seq.)
15. Requires CDSS to establish and supervise a county- or county consortia-administered program to provide cash assistance to aged, blind, and disabled legal immigrants who are not citizens and who successfully complete an application process. Requires CDSS to conduct the evaluations of disability for the program. (WIC § 18937)

Federal law:

1. Establishes the TANF program, which provides block grants to states to develop and implement their own state welfare-to-work programs designed to provide cash assistance and other supports and services to low-income families. (42 United States Code [U.S.C.] § 601 et seq.)
2. Establishes SNAP pursuant to the Food Stamp Act of 1964. (7 U.S.C. § 2011 et seq.)
3. Permits individual states to exclude types of income that the state does not consider when determining eligibility for TANF or Medicaid to determine SNAP eligibility in a state operations plan. (7 Code of Federal Regulations [CFR] § 273.9(c)(19))
4. Prohibits states from excluding the following from income calculations:
5. Wages or salaries;
6. Gross income from a self-employment enterprise;
7. Benefits under Title I, II, IV, X, XIV or XVI of the Social Security Act, including Supplemental Security Income benefits, TANF benefits, and foster care and adoption payments from a government source;
8. Regular payments from a government source. Payments or allowances a household receives from an intermediary that are funded from a government source are considered payments from a government source;
9. Worker's compensation;
10. Child support payments, support or alimony payments made to the household from a non-household member;
11. Annuities, pensions, retirement benefits;
12. Disability benefits or old age or survivor benefits; and,
13. Monies withdrawn or dividends received by a household from trust funds considered to be excludable resources under federal regulations. (7 CFR § 273.9(a)(c)(19))

FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.

COMMENTS:

Background: Social Safety Net Programs. California administers key social safety net programs that aim to mitigate the effects of living in poverty, which impacts about 5 million individuals. These include:

• CalFresh, California’s SNAP that helps households afford food;
• CFAP that provides food assistance for certain noncitizens;
• Medi-Cal, which offers comprehensive health coverage;
• GA, a county-administered cash aid program for indigent adults;
• Kin-GAP Program, which supports relatives who care for foster youth;
• AAP, which provides financial support to families adopting children from foster care; and,
• CAPI, which offers cash aid to aged, blind, or disabled noncitizens ineligible for federal Supplemental Security Income.

Guaranteed Income Programs. GI programs have gained significant traction in California as a strategy to address poverty, promote economic security, and reduce disparities among historically marginalized communities. These programs provide unconditional, recurring cash payments to individuals or families, with no strings attached regarding how the money is spent. The core idea is to give recipients financial flexibility, allowing them to meet their most pressing needs—whether that is rent, groceries, transportation, or childcare—without bureaucratic hurdles.

In 2021, California became the first state in the country to publicly fund a GI pilot program through a $35 million investment in the California GI Pilot Program. This program, administered by CDSS, funds a variety of local pilots targeting vulnerable populations such as transition-age foster youth, low-income pregnant individuals, and adults 60 years of age or older. These state-funded efforts have built upon earlier GI pilots launched by cities like Stockton, Oakland, and Los Angeles, many of which were supported by philanthropic and local government partnerships.

Under current state law, payments from the California GI Pilot Program are explicitly excluded as income and resources for CalWORKs eligibility and grant calculations. GI payments are also excluded from Medi-Cal income and resource determinations for 12 months following receipt, contingent on federal law compliance, waiver approval, and the availability of federal financial participation. According to the All County Welfare Directors Letter dated July 21, 2023, GI pilot payments are not considered income for CalFresh, but may be considered countable resources, depending on the funding source. Specifically, the exemption applies only if the GI pilot program includes at least some non-governmental (e.g. philanthropic) funding. This nuance places a significant burden on program administrators to verify funding sources and interpret eligibility guidance, and on participants to navigate these rules without jeopardizing their food assistance. To mitigate confusion and risk, GI Pilot Program grantees currently offer benefits counseling—a critical service that helps prospective participants understand how GI payments may affect their eligibility for public benefits. While this approach promotes informed decision-making, it is inherently individualized, and does not substitute for a systemwide policy. It also implicitly acknowledges that some individuals may still have to choose between accepting GI payments and maintaining eligibility for essential supports such as food or healthcare.

Evaluation of early GI pilots in California and across the country has shown promising results. Studies have documented increased financial stability, improved mental health, higher rates of full-time employment, and stronger social and familial well-being among participants. GI is also increasingly recognized as a complement to existing safety net programs, rather than a replacement.

This bill requires public benefits to be excluded from income and resource determinations for state-supported, locally funded, and privately funded GI eligibility.

Participation Barriers to Social Safety Net Programs. While GI programs are designed to promote financial stability and reduce poverty, their potential impact has been limited by a key structural barrier: the interaction between GI payments and existing safety net eligibility rules. Many public assistance programs in California, such as CalWORKs, CalFresh, Medi-Cal, and GA, are means-tested, meaning that eligibility and benefit levels are determined based on a person’s income and resources. In the absence of clear statutory exemptions, GI payments—despite being small and targeted—can be counted as income or assets, which may disqualify participation or reduce their benefits.

This creates a “benefits cliff” scenario, where individuals who receive GI payments face a reduction or total loss of essential supports like food, healthcare, or housing assistance. For low-income individuals, the value of these benefits often far exceeds the monthly GI payment itself. As a result, people are sometimes forced to choose between participating in a GI program and maintaining access to critical services they rely on to survive. This not only discourages participation in GI pilots, but also undermines the goals of both systems.

The lack of standardized treatment of GI payments across benefit programs has led to administrative misunderstandings. Program administrators may interpret rules differently at the local level, resulting in inconsistent determinations. Participants report hesitancy and fear about enrolling in GI pilots because of uncertainty around how it will impact their public benefits. In some cases, individuals have declined GI payments altogether to avoid jeopardizing their Medi-Cal or food assistance. These challenges are especially acute for vulnerable populations, including foster youth, immigrants, and people experiencing homelessness, who may already face barriers to navigating complex eligibility systems. Without a statewide policy that protects GI payments from being considered countable income or resources, the full potential of GI as a poverty alleviation tool cannot be realized.

One way GI programs have been addressing this issue is formally requesting and obtaining federal waivers from the relevant agencies, such as the U.S. Department of Agriculture (USDA) for CalFresh and the Centers for Medicare & Medicaid Services for Medi-Cal. These waivers provide legal authority for the state to exclude GI payments from income and resource calculations without conflicting with federal law or jeopardizing federal funding. For example, the USDA has strict rules about what counts as income under SNAP (CalFresh), and states are generally required to follow eligibility rules unless specific exemptions are granted. Similarly, under Medicaid, income and asset limits are tied to federal eligibility categories, and deviations typically require a Section 1115 waiver or similar federal approval. Therefore, the ability to protect GI participants from benefit loss is often contingent on securing these waivers, especially in programs with strong federal oversight.

This bill acknowledges these dynamics by including language that makes implementation contingent on compliance with federal law. In practice, this means that CDSS and other relevant agencies will likely need to lead the development and submission of waiver requests to ensure the legal authority needed to fully realize the bill’s intent. Without waivers, recipients of GI could still face loss of benefits under federally governed programs—undermining the core equity and anti-poverty goals of this bill.

This bill further prohibits GI payments from being factored into eligibility determinations for any means-tested state or local public benefit program, including CalFresh, Medi-Cal, CalWORKs, CFAP, GA, Kin-GAP, AAP, and CAPI. This approach mirrors protections already granted to other types of exempt income, such as certain tribal benefits or one-time disaster assistance, and ensures that participation in GI programs does not come at the cost of essential safety net services.

Author’s Statement: According to the Author, “The current social safety net programs available for Californians in need is inadequate, and at times, in conflict with one another. Current guaranteed income programs piloted throughout the state address economic insecurity by empowering participants with a reliable source of income to meet their most pressing needs. Results from these pilots have shown positive outcomes. Unfortunately, these temporary programs can impact participants’ enrollment in other support programs for themselves and their children due to benefit cliffs, leaving families with the difficult decision to opt out of support. In order to adequately address intergenerational poverty, [this bill] requires the state to remove barriers to accessing guaranteed income programs and bolster economic progress.”

Equity Implications: This bill aims to ensure that participation in GI programs does not jeopardize access to critical safety net benefits. This is particularly important for low-income Californians who rely on programs like CalFresh, Medi-Cal, and CalWORKs to meet basic needs. Without this bill, recipients of GI payments may face a reduction or loss of public assistance simply because these unconditional cash supports are counted as income or resources. For many, this creates a “benefits cliff,” effectively punishing individuals for participating in programs meant to help them achieve greater financial stability.

This dynamic disproportionately affects communities already facing systemic barriers, including single parent households, people with disabilities, immigrants, foster youth, and individuals impacted by the criminal legal system. These groups often experience greater economic vulnerability and have historically been underserved by rigid and complex benefit systems. GI programs, many of which specifically target these populations, are designed to offer flexible, dignified support that allows individuals to make decisions based on their own needs. This bill will likely ensure these individuals can fully participate in GI programs without fear of losing other essential supports.

In addition to protecting access to benefits, this bill helps address equity issues tied to administrative inconsistency. Treatment of GI payments has varied by county and program, resulting in some recipients being wrongly disqualified from benefits, while others face delays or bureaucratic hurdles due to inconsistent interpretations of whether GI payments count as income.

This bill attempts to reflect the growing recognition that innovative approaches like GI can and should coexist with California’s broader human services infrastructure. This bill further aims to reinforce the principle that no one should have to choose between accessing flexible financial support and retaining the basic public benefits that help them survive.

Policy Considerations: This bill does not explicitly require relevant agencies, including CDSS and the Department of Health Care Services (DHCS), to seek any necessary federal waivers to implement the bill.

Should this bill move forward, the author may wish to consider requiring CDSS and DHCS to seek any necessary federal waivers to implement the bill.

Proposed Committee Amendments: In order to address the above policy considerations, The Committee proposes the author take the following amendments:

On page 4, between lines 28 and 29, insert: (f) The State Department of Social Services, and the State Department of Health Care Services shall, for programs under their jurisdiction, seek any federal waivers necessary to implement this section.

RELATED AND PRIOR LEGISLATION:

AB 661 (Lee) of the current legislative session, establishes the GI Research and Expansion Act, which requires contracted entities to develop and provide recommendations to design, fund, and implement a permanent, statewide GI Program. AB 661 is pending before the Assembly Appropriations Committee.

SB 33 (Cortese) of the current legislative session, requires, upon appropriation by the Legislature and until January 1, 2029, that CDSS establish the California Success, Opportunity, and Academic Resilience (SOAR) GI Program to provide monthly payments for four months to homeless youth in twelfth grade who are enrolled in a public high school. SB 33 is set to be heard by the Senate Committee on Appropriations on May 5, 2025.

AB 2263 (Friedman) of 2024, would have established the California GI Statewide Feasibility Study Act, upon appropriation, to assess administrative needs, explore funding mechanisms, and identify priority populations for a permanent statewide GI program. AB 2263 was vetoed by Governor Newsom.

SB 333 (Cortese) of 2024, would have established, subject to appropriation, the California SOAR GI Pilot Program and the California SOAR GI Fund for purposes of awarding monthly payments to twelfth grade students who are homeless from April 1, 2025, to August 1, 2025.
SB 333 was held on the Assembly Committee on Appropriations suspense file.

AB 120 (Committee on Budget), Chapter 43, Statutes of 2023, exempted all GI payments from consideration as income or resources for purposes of the CalWORKs program.

SB 187 (Committee on Budget and Fiscal Review), Chapter 50, Statutes of 2022, excluded, until July 1, 2026, any payments received by an individual from a GI Pilot program or project from the gross income of recipients for personal income tax purposes.

SB 1341 (Cortese) of 2022, was similar to SB 333 above, and would have created the SOAR GI Pilot for homeless students in twelfth grade, as provided. SB 1341 failed passage in the Assembly Committee on Higher Education.

AB 153 (Committee on Budget), Chapter 86, Statutes of 2021, established the California GI Pilot Program.

REGISTERED SUPPORT / OPPOSITION:

Support

Economic Security California Action (Co-Sponsor)

California Association of Food Banks

Center for Employment Opportunities

Courage California

Family Independence Initiative (FII-NATIONAL) dba UpTogether

Glide

Golden State Opportunity

Inclusive Action for the City

Western Center on Law & Poverty, INC.

Opposition

None on file.

Analysis Prepared by: Bri-Ann Hernández-Mengual / HUM. S. / (916) 319-2089