AB 42 California Assembly · 2025-2026 Regular Session

CalWORKs: CalFresh: eligibility: income and resource exclusions.

Summary

Existing federal law provides for allocation of federal funds to eligible states through the federal Temporary Assistance for Needy Families (TANF) block grant program. Existing state law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program under which, through a combination of state and county funds and federal funds received through the TANF program, each county provides cash assistance and other benefits to qualified low-income families. Under existing law, certain types of payments received by recipients of aid under the CalWORKs program, including, among others, an award or scholarship provided by a public or private entity to, or on behalf of, a dependent child are exempt from consideration as income for purposes of determining eligibility and aid amount. Existing federal law provides for the Supplemental Nutrition Assistance Program (SNAP) , known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing law requires the eligibility of households to be determined to the extent permitted by federal law. Existing federal regulation provides states with the option to exclude, for purposes of calculating a household's income under SNAP, any type of income that the state excludes when determining eligibility or benefits for TANF cash assistance or certain medical assistance. This bill would exempt any grant, award, scholarship, loan, or fellowship benefit that is provided to any assistance unit member for the purpose of attending an institution of higher education, except as specified, from consideration as income for purposes of determining CalWORKs and CalFresh eligibility or grant amounts, and would also exempt those funds as resources for purposes of determining CalWORKs eligibility or grant amounts. The bill would also require, to the extent permitted by federal law, regulation, or guidance, or a waiver thereof, the State Department of Social Services to exercise a federal option to exclude, for purposes of calculating a household's income under CalFresh, any type of income that the department excludes when determining eligibility or benefits for CalWORKs and certain medical assistance. This bill would require the department to implement these provisions through an all-county letter or similar instruction until regulations are adopted. By expanding the scope of eligibility for CalWORKs and CalFresh, 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 provide that the continuous appropriation would not be made for purposes of implementing the bill. 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Bill status signed all 5 stages cleared

Introduction

Dec 2024

Committee Review

Aug 2025

Assembly Passage

Jun 2025

Senate Passage

Sep 2025

Signed into Law

Oct 2025

Introduced Dec 2, 2024 Signed Oct 7, 2025

Maddy AI version diff · 5 comparisons

What changed between versions

10/07/25 - Chaptered → AB42 · 1 edit

MINOR

No substantive policy changes were made between these two versions. The diff reflects a reformatting of the same enacted bill (Chapter 430, AB 42) from a formal chaptered document layout into a web page presentation format, adding navigation elements and minor display adjustments while preserving all statutory text identically.

TECHNICAL

The bill text was reformatted from a chaptered legislative document (with 'STATE OF CALIFORNIA / AUTHENTICATED / ELECTRONIC LEGAL MATERIAL' header) into a web page layout with navigation menus, search fields, and version history links. All five sections of the statute remain word-for-word identical.

02/24/25 - Amended Assembly → 06/23/25 - Amended Senate · 6 edits · Jun 23, 2025

MODERATE

The Senate amendment removed the entire baby wipes and child car seats sales tax exemption from AB 42, narrowing the bill to focus solely on CalWORKs and CalFresh eligibility changes. The educational fund income exclusion was narrowed to apply only to funds for attending higher education (rather than any educational purpose) and now excludes direct cash payments from friends or relatives. Separately, the CalFresh income exclusion was broadened to also mirror exclusions used for certain medical assistance programs, not just TANF cash assistance.

Scope change

The bill's scope was significantly narrowed by removing the sales tax exemption component entirely, leaving only CalWORKs/CalFresh eligibility provisions. Within those remaining provisions, the educational fund exclusion was narrowed (higher education only, no direct cash gifts) while the CalFresh income exclusion mechanism was broadened to cover medical assistance exclusions as well.

SCOPE

The entire sales tax exemption for baby wipes and child car seats (Section 6367.1 of the Revenue and Taxation Code) was removed from the bill. This had been a state-level sales and use tax exemption effective January 1, 2026 through January 1, 2031 that would not have applied to local taxes.

ELIGIBILITY

The educational fund income exclusion in Section 11157.2 was narrowed from covering any grant, award, scholarship, loan, or fellowship 'for educational purposes' to only those provided 'the purpose of attending an institution of higher education.' This excludes funds for K-12 education, vocational training, or other non-college educational activities.

A new exception was added to Section 11157.2 excluding 'cash payments made directly by friends or relatives' from the income exclusion. These direct cash gifts will still be counted as income for CalWORKs eligibility purposes.

Section 18901.09 was expanded so that CalFresh income calculations must exclude not only income excluded for TANF cash assistance, but also income excluded for medical assistance under Section 1931 of the federal Social Security Act (42 U.S.C. Sec. 1396u-1). This broadens the types of programs whose exclusions are mirrored in CalFresh.

REQUIREMENT

Section 11157.2 now includes the qualifier 'to the extent permitted by federal law,' adding a federal compliance condition that was not present in the Assembly version.

FISCAL

The state-mandated local program designation was changed from 'no' to 'yes,' meaning counties will be required to implement these changes and may be eligible for state reimbursement of mandated costs.

12/02/24 - Introduced → 02/24/25 - Amended Assembly · 6 edits · Feb 24, 2025

MODERATE

AB 42 was substantially expanded in the Assembly to add a new social services component alongside its original sales tax exemption. The amendment adds provisions that exempt educational grants, awards, scholarships, loans, and fellowships from being counted as income or resources when determining eligibility for CalWORKs cash assistance and CalFresh food benefits. This broadens the bill from a single-topic tax measure into a dual-purpose bill affecting both taxation and public social services eligibility.

SCOPE

The bill now covers two distinct policy areas: the original sales and use tax exemption for baby wipes and child car seats, plus new provisions on CalWORKs and CalFresh eligibility. The legislative digest was expanded to reflect both topics.

The state-mandated local program designation changed from 'no' to 'yes,' reflecting that the new CalWORKs/CalFresh provisions impose a state-mandated local program on counties.

ELIGIBILITY

New Section 11157.2 of the Welfare and Institutions Code exempts any grant, award, scholarship, loan, or fellowship benefit provided to an assistance unit member for educational purposes (not administered by the U.S. Department of Education) from being counted as income for CalWORKs eligibility and grant amount calculations. These funds are also exempt as resources for 12 months following receipt.

New Section 18901.09 requires the State Department of Social Services to exercise a federal option (7 CFR 273.9(c)(19)) to exclude from CalFresh income calculations any type of income that is excluded when determining CalWORKs eligibility, to the extent permitted by federal law.

TIMELINE

The State Department of Social Services must implement the new social services provisions through an all-county letter or similar instruction on or before March 1, 2026, until formal regulations are adopted.

FISCAL

A new provision states that no appropriation from the continuous General Fund appropriation under Section 15200 of the Welfare and Institutions Code shall be made for purposes of implementing this act.

Floor votes · Senate Sep 4, 2025 · Assembly Jun 3, 2025

How they voted

39–0

Passed · 1 other

Total votes 40

Sep 4, 2025

D Democratic30

29 Yea 1

96% Yea

R Republican10

10 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Oct 7, 2025

Signed into law

Approved by the Governor.

legislature

Sep 8, 2025

Lower · Passed

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 3022.).

lower

Sep 4, 2025

Introduced

In Assembly. Concurrence in Senate amendments pending.

lower

Sep 4, 2025

Upper · Passed

Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2520.).

upper

Aug 29, 2025

Upper · Passed

From committee: Do pass. (Ayes 7. Noes 0.) (August 29).

upper

Jul 14, 2025

Committee

In committee: Referred to APPR. suspense file.

upper

Jul 1, 2025

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 30). Re-referred to Com. on APPR.

upper

Jun 23, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HUMAN S.

upper

Jun 18, 2025

Committee

Referred to Com. on HUMAN S.

upper

Jun 3, 2025

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1965.)

lower

May 23, 2025

Lower · Passed

From committee: Do pass. (Ayes 14. Noes 0.) (May 23).

lower

Apr 9, 2025

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Mar 26, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (March 25). Re-referred to Com. on APPR.

lower

Feb 27, 2025

Committee

Re-referred to Com. on HUM. S. pursuant to Assembly Rule 96.

lower

Feb 25, 2025

Committee

Re-referred to Com. on REV. & TAX.

lower

Feb 24, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

lower

Feb 3, 2025

Committee

Referred to Com. on REV. & TAX.

lower

Dec 3, 2024

Lower · Passed

From printer. May be heard in committee January 2.

lower

1 primary · 0 co-sponsors