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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Solache</ns0:AuthorText>
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<ns0:Name>Solache</ns0:Name>
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<ns0:Title> An act to add Section 123356 to, and to add and repeal Chapter 27 (commencing with Section 28100) of Division 20 of, the Health and Safety Code, and to add Section 18921 to the Welfare and Institutions Code, relating to nutrition assistance.</ns0:Title>
<ns0:RelatingClause>nutrition assistance</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>CalFresh and WIC Contingency Fund.</ns0:Subject>
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<html:p>Existing federal law establishes 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 low-income individuals by each county, as administered by the State Department of Social Services.</html:p>
<html:p>Existing law establishes the California Special Supplemental Nutrition Program for Women, Infants, and Children (WIC Program), which is administered by the State Department of Public Health and counties and under which nutrition and other assistance are provided to eligible low-income individuals who have been determined to be at nutritional risk.</html:p>
<html:p>This bill would create the CalFresh and WIC Contingency Fund. Under the bill, moneys in the fund would be
available, upon appropriation, to the above-described departments for CalFresh and WIC programs, respectively, solely for the purpose of maintaining continuity of CalFresh or WIC benefits, as applicable, during a federal government shutdown or other federal appropriations lapse, subject to certain conditions.</html:p>
<html:p>The bill would authorize the State Department of Public Health, during a federal government shutdown or other federal appropriations lapse affecting the WIC Program, to obtain a temporary loan, line of credit, or other short-term financing arrangement for the purpose of maintaining uninterrupted WIC services and benefit issuance. The bill would authorize receipt of a loan for this purpose, subject to approval by the Director of Finance, from certain sources. The bill would set forth terms and conditions for repayment of the loan.</html:p>
<html:p>The bill would require the departments to seek federal reimbursement for expenditures made
from the fund or for loan repayments. Under the bill, any federal reimbursements received would, as applicable, be used for the loan repayments or be deposited into the fund until the fund is restored to its prewithdrawal balance.</html:p>
<html:p>If either of the departments uses moneys in the fund, the bill would require the department to subsequently report that use to the Legislature. The bill would also require the departments to submit a joint report to the Legislature and the Department of Finance detailing certain information.</html:p>
<html:p>The bill would make these provisions severable. The bill would make the provisions inoperative on January 20, 2029, and would repeal them as of January 1, 2030. However, the bill would resume any provisions necessary to effectuate the repayment of loans, the receipt of federal reimbursements, or the preparation and submission of required reports, until those obligations are
fully satisfied.</html:p>
<html:p>The bill would require the Department of Finance to determine the amount of unencumbered funds subject to reversion and to effectuate the transfer to the General Fund as soon as practicable following January 20, 2029.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
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The CalFresh program and the California Special Supplemental Nutrition Program for Women, Infants, and Children (WIC Program) are essential nutrition assistance programs that serve millions of Californians, including low-income children, pregnant and postpartum individuals, seniors, and people with disabilities.
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<html:p>
(b)
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These programs are primarily federally funded and are dependent on annual federal appropriations. A lapse in federal appropriations, including a federal government shutdown, may result in the delay, suspension, or uncertainty of benefit issuance.
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<html:p>
(c)
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Interruptions in access to nutrition assistance threaten food security, public health, and economic stability and disproportionately harm vulnerable populations.
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<html:p>
(d)
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The state has a compelling interest in ensuring continuity of essential nutrition assistance programs during periods of federal funding disruption.
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<html:p>
(e)
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It is therefore necessary and appropriate to establish a state contingency funding mechanism to provide temporary financial support to maintain CalFresh and WIC benefits during a federal government shutdown, with the expectation that such funding will be reimbursed when federal appropriations resume, to the extent permitted by federal law.
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<ns0:Num>SEC. 2.</ns0:Num>
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Chapter 27 (commencing with Section 28100) is added to Division 20 of the
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, to read:
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<ns0:Num>27.</ns0:Num>
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<ns0:LawHeadingText>CalFresh and WIC Contingency Fund</ns0:LawHeadingText>
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<ns0:Num>28100.</ns0:Num>
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<html:p>For purposes of this chapter, the following definitions apply:</html:p>
<html:p>
(a)
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“CalFresh” means the CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.
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(b)
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“Fund” means the CalFresh and WIC Contingency Fund created pursuant to Section 28101, unless otherwise specified.
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<html:p>
(c)
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“WIC” means the California Special Supplemental Nutrition Program for Women, Infants, and Children (WIC Program) established pursuant to Article 2 (commencing with Section 123275) of Chapter 1 of Part 2 of Division 106.
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<ns0:Num>28101.</ns0:Num>
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(a)
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The CalFresh and WIC Contingency Fund is hereby created within the State Treasury.
</html:p>
<html:p>
(b)
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Notwithstanding any other law, moneys in the fund shall be available, upon appropriation made by the Legislature, to the State Department of Social Services for the CalFresh program and to the State Department of Public Health for the WIC Program, solely for the purpose of maintaining continuity of CalFresh or WIC benefits, as applicable, during a federal government shutdown or other federal appropriations lapse, subject to the conditions set forth in this chapter.
</html:p>
<html:p>
(c)
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Moneys in the fund may consist of any of the following:
</html:p>
<html:p>
(1)
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Legislative appropriations.
</html:p>
<html:p>
(2)
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Transfers authorized in the annual Budget Act.
</html:p>
<html:p>
(3)
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Federal reimbursements received following the resumption of federal appropriations.
</html:p>
<html:p>
(4)
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Any other funds authorized by law.
</html:p>
<html:p>
(d)
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Each of the two departments may elect to use moneys in the fund that are appropriated to the respective department pursuant to subdivision (b). As a prerequisite for use of the moneys, the respective department shall determine that all of the following conditions have been met:
</html:p>
<html:p>
(1)
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A lapse in federal appropriations has occurred or is imminent.
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<html:p>
(2)
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The lapse has resulted, or is reasonably expected to
result, in a disruption, delay, or suspension of CalFresh or WIC benefit issuance, as applicable to the corresponding program.
</html:p>
<html:p>
(3)
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Use of contingency funds is necessary to protect the public health and welfare.
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<html:p>
(e)
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If either of the departments uses appropriated moneys in the fund pursuant to this chapter, the department shall subsequently report that use to the Legislature in accordance with Section 9795 of the Government Code, in addition to the reporting described in Section 28104.
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<html:p>
(f)
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Moneys in the fund shall not be used to expand eligibility, increase benefit levels beyond federally authorized amounts, or supplant existing state obligations unrelated to a federal funding lapse, as applicable to the corresponding program.
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<ns0:LawSection id="id_61F3E3C0-8197-432E-A36A-996A67C36751">
<ns0:Num>28102.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law, during a federal government shutdown or other federal appropriations lapse affecting the WIC Program, the State Department of Public Health may obtain a temporary loan, line of credit, or other short-term financing arrangement for the purpose of maintaining uninterrupted WIC services and benefit issuance.
</html:p>
<html:p>
(b)
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A loan authorized under this section may be obtained from any of the following sources, subject to approval by the Director of Finance:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Pooled Money Investment Account, in accordance with Sections 16312 and 16313 of the Government Code.
</html:p>
<html:p>
(2)
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Another state special fund
with available cash balances.
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<html:p>
(3)
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A financial institution, if authorized by the Director of Finance and determined to be in the best fiscal interest of the state.
</html:p>
<html:p>
(c)
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Any loan obtained pursuant to this section shall be repaid as soon as practicable upon receipt of federal WIC funds or federal reimbursements, and shall not extend beyond the fiscal year in which it is issued unless expressly authorized by the Legislature.
</html:p>
<html:p>
(d)
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Interest and administrative costs associated with the loan may be paid from the CalFresh and WIC Contingency Fund upon appropriation or from subsequently received federal reimbursements, as permitted by federal law.
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<ns0:LawSection id="id_9ABFD3A7-15E8-413A-BE6D-53DE4DBDA2DD">
<ns0:Num>28103.</ns0:Num>
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<html:p>
(a)
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To the maximum extent permitted by federal law, the State Department of Social Services and the State Department of Public Health shall seek federal reimbursement for expenditures made from the CalFresh and WIC Contingency Fund or for loan repayments made pursuant to this chapter.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Any federal reimbursements received shall, as applicable, be used for the loan repayments or be deposited into the CalFresh and WIC Contingency Fund until the fund is restored to its prewithdrawal balance.
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<ns0:LawSection id="id_8DAE3CE9-8A49-485B-87C3-C4986CEE1C4C">
<ns0:Num>28104.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Within 60 calendar days after the conclusion of a federal government shutdown or other federal appropriations lapse during which contingency funds or loan authority were used, the two administering departments shall submit a joint report to the Legislature and the Department of Finance detailing all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Duration of the funding lapse.
</html:p>
<html:p>
(2)
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Amounts expended or borrowed.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Number of households and individuals served.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Federal reimbursements received or anticipated.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Any report submitted pursuant to subdivision (a) shall be submitted in accordance with Section 9795 of the Government Code.
</html:p>
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<ns0:LawSection id="id_9977536E-C33C-4D65-B81B-573A779DEDA4">
<ns0:Num>28105.</ns0:Num>
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<html:p>The provisions of this chapter are severable. If any provision or application of this chapter is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</html:p>
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<ns0:LawSection id="id_5BC662F6-4CAD-4314-A5F1-1AEA302B1173">
<ns0:Num>28106.</ns0:Num>
<ns0:LawSectionVersion id="id_5237394F-29F1-4E99-81AF-F918D91C5382">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
This chapter shall become inoperative on January 20, 2029, except as described in subdivision (b).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This chapter is repealed as of January 1, 2030.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1) of subdivision (a), any provision of this chapter necessary to effectuate the repayment of loans, the receipt of federal reimbursements, or the preparation and submission of reports required pursuant to this chapter shall continue to apply until those obligations are fully satisfied. It is the intent of the Legislature that implementation of this subdivision can be achieved before the January 1, 2030, repeal date described in subdivision
(a).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Upon inoperation of this chapter pursuant to paragraph (1) of subdivision (a), all authority to expend, loan, or encumber moneys from the CalFresh and WIC Contingency Fund shall cease, except as expressly provided for closeout, repayment, and reporting purposes pursuant to subdivision (b).
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Upon repeal of this chapter pursuant to paragraph (2) of subdivision (a), any moneys remaining in the CalFresh and WIC Contingency Fund that are not encumbered for repayment of loans, outstanding obligations, or administrative closeout costs shall revert to the General Fund.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The Department of Finance shall determine the amount of unencumbered funds subject to reversion and shall effectuate the transfer to the General Fund as soon as practicable following January 20, 2029.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 123356 is added to the
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, to read:
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<ns0:Num>123356.</ns0:Num>
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<html:p>The department may use moneys in the CalFresh and WIC Contingency Fund, as created in Section 28101, for the purpose of maintaining continuity of benefits under the WIC Program during a federal government shutdown or other federal appropriations lapse, subject to the conditions set forth in Chapter 27 (commencing with Section 28100) of Division 20.</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 18921 is added to the
<ns0:DocName>Welfare and Institutions Code</ns0:DocName>
, to read:
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<ns0:Num>18921.</ns0:Num>
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<html:p>The department may use moneys in the CalFresh and WIC Contingency Fund, as created in Section 28101 of the Health and Safety Code, for the purpose of maintaining continuity of benefits under the CalFresh program during a federal government shutdown or other federal appropriations lapse, subject to the conditions set forth in Chapter 27 (commencing with Section 28100) of Division 20 of the Health and Safety Code.</html:p>
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