Existing federal law, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, replaced the federal Aid to Families with Dependent Children (AFDC) program with the federal Temporary Assistance to Needy Families (TANF) block grant program. Existing federal law provides for allocation of federal funds through the federal TANF block grant program to eligible states. Existing law establishes 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.

Existing law requires aid to be granted to a family with a related child under 18 years of age who has been deprived of parental support or care due to the unemployment, continued absence, death, incapacity, or incarceration of a parent. Existing law considers a child to be deprived of parental support or care due to unemployment of the child’s parent or parents when the parent has worked less than 100 hours in the preceding 4 weeks and meets specified requirements related to the federal AFDC program.

Existing law prohibits the payment of CalWORKs aid to an assistance unit if a caretaker relative is, on the last day of the month, participating in a strike, unless the strike is necessitated by an imminent health and safety hazard or abnormally dangerous working conditions at the place of employment, or a lockout. Under existing law, if an individual other than a caretaker relative is participating in a strike, subject to the exceptions and their limitations, that individual’s needs are not included in determining the amount of aid payable to the assistance unit for the month.

The bill would require the State Department of Social Services to conduct a CalWORKs expansion feasibility study, to include recommendations within the report, and to submit the report to legislative human services committees on or before January 1, 2028.

Under the CalWORKs program, certain recipients are required to participate in welfare-to-work activities, which may include, among others, unsubsidized employment, subsidized private or public sector employment, and self-employment. Existing law, operative on July 1, 2026, or on a later date as specified, does not expressly include self-employment within the list of work activities under those provisions.

Existing law requires the department to develop an allocation methodology to distribute additional funding for expanded subsidized employment programs for CalWORKs recipients. Existing law requires the department, in consultation with the County Welfare Directors Association of California, to determine the amount or proportion of funding allocated that may be utilized for operational costs, as specified.

This bill would also include feedback from representatives from labor unions and public benefit advocates for purposes of the above-described determination.

Existing law requires a county that accepts funding from this allocation to, among other things, submit to the department a plan regarding how it intends to utilize the allocated funding and to prioritize subsidized employment placements that offer opportunities for participants to obtain skills and experiences in their fields of interest.

This bill would require a participating county to include in its plan, with regard to prioritized subsidized employment, placements with employers that have a joint labor-management letter of support, a signed community benefits agreement, a project labor agreement, or a labor peace agreement. The bill would require the plan to include how the county intends to prevent subsidized employment placements that supplant work that a public employee would have otherwise been hired to do, and to prevent placement with employers that have a history of a bad safety record, or resolved or pending litigation, violations, citations, fines, or penalties relating to any state or federal environmental or labor laws within the last 10 years.

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 the above provisions.