The 2025-26 Budget

Food Assistance Programs

Summary. In this post, we provide background on the state’s major food assistance programs, CalFresh and the California Food Assistance Program (CFAP), provide updates on caseload trends, and analyze the Governor’s proposed food assistance budget. Under the Governor’s budget, there are no newly proposed major augmentations or solutions.

Background

CalFresh Provides Federally Funded Nutrition Assistance to Low-Income Californians. CalFresh is California’s version of the federal Supplemental Nutrition Assistance Program (SNAP), which provides monthly food assistance to qualifying low-income households. To be eligible, households generally must earn less than 200 percent of the federal poverty level. CalFresh benefits can be used to buy most groceries and some prepared food at participating vendors, which include most grocery and convenience stores.

Monthly Benefits Vary. Monthly benefits per household vary based on household size, income, and deductible living expenses—with larger households generally receiving more benefits than smaller households and relatively higher-income households generally receiving fewer benefits than lower-income households. In 2023-24, about 5.3 million Californians received a total of $12 billion in CalFresh benefits, all of it federally funded, for an average monthly benefit of about $189 per recipient. The federal government annually adjusts CalFresh benefits in accordance with changes in the cost of food, and in addition to this annual adjustment, made a major upward revision in 2021 when it revised the contents of the “Thrifty Food Plan” (the meal plan on which CalFresh benefits are based) to account for developments in nutritional science.

CalFresh Administration Is Funded by the State, Counties, and Federal Government. CalFresh is overseen at the state level by the California Department of Social Services (CDSS) and administered locally by county human services departments. Although CalFresh benefits are paid by the federal government, the costs to administer the program are shared by state, county, and federal governments.

CalFresh Is Administered Through Two Main Systems. CalFresh eligibility and enrollment is tracked by a single statewide system, the California Statewide Automated Welfare System (CalSAWS). CalSAWS was introduced in 2019 and, as of October 2023, all 58 counties use the system. The federal government helps manage an Electronic Benefits Transfer (EBT) system which deposits monthly benefits for CalFresh and other human services programs onto cards to be used at grocery and convenience store checkout counters.

CFAP Provides State-Funded Food Assistance to Legal Permanent Residents Not Eligible for CalFresh. In 1996, Congress passed a welfare reform bill that, among other things, restricted federal food assistance for certain noncitizens. Most notably, legal permanent residents were rendered ineligible for federally funded nutrition assistance until they had resided in the country for five years. The federal government gave states the option to provide state-funded food assistance to populations affected by the 1996 policy change (such as legal permanent residents who arrived less than five years ago). In response, California established CFAP, which provides benefits through the same EBT and SAWS system as CalFresh. Because CFAP operates through the EBT system, the federal government is directly responsible for depositing funds into the accounts of participating households, and the state reimburses the federal government for these costs. In addition, the federal government charges California for all associated administrative costs. CFAP benefits, which equal those provided by CalFresh, also vary based on household size, income, and deductible living expenses. In 2023-24, CFAP benefits were $114 million General Fund ($174 average monthly benefit per person).

Recent Budget Actions Delayed Planned Expansion of Food Assistance to Certain Additional Income-Eligible Noncitizens. Some immigrants, such as those who are undocumented, are currently ineligible for CFAP based on immigration status. Recent spending plans included funding to expand CFAP to all income-eligible noncitizens aged 55 and older, regardless of immigration status. Implementation of the expansion was expected in October 2025. However, as a budget solution, the 2024-25 spending plan delayed the expansion implementation by two years. Automation for the expansion is now expected to begin in 2026-27, with benefit distribution to begin in 2027-28 (for newly eligible recipients).

Other Programs and Pilots Provide Supplemental Benefits and Emergency Food Support. The state provides additional nutrition support for certain populations. For example, the SUN Bucks Program, which first implemented in summer 2024, provides summertime food benefits to children in households that qualify for free or reduced-price school meals. The Emergency Food for Families and CalFood Programs provide food commodities and funding for food banks to support Californians during emergencies. Disaster CalFresh provides short-term food benefits and supplements to certain natural disaster victims.

Budget Overview and Assessment

Total CalFresh and CFAP Funding Increases. As shown in Figure 1, the Governor’s budget proposes $15.4 billion in total funds ($1 billion General Fund) for the CalFresh and CFAP programs in 2025-26, representing net increases of $163 million total funds (1 percent) and about $7 million General Fund (1 percent) compared to the revised 2024-25 budget. This overall increase is the effect of higher underlying costs from growing caseload and increased maximum benefit allotments (after implementation of a federal cost-of-living adjustment on October 1, 2024).

CalFresh and CFAP Caseload Has Grown in Recent Years. Figure 2 shows CalFresh/ CFAP caseload increased over the last five years. CalFresh/CFAP caseload (as of November 2024) increased 60 percent since the beginning of 2019-20, although annual rates of growth have varied from year to year. Multiple factors likely contributed to this growth. First, starting in 2019-20, Supplemental Security Income/State Supplementary Payment recipients became newly eligible to receive CalFresh benefits. Due to this policy change, and a decades-long effort to increase CalFresh enrollment, CalFresh caseload was at a then historic high prior to the COVID-19 public health crisis (about 2.2 million households in February 2020). Second, the COVID-19 public health crisis and consequent economic downturn likely led to further caseload increases. Finally, as mentioned, maximum benefit amounts increased in the last five years. This increase in benefits also may have made the program more attractive to recipients relative to the administrative requirements to enroll, making some recipients potentially more likely to enroll or maintain enrollment. In November 2024 (the month for which data are most recently available), CalFresh and CFAP served approximately 3.3 million total households. Caseload continues to increase in 2024-25, although initial data suggests growth may be slowing.

Caseload Projections Appear Reasonable. Our office independently forecasts CalFresh caseload. Our 2024-25 and 2025-26 estimates generally align with the administration’s forecast at this time. We will revisit this estimate in the spring when additional data is available.

Budget Maintains Delay in CFAP Expansion. As mentioned above, the 2024-25 spending plan delayed the CFAP expansion (to all income-eligible noncitizens aged 55 and older, regardless of immigration status) by two years. Under the Governor’s January 2025 proposal, we understand the expansion timeline remains as determined in the June 2024 budget package (with automation expected to begin in 2026-27 and benefit distribution to begin in 2027-28 for newly eligible recipients). In the June 2024 budget package, General Fund savings associated with the delay totaled $31 million in 2024-25 and $115 million in 2025-26. As of January 2025, we understand the administration has revised the projected savings associated with the delay to $0 in 2024-25 and about $104 million General Fund in 2025-26. We are working with the administration to better understand these downward revisions.

Continues to Provide Funding for Replacement of Stolen EBT Benefits. In recent years, CalFresh and other benefits loaded onto EBT cards have been subject to increasing levels of theft (we discuss this trend further in our prior post). When benefits are stolen, recipients may apply to get replacements benefits, which have been funded through a combination of state and federal funds in recent years. The administration projects this theft will cost the state over $121 million total funds ($94 million General Fund) in 2024-25 and about $14 million total funds (all General Fund) in 2025-26 to provide and administer reimbursements. This projected year-over-year decrease is largely the result of EBT security improvements, described in more detail below. The shift from a mix of state and federal funds in 2024-25 to all General Fund in 2025-26 is largely due to the end of a federal policy allowing states to temporarily replace stolen SNAP benefits using federal funds from October 1, 2022 to December 31, 2024 (California has therefore returned to replacing any stolen benefits with state funds, as was its practice before October 2022).

Anticipates Completion of EBT Security Technology Improvements in 2024-25. Most theft of EBT benefits is believed to be accomplished through creating “clones” of EBT cards. EBT card cloning is possible, in part, because EBT cards have historically lacked many security features common to debit and credit cards, such as security chips. Recent spending plans included funding (about $75 million total funds over multiple years, beginning in 2023-24) to improve EBT card technology and security through the rollout of new cards with chip and tap-to-pay technologies. The Governor’s budget shifts about $61 million total funds ($19 million General Fund) in previously appropriated funds for EBT card improvements to 2024-25 to align with remaining project payment milestones (it is our understanding that the projected multi-year cost of the EBT card improvement project remains about $75 million). The administration currently anticipates the improvement effort will be completed in 2024-25 (and therefore has not proposed any related funding in 2025-26).

CDSS began the EBT card replacement process in early 2025, beginning with a preliminary rollout to 1,000 selected cardholders in January 2025 (as of February 2025, we understand from CDSS that these 1,000 cards were successfully rolled out, with 99.9 percent of new card transactions completed successfully). CDSS currently anticipates it will begin mass card replacement in late February 2025 and that new cards will be distributed via mail over a period of 12 to 16 weeks (with all new cards deployed by June 30, 2025).

Budget Includes $1.5 Billion in Mostly Federal Funding for Other CDSS Food Programs. As shown in Figure 3, the Governor’s budget proposes over $1.5 billion in total funds ($137 million General Fund) for other CDSS-administered food assistance programs and pilots in 2025-26 (some federal or state food programs, like the California Department of Education’s Universal Meals Program, are administered by other departments). Year-over-year changes to some of these programs are described in further detail below.

Year-Over-Year Change in SUN Bucks Funding Largely Due to Change in Planned Distribution Schedule. SUN Bucks benefits were first distributed in summer 2024 (with costs allocated across two fiscal years, 2023-24 and 2024-25). SUN Bucks funding in 2025-26 is projected to decrease by about $358 million total funds ($16 million General Fund) relative to 2024-25. This decrease is technical in nature and largely due to an expected change in the program’s implementation schedule going forward. (In the program's first summer, a significant portion of benefits were distributed later in the season, resulting in many benefit costs being recorded in the 2024-25 fiscal year. Moving forward, the administration plans to distribute benefits earlier in the summer, which will continue to spread costs across two fiscal years but shift more expenditures into the prior year. As a result, program costs appear higher in 2024-25 compared to 2025-26, reflecting the timing of payments rather than a true increase in ongoing costs.) The program’s annual estimated caseload (about 5.2 million children each summer) remains unchanged year over year.

Shifts Funding for CalFresh Minimum Nutrition Benefit Pilot to Budget Year. The CalFresh Minimum Nutrition Benefit Pilot will ensure pilot participants receive, at minimum, $50 in monthly CalFresh benefits (rather than the current minimum of $23). The 2023-24 Budget Act authorized the pilot and included $915,000 General Fund (one time) for automation costs. The 2024-25 spending plan included $15 million General Fund on a one-time basis for the implementation of the pilot program, which was originally expected to begin in 2024-25. Due to a delay in implementation, the Governor’s proposal shifts automation funding to 2024-25 (and increases this funding slightly due to updated cost estimates) and benefit funding (which remains at $15 million General Fund) to 2025-26. We understand CDSS has identified certain CalFresh households made up of solely older or disabled adults with no earned income as the target pilot population. CDSS indicated the anticipated statewide caseload for the pilot is about 36,000 households. According to CDSS, participating households will receive supplemental monthly CalFresh benefits of about $32, on average.

Expiration of One-Time Funding for Various Programs. The CalFresh Fruit and Vegetable EBT pilot and the Diaper Bank program both received one-time funding in the 2024-25 spending plan ($11 million General Fund and $9 million General Fund, respectively). Both one-time funding amounts are expected to expire (separately, the Governor’s budget proposes a new diaper access initiative for all California families; please see our post on this proposal for more details).

Issues for Legislative Consideration

Continue Monitoring Disaster CalFresh Operations Underway in Los Angeles Region. As mentioned in our prior post, victims of natural disasters may be eligible for Disaster SNAP (referred to locally as Disaster CalFresh). Disaster CalFresh, which is federally funded, provides a month of food benefits to certain income-eligible victims of natural disasters who are not already receiving CalFresh (income requirements are generally slightly higher for Disaster CalFresh than for standard CalFresh). Additionally, during and following a natural disaster, certain existing CalFresh recipients affected by the disaster may receive short-term increases to their benefits (up to the maximum allotment amount) or replacement of lost benefits. It is our understanding that Disaster CalFresh efforts are currently underway in response to the January 2025 wildfires in the Los Angeles region (although data on related program usage are not yet available). The Legislature could consider requesting regular updates from the administration on the wildfire-related Disaster CalFresh efforts and program usage.

Continue Monitoring EBT Card Security Improvements and Benefit Theft Rates. As discussed above, the administration projects significant benefit theft replacement savings in 2025-26 as a result of the implementation of the new chip/tap-to-pay EBT cards. While savings associated with decreased benefit theft replacements are certainly possible after the implementation of the new EBT cards, the administration has not provided the Legislature or our office with information on how its savings estimates were reached. We recommend the Legislature ask the administration for this information, as well as for routine updates on the rollout of the new EBT cards (including data on the number and percentage of total cards distributed and activated) and on benefit theft rates throughout and after the rollout. This information would provide the Legislature greater clarity on the implications of the new EBT cards so it can have a fuller picture of possible short- and long-term outcomes.