- Overview
- Department of Developmental Services
- CalWORKs
- Food Assistance
- Aging-Related Issues
- Child Welfare
- Immigration and Equity-Related Budget Actions
LAO Contact
- Ginni Bella Navarre
- Deputy Legislative Analyst: Human Services and Governance
- Angela Short
- Child Welfare
- Ryan Woolsey
- CalWORKs
- Food Assistance
- Juwan Trotter
- Aging-Related Issues
- Immigration and Equity-Related Budget Actions
- Karina Hendren
- Department of Developmental Services
October 8, 2026
The 2026-27 California Spending Plan
Human Services
CalWORKs
The California Work Opportunity and Responsibility to Kids (CalWORKs) program provides cash assistance, child care, and employment services to low-income families with children.
Total Funding for CalWORKs Up by 1 Percent. As shown in Figure 1, the spending plan includes $7.1 billion total funds for CalWORKs in 2026-27, an increase of $72 million (1 percent) compared to 2025-26. This increase mainly reflects the net impact of:
A $37 million decrease in cash assistance related to projected 1 percent decline in caseload, offset by $59 million in increased costs for a 1.8 percent increase to cash grants (funded from realignment revenues).
A $23 million increase for the Home Visiting Program, reflecting the end of a temporary reduction in funding put in place beginning in 2023-24.
A one-time $10 million augmentation for the Housing Support Program.
Figure 1
CalWORKs Budget Summary
All Funds (Dollars in Millions)
|
2025‑26 |
2026‑27 |
Year‑Over‑Year Change |
||
|
Amount |
Percent |
|||
|
Number of CalWORKs Cases |
347,632 |
344,310 |
‑3,322 |
‑1% |
|
Cash Grants |
$4,115 |
$4,137 |
$22 |
1% |
|
Single Allocation |
||||
|
Employment services |
$1,187 |
$1,184 |
‑$3 |
— |
|
Cal‑Learn case management |
10 |
10 |
— |
‑1% |
|
Eligibility determination and administration |
461 |
468 |
7 |
1 |
|
Subtotals |
($1,658) |
($1,662) |
($3) |
(—) |
|
Stage 1 Child Care |
$648 |
$668 |
$21 |
3% |
|
Other Allocations |
||||
|
Home Visiting Program |
$94 |
$116 |
$23 |
24% |
|
Housing Support Program |
95 |
105 |
10 |
11 |
|
Expanded Subsidized Employment |
134 |
134 |
— |
— |
|
Family Stabilization |
68 |
68 |
— |
— |
|
Mental Health and Substance Abuse Services |
104 |
104 |
— |
— |
|
Work participation rate penalty |
— |
21 |
21 |
N/Ab |
|
Subtotals |
($496) |
($549) |
($54) |
(11%) |
|
Otherc |
$153 |
$125 |
‑$28 |
‑18% |
|
Totals |
$7,069 |
$7,141 |
$72 |
1% |
|
aExcludes Approved Relative Caregiver Funding Option Program payments. bNot applicable. cPrimarily includes funding for tribal TANF programs and various state‑level contracts. |
||||
|
TANF = Temporary Assistance for Needy Families. |
||||
Increased General Fund Budgeted for CalWORKs Due to Technical Adjustment. As shown in Figure 2, within the total allocation for CalWORKs the spending plan provides $1.4 billion from the General Fund in 2026-27, an increase of $308 million (29 percent) compared to 2025-26. This increase is mainly because the spending plan assumes less federal funding will be available for CalWORKs in 2026-27 than in 2025-26. In 2025-26, the state had an estimated $272 million in unspent federal Temporary Assistance for Needy Families (TANF) funds from prior years. This extra federal funding was available to support CalWORKs in place of the General Fund. The spending plan assumes no unspent TANF funds from prior years will be available in 2026-27, increasing General Fund costs compared to 2025-26.
Figure 2
CalWORKs Funding Sources
(In Millions)
|
2025‑26 |
2026‑27 |
Year‑Over‑Year Change |
||
|
Amount |
Percent |
|||
|
Federal TANF block grant funds |
$2,892 |
$2,605 |
‑$287 |
‑10% |
|
272 |
— |
‑272 |
‑100 |
|
General Fund |
1,062 |
1,370 |
308 |
29 |
|
Realignment funds from local indigent health savings |
768 |
770 |
2 |
— |
|
Realignment funds dedicated to grant increases |
1,135 |
1,185 |
50 |
4 |
|
Other county/realignment funds |
1,212 |
1,211 |
‑1 |
— |
|
Totals |
$7,069 |
$7,141 |
$72 |
1% |
|
aTANF carry‑forward is a non‑add item for display purposes only. This amount is included in Federal TANF block grant funds. |
||||
|
TANF = Temporary Assistance for Needy Families. |
||||
Spending Plan Increases Cash Grant Levels. As already noted, the spending plan includes $59 million for a 1.8 percent increase in maximum cash grant amounts, to be implemented October 2026. This grant increase is provided in line with state law that requires grant increases as dedicated funds in state-local realignment grow. Because the grant increase is paid for with realignment funds, it has no impact on the General Fund.
Figure 3 shows maximum cash grants as a percentage of the federal poverty level (FPL) for a household with one more person than is included in the CalWORKs grant calculation. This comparison to the FPL is in recognition that many households enrolled in CalWORKs have at least one member that is excluded from the grant calculation. Additionally, the Legislature set a goal in 2018-19 of grants reaching at least 50 percent of the FPL for a household one larger than those included in the CalWORKs grant calculation. The October 2026 increase represents marginal progress toward this goal.
