Bill > AB1402

This bill establishes the Fresh Start Grants Program, which will transform existing tax credits for low-income Californians into direct grants starting January 1, 2027. Specifically, the bill requires county welfare departments to determine eligibility for three existing tax credits (Earned Income Tax Credit, Young Child Tax Credit, and Foster Youth Tax Credit) for individuals receiving CalFresh benefits, and then provide those credit amounts as immediate cash grants. The grants will be funded through a newly created Fresh Start Grants Fund, with the Franchise Tax Board estimating annual credit amounts and transferring funds from the Tax Relief and Refund Account. County welfare departments will be responsible for distributing grants electronically, verifying eligibility, and ensuring timely and accurate payments. The bill includes robust data protection requirements, mandates an independent study of the program's effectiveness, and expands potential eligibility to recipients of other state safety net programs. Additionally, the bill reduces the corresponding tax credits by the amount of grant received and requires county welfare departments to establish procedures for grant distribution, implement verification systems, and provide multilingual, accessible communications. The goal is to replace existing tax credits with immediate financial assistance to help reduce poverty among California's lowest-income residents.

Health and Social Services

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1402