CalFresh and WIC Contingency Fund.

Plain English Breakdown

The bill summary and digest do not provide specific details about how much money will be in the fund or what happens if federal reimbursement is not received as expected.

CalFresh and WIC Contingency Fund

This law creates a fund to help maintain CalFresh and WIC benefits during federal funding lapses, allowing for short-term financing if needed.

What This Bill Does

• Creates the CalFresh and WIC Contingency Fund to support these programs during federal funding issues.
• Allows the State Department of Public Health to obtain temporary loans or other short-term financing for uninterrupted WIC services during federal funding lapses, subject to approval by the Director of Finance.
• Requires both departments to seek federal reimbursement for expenditures from the fund and loan repayments.
• Necessitates reporting on how funds are used to the Legislature.
• Makes certain provisions inoperative after January 20, 2029, but keeps necessary parts active until all loans are repaid.

Who It Names or Affects

• People who rely on CalFresh or WIC benefits during federal funding issues.
• State and county departments responsible for administering these programs.

Terms To Know

Contingency Fund

A special fund set aside to help deal with unexpected situations, like a sudden lack of money from the federal government.

Federal Appropriations Lapse

When the federal government stops giving out planned funding for certain programs due to issues like a shutdown or delay in budget approval.

Limits and Unknowns

• The bill does not specify how much money will be in the fund.
• It is unclear what happens if federal reimbursement is not received as expected.

Official Summary Text

AB 2072, as introduced, Solache.
CalFresh and WIC Contingency Fund.
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.
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.
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.
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.
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.
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.
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.
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.

Current Bill Text

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