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Census Data Underscores That Poverty Is A Policy Choice

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Historic increase in child poverty reinforces urgent need for continued state and federal actions for equitable revenues and investments

Today, the Census Bureau released 2022 data for poverty, income, and health insurance in 2022 from its Current Population Survey (CPS). While we await California-specific information, the national data makes it clear that when using the Supplemental Poverty Measure (SPM), which reflects the cost of living and the poverty-fighting power of public programs, that poverty rose by historic levels:

  • Child poverty more than doubled from 5.2% to 12.4% from 2021-2022, the largest one-year increase ever.
  • Black and Latinx children continued to face stark racial inequities, with poverty rates of 17.8% and 19.5% respectively, compared to 7.2% for non-Hispanic white children.
  • Overall poverty was 12.4%, 4.6 percentage points higher than 2021, also the highest one-year increase ever
  • Non-citizens experienced disproportionately high poverty, more than twice the U.S.-born population (24.4% vs. 11.2%)

While shocking in scope, these numbers are unfortunately not a surprise, and reverse what had been historic lows in poverty as well as progress in closing long-standing racial inequities, just one year earlier. There is no question that the rise in poverty is a result of policy decisions to reverse course on what had been highly effective investments in pandemic-era programs, especially: 

This is even more sobering in light of a substantial increase in people working full-time year-round in 2022 – including the largest ever share of women working full-time year-round. The rise in poverty despite the strong labor market reinforces that too many jobs do not pay enough for families to meet their basic needs.

Census data highlights the power and effectiveness of public sector investments

Despite the dramatic worsening of poverty, the data also affirms the vital role of the government to lift children and families out of poverty when it takes aggressive actions to bolster public programs. Key federal programs that delivered major poverty reductions include the Child Tax Credit and other refundable credits, CalFresh (SNAP nationally), and school meals.

Poverty data is an urgent call for continued state and federal actions of public sector investments

The data highlights the pressing need for ongoing government action to fight poverty and advance a future of inclusive prosperity we know is possible. Black and Brown families are disproportionately impacted by the expiration of the successful interventions, and racial inequities will only be exacerbated unless governments take bold action to combat poverty. It is unequivocal that public sector investments effectively lift children and families out of poverty, while demonstrating high returns on investment.

We call on national and state policymakers to take continued action to fight poverty, including: 

California must also continue to lead, and we call on the Governor and Legislature to build on their record of significant action to fight poverty to enact the bold policies needed to imagine a poverty-free, abundant future. 

Simply put, we know what works. As President Biden said, the rise in poverty is no accident, but a deliberate policy choice. We call on our state and federal policymakers to take the actions needed for more equitable revenues and investments needed to end child poverty once and for all. 

Summary of California’s Budget Investments to Fight Child & Family Poverty in 2023-24

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At GRACE, we imagine a California where children and families receive accessible and equitable investments to ensure a secure and stable present, and advance a future free from poverty. Public policy is a fundamental tool to realize this vision with the power to dismantle poverty driven by systems of oppression and foster a community-led future where all people thrive. The state’s budget is a powerful tool to achieve these outcomes and is a statement of California’s values as the state determines which priorities merit investment. 

In the face of a budget problem, we thank Governor Newsom and the Legislature for drawing a hard line against austerity cuts, learning the lessons of the failed Great Recession response by protecting programs and making key investments benefiting low- and no-income Californians. It is more vital than ever to invest in anti-poverty programs during tough economic times and we are grateful that the Administration and Legislature acted in alignment with our vision to end poverty. 

IMAGINE Budget Victories

We celebrate the major wins of our coalition’s campaign and thank the Legislators, ECPCA partners, and community leaders who fought tirelessly seeing them to success. 

Child Care: Eliminate Family Fees

$56 million for the historic victory to permanently bring family fees to the federal minimums: eliminating family fees for 375,000 families and capping fees at 1% for families at or above 75% of the State Median Income starting October 1st. The agreement also forgives debt from uncollected family fees accrued prior to October 1st, 2023. 

Child Care Rate Reform

$1.4 billion in one-time funds to increase child care provider rates and a commitment to move from a market rate to a cost-based model, which included commensurate increases throughout the child care system. This is a major victory to improve child care provider payment rates and practices to increase parent choice for child care arrangements and help stabilize operations for participating providers. Key details on implementation were subject to agreement with Child Care Providers United, which ratified a new two-year contract codifying key wins in early August. 

CalWORKs Grant Increase

$500 million ongoing to finally end childhood deep poverty in the CalWORKs program by providing a permanent 10% increase to CalWORKs grants.

CalFresh Minimum Nutrition Benefit

$15 million in one-time funds to establish the CalFresh Minimum Nutrition Pilot Program that will provide 12 months of benefits not less than $50, more than double the federal minimum allotment of $23 per month. This is a key step toward a statewide minimum $50 benefit to fight the record hunger cliff while supporting our vital food economy, as proposed by SB 600 (Menjivar).

Summer EBT for All

$47 million in state and federal funds to begin implementation of Summer EBT to end summer hunger. The human services budget trailer bill ensures California will maximize the new Summer EBT program available to states in summer 2024, expected to bring approximately half a billion dollars in federal food benefits to California children in low-income families. 

Food for All

$40 million in one-time funds to begin the outreach and automation necessary for the implementation of new CalFresh eligibility for people who are 55+ years old and are not currently receiving benefits due solely to immigration status. The human services budget trailer bill also rejected a proposed delay to January 2027 and instead established a start date of October 2025.

Prevent Debt Interceptions to FYTC Households

The 2022-23 budget created the Foster Youth Tax Credit (FYTC) to provide former foster youth with cash assistance. In the first year of implementation, some recipients had their credit either partially or wholly intercepted to pay off debt held in their name by the state. Because identity theft is experienced at high levels by foster youth, it is believed that a significant amount of this debt was not even debt they owed. Building upon efforts that started with the 2021-22 budget’s protection of refundable credits from debt interceptions, the 2023-24 budget adds the FYTC to the list of protected credits, ensuring foster youth recipients receive the full credit they are owed. All of these intercept protections will be effective in 2024.

School Meals for All

Nearly $300 million to bolster and continue the successful implementation of California’s nation-leading healthy school meals for all program. 

Remaining IMAGINE Priorities

While there were many victories this year, there were also priorities yet unfulfilled. We are confident that anything not accomplished was from a lack of resources, not a lack of shared vision for a more just and prosperous California, and that low-income Californians have a robust safety net that gives them opportunities for their future. We are grateful for the work of our budget champions and the ongoing efforts to ensure the revenues necessary for continued investments. We are excited to move these priorities forward together next year.

Reimagine CalWORKS

The budget did not include the package of investments needed to dismantle the Pete Wilson rules grounded in sexism and racism that still punish the disproportionately Black and Brown women and children served by CalWORKs. Reimagine CalWORKs would create an anti-racist, family-centered program that aligns with the Governor’s north star to end child poverty by reforming sanctions that push 60,000 children into deeper poverty. As proposed by Assemblymember Arambula and Senator Rubio.

Safety Net for All

The budget fails to include an investment ensuring a safety net for all by providing unemployment benefits to excluded immigrant workers, nor does it include investment in a workgroup to study the pathway to this critically needed investment. As proposed by Senator Durazo and Assemblymember Carrillo.

It Takes a Village

The It Takes a Village initiative would have provided $45.5 million in one-time funds to expand the highly successful place-based anti-poverty programs working in front-line communities across the state of California. The programs provide a coordinated continuum of educational, health, and community services and supports at every stage of a child’s life–from before birth through college and career–to ensure children succeed in schools and families move out of poverty. As proposed by Assemblymember Bonta and Senator Hurtado.

CalEITC Minimum $300

The CalEITC Coalition sought to increase the CalEITC minimum credit from the current $1 to $300, making the credit more meaningful to recipients and bolstering the ability of the CalEITC to fight poverty and reverse racial inequities. We thank the Senate for their significant support in the June Budget, and their ongoing through SB 220. As proposed by Assemblymember Gipson and the CA Senate.

Young Child Tax Credit for All

The proposal would have expanded the YCTC to reach all CalEITC-eligible filers who claimed dependents. This would provide a $1.70 return for every $1 invested, as families spend these funds to support their basic needs and the funds move through their local economies. As proposed by Assemblymember Santiago. 

Prevent Child Support Debt from Disrupting Families 

The budget ensures timely implementation of the full pass-through for former CalWORKs families by April 2024. The Truth and Justice in Child Support Coalition will seek to eliminate uncollectible government-owned child support debt, as well as extend the full pass-through to current CalWORKs families.

12-Month Comprehensive Perinatal Services 

The budget did not extend social support benefits of Medi-Cal’s Comprehensive Perinatal Services Program to 12 months postpartum to protect maternal and infant health. As proposed by Assemblymember Schiavo.

We again extend our appreciation to the Legislators who championed this year’s ECPCA Imagine Campaign budget priorities and for the continued work by the Governor and Legislature to prioritize investments in our communities. These priorities are informed by and will make continued progress toward the goals of the Lifting Children and Families out of Poverty Task Force. 

Our coalition looks forward to continuing our shared work with partners, community, the Legislature, and the Administration to realize our vision and lift all children and families out of poverty.

IMAGINE-2023-2024-Budget-Investments-Digital-1Download

GRACE & End Child Poverty California Oppose Debt Ceiling Agreement That Cuts Critical Cash and Food Aid

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Expanding the SNAP time limit and deepening punitive TANF rules will worsen poverty and hunger

PASADENA, CA // May 31, 2023

The proposed debt ceiling agreement comes at the expense of Californians with the lowest incomes, furthering narratives rooted in racist and sexist stereotypes that stigmatize families experiencing poverty, and perpetuating structural racism by undermining true economic mobility. Expanding cruel, failed barriers and making cuts in TANF, SNAP, and other programs will mean greater hunger and poverty from children to older adults. This is simply unacceptable, especially as we have the tools, including more equitable revenues, to avoid a default.

On TANF (CalWORKs), the agreement defies decades of research that federal policymakers should replace the restrictive, punitive TANF model with a program that empowers families to choose the activities they need to support economic mobility.

Instead, the bill worsens work requirements we know don’t improve employment or income – but are effective at taking away family’s basic income. CalWORKs sanctions already push 60,000 California children – overwhelmingly Black, Latinx, and other communities of color – deeper into poverty, destabilizing families to the point where children are removed and placed into child welfare. The agreement will subject even more families to the narrow, punitive rules that result in life-long consequences for children experiencing poverty.

The agreement also has an historic expansion of the cruel 3-month time SNAP limit, threatening food assistance for older adults who are the most likely to face age discrimination in the labor market or have an undiagnosed disability that takes years for Social Security to determine.

This is the opposite of the policy direction we should pursue: instead of determining who deserves to eat, we should stand firm that food is a human right and should not have a time limit, period. The Congress should pass Rep. Barbara Lee’s H.R. 1510 that would end the time limit for good, and Rep. Jimmy Gomez’s H.R. 3183 that would end the unjust college student rule.

In both TANF and SNAP, the debate was completely divorced from the reality of the brutal conditions of poverty in America, and perpetuated racist and sexist ideas that people living in poverty must be coerced to work.

We will have to turn to our Legislature and Administration, at nearly the end of our budget process, to try and mitigate the harm from these policies. That may or may not be possible, but all of which takes time and resources away from conversations about moving forward to evidence-based models that we must empower families to determine their finding pathways to true economic security outside of the failed, punitive model embodied in work requirements.

The agreement comes during divided government and surely represents important improvements to the House-passed bill. But we must be clear-eyed about the damage this does to our proven anti-poverty programs and the message to the children and families who rely on them. We must never again allow the poorest among us to be held hostage.

GRACE & End Child Poverty CA Statements – April 26, 2023

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Celebrating the CA Senate Budget Plan and Denouncing U.S. House Debt Ceiling Bill

GRACE & End Child Poverty California Celebrate Senate Budget Plan

Urge Adoption of Revenues & Investments Needed for a More Equitable California

April 26, 2023 / / Pasadena, CA

Statement attributable to Shimica Gaskins, President & CEO, GRACE/End Child Poverty California: 

“We at GRACE dare to dream of a future in which every child is valued and free, and the Senate Budget Plan released today by Pro Tem Atkins and Budget Chair Skinner would make enormous progress in achieving that goal. We applaud the Senate for embracing a comprehensive approach that would move California forward together toward a more equitable future through a combination of revenues to ensure that wealthy corporations pay their fair share, and investments in programs proven to lift children and families out of poverty and reverse long-standing racial inequities. 

We are thrilled that the Senate Budget Plan would adopt many community-informed IMAGINE priorities, including critical investments to: 

  • CalWORKS: End deep child poverty, remove the WPR penalty, support sanction reform, invest in menstrual equity
  • Increase the minimum CalEITC payment to $275
  • Child care: invest in rates to help stabilize providers and protect families from harmful fees
  • CalFresh: provide a $50 minimum, prevent the 3-month time limit, and achieve Food For All
  • School meals: maximize the new Summer EBT program and support kitchen infrastructure 
  • Homelessness prevention and affordable housing – landmark $1 billion ongoing
  • Support schools, bolster health programs, and much more. 

We again thank the Senate for their continued leadership to put wealth to work and ensure that the values of California’s budget, both revenues and investments, prioritize the future free from poverty we know is possible. We urge the Legislature and Administration to adopt these critical proposals in the 2023-24 Budget, and look forward to engaging with all stakeholders as the budget process continues.”

GRACE & End Child Poverty California Statement on House Debt Ceiling Bill

House bill would worsen poverty for children and families and deepen racial inequities. Urge Senate and President to reject this approach, and invest in programs proven to lift children and families out of poverty.

April 26, 2023 / / Pasadena, CA

Statement attributable to Shimica Gaskins, President and CEO, GRACE/End Child Poverty California:

“The House bill passed today includes unconscionable policies that balance the budget on the backs of the very Califfornians with low-incomes that the federal government should prioritize. It is a shocking, anti-family bill that would reverse the historic gains in reducing child poverty – achieved just two years ago – and deepen already unjust inequities for Black, Latinx, Indigenous, and other disenfranchised communities.

The bill would make across the board 22% cuts that harm children and families, and cap annual spending growth at 1% for key domestic federal programs such as WIC, housing, veterans’ health care, child care and preschool, public health, Pell Grants and college work-study, K-12 education, and environmental protection, among many others. 

Perhaps the most odious element is that the bill doubles down on punitive, failed work requirements across the safety net, policies rooted in racist & sexist stereotypes that families with low-incomes need to be coerced to work in order to receive basic assistance: 

We thank the many Members of the California delegation who spoke out against and opposed this legislation. We thank President Biden for issuing his veto message on the bill, which highlights many of the harmful policies that would punish Californians with low-incomes. We urge the Senate and President to reject this approach, and instead build on the proven pathways to lift children and families out of poverty and advance a more equitable future.”

RELEASE: End Child Poverty California Statement on Governor Newsom’s Proposed 2023-24 Budget

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We Commend the Governor for Protecting Progress, and Call For Continued Action to End Poverty

January 10, 2023 / / Pasadena, CA

Statement attributable to Shimica Gaskins, President and CEO of GRACE and End Child Poverty California:

Today, Governor Newsom released his 2023-24 Proposed Budget Summary. We commend Governor Newsom for his clear call to prioritize Californians on the front lines of economic hardship, a theme he echoed throughout his press conference, including protecting vital programs proven to prevent poverty and build prosperity. 

We further applaud the Governor for some of the key decisions made to balance the state’s budget given the fiscal conditions. This includes the prudent choice to withdraw the $750 million payment on the state’s outstanding federal loans for unemployment benefits, which the LAO noted would “provide no near-term economic relief to employers or workers.”

We urge the Governor and Legislature to build on this strong first step to take actions needed to address the moral imperative to lift every California child and family out of poverty. As Langston Hughes reminds us, a dream deferred is a dream denied. 

We must act now to make sure all our children are valued, healthy, secure, and free from poverty.  

The Governor wisely proposes increased support for families experiencing homelessness, to help keep families housed, as well as nation-leading health for all, in this year’s budget. He offers new proposals such as the Health and Human Services Innovation Accelerator Initiative, that if includes CalWORKs and CalFresh, could make bold improvements to access of critical safety net programs.

Those investments build on transformative actions taken during the pandemic including baby bonds, health care, tax credits for families, cradle to career supports, and other End Child Poverty Plan recommendations. 

It is not an overstatement that those gains, and the lives of California’s children living in extreme poverty, are at risk. They are struggling to survive as their families face the toxic stress of inflation, food insecurity, homelessness and other challenges as key federal interventions like the expiration of the expanded Child Tax Credit that brought poverty to historic lows and closed racial inequities.

While we continue to call on Congress and the White House to take continued action, California must continue to lead. Budgets are statements of our values, especially in a challenging year. 

We again commend the Governor for protecting critical progress made, and call on all budget stakeholders to maximize opportunities to advance the future free from poverty we know is possible. GRACE and End Child Poverty California look forward to working with the Governor, Administration, and Legislature to ensure that investments to end poverty are prioritized – our children and families simply cannot wait.

For a summary of California’s latest investment in supporting our low-income children and families, read our recap of the 2022-23 legislative session and ECPCA priorities below.

CA-Legislature-Imagine-Investments-2022Download

RELEASE: Western Regional Anti-Hunger Joint Statement Opposing SNAP Cut Offset in the 2023 Federal Omnibus

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December 20, 2022

Our organizations are members of the Western Regional Anti-Hunger Consortium (WRAHC), a coalition of anti-hunger groups across the Western United States. We write with deep appreciation by leaders in Congress to secure badly needed investments in programs that prevent hunger in the end of year omnibus spending bill. This includes some of the first improvements to child nutrition programs in over ten years. We cannot, however, support an offset to create a Summer EBT program by cutting SNAP benefits, and urge Congress not to consider any sources that are dedicated to existing anti-poverty programs.

The pandemic proved unequivocally that hunger and poverty are a policy choice, and that government can solve these crises when it acts. In 2021, child poverty fell to a record low of 5.2%, and food insecurity for households with children fell to a two-decade low.1 Expanded federal response to the pandemic-induced economic crisis, including Emergency Allotments provided through the Supplemental Nutrition Assistance Program (SNAP), and temporarily available nationwide school meals for all, made key contributions to that success.2

The West has long led the way in identifying the need for3 and championing4,5 the effort to create a permanent, nation-wide Summer EBT program that would provide a grocery card to children in low-income families during the summer, the hungriest months for children. It has been shown as one of the most effective interventions to fight child hunger.6

As much as we support Summer EBT, we cannot support the offset to cut SNAP by prematurely ending the Emergency Allotments, which will on average mean a loss of $82 per person a month.7 This is consistent with our position against the 2010 Healthy Hunger Free Kids Act that funded improved school meal nutrition standards by prematurely sunsetting the SNAP boost from the ARRA. This created a major hunger cliff,8 which contributed to the decade long period of elevated hunger and poverty.9

These programs are extremely valuable on their own merits and should not be pitted against one another. SNAP is the first and best line of defense against hunger for these children and their families. And for many children in low-income families, meals offered through child nutrition programs in and out of school provide invaluable nutrition assistance. Taking money from one nutrition program that benefits low-income children and families to pay for another does little to alleviate the struggle with hunger these families are experiencing especially in these times when food prices have increased 13% over the last year.10

Additionally, reducing SNAP benefits now will be more harmful for our economy which stands on the brink of recession. Research shows that in a slowing economy, every $1 of SNAP spent generates between $1.50 to $1.80 in economic activity or contributes $1.54 billion to our GDP.11 Ending the Emergency Allotments means less spending in local food economies, the loss of jobs, and most importantly, less food on the family dinner table.

We urge Congress to pass an omnibus that includes comprehensive child nutrition reauthorization including long overdue improvements to the Community Eligibility Provision as well as establish nationwide permanent Summer EBT before the end of the 117th Congress, without cuts to SNAP or any other antipoverty programs as an offset. We believe this is the best way to ensure that all children have access to healthy meals through SNAP and child nutrition programs.

Sincerely,

Anti-Hunger & Nutrition Coalition

California Association of Food Banks

Coalition of California Welfare Rights Organizations

Equal Rights Advocates

Food Bank of Northern Nevada

GRACE & End Child Poverty CA

Hunger Free Colorado

Idaho Hunger Relief Task Force

Northwest Harvest

Nourish California

Oregon Food Bank

Partners for a Hunger Free Oregon

Western Center on Law and Poverty

1 https://www.cbpp.org/blog/food-insecurity-at-a-two-decade-low-for-households-with-kids-signaling-successful-relief

2 https://www.census.gov/library/stories/2022/09/record-drop-in-child-poverty.html

3 https://voiceofsandiego.org/wp-content/uploads/2014/05/Summer+Meals+Report_April+2014_SDHC.pdf

4 https://www.congress.gov/bill/117th-congress/house-bill/3519

5 https://www.congress.gov/bill/117th-congress/senate-bill/1831

6 https://www.fns.usda.gov/sfsp/summer-electronic-benefit-transfer-children-sebtc-demonstration-summary-report

7 https://www.fns.usda.gov/tfp/blog-083021

8 http://foodbanknyc.org/wp-content/uploads/HungerCliff_ResearchBrief.pdf

9 https://rules.house.gov/sites/democrats.rules.house.gov/files/Impact-COVID19-Californias-Emergency-Food-System-Maxde-Faria-CAFB.pdf

10 https://www.bls.gov/opub/ted/2022/prices-for-food-at-home-up-13-5-percent-for-year-ended-august-2022.htm

11 https://www.ers.usda.gov/webdocs/publications/93529/err-265.pdf

Omnibus_NoSNAPCuts_SEBT_WRAHC_12.20.2022Download

GRACE @ White House Conference on Hunger, Health, and Nutrition

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Last week our policy associate Yesenia Jimenez was in Washington DC at the White House Conference on Hunger and Health. The next weekend she was back in LA celebrating her birthday with family. Just a few days before her birthday, Yesenia sat two rows away from the President of the United States.

What. A. Week.

#WHConfHungerHealth brought together people from the advocacy, business, political, and influencer communities. Everyone shared the goals of ending hunger and improving the health of Americans.

Many policies that have gotten us to where we are today, with so much poverty and hunger in our country, are driven by racism, sexism, and classism. There has been value in keeping people just barely surviving instead of thriving with more than their basic needs met. For example, our agricultural workers who grow and pick the food that arrives on the most elite tables in America, were intentionally left out of the fair labor laws of the 1930s because of racism. Inequality in labor practices still persists almost 100 years later, making it hard for the people who grow our food to afford food themselves. Let alone high quality food that truly nourishes.

Yesenia (left) with CA Senator Melissa Hurtado & Jess Bartholow, CA Senator Skinner’s Chief of Staff.

We’re so grateful we had Yesenia at the White House to represent End Child Poverty CA and California. CA was mentioned as a model for so many successful programs.

There is a huge groundswell of momentum for programs that WORK to end poverty and hunger: the Child Tax Credit and universal school meals. Champions in Congress are moved to fight for these tools that support our families’ basic rights.

We imagine a future where all of our children are valued and free. Where their families are secure and nourished. Where we live in abundance, rather than scarcity.

Onward! 

#EndChildPoverty

Interested in Baby Bonds? ECPCA Has You Covered

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Update: July 20, 2022

GRACE Celebrates Groundbreaking $115 Million Investment in HOPE Accounts for Children Orphaned by COVID-19 and Foster Youth!

Governor Gavin Newsom approved the state’s 2022-2023 budget with vital investments secured for over 32,000 children orphaned by COVID and children who are in long-term foster care.

GRACE & End Child Poverty California (ECPCA), John Burton Advocates for Youth (JBAY), End Poverty in California (EPIC), and Liberation in a Generation worked diligently alongside partners and California leaders for the inclusion of HOPE Trust Fund Accounts in the final budget. The Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Act – championed by Senator Nancy Skinner (D-Berkeley) – will lay the foundation for future expansion of child trust accounts, or baby bonds, as a tool to support wealth building and economic opportunity for California children living in poverty. Approximately 1 in 5 children live in poverty in our state. 

HOPE Accounts will support children from low-income families who lost a primary caregiver to COVID-19, as well as children who are in long-term foster care. HOPE funds will be available when a child turns 18. They will allow children to invest in their education, start a business, or support purchasing transportation or housing. Access to wealth-building tools is critical to shrink the state’s persistent racial wealth gap. The budget agreement provides $100 million in one-time funding and $15 million in ongoing funding for the HOPE Account program.

“HOPE Accounts will provide a level of financial protection—of wealth—that allows children in foster care and children orphaned by COVID the ability to seed their futures with dreams instead of worries. HOPE Accounts give young people the power, agency, and dignity to build wealth now and into the future.

Shimica Gaskins, President and CEO at GRACE & End Child Poverty CA

Cody Van Felden, a foster youth advocate at John Burton Advocates for Youth said, “The guarantee of baby bonds means so much to me. I have done so much advocating for this because, as a first step, baby bonds will begin to eradicate generational poverty. I did not get a running start in getting out of poverty; therefore, I must work twice as hard to ensure my daughter does not stay stuck in poverty. Baby bonds will give others like me that running start to take control of their life.”

California has the highest child poverty rate in the country, with stark economic disparities that track along racial lines. Baby bonds work to close the racial wealth gap and end cycles of intergenerational poverty by providing guaranteed capital that recipients can use to build wealth and establish financial security. Providing access to this seed fund of capital directly combats the effects of racist and classist policy choices that created the racial wealth gap in the first place. Baby bonds are an increasingly prominent policy tool for combating the lasting effects of that history and charting a better path forward. In 2021, the state of Connecticut, and Washington, D.C. each enacted similar programs. Additionally, federal proposals have been introduced by Senator Cory Booker and Representative Ayanna Pressley.

Introduction to Baby Bonds & CA’s Hope Accounts

May 19, 2022

One of End Child Poverty California’s key legislative requests during 2022–and a topic that the GRACE team is championing–is the HOPE for Children Act. This request regards the establishment of Hope Accounts for California youth that are experiencing economic insecurity due to the pandemic and also those that have been involved with the child welfare system.

What will Hope Accounts Do? This proposal will create California’s first “baby bond program,” or trust fund accounts for foster youth in long term care and children orphaned by COVID-19.

Unlike their peers, these children–and other low-income California youth–do not have the cushion of parent or family wealth to rely on when they become adults. This makes it even harder for our young adults to finance an education, buy a house, start a business, and make other moves that would allow them to move out of poverty and into long-term financial stability for themselves AND their families.

A Quick Vocabulary Lesson. Wealth is what a person owns: a person’s net worth, or total assets minus liabilities. This includes items like cash, homes and real estate, cars, jewelry, etc. Income is what a person earns over a certain period, like a salary, sales profits, etc. These two are not the same. Income can generate wealth, but takes time to do so. Having a high paying job doesn’t automatically mean someone is wealthy.

Why Are HOPE Accounts Important? HOPE Accounts are a pathway toward ensuring low-income children in California will have the opportunity to realize their dreams. We are urging the Legislature to create these accounts ASAP for 32,500 children orphaned by COVID and foster youth.

A video primer featuring GRACE President & CEO Shimica Gaskins and End Poverty in California founder Michael Tubbs is available here for everyone to watch and share.

Current Status: This budget proposal is championed by Senator Skinner (D-Berkeley) and is a budget priority for the Senate. Sign on here to tell our policymakers that we need HOPE Accounts NOW.

Read our one-pager and policy brief, included below, for more information on both the Hope for Children Act and baby bonds.

UPDATED-HOPE-for-Children-Act-of-2022Download
GRACE-ECPCA-Hope-Accounts-Brief-March-2022Download

2020 Wins for the End Child Poverty California Movement

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We want to share End Child Poverty California movement wins from the most recent California budget.

In spite of the fact that this continues to be an incredibly difficult year, we are moving forward together. We’re proud to work with such a phenomenal group of partners, parents and advocates. We believe ALL our children deserve to be healthy, housed and fed.

On June 29, 2020, California’s newest state budget was finalized. For the first time ever, undocumented families are included in the poverty-fighting CalEITC cash-back tax credit.

This means money going directly to working families who have been left out of economic relief and necessary income supports during the COVID-19 pandemic. We know this money will be used in local communities. We know it will support some of our most vulnerable undocumented families who urgently need money for food, bills, and health care.

End Child Poverty California quote box: For the first time ever, undocumented families with young children are included in the poverty-fighting CalEITC cash-back tax credit

The CalEITC tax credit change applies to undocumented families who have children under six, and who file taxes using an Individual Tax Identification Number. These families don’t have Social Security Numbers, but they pay taxes. The change also includes the $1,000 Young Child Tax Credit for any family with children under six earning $1 or more. These changes go into effect next year. For the first time, ALL California families with young children who file taxes and make less than about $30,000 per year will be eligible for these life-saving credits.

We will continue working hard alongside our partners and the CalEITC Coalition and the Safety Net For All Coalition (a network of over 125 organizations) so that more California families can be included in immediate and ongoing relief.

And there is more good news: Both of our End Child Poverty California Senate bills passed out of the State Senate with bipartisan support!

Senate Bill 1103: Workforce Support Services for Californians (Authored by Sen. Melissa Hurtado)

Many promising youth and community members haven’t been able to complete career training programs that lead to higher wage jobs and a path out of poverty, due to the daily challenges of living in poverty. These include lack of child care, commutes of two- to three-hours each way, and the need to work multiple low-wage jobs to support their families while going to training. 

End Child Poverty California Senate Bill 1103 quote from Alma Moreno of Sanger: Many of us have wanted to go back to school but the lack of child care and support makes it very difficult. It’s very difficult to take night classes when you don’t have transportation or resources. We would like to have a brighter future and fight child poverty in California. On behalf of the California Farmworkers Foundation, we strongly support SB 1103.

SB 1103 by Senator Melissa Hurtado (D – Fresno, Kern, Kings and Tulare Counties) creates the High Roads Workforce Training Program that addresses the issues that stop people from graduating. This is an important commitment to families and brighter futures. SB 1103 is particularly important to California’s economic recovery from COVID-19.

Read Alicia’s and Lesly’s stories about why SB 1103 is so important.

Senate Bill 1409: CalEITC Tax Credit Auto-filing Pilot for Families with Low Incomes (Authored by Senator Anna Caballero)

We know that many families earn so little that they are not required to file taxes, yet they are eligible for the CalEITC tax credit and Young Child Tax Credit that would help them with stability and basic necessities. 

SB 1409 authored by Senator Caballero (D – Salinas Valley and parts of the Central Valley) seeks to develop efficiencies in tax filing, so that families can directly receive their CA EITC  and other tax benefits.  Research has shown that as much as $2 Billion State and Federal Tax Credits are left unclaimed.  This bill would cut through bureaucracy and would create methods for direct payments to families.

End Child Poverty California Senate Bill 1409 quote from Senator Anna Caballero: Many of California’s most economically fragile households do not receive CalEITC because they may be unaware they qualify for this critical tax credit or simply do not file a tax return because they earn too little.

This crisis has had an outsized impact on our families in poverty and together we can make sure we change the way we support and create opportunities for families. Looking forward to sharing more good news in support of children and families soon.

More California budget news and analysis from partners:

RELEASE: End Child Poverty California Response to Governor’s Announcement of Aid for Undocumented Californians

Written by

APRIL 15, 2020

The governor’s announcement was the clearest possible statement that we are all in this together. It is a watershed moment in recognizing undocumented residents as full participants in California life. This desperately needed assistance recognizes that undocumented Californians are integral to our communities and our economy, and fills gaps left by a federal assistance plan that excludes millions of Californians.

Conway Collis, End Child Poverty California President & CEO

End Child Poverty California Co-Chair Conway Collis issued the following statement today following Gov. Newsom’s announcement of $125 million in financial assistance for undocumented Californians:

“The governor’s announcement was the clearest possible statement that we are all in this together. It is a watershed moment in recognizing undocumented residents as full participants in California life. This desperately needed assistance recognizes that undocumented Californians are integral to our communities and our economy, and fills gaps left by a federal assistance plan that excludes millions of Californians.

“The Governor’s aid package is similar to the one within the California Covid-19 Anti-Poverty Stimulus Package proposed by End Child Poverty CA and the Dolores Huerta Foundation, and we thank him for his bold action. 

“We expect this initial funding to be quickly exhausted, so we look forward to working with our leaders in Sacramento to ensure we keep help coming to where it’s needed most. We and others have proposed ongoing financial assistance for the lowest-income Californians. The need is clear for these types of payments to continue into the future, because all Californians deserve to be healthy, fed & housed.  

“I’ve never been prouder to be a Californian.” 

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