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key takeaway

TK enrollment in California has doubled since 2021-22, with growth across all student groups and high-poverty schools. To ensure all children benefit, the state must address disparities in access for students of color and those from low-income families.

Early childhood education is foundational for young children’s development and their long-term outcomes, and preschool programs provide essential opportunities for 3- and 4-year-olds.1For example, see “Predictor: Access to Preschool,” Urban Institute (webpage), accessed March 1, 2025, https://upward-mobility.urban.org/framework/education/preschool Recognizing the importance of early learning, California policymakers chose in 2021 to embark on a significant expansion of Transitional Kindergarten (TK), a specialized preschool program for 4-year-old children offered at public schools. To ensure this expansion benefits all children, it is crucial to track participation for student groups that have historically faced barriers, namely students of color and those from families with low incomes, as the challenges these students face may continue throughout their education. Given these ongoing patterns of inequity, this report highlights TK enrollment trends from 2021-22, before the age-eligibility expansion began to 2023-24, the second year of expansion and the most recent data available for these student groups.

Enrollment Increased Across All Race and Ethnicity Groups

TK enrollment has grown substantially across all racial and ethnic groups between the 2021-22 and 2023-24 school years. Overall enrollment increased by 101%, from 75,410 to 151,336 students. In 2023-24, TK enrolled 59% of eligible four-year-olds in California. While all student groups experienced significant growth, the percentage growth varied. Multi-racial students experienced the highest percentage growth (130%), followed by Asian students, who also had substantial increases (117%). Latinx students had the highest enrollment number in both years, 42,702 in 2021-22 and 83,362 in 2023-24, reflecting a percentage increase of 95%. American Indian or Alaska Native students had the lowest enrollment numbers (314 in 2021-22 and 571 in 2023-24) and the smallest percentage growth (82%).

Moving forward, the state should track take-up rates among the groups with the lowest percentage growth, including  American Indian or Alaska Native, Latinx, and Black students. Additionally, ensuring equitable access to TK will require a focus on understanding and addressing potential barriers to participation among these students.

High-Poverty Elementary Schools Have Significantly Increased Their Enrollment

Elementary schools with higher poverty levels had the largest increases in TK enrollment between 2021-22 and 2023-24. Growth in the number of students varied across schools by their overall share of students eligible for Free and Reduced Price Meals (FRPM), a proxy to identify students from low-income families.2Free and reduced-price meal eligibility (FRPM) is a measure of need based on poverty levels that the state uses as a proxy to identify students from families with low incomes. Children from households with incomes below 185 percent of the federal poverty level are considered eligible. Eligibility is based on household size and income; for example, for the 2024-25 school year, a student in a household composed of three members with an annual income at or below $47,767 would be deemed eligible and counted as low income. Complete household size and income scale: https://www.cde.ca.gov/ls/nu/rs/scales2425.asp Schools in the highest FRPM category (76-100%) grew their enrollment by nearly 30,000 students, compared to about 10,000 students in schools with the lowest share of FRPM-eligible students (0-25%). The differences are primarily because there are far more schools in the highest FRPM category (1,982) than in the lowest (409).

Elementary schools in higher-poverty areas also had a significant increase in new TK programs. The following table displays the number of schools that added new TK programs — those that did not have any TK enrollment in 2021-22 — by FRPM categories. As shown in the table, 387 schools in the 76-100% FRPM category initiated new TK programs compared to 151 in the lowest FRPM category (0-25%). This shows that expansion efforts have primarily supported high-poverty schools by enabling them to establish and offer TK programs. 

A higher share of children from low-income families participate in TK. Due to the lack of publicly available data, it is challenging to accurately determine the exact number of low-income children enrolled in TK.3The California Department of Education does not publicly report counts of students eligible for FRPM by grade level. The following table displays the estimated number of students from low-income families in TK, calculated based on the overall proportion of FRPM-eligible students at each elementary school. The estimate reveals that 90,754 children from low-income families are enrolled in TK, representing 64% of total enrollment.4Only schools classified as “public elementary schools” are included in this estimate. The increasing role of TK in supporting low-income families also highlights the need to monitor how families utilize the program and address any potential barriers.

Overall, TK enrollment has expanded significantly, with substantial growth across all racial and ethnic groups and a notable increase in TK programs in high-poverty schools. These trends demonstrate TK’s growing role in providing early learning opportunities to more children. However, more research is needed to understand local challenges. For example, TK uptake rates from 2021-22 to 2023-24 show faster growth in low-poverty schools (79%) compared to high-poverty schools (58%), suggesting potential barriers to access that warrant further investigation to ensure equity.

To build on this significant progress, the state should prioritize equity by addressing disparities in growth and ensuring that all children, particularly those from low-income families and children of color, can benefit from TK. This includes assessing and strengthening how the broader mixed delivery preschool system supports children and their families. By focusing on these areas, the state can continue to expand access to early learning opportunities, ensuring that children from low-income families have the strong foundation they need to succeed in school and beyond.

  • 1
    For example, see “Predictor: Access to Preschool,” Urban Institute (webpage), accessed March 1, 2025, https://upward-mobility.urban.org/framework/education/preschool
  • 2
    Free and reduced-price meal eligibility (FRPM) is a measure of need based on poverty levels that the state uses as a proxy to identify students from families with low incomes. Children from households with incomes below 185 percent of the federal poverty level are considered eligible. Eligibility is based on household size and income; for example, for the 2024-25 school year, a student in a household composed of three members with an annual income at or below $47,767 would be deemed eligible and counted as low income. Complete household size and income scale: https://www.cde.ca.gov/ls/nu/rs/scales2425.asp
  • 3
    The California Department of Education does not publicly report counts of students eligible for FRPM by grade level.
  • 4
    Only schools classified as “public elementary schools” are included in this estimate.

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key takeaway

California is expanding Transitional Kindergarten to all four-year-old children by 2025-26, supported by state investments to improve access, staffing, and equity in public preschool programs.

Early learning is foundational for young children’s development, and preschool programs provide essential opportunities for 3- and 4-year-olds. Recognizing this, in 2021, California policymakers embarked on a significant expansion of Transitional Kindergarten (TK), a specialized preschool program for 4-year-old children offered at public schools. This ambitious expansion is backed by substantial state investment, reflecting a commitment to broaden access to preschool education. To support the multi-year plan, the state has allocated billions of dollars in one-time and ongoing funding. Through these investments, TK will be universally available to all four-year-old children in California by the 2025-26 school year.

How Policy Decisions Shaped the Expansion of Transitional Kindergarten

The TK program has been in place since 2012.1Senate Bill 1381 (Simitian, Chapter 705, Statutes of 2010), https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=200920100SB1381 Its original purpose was to provide preschool education for four-year-old children who, based on the month they were born, were no longer eligible to enroll in kindergarten after the state adjusted the age cutoff for kindergarten admission — creating TK also allowed school districts to continue claiming Average Daily Attendance (ADA) for these students.2SB 1381 (Simitian) Essentially, this policy change prevented four-year-olds from being admitted to kindergarten if they turned five later in the year after enrolling in kindergarten.3Assembly Committee on Education analysis of Senate Bill 1381 (Simitian), June 1, 2010, https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=200920100SB1381# After a gradual implementation of this policy, during the 2014-15 school year, four-year-old children had to turn five on or before September 1st to be admitted into kindergarten. At the same time, certain four-year-olds no longer eligible for kindergarten were admitted into TK. Specifically, from 2014-15 until 2022-23, four-year-old children were eligible for TK if they had their fifth birthday between September 2nd and December 2nd.

In 2021-22, state leaders initiated another multi-year policy through the state budget to significantly grow the TK program, implementing a five-year plan that gradually increases age eligibility based on the month a child was born.4This expansion is part of a broader initiative, Universal PreKindergarten (UPK), aimed at bringing together preschool programs to ensure all children have access to early learning experiences the year before they start kindergarten. The increase in eligibility is primarily backed by allocating additional funding to school districts to implement the expansion. By the end of the expansion plan, in 2025-26, the program will be open to all four-year-old children who turn four by September 1.

The State Has Invested Billions of Dollars to Support Transitional Kindergarten

To carry out the expansion plan, state leaders agreed to provide the needed resources to initiate the expansion and sustain the program going forward. So far, the state budget has provided a mix of both one-time and ongoing resources. Those are outlined below:

  • One-time resources have been allocated to build foundational elements of the program. The state has provided more than $1 billion since 2021-22 in one-time dollars for TK planning and implementation grants, facilities, and efforts to support the preschool teacher workforce — some of this funding was also available to support the California State Preschool Program (CSPP) and kindergarten.
  • The state is increasing ongoing funding for TK to accommodate the substantial growth in attendance resulting from the expansion. TK is supported by the Local Control Funding Formula (LCFF), which uses attendance to generate funding allocations to school districts (more details are provided in the “How Proposition 98 and the LCFF Support Transitional Kindergarten” section below). As of 2024-25 the state has provided an estimated $1.4 billion to account for the growth in attendance — this number tends to change when districts update and report their attendance numbers throughout the school year. Under current attendance projections the state would provide an additional $876 million in 2025-26, which would mark full expansion of the program. Attendance projections in prior years have overestimated TK uptake and attendance. Therefore, for 2025-26, the projected funding may be lower than currently proposed once attendance is collected and reported.
  • The state is increasing ongoing funding to improve staffing ratios in TK. As shown in the chart, an estimated $517 million has been allocated in 2024-25 to maintain a 1:12 adult-to-student ratio in TK classrooms. The 2025-26 budget proposes an additional $952 million to reduce ratios to 1:10, which would grow to a total of nearly $1.5 billion for this purpose. These dollars help maintain current staffing levels and would bring thousands of additional teachers and instructional aides to TK classrooms.5Districts that fail to meet staffing ratios face penalties that result in loss of funding. There are also penalties for not meeting class size requirements or teacher education requirements.

California has dedicated significant funding to schools to support the expansion of TK, including resources for planning grants, staffing, and attendance growth. This investment has facilitated substantial enrollment growth. However, realizing the full potential of this expansion requires addressing several key challenges. Securing and retaining a qualified TK workforce is essential, as staffing challenges could hinder the program’s effectiveness. Additionally, a continued focus on equitable access and consistent student attendance, particularly among low-income families is crucial. By addressing these key areas, California can maximize the impact of its investments and ensure four-year-olds benefit from this expansion.

Proposition 98 and the Local Control Funding Formula

How do state resources support TK expansion?

TK is funded through the LCFF, the same mechanism that funds K-12 grades. Funding for LCFF originates from Proposition 98, which guarantees a minimum annual funding amount for TK-12 schools and community colleges. The state fulfills this guarantee using General Fund dollars and local property taxes.

To support the growing costs of TK expansion, policymakers have gradually increased the Prop. 98 minimum guarantee. This adjustment, driven by increased student attendance through the LCFF, results in a larger share of state revenue being dedicated to education. This process of adjusting Prop. 98 is commonly known as “rebenching.” The chart below illustrates the year-over-year growth in Prop. 98 since 2022-23 based on current and projected attendance through the 2025-26 fiscal year. The orange bar reflects total growth across 2022-23 to 2025-26.

What is the role of the LCFF in distributing resources to local communities for TK expansion?

The LCFF is the primary funding formula for K-12 school districts, charter schools, and county offices of education. The LCFF is an equity-based formula that provides a base grant per TK-12 student, adjusted to reflect the number of students at various grade levels, as well as additional grants for English learners, students from low-income families, and foster youth.

The LCFF uses an attendance measure, average daily attendance (ADA), to calculate funding. The base grant for TK (and grades K-3) in 2024-25 is $10,025, as shown in the table below, and is adjusted if districts meet average class sizes of 24 students or less. Districts also receive an add-on per TK ADA to maintain class ratios of 1:12 per classroom.

Additionally, the TK-3 base grant — and the base grant for all other grade levels — is “weighted” to provide additional funding to districts that enroll students classified as English learners, are eligible to receive a free or reduced-price meal, or are foster children. The LCFF provides a  “supplemental” grant of 20% of the base grant for each of these students. When the number of these high-need students (TK and all other grade levels combined) exceeds 55% of a school district’s enrollment, a “concentration” grant of 65% of the base grant is applied for students above that threshold. These two grants are the key variables that ensure a more equitable distribution of funding to the highest-need districts.

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key takeaway

Republican budget proposals would impose harsh and ineffective “work requirements” that restrict access to health care, food, and other necessities for millions of Americans. These “work requirements” are just paperwork barriers, not solutions. Federal policymakers should reject them.

All Californians, no matter their race, gender, or zip code, deserve to have affordable health care, housing, food, and other necessities that allow them to thrive in their communities. But Republican federal budget proposals would pave the way for deep and harmful cuts that would take health coverage, nutrition assistance, and other essentials away from millions of Californians struggling to make ends meet due to persistently high inflation and the state’s long-standing housing affordability crisis. These cuts would increase poverty and widen racial and ethnic inequities in exchange for funding huge tax giveaways for the wealthy.

One way Republican leaders may implement this deeply inequitable agenda is by making access to vital services contingent upon complying with rigid “work requirements” — rules that require regular documentation of work hours. Such proposals are ineffective, punitive, counterproductive, and a waste of federal funds. Research shows that these requirements don’t meaningfully or sustainably increase employment or earnings. Instead, they take health care, food, and other vital resources away from families and individuals in need — disproportionately Black people and other people of color — by adding unnecessary paperwork and work reporting hurdles to receive the support they need. “Work requirements” — more accurately, paperwork or work reporting requirements — increase hardship and make it even more challenging to maintain or find jobs. Policymakers should reject all proposals to impose work reporting requirements, recognizing them for what they are — harmful cuts that threaten the health and well-being of the communities they represent.

what are “work requirements?”

“Work requirements” — more accurately, paperwork or work reporting requirements — withhold essential services and support unless individuals can regularly document time spent working or engaged in certain activities, or else prove they are exempt from these requirements. These rigid reporting rules often trip people up on red tape, causing them to lose access to health care, food, and other essential human needs that they are otherwise eligible for and that all people deserve. To refer to these rules, this report interchangeably uses the term “work reporting requirements” and the more common term “work requirements” (in quotations to indicate that such requirements largely impose paperwork burdens).

“Work Requirements” Are Unnecessary, Ineffective, Punitive, Counterproductive, and a Waste of Money

Republican-led proposals to impose new or harsher work reporting requirements are simply harmful cuts by another name. Rather than fostering economic mobility as proponents claim, these requirements threaten to push families and individuals deeper into poverty by withholding health care, food assistance, and other vital support. This report makes clear that “work requirements” are:

  • Unnecessary. Most people who are likely to be targets of such requirements already do work for pay, while the remainder are engaged in valuable — but unpaid — caregiving work, attending school to improve their employment prospects, or are ill, disabled, retired, or between jobs.
  • Ineffective. They fail to meaningfully or sustainably increase employment or earnings. Instead, their main effect is to take vital assistance away from people in need. Consequently, they have little to no effect on economic mobility, and may even drive some families and individuals deeper into poverty.
  • Punitive. Forcing workers to regularly document work hours increases administrative bureaucracy and often trips people up on red tape, causing them to lose access to vital benefits. Complying with these onerous requirements can be especially difficult for workers paid low wages who lack control over fluctuating work hours or have employers who are unwilling to verify their employment.
  • Counterproductive. They fail to address the fundamental barriers that prevent so many people from meeting basic needs, including a racially discriminatory labor market rife with low-paying jobs and the lack of affordable child care that is necessary to work. Plus, taking away people’s health care or ability to afford food only makes it harder for them to maintain employment and make ends meet.
  • A waste of money. Implementing and enforcing “work requirements” is costly and wastes funds that would be far better spent on services and supports that actually improve the lives of all people.

Research Shows that “Work Requirements” Simply Don’t Work

“Work requirements” are already part of several social safety net programs, but research into those policies has consistently shown that they do not increase employment opportunities in the long run or decrease “program dependence.” Instead, these policies lead to participants being pushed out of programs and are tied to increases in deep poverty. Specifically, research finds that “work requirements:”

Adding More Hurdles for Accessing Medicaid Would Harm People’s Health and the Economy

Medi-Cal is California’s Medicaid program that provides free or low-cost health care to over one-third of the state’s population. The program serves individuals with modest incomes, including children, seniors, people with disabilities, and pregnant individuals. Medi-Cal is a lifeline for millions, ensuring access to essential health services that support public health and economic stability.

Medi-Cal coverage is essential to building and sustaining a stable workforce in California, especially because many low-wage jobs do not offer employer-sponsored health insurance and do not pay enough for people to afford coverage through Covered California, the state’s health insurance marketplace established under the Affordable Care Act. Ensuring access to Medi-Cal not only promotes individual health but also strengthens the state’s economy by supporting worker productivity.

Despite the critical role Medi-Cal plays, Congressional Republicans and the Trump administration have pushed for Medicaid “work requirements,” a policy that would make it harder for people to stay covered by tying health insurance to employment. Medicaid work reporting requirements are essentially cuts that would cause significant health coverage losses. Such proposals would require Medicaid beneficiaries to prove they are working, looking for work, or participating in job training programs in order to maintain coverage. Imposing such requirements in Medicaid would be:

  • Unnecessary: Most Medicaid enrollees under age 65 are already working (for pay). In California, over 3 in 5 adults work full-time or part-time (for pay). Among those who are not employed for pay, many are providing unpaid care for family members — an essential form of labor that sustains families and communities, yet is often overlooked by work reporting requirements. Others are managing illness or disability, or are enrolled in school.
  • Ineffective: Research consistently shows work reporting requirements are an ineffective policy tool that fail to increase employment. Instead, they create bureaucratic hurdles that cause people to drop off Medicaid — particularly people with disabilities, caregivers, and those working in unstable or low-wage jobs. Many enrollees who meet the work criteria still risk losing coverage due to administrative barriers, such as difficulty completing complex paperwork, missing deadlines, or lacking the necessary documents to prove eligibility.
  • Punitive: If implemented, “work requirements” would put over 8 million people in California at risk of losing their health coverage. (See this resource for details on the impact by congressional district.) Health coverage losses on this scale would have devastating effects on people’s health and economic security as well as the broader economy.
  • Counterproductive: Without coverage, people would struggle to see doctors, get medications, and access preventive care, leading to more severe health problems and even medical debt. At the same time, hospitals and clinics, especially in low-income and rural areas, would face higher costs for unpaid care, putting financial strain on local health systems. Imposing “work requirements” would also make it harder for people to maintain employment, particularly people with chronic illnesses, such as diabetes and heart disease, who need regular access to health care to manage their conditions.
  • A Waste of Money: Implementing and enforcing work reporting requirements in Medicaid would be costly. The Government Accountability Office estimates that administrative costs can range from millions to hundreds of millions per state. These funds would be better spent on improving access to health care services in Medi-Cal rather than on unnecessary bureaucratic hurdles that take health coverage away.

“Work requirements” undermine the very purpose of Medicaid: it is health insurance, not a jobs program.

The federal government plays a major role in shaping California’s budget, economy, and the well-being of its people.

Imposing Harsher Time Limits in SNAP/CalFresh Would Cut Benefits for Many and Increase Hunger

CalFresh, California’s name for the Supplemental Nutrition Assistance Program (SNAP), provides program participants with modest monthly noncash benefits to buy food and is the state’s most powerful tool to fight hunger. At the federal level, SNAP requires participants between the ages of 18 and 54 who do not qualify for limited exemptions to meet work reporting requirements in order to receive aid beyond a very limited window of time. In effect, this policy imposes a harsh time limit on access to SNAP that pushes participants off benefits after three months.

Despite the extensive body of research showing that “work requirements” take food away from those who need it and do not have lasting effects on employment, Republican leaders continue to push forward proposals to expand already rigid time limits enforced through work reporting requirements for SNAP recipients. Recent proposals for harsher time limits would specifically target older adults, people experiencing homelessness, foster youth who have aged out of the system, and veterans, increasing hardship among these communities who already face disproportionate challenges to meet work reporting requirements and struggle to make ends meet. “Work requirements” for SNAP are a failed experiment that have proven to be:

  • Unnecessary: The majority of SNAP recipients who can work already do. Over 3 in 4 adults who participated in CalFresh in a given month had recent paid employment. Those who cannot work are limited by significant barriers to employment, such as disability or macroeconomic conditions outside their control, like a lack of job opportunities. Additionally, many recipients who did not have paid employment reported having unpaid caretaking responsibilities that prevented them from working in a traditional setting, highlighting the limitations of work reporting requirement policies in recognizing essential unpaid labor.
  • Ineffective: Work reporting requirements do not increase work participation, they just increase hunger. Research has extensively shown that work reporting requirements create barriers that ultimately take away critical assistance from people in need. This is especially true for people experiencing homelessness and people with disabilities.
  • Punitive: Proposals to impose harsher time limits via “work requirements” and limit key exemptions are grounded on the false narrative that people should earn the right to eat. Many SNAP recipients have low-wage and unstable jobs that are characterized by irregular schedules. This type of precarious work means that sometimes people may not be able to meet specific work hour requirements if their hours are cut or they miss work due to illness. Work reporting requirements punish recipients for not having quality jobs with predictable hours and benefits, without addressing the root causes of these issues.
  • Counterproductive: Food assistance is a key support for people to work and contribute to their communities. Being well-fed and having access to adequate nutrition is essential to staying healthy, reducing the risk of chronic illness, and increasing academic achievement and labor productivity. SNAP benefits also provide significant economic benefits to local economies, with each dollar in benefits generating a $1.54 return and helping fund jobs, as well as helping to reduce poverty. Harsher time limits would diminish the effectiveness of one of the strongest antipoverty programs and have long-term economic consequences for everyone.

Rejecting the expansion of already stringent SNAP time limits is necessary to ensure low-income families will continue to be able to access the healthy food they need.

Policymakers Should Reject Proposals to Impose “Work Requirements” that Just Add Bureaucratic Burdens

As Republicans in Congress push to make it more difficult for Californians to access health care, nutrition assistance, and other anti-poverty programs, it’s important to call these what they are: harmful bureaucratic burdens. Rather than fostering economic mobility, these layers of paperwork threaten to take away health care, food, and other essentials that all people need to thrive. These Republican proposals fail to improve affordability and, combined with the proposed tax cuts for the wealthy, will only deepen inequality across the country. Policymakers should reject these proposals, recognizing them for what they are — harmful cuts that jeopardize the health and well-being of the communities they represent.

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key takeaway

Expanding the Child Tax Credit would help millions of children thrive by reducing poverty, addressing racial inequities, and ensuring families with the lowest incomes receive the full support they need.

All children deserve to grow up with the resources needed to be healthy and thrive. Yet millions of families across California struggle to afford food and other necessities because many jobs fail to pay enough to make ends meet, particularly in the face of persistently high inflation and rising housing costs.

Growing up in poverty can have dire consequences for children’s futures, but research shows that policymakers can mitigate or prevent this harm by giving families with low incomes more resources, like the Child Tax Credit. This is why federal policymakers must ensure that children who are currently excluded from the full federal Child Tax Credit because their families’ income is too low or because of their immigration status are provided this vital credit. With several provisions of the Child Tax Credit slated to expire at the end of 2025, Congress has an opportunity to improve the credit to promote a thriving childhood and a strong future for all children.

Policies Like the Child Tax Credit Can Improve Children’s Outcomes

Research shows that increasing financial resources for families with low incomes, including through refundable tax credits, has the potential to improve children’s health, educational attainment, and earnings prospects as adults.1A refundable income tax credit is a type of credit that benefits families and individuals with very low incomes. The credit provides the same value regardless of how much tax filers owe in personal income taxes. For example, a family who qualifies for a $500 refundable credit and owes $200 in taxes will get the full $500 credit, with $200 covering their taxes and $300 as a cash refund. If the family owes no tax, they will get the full $500 as a cash refund. Additional evidence from the recent one-year expansion of the federal Child Tax Credit shows the powerful immediate effects of targeting sizeable financial resources to families with low incomes. In 2021, for the first time in the Child Tax Credit’s history, nearly all families with low incomes became eligible for $3,600 per child ages 0 to 5 and $3,000 per child ages 6 to 17. This significantly boosted families’ incomes, bringing the national child poverty rate to an historic low and cutting California’s child poverty rate by more than 40%.

The expanded Child Tax Credit was also associated with substantial reductions in racial income inequities, particularly among families with very low incomes, and with declines in food insufficiency and food insecurity, suggesting that increasing access to the credit among families with low incomes would improve child and family well-being. Researchers believe these improvements could produce broader benefits to society, given the current high costs associated with childhood poverty.

How Does the federal child tax credit work?

The federal Child Tax Credit currently provides families with $2,000 per dependent child under age 17, but families with low incomes — who are most in need of additional income to meet basic needs — are excluded from the full credit.2Additionally, the $2,000-per-child Child Tax Credit begins to “phase out” (gradually decline) for single parents with incomes over $200,000 and married couples with incomes over $400,000. For example, a single parent with one child must have an income of about $25,000 or more to qualify for the full Child Tax Credit, while a single parent with two children must earn about $28,000 or more. Families with income below these thresholds qualify for less than the full credit, and those with the lowest incomes – $2,500 or less – are completely excluded from the Child Tax Credit.

In addition, certain children are excluded from the Child Tax Credit based on their immigration status.3Specifically, children who have Individual Taxpayer Identification Numbers (ITINs) have been excluded from the Child Tax Credit since 2018. ITINs are issued by the Internal Revenue Service (IRS) to individuals who do not have Social Security Numbers to use for tax filing purposes. Several changes to the Child Tax Credit that took effect in 2018 are scheduled to expire after 2025, providing Congress with the opportunity to end the exclusion of children from the credit based on their families’ low income or immigration status.4If the Child Tax Credit reverts to its pre-2018 form, the maximum credit will decline from $2,000 per child to $1,000 per child and children age 17 will no longer be eligible, among other changes. For more information, see Urban-Brookings Tax Policy Center, The Tax Policy Briefing Book: What Is the Child Tax Credit? (updated February 2025).

Millions of Children Across California Are Blocked from Accessing the Credit Because Their Families’ Incomes Are Too Low

Despite the significant reduction in poverty brought about by the expanded Child Tax Credit in 2021, federal policymakers failed to extend the expanded credit beyond one year. Consequently, about 2 million children under the age of 17 across California are excluded from receiving the full Child Tax Credit because their families’ incomes are too low.

Families that don’t earn enough to qualify for the full credit include parents working part-time in order to go to school to pursue their career goals. For example, a single mother working halftime as a childcare worker and going to school to get her teaching credential makes just $20,600 per year — well below what is needed to make ends meet and support her two children in California. Yet she would qualify for only two-thirds of the full tax credit based on her low income — just $2,715 instead of $4,000. The $1,285 she is denied could have helped her buy about two months of groceries. A single parent working part-time to support three children would qualify for an even smaller share of the full Child Tax Credit. For example, if they earned $24,260 in annual wages as a part-time nursing assistant, they would receive just over half of the full tax credit — $3,510 instead of $6,000.

Children Are Excluded from the Full Child Tax Credit in Every California Congressional District

Statewide roughly one-quarter of children under age 17 are excluded from the full Child Tax Credit. However, in 20 of the state’s 52 congressional districts even more than a quarter of children are left out. The two districts where the most children are excluded are CA-37 (Kamlager) and CA-22 (Valadao), where over 40% of children are left out of the full credit because their families earn too little.

The districts where most children are excluded from the full Child Tax Credit based on their low family income are located largely in southern California, mainly in the Los Angeles region, with a few in the Central Valley. However, as highlighted in the map, districts across California leave out children who stand to benefit the most from receiving the maximum payment.

Built-In Barriers: How the Child Tax Credit Disproportionately Excludes Children of Color

Of all the major racial and ethnic groups, Black, Latinx, and American Indian/Alaska Native children are disproportionately blocked from the full Child Tax Credit because their families earn too little, reflecting past and present discrimination as well as long-standing inequities in opportunity. Nearly 4 out of 10 Black children (38%) and roughly one-third of Latinx children and American Indian/Alaska Native children are excluded from the full Child Tax Credit due to their families’ low earnings, compared to around 13% to 15% of Asian, white, and multiracial and other children of color. This disproportionate exclusion of many children of color reinforces long-standing barriers that have continuously blocked families and children of color from escaping poverty and being able to afford basic necessities.

Many Children Are Denied the Child Tax Credit Based on Their Immigration Status

Hundreds of thousands of dependent children nationwide have been outright excluded from the Child Tax Credit since 2018 because of their immigration status even though their families pay taxes. Policies that discriminate against people based on immigration status are deeply harmful to families and communities. The vast majority of undocumented individuals live in mixed status families and many children who are excluded from the Child Tax Credit based on their status likely live in California given the large share of immigrants in the state. This exclusion has put families and children at greater risk of hunger, poverty, and other severe hardships. Federal Republican budget proposals under consideration include further restricting access to the Child Tax Credit by taking it away from US citizen children based on their parents’ immigration status.

All families that pay taxes should be eligible for tax benefits like the Child Tax Credit. Undocumented residents nationwide paid $96.7 billion in taxes in 2022, including $19.5 billion in federal income taxes. These contributions help support public services even as undocumented residents are excluded from benefiting from many of those same services. In California, undocumented residents paid $8.5 billion in state and local taxes in 2022.

Ending Exclusions Would Promote a Strong Future for All Children

With provisions of the Child Tax Credit slated to expire soon, Congress has an opportunity this year to strengthen the credit by ending the exclusion of children based on their families’ low income or immigration status. Making the credit more inclusive would lift additional families out of poverty, reduce racial and ethnic inequities, and promote a strong future for all children — both in California and the nation.

  • 1
    A refundable income tax credit is a type of credit that benefits families and individuals with very low incomes. The credit provides the same value regardless of how much tax filers owe in personal income taxes. For example, a family who qualifies for a $500 refundable credit and owes $200 in taxes will get the full $500 credit, with $200 covering their taxes and $300 as a cash refund. If the family owes no tax, they will get the full $500 as a cash refund.
  • 2
    Additionally, the $2,000-per-child Child Tax Credit begins to “phase out” (gradually decline) for single parents with incomes over $200,000 and married couples with incomes over $400,000.
  • 3
    Specifically, children who have Individual Taxpayer Identification Numbers (ITINs) have been excluded from the Child Tax Credit since 2018. ITINs are issued by the Internal Revenue Service (IRS) to individuals who do not have Social Security Numbers to use for tax filing purposes.
  • 4
    If the Child Tax Credit reverts to its pre-2018 form, the maximum credit will decline from $2,000 per child to $1,000 per child and children age 17 will no longer be eligible, among other changes. For more information, see Urban-Brookings Tax Policy Center, The Tax Policy Briefing Book: What Is the Child Tax Credit? (updated February 2025).

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Women in California deserve the opportunity to thrive and access the same economic opportunities as their male counterparts. When women thrive, their families and communities prosper. However, women in California continuously encounter structural barriers that prevent them from doing so. Black women and Black single mothers in California, in particular, regularly confront policies rooted in racism and sexism that block them from accessing state funded programs and even stifle their earnings.

According to the latest Women’s Well-Being Index, Black women’s average wages are lower than white and Asian women and significantly lower than white men’s. This wage gap is persistent and closing at such a slow rate that wage equality will not be achieved in the lifetime of the youngest Californians. Additionally, in California, 67% of Black households are headed by single mothers. Consequently, Black single mothers face the additional financial burden of being the sole earners of their household and working while supporting their families, resulting in an even larger wage gap. While there has been progress in closing the wage gap, the state can implement policies that do much more to address the barriers to economic prosperity for Black women and Black single mothers in California.

This report was co-authored with the California Black Women’s Collective Empowerment Institute. The Institute is dedicated to uplifting Black women and girls; CABWCEI fosters strategic partnerships, amplifies voices, and drives systemic change to eliminate barriers and advance social and economic equity across California.

As the anchor organization for the California Black Women’s Think Tank at CSU Dominguez Hills, CABWCEI works to strengthen representation, mobilize collective influence, and advocate for policies that secure social and economic safety nets.

What is the Gap in Earnings Between Black Women and White Men?

In California, Black women — and especially Black single mothers — are paid far less than white men both in earnings from their job and total income. Approximately 67% of Black households are headed by Black single mothers, and systemic inequalities and economic disparities present these women with a unique set of challenges. It is crucial to not only examine earnings (wages) for Black women overall, but also to focus specifically on the total income of Black single mothers. As shown in the proceeding chart, in 2022:

  • Black women were paid $54,000 in earnings and Black single moms were paid $50,000, compared to the nearly $90,000 white men earned.
  • Similarly, Black women made $60,000 in total income and Black single moms made $53,000, while white men made in total just over $90,000.

These findings mean that for every $1 a white man made in the state in 2022, a Black woman was paid only $0.60 and Black single moms were paid only $0.56. This gap suggests that given the cost of living in California, one job is not enough to make ends meet. As a result, many Black women are forced to work second jobs to try to make ends meet, and even then, they still face a large earnings gap to white men. This is even worse for Black single moms who are the primary breadwinners of their families.

The consequences of this systemic wage gap ripple far beyond paychecks. When a mother struggles to make enough, her entire family feels it. It means tougher choices about paying rent, putting food on the table, or saving for the future. It means limited access to safe housing, quality healthcare, and educational opportunities — not just for her, but for her children too. This kind of financial stress isn’t just a challenge for today; it’s a challenge for generations.

What Could Black Women Afford if They Were Paid Equally?

The wage and income gaps Black women face place heavy burdens on their ability to meet even their basic needs. If Black women were paid equal to white men, they would be better resourced to thrive. Consider a single Black working mom in California. She must manage her children’s drop-off and pick-up at both child care and elementary school, while working two jobs to try to make ends meet. If she had been paid what white men in the state were in 2022, as the following chart shows, she would be able to afford:

  • An additional 8 years of groceries;
  • An entire year of rent; or 
  • Two years of child care.

If Black women were paid equal to white men, they could significantly improve their quality of life, generate more opportunities for their families, and better afford basic needs like housing, groceries, and diapers. Unfortunately, without proactive public policies, this will not be a reality for most women in the state today.

This is important because the wage and earnings gaps that Black women and single Black mothers face aren’t just numbers on a chart — they represent real struggles, real sacrifices, and real missed opportunities for Californians. These gaps place a heavy burden on their ability to meet even the most basic needs. This is about moms working long hours, stretching every dollar, and still being forced to make impossible choices about what they can afford for their families.

If The Status Quo Remains, How Long Will It Take To Close the Wage Gap?

Unfortunately, this wage gap is far from being closed. Specifically, it will take until the year 2121 — or nearly 100 years — for this gap to close. At this rate, equal pay will not be a reality for the majority of Black women in the state in their lifetimes.

Why Do Black Women in California Continue to Face a Wage Gap?

The wage gap for Black women and more specifically, Black single mothers, reflects decades of systemic racism and sexism. These injustices not only highlight the exploitation and implicit bias Black women experience, but also shed light on how policies have not done enough to support closing the wage gap. While multiple factors underscore the wage  gap for Black women, the following are salient contributors.

Policy Recommendations for Black Women and Single Black Mothers in California: Closing the Economic Gap

To address the pay gap and improve the economic well-being of Black women and single Black mothers in California, the state can implement targeted, localized policies to address systemic barriers and create equitable opportunities. Here are key California-specific policy recommendations:

Strengthen Pay Transparency and Equity Laws

  • What It Does: Enhance existing California Transparency Pay Act requirements that mandate employers to disclose salary ranges in all job postings and ensure transparency in promotions. This could be done by reducing the business size threshold so the requirements apply to all businesses with at least five employees instead of the current 15-employee threshold.
  • Why It Matters: This would reduce wage discrimination for Black women and single Black mothers and empower them to negotiate fair and just compensation in the state’s competitive job market.

Increase Access to Affordable Child Care Programs

  • What It Does: Expand California’s subsidized child care program and simplify eligibility requirements for single mothers. Boost funding to support higher wages for child care providers to address workforce shortages.
  • Why It Matters: High child care costs are a major burden for single Black mothers in California, and affordable child care would free up resources for other essentials.

Support Workforce Development for High-Growth and Non-Traditional Industries

  • What It Does: Expand California’s workforce development programs to include targeted support for Black women and single Black mothers in public, nontraditional and emerging and high-demand industries like tech, health care, and green energy.
  • Why It Matters: Equipping single Black mothers with the skills needed for better-paying jobs would help close the income gap and provide long-term economic stability.

Promote Leadership Development for Black Women

  • What It Does: Fund leadership programs that equip Black women with skills and mentorship opportunities for advancement in corporate, nonprofit, and public sectors.
  • Why It Matters: Leadership development addresses underrepresentation of Black women in executive, people-leading, and decision-making roles — opening doors to higher earnings and influence.

Invest in Affordable Housing Initiatives

  • What It Does: Increase funding for programs like CalHome to create products (i.e. down payment grants, mortgage forbearance programs, and Accessory Dwelling Unit (ADU) construction grants) that help mitigate the issues that single-income earners face. Provide rental assistance programs specifically for single mothers.
  • Why It Matters: The cost of housing in California is among the highest in the nation. Affordable housing would alleviate one of the largest financial burdens Black women and single Black mothers face.

Implement a Family Choice-Centered Approach to Universal Pre-K and Early Education Supports

  • What It Does: Ensure the California State Preschool Program (CSPP) is accessible and meets the needs of all low-income families, including single Black mothers, and expand funding to maximize family choice across all early learning and care programs.
  • Why It Matters: Early education allows single mothers to pursue work or education while providing their children with a strong academic foundation at an early learning setting preferred by them.

Increase Minimum Wage to Reflect Regional Costs of Living

  • What It Does: Introduce region-specific minimum wages that account for the cost of living in high-cost areas like Los Angeles, San Francisco, and San Diego.
  • Why It Matters: Black women and single Black mothers working minimum-wage jobs in California’s urban centers often struggle to cover basic expenses due to the high cost of living.

Promote Equity in Hiring and Advancement

  • What It Does: Require California employers to establish belonging and representation plans that focus on hiring and promoting Black women into leadership roles. Provide state tax incentives for companies that meet belonging and representation goals.
  • Why It Matters: Addressing systemic discrimination in hiring and promotions would open pathways to higher-paying positions for women and people of color.

Strengthen Protections Against Workplace Discrimination

  • What It Does: Enhance enforcement of California’s anti-discrimination laws with specific measures to address racial and gender bias. Include protections against discrimination in hiring, pay, and promotions. Establish guidelines for the enforcement of the Creating a Respectful and Open World for Natural Hair (CROWN) Act.
  • Why It Matters: Discrimination limits Black women’s access to fair pay and opportunities for advancement. Robust protections create more equitable workplaces.

what is the crown act?

A law that prohibits race-based hair discrimination, defined as the denial of employment and educational opportunities because of hair texture or protective hairstyles. 

Create a Statewide Task Force for Black Women’s Economic Equity

  • What It Does: Establish a task force under the California Department of Business and Economic Development to focus on developing recommendations to close the pay gap, wealth gap, support entrepreneurship, and advance workforce equity for Black women.
  • Why It Matters: A dedicated task force would ensure ongoing focus, data collection, and accountability on issues impacting Black women’s economic well-being.

When Black women are paid fairly, they don’t just lift themselves up. They lift up their families, their communities, and our entire state. California can’t afford to leave anyone behind, especially the women who are working hard to build better futures for all of us. It’s time to close these discriminatory pay gaps and ensure every woman — every mom — gets the respect, the resources, and the pay she deserves.

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Read this publication in English.

A las familias de California les cuesta un gran esfuerzo poder pagar el cuidado infantil, lo cual exacerba los desafíos del costo de vida en un entorno de tasas de pobreza elevadísimas. Específicamente, si no cuenta con acceso a cuidado infantil subsidiado por el estado, una madre soltera en California con un bebé y un niño en edad escolar gasta en promedio el 61% de sus ingresos en cuidado infantil. Por lo tanto, el acceso al cuidado infantil subsidiado por el estado es esencial para apoyar a las familias. Dentro del sistema de entrega de servicios mixto de California, el Departamento de Servicios Sociales (CDSS, por sus siglas en inglés) administra el cuidado infantil subsidiado por el estado, proporcionando programas de cuidado infantil de bajo costo a gratuito a las familias de ingresos reducidos. Sin embargo, la demanda de cuidado infantil subsidiado ha crecido mucho más que la oferta. En 2022, solo uno de cada nueve niños elegibles para los programas de cuidado y desarrollo infantil del CDSS recibieron servicios (aproximadamente el 11%), lo que significa que miles de padres y tutores deben enfrentarse a la realidad de gastar más de la mitad de sus ingresos en cuidado infantil.

Para abordar este problema, el estado ha estado trabajando para expandir la cantidad de vacantes de cuidado infantil subsidiado. Aunque la expansión estatal del cuidado infantil subsidiado es un componente integral necesario para abordar los desafíos de acceso, los centros urbanos del estado también deben considerar cómo apoyar mejor a las familias en sus comunidades para que puedan utilizar el mayor acceso de la forma que mejor cubra sus necesidades. Debido a la diversidad de California, las familias del estado tienen una variedad de preferencias y necesidades de cuidado infantil. Por ejemplo, las preferencias familiares varían respecto de la disponibilidad de horarios, el entorno, los idiomas que se hablan y la alineación cultural. Por lo tanto, además de expandir la cantidad de vacantes subsidiadas en general, también es importante entender los contextos comunitarios locales para que la expansión cubra las necesidades.

Para resaltar el contexto local, este informe detalla la necesidad insatisfecha de cuidado infantil en un condado específico, el de Monterey, para destacar los desafíos locales y las recomendaciones guiadas por la comunidad para expandir el acceso a un cuidado infantil asequible y transformativo. Al hacerlo, este informe busca compartir las experiencias y los puntos de vista de familias del condado de Monterey para darle sentido a la brecha significativa de elegibilidad y matriculación en los programas de cuidado infantil subsidiados e informar a los encargados de tomar decisiones locales y estatales en su labor de expandir el cuidado infantil asequible en California de una forma que responde a las necesidades de las familias.

Acerca de esta publicación

Este informe cuenta con el apoyo de First 5 del condado de Monterey. Al priorizar la niñez temprana, alentar conexiones comunitarias fuertes e impulsar la calidad en todos los sistemas de cuidado y apoyo, First 5 Monterey County enriquece las vidas de los niños, desde la etapa prenatal hasta los cinco años, y las de sus familias.

Deseamos expresar nuestro más sincero agradecimiento al Centro Binacional para el Desarrollo Indígena Oaxaqueño, por la ayuda brindada para capturar las voces comunitarias, y a los padres que participaron en los grupos de enfoque. Sus conocimientos y contribuciones fueron invaluables para darle forma a este informe.

¿Por qué enfocarse en el condado de Monterey?

El condado de Monterey es hogar de una amplia gama de comunidades con necesidades y prioridades distintas. Estando en el décimo séptimo puesto entre los condados más grandes de California, Monterey tiene casi medio millón de residentes y más de la mitad de esas familias hablan un idioma diferente al inglés. Además, en comparación con las estadísticas estatales, las familias del condado de Monterey se enfrentan a desafíos de seguridad económica mayores, específicamente, en el año 2023:

  • El 14% de la población del condado de Monterey vivía en la pobreza, a pesar de que a nivel estatal ese nivel es del 12%;
  • Las mujeres en el condado de Monterey gastan en promedio el 45% de sus ingresos en alquiler, el porcentaje más alto de los 58 condados de California;
  • Los ingresos familiares medios eran de $88,035 en el condado de Monterey, mientras que a nivel estatal eran de $95,521 y
  • el 29% de la población del condado de Monterey tiene un título de licenciado o mayor, mientras que en el resto del estado ese nivel es del 38%;

Estas estadísticas indican desigualdades raciales y de género en el condado de Monterey, así como inequidades de ingresos y barreras para acceder a las oportunidades para las familias de ingresos reducidos. Muchas familias en el condado de Monterey trabajan en entornos agrícolas y hablan idiomas indígenas. En comparación con las comunidades costeras más pudientes del condado, estas familias tienen barreras mayores para lograr la seguridad económica, incluyendo la posibilidad de acceder a un cuidado infantil que satisface sus necesidades.

Mientras que las familias del condado de Monterey tienen necesidades específicas para su comunidad, encontramos los mismos desafíos de pobreza y desigualdad de ingresos a nivel estatal, lo cual indica una oportunidad de entender cómo las barreras y soluciones al problema del cuidado infantil asequible en el condado de Monterey pueden impulsar mejoras en todo el estado. Escuchar y dar a conocer los puntos de vista de los residentes del condado de Monterey afectados por la falta de cuidado infantil asequible no solo apoyan la labor de crear un condado de Monterey más equitativo sino que iluminan las posibilidades de crear una California en la que pueden prosperar las familias históricamente subrepresentadas.

¿Cuál es la necesidad insatisfecha de cuidado infantil en el condado de Monterey?

En comparación con la tendencia estatal, la necesidad insatisfecha de cuidado infantil en el condado de Monterey es aún más grande. Específicamente, aproximadamente solo uno de cada doce niños elegibles para recibir cuidado infantil subsidiado en el condado de Monterey recibió esos servicios en el año 2022. En otras palabras, de los aproximadamente 27,000 niños en el condado de Monterey elegibles para recibir cuidado infantil subsidiados, solo unos 2,235 están matriculados (aproximadamente el 8%). Esta fracción de niños que reciben servicios es menor que el promedio estatal del 11%.

Si se disgrega la necesidad de cuidado infantil insatisfecha en el condado de Monterey por raza / etnicidad, se descubre que en general, los niños latinos son desproporcionadamente elegibles para recibir cuidado infantil subsidiado. Concretamente, casi la mitad de los niños latinos del condado de Monterey son elegibles para recibir cuidado infantil subsidiado. Por lo tanto, cuando el acceso al cuidado infantil subsidiado es limitado, las familias latinas del condado de Monterey son las más afectadas.

Los temas y citas de este informe reflejan los puntos de vista de las familias de cuatro grupos de enfoque. Estos grupos de enfoque incluyeron familias de la parte sur del condado de Monterey, concretamente Greenfield y las comunidades circundantes. Los cuatro grupos de enfoque se llevaron a cabo en español y uno de esos cuatro contó con servicios de interpretación para las familias que hablan mixteco y triqui. En total, participaron veinte padres/madres en los cuatro grupos de enfoque. Dos grupos se llevaron a cabo en persona en el Centro Binacional de Greenfield y dos se llevaron a cabo de forma virtual. Aunque el procesamiento de la narrativa resume los temas sobresalientes de estos grupos de enfoque, se pueden encontrar información y temas pertenecientes a cada grupo de enfoque en los enlaces a continuación:

¿Qué opciones de cuidado infantil tienen los padres en el condado de Monterey?

Como se ha demostrado, la cantidad de niños elegibles para recibir cuidado infantil subsidiado en el condado de Monterey ha aumentado mucho más que la tasa de matriculación. Este porcentaje bajo coincide con las experiencias de los padres. Específicamente, aunque algunos padres sabían que pueden tener acceso a cuidado infantil subsidiado a través del estado, principalmente a través del Programa de cuidado infantil para trabajadores migrantes, ninguno de los padres había tenido acceso a tal cuidado. Como tan pocas familias matriculan a sus hijos en programas de cuidado infantil subsidiado, deben utilizar otros tipos de cuidado infantil. La siguiente lista delinea las opciones que han utilizado o conocen los padres en sus comunidades.

Además de las opciones de cuidado indicadas, muchos padres compartieron que dejaron de trabajar para poder cuidar a su hijo. Algunas familias no tienen ningún amigo o pariente que los ayude proporcionando cuidado infantil durante el horario de trabajo. Debido a las experiencias insatisfactorias con los proveedores de cuidado sin licencia y el costo elevado y falta de disponibilidad de cuidadores con licencia, estos padres eligen dejar de trabajar para poder cuidar a sus hijos.

Debido a las opciones de cuidado infantil limitadas para las familias de Greenfield, muchas familias confían en el apoyo comunitario para cuidar a sus hijos y llegar a fin de mes. Los siguientes son algunos ejemplos específicos:

¿Por qué se les hace difícil a los padres del condado de Monterey encontrar cuidado infantil asequible que cubre sus necesidades?

Las familias de diferentes comunidades en el condado de Monterey tienen dificultades para encontrar cuidado infantil asequible que cubre sus necesidades. A un nivel elevado, los padres enfrentan dificultades por unas pocas razones clave: 1) Al igual que con muchos otros lugares de California, existe una oferta insuficiente de proveedores de cuidado infantil y programas subsidiados; 2) Incluso aunque haya algunos programas disponibles, a las familias se les hace difícil navegar el proceso de matriculación; y 3) También existe una falta de coincidencia entre lo que los padres necesitan o prefieren y las oportunidades limitadas que tienen a su disposición. Los siguientes puntos explican en mayor detalle por qué se les hace difícil  encontrar cuidado infantil a los padres del condado de Monterey.

Las familias del condado de Monterey tienen preferencias lingüísticas únicas. Valoran a los proveedores de cuidado infantil que apoyan el desarrollo multilingüe, en especial en las comunidades en las que los niños están aprendiendo inglés, español e idiomas indígenas. 

Los padres reconocen la importancia del desarrollo del idioma para el éxito académico y la identidad cultural de sus hijos. Muchas familias priorizan a los proveedores que pueden ayudar a sus hijos a fortalecer sus destrezas en inglés al tiempo que se mantienen los idiomas que se hablan en casa, como el español e idiomas indígenas como el triqui o el mixteco. Los padres indicaron que este apoyo multilingüe es esencial no solo para que el niño esté preparado para le escuela sino para nutrir su legado cultural. Sin embargo, también hablaron de los desafíos que enfrentan los niños que navegan varios idiomas y enfatizaron la necesidad de que los proveedores ofrezcan un desarrollo de lenguaje balanceado e intencional. Los proveedores que alientan la adquisición de múltiples idiomas se consideran esenciales para ayudar a que los niños tengan éxito tanto en la escuela como en su comunidad más amplia.

¿Qué pueden hacer los líderes estatales y locales para mejorar el acceso a opciones de cuidado infantil asequible que satisfagan las necesidades de las familias del condado de Monterey?

Las siguientes recomendaciones reflejan las opiniones e inquietudes de padres tanto en Greenfield como en Salinas que han identificado áreas clave para mejorar el cuidado infantil en sus comunidades. Estas recomendaciones buscan abordar problemas tales como la disponibilidad, asequibilidad y necesidad de cuidado que responde a la cultura con un enfoque en expandir los servicios para cubrir las necesidades diversas de las familias, en especial las que tienen hijos pequeños, trabajan horarios no tradicionales y tienen antecedentes multilingües.

Acceso y disponibilidad

  • Aumentar las oportunidades de cuidado de bebés y niños pequeños. Los padres enfatizaron la necesidad de contar con más opciones para los bebés y niños pequeños. Los padres desean contar con una mayor flexibilidad en el cuidado de los niños menores de dos años, ya que las opciones disponibles actualmente no tienen la capacidad de apoyar todos los grupos de edad.
  • Asegurar que las familias tengan opciones durante horarios no tradicionales. Los padres, en especial los que trabajan en la industria agrícola, enfatizaron la necesidad de contar con opciones de cuidado infantil disponibles temprano por la mañana, tarde por la noche e incluso opciones que cuidan al niño toda la noche. Los programas que ofrecen cuidado más tarde, tales como los programas después del horario escolar, han sido útiles para las familias de Monterey y resaltan la necesidad de programas similares temprano por la mañana para remediar las brechas de tiempo existentes antes del inicio del horario escolar. Además, los horarios flexibles, con centros de cuidado infantil que abren a las 4 o 5 de la mañana y cierran a eso de las 6 de la tarde, serían más apropiados para las familias que tienen horarios de trabajo no tradicionales.
  • Integrar los servicios financiados por el estado para las comunidades rurales. La conexión de las familias rurales (como las de Greenfield) con recursos adicionales (por ejemplo, servicios de desarrollo infantil) a través de centros de cuidado infantil provee un apoyo más amplio y reduce las barreras para acceder a múltiples programas financiados por el estado. Este método proporcionaría un sistema de apoyo constante y completo para las familias.
  • Aumentar la capacidad en los centros de cuidado infantil. Los padres también sugirieron expandir la capacidad de los centros existentes para abordar la demanda creciente de cuidado infantil con licencia. También se deben considerar centros nuevos ubicados en la comunidad, ya que muchas familias tienen barreras de transporte. 
  • Ajustar los requisitos de elegibilidad por ingresos. Muchas familias tienen dificultades para calificar para programas existentes debido a la elegibilidad por ingresos. Ellas recomiendan ajustar la elegibilidad para el cuidado infantil subsidiado considerando los ingresos netos y no los brutos. Muchas familias, en especial las que trabajan en agricultura, no califican debido a sus ingresos brutos, pero de todos modos no ganan suficiente para pagar el cuidado infantil.
  • Mejorar el acceso a la información para los padres. Los padres recomiendan que la información sobre el cuidado infantil esté disponible en lugares convenientes tales como las escuelas, las tiendas de alimentos y en eventos comunitarios, así como en aplicaciones que permiten un acceso simple en varios idiomas, incluso idiomas indígenas. Además, los padres recomiendan una mayor transparencia y guía para colocarse en las listas de espera del cuidado infantil subsidiado. 
  • Simplificar los procesos de solicitud de subsidios de cuidado infantil. Asegurar que las familias puedan fácilmente revisar su estado de elegibilidad, completar y entregar documentos y encontrar asistencia multilingüe y en persona.

Inclusión

  • Multilingüismo de los centros. Dada la importancia del desarrollo del lenguaje, existe una demanda elevada de aumentar la cantidad de proveedores multilingües. A las familias les gustaría contar con entornos donde sus hijos desarrollan su pericia en inglés y apoyo educacional para los niños de familias que no hablan español, en especial aquellas que hablan idiomas indígenas como el mixteco y el triqui. Darle prioridad a estas necesidades sería un paso esencial para lograr que los servicios de cuidado infantil sean más inclusivos y eficaces.
  • Brindar apoyo a los niños con necesidades especiales. Los padres recalcaron la necesidad de contar con más recursos y entrenamiento para que los proveedores brinden apoyo a los niños con necesidades especiales, ya que en la actualidad muchas familias deben viajar fuera de Greenfield para obtener esos servicios.

Fuerza de trabajo

  • Apoyar vías para convertirse en proveedor. Las familias sugirieron apoyar el reclutamiento de miembros de la comunidad local, incluso padres, para ocupar roles de proveedores con licencia ofreciendo vías e incentivos para que los potenciales proveedores cumplan los requisitos para obtener la licencia y ganen salarios adecuados. 
  • Asegurar que los proveedores reciban desarrollo profesional. A los padres les gustaría que los proveedores tengan acceso a entrenamientos continuos de desarrollo infantil, necesidades especiales y temas de salud y seguridad. Los padres también recomiendan ofrecer mayor apoyo para que los proveedores brinden un plan de estudios educativo apropiado para la edad de los niños. 
  • Apoyar a los familiares, amigos y vecinos que proveen cuidado infantil. Los padres reconocieron la importancia de las opciones de cuidado infantil informales y solicitaron recursos para ayudar a tales proveedores a volverse más profesionales, contando incluso con entrenamiento de desarrollo infantil. Por ejemplo, los padres mencionaron que es útil que los proveedores aprendan primeros auxilios, en especial cuando se les da prioridad al transporte y a la accesibilidad. 

Entornos físicos e infraestructura

  • Invertir en instalaciones de cuidado infantil. Los padres desean instalaciones más grandes con más espacio y equipo de clase actualizado para que los niños aprendan, jueguen y exploren. Estas inversiones también pueden aliviar los problemas de vacantes. 
  • Mantener tasas bajas. Los padres sugirieron contar con 1 proveedor por cada cinco niños, considerándolo ideal para que los niños reciban la atención individual que necesitan. 
  • Asegurar que los proveedores de cuidado infantil reciban suficientes fondos para ofrecer otros productos esenciales y nutrición a todos los niños. Las familias expresaron preocupación por el costo de necesidades básicas tales como pañales, toallitas húmedas y alimentos, lo cual es una carga onerosa para muchas familias. Los padre recomendaron que los proveedores ofrezcan estas necesidades básicas par reducir los costos para las familias.
  • Proveer transporte. Los padres indicaron una necesidad de contar con apoyo de transporte a los centros de cuidado infantil. Por ejemplo, la opción de tener un autobús u otro servicio de transporte que reduzca las barreras para las familias trabajadoras.
  • Proveer cuidado de los niños enfermos en el lugar. Asegurar que las opciones de cuidado infantil tengan suficientes fondos para tener enfermeros/as en el lugar cuando los niños estén enfermos, reduciendo así la carga para los padres que frecuentemente deben salir del trabajo para pasar a buscar a sus hijos enfermos.

En base a los hallazgos y las recomendaciones del condado de Monterey, ¿cuáles son las conclusiones para todo el estado?

Los puntos de vista y recomendaciones de los padres del condado de Monterey proveen conocimientos de cómo los encargados de tomar decisiones a nivel estatal pueden mejorar el sistema de cuidado infantil para apoyar a los padres del condado de Monterey y a las familias de toda California. Las siguientes son algunas conclusiones clave:

Aunque este informe resalta prioridades y recomendaciones claras para mejorar el sistema de cuidado infantil en California, también resalta la necesidad de continuar enfocándose en las necesidades y prioridades de las familias en las políticas locales y estatales. Considerando el impacto de estas políticas en las vidas de las familias, ellas son expertas y saben “lo que funciona” y las mejores maneras de mejorar el sistema de cuidado infantil. En el proceso de mejorar el acceso de las familias al cuidado infantil en California y el condado de Monterey, es vital ofrecer oportunidades continuas y significativas para que las familias puedan participar en el proceso de toma de decisiones para poder crear un sistema fuerte y solidario para todas ellas.

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key takeaway

California families face steep child care costs, with a single mother spending 61% of her income without subsidized care. In 2022, only 11% of eligible children received state subsidized care, highlighting a critical gap. Expanding subsidized spaces and tailoring solutions to diverse local needs, as seen in Monterey County, are essential for addressing this challenge and supporting families statewide.

Lea esta publicación en español.

California’s families struggle to afford child care, exacerbating cost-of-living challenges amidst soaring poverty rates. Specifically, without access to state subsidized child care, a single mother in California with an infant and a school age child spends, on average, 61% of their income on child care. Access to state subsidized child care is therefore critical for supporting families. Within California’s mixed delivery system, the California Department of Social Services (CDSS) administers state subsidized child care, providing child care programs at low- to no-cost for families with low incomes. However, the demand for subsidized child care has far outpaced supply. In 2022, only one out of every nine children eligible for CDSS’s child care and development programs received services (approximately 11%), meaning that thousands of parents and guardians must confront the reality of spending over half their income on child care. 

To address this issue, the state has been working to expand the number of subsidized child care spaces. While statewide expansion of subsidized child care is an integral component to addressing challenges with access, localities also must consider how to best support families in their communities to utilize expanded access in a way that best meets families’ needs. Given California’s diversity, families across the state have a variety of child care preferences and needs. For example, family preferences vary with regards to hours of availability, setting, languages spoken, and cultural alignment. Thus, in addition to expanding the number of subsidized spaces overall, it is also critical to understand local community contexts so that expansion aligns with needs.

To spotlight the local context, this report details the unmet need for child care in one specific county, Monterey County, to uplift localized challenges and community-driven recommendations for expanding access to affordable and nurturing child care. By doing so, this report endeavors to share the experiences and perspectives of Monterey County families to make meaning of the significant gap in eligibility and enrollment in state subsidized child care and inform local and state decision makers as they work to expand affordable child care in California in a way that meets families’ needs.

About This Report

This report was supported by First 5 Monterey County. By prioritizing early childhood, fostering strong community connections, and advancing quality across systems of care and support, First 5 Monterey County enriches the lives of children, from prenatal through age 5, and their families.

Parents as experts: We extend our heartfelt thanks to Centro Binacional para el Desarrollo Indígena Oaxaqueño for their help capturing community voices and the parents who participated in the focus group. Their insights and contributions were invaluable in shaping this report.

Why focus on Monterey County?

Monterey County is home to a wide range of communities with different needs and priorities. As the seventeenth largest county in California, Monterey has nearly a half million residents with over half of all households speaking a language other than English. Additionally, compared to statewide statistics, families in Monterey County faces greater economic security challenges, namely, in 20231Monterey County data in this section are sourced from the Monterey County, California profile from the United States Census Bureau.:

  • 14% of the Monterey County population was in poverty, compared to 12% at the state level;
  • Women in Monterey County spend, on average, 45% of their income on rent, the highest percentage across all 58 California counties;
  • Median household income was $88,035 in Monterey County, compared with $95,521 at the state level; and
  • 29% of the Monterey County population has a Bachelor’s Degree or higher, compared with 38% at the state level.

These statistics point to racial and gender inequities in Monterey County as well as income inequality and barriers to opportunities for families with low incomes. Many families in Monterey County work in agricultural settings and speak indigenous languages. As compared with the more affluent coastal communities in the county, these families face greater barriers to economic security, including accessing affordable child care that meets their needs.

While families in Monterey County have community-specific needs, the same challenges of poverty and income inequality are mirrored at the state level, pointing to an opportunity to understand how barriers and solutions to affordable child care in Monterey County can inform improvements across the state. Listening to and uplifting the perspectives of Monterey County residents impacted by the lack of affordable child care not only supports working toward a more equitable Monterey County, but also sheds light on the possibilities for creating a California where families that have been historically underrepresented can thrive.

What is the unmet need for child care in Monterey County?

Compared with the statewide trend, the unmet need for child care in Monterey County is even wider. Specifically, approximately one in every twelve children eligible for subsidized child care in Monterey County received services in 2022. In other words, out of the roughly 27,000 children in Monterey County eligible for subsidized child care, about 2,235 are enrolled (approximately 8%). This fraction of children served versus children eligible is lower than the state average of 11%.

Disaggregating Monterey County’s unmet need for child care by race/ethnicity highlights that overall, Latinx children are disproportionately eligible for subsidized child care. Namely, nearly half of all Latinx children in Monterey County are eligible for subsidized child care. Therefore, when access to subsidized child care is limited, Latinx families in Monterey County are the most impacted.

Themes and quotes from this report reflect the perspectives from families across four focus groups. These focus groups included families from Southern Monterey County, namely Greenfield and surrounding communities. All four focus groups were conducted in Spanish with one focus group including interpretation for families speaking Mixteco and Triqui. In total, twenty parents participated across the four focus groups. Two were conducted in-person at Centro Binacional in Greenfield, and two were conducted virtually. While the proceeding narrative summarizes salient themes from these focus groups, specific information and themes pertaining to each focus group can be found at the links below:

What child care options do parents have in Monterey County?

As shown, the number of children eligible for subsidized child care in Monterey County far outpaces enrollment. This low percentage aligns with parent experiences. Specifically, while some parents were aware that they can access subsidized child care through the state —  mainly the migrant child care program — no parent had actually accessed this care. Given that so few families enroll their children in subsidized child care programs, they must access other types of child care. The following list outlines the options that parents have accessed or are aware of in their communities.

In addition to the care options described above, many parents shared that they stopped working in order to provide care for their child. For some families, they do not have a friend or family member to help provide care during working hours. Given less than ideal experiences with unlicensed care and the high cost and lack of availability of licensed care, they choose not to work in order to provide care for their child.

Given the limited child care options for families in Greenfield, many families rely on community support to provide care for their children and make ends meet. Specific examples include:

Why do Monterey County parents struggle to find affordable child care that meets their needs?

Families from different communities in Monterey County struggle to find affordable child care that meets their needs. At a high level, parents face this struggle for a few key reasons: 1) As it is the case in many other localities across California, there is an insufficient supply of child care providers and subsidized programs; 2) Even when some programs are available, families find it difficult to navigate the enrollment process; and 3) There’s also a lack of alignment between what parents need or prefer and the limited opportunities available to them. The following points provide further detail into the reasons why Monterey County parents are challenged when finding child care.

Families in Monterey County have unique language preferences. They value child care providers who support multilingual development, particularly in communities where children are learning English, Spanish, and indigenous languages.

What can state and local leaders do to improve access to affordable child care that meets Monterey County families’ needs?

The following recommendations reflect the voices and concerns of parents in both Greenfield and Salinas who have identified key areas for improving child care in their communities. These recommendations aim to address issues such as availability, affordability, and the need for culturally responsive care, with a focus on expanding services to meet the diverse needs of families, especially those with young children, nontraditional work hours, and multilingual backgrounds.

Access and Availability

  • Increase opportunities for infant and toddler care. Parents emphasized the need for more care options for infants and toddlers. There is a desire for more flexibility in care for children under two years old, as current offerings don’t have the capacity to support all age groups.
  • Ensure families have options during nontraditional hours. Parents, particularly those working in agricultural settings, emphasized the need for child care options that accommodate early mornings, late evenings, and even overnight shifts. Programs that extend care later in the day, such as afterschool programs, have been helpful for families in Monterey and highlight the need for similar early-morning programs to bridge gaps before school starts. Additionally, flexible schedules, with child care centers opening as early as 4-5 a.m. and closing around 6 p.m., would better align with the nontraditional work hours many families face.
  • Integrate state-funded services for rural communities. Connecting rural families (like those in Greenfield) to additional resources (e.g., developmental services) through child care centers provides broader support and reduces barriers to accessing multiple state-funded programs. This approach would provide a seamless, comprehensive support system for families.
  • Increase capacity in child care centers. Parents also suggested expanding the capacity of existing centers to address the growing demand for licensed care. New centers should also be considered and should be located in the community, as many families face transportation barriers. 
  • Adjust income eligibility requirements. Many families struggle to qualify for existing programs due to income eligibility issues. They recommended adjusting eligibility for subsidized child care by considering net income rather than gross income. Many families, particularly those working in agriculture, don't qualify based on gross income but still struggle to afford child care.
  • Improve access to information for parents. Parents recommended that child care information be made available in convenient locations such as schools, grocery stores, and community events, as well as through apps that allow easy access in multiple languages, including indigenous languages. Additionally, parents recommended more transparency and guidance about how to be placed on subsidized child care waiting lists. 
  • Simplify application processes for child care subsidies. Ensure families can easily check their eligibility status, complete and submit paperwork, and find multilingual and in-person assistance.

Inclusivity

  • Center multilingualism. Given the importance of language development, there is a strong demand to increase the number of providers who are multilingual. Families would like environments where their children develop English proficiency and educational support for children from non-Spanish-speaking homes, especially those speaking indigenous languages like Mixteco and Triqui. Centering these needs would be a critical step in making child care services more inclusive and effective.
  • Support children with special needs. Parents stressed the need for more resources and training for providers to support children with special needs, as many families currently have to travel outside of Greenfield to access services.

Workforce

  • Support pathways to becoming a provider. Families suggested supporting recruitment of local community members, including parents, into licensed provider roles by offering pathways and incentivizing prospective providers to meet licensing requirements and earn a thriving wage.
  • Ensure providers receive professional development. Parents would like that providers have access to ongoing training in child development, special needs, and health and safety practices. Parents also recommend enhanced support for providers to offer age-appropriate educational curriculum.
  • Support for Family, Friend, and Neighbor providers. Parents recognized the importance of informal care arrangements and called for resources to help these providers become more professionalized, including child development training.For example, parents mentioned that first aid training for providers is useful, especially when transportation and accessibility are prioritized.

Physical Environments & Infrastructure

  • Invest in child care facilities. Parents want larger facilities with more space and updated classroom equipment for children to learn, play, and explore. These investments can also improve capacity issues.
  • Maintain low ratios. Parents suggested that a 1:5 provider-to-child ratio would be ideal for their children to get the individualized attention they need.
  • Ensure child care providers receive sufficient funding to offer essential products and nutrition to all children. Families expressed concerns over the cost of basic needs such as diapers, wipes, and food, which can be a burden for many families. Parents recommended that providers offer these basic necessities to reduce costs for families.
  • Provide transportation. Parents expressed a need for transportation support to child care centers. For example, the option for bus or another transportation service, which will reduce barriers for working families.
  • Provide on-site sick care. Ensure child care settings have sufficient funding to include  on-site nurses when children are sick, reducing the burden on parents who often have to leave work to pick up sick children.

Based on the findings and recommendations from Monterey County, what are the statewide implications?

The perspectives and recommendations from Monterey County parents provide insight into how state-level decision makers can improve the child care system to support Monterey County parents and all families across California. Key implications include the following:

While this report outlines clear priorities and recommendations for improving California's child care system, it also highlights the need to continue centering families’ needs and priorities in local and state policies. Given the impact of these policies on families’ lives, they are the experts in knowing “what works” and the best ways to improve the child care system. As California and Monterey County work toward improving child care access for families, ongoing and meaningful opportunities for families to engage with the decision-making process is vital for creating a strong and supportive system for all families.

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key takeaway

California’s refundable income tax credits — CalEITC, YCTC, and FYTC — play a crucial role in combating poverty and promoting economic security for millions of low-income families and individuals. These programs prove how targeted policies can address the state’s high cost of living, advance racial equity, and provide vital financial support.

Every Californian deserves to be able to put food on the table, pay the rent, and support their families. Still, millions of people across California struggle to afford basic needs every day. California’s high cost of living has long been a challenge for state residents, but it has grown more acute in recent years, particularly for families and individuals with low incomes, due to persistently high inflation and housing costs. And while state leaders have made progress boosting workers’ earnings by raising the minimum wage and pay in specific industries, many jobs still fail to pay enough to cover essential expenses. In the face of these challenges, refundable income tax credits play a vital role in helping Californians with low incomes make ends meet.

Refundable income tax credits are proven tools for improving people’s economic security. For decades, the federal Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) have provided hundreds or thousands of dollars in tax refunds to families and individuals with low incomes, helping them pay for food and other basic needs, and lifting millions of people out of poverty each year. These credits have also been linked to long-term benefits for children, including better health and school achievement, higher educational attainment, and increased employment and earnings when children become adults. Given these benefits, many states have state versions of these credits to enhance the positive effects of tax credits for state residents.

what is a refundable income tax credit?

A refundable income tax credit is a type of credit that benefits families and individuals with very low incomes. The credit provides the same value regardless of how much tax filers owe in personal income taxes. For example, a family who qualifies for a $500 refundable credit and owes $200 in taxes will get the full $500 credit, with $200 covering their taxes and $300 as a cash refund. If the family owes no tax, they will get the full $500 as a cash refund. 

California’s Refundable Income Tax Credits Provide Around $1.4 Billion Annually

California has three refundable income tax credits that help families and individuals with low incomes make ends meet. Collectively, these credits have provided around $1.4 billion annually to Californians in recent years. This is up significantly from just $200 million provided in 2015, when California established its first refundable credit. This substantial growth reflects a decade of progress in which state policymakers consistently expanded financial support to families and individuals with low incomes through refundable state income tax credits.

California’s three refundable income tax credits include:

  • The California Earned Income Tax Credit (CalEITC)
  • The Young Child Tax Credit (YCTC)
  • The Foster Youth Tax Credit (FYTC)

The California Earned Income Tax Credit (CalEITC)

Established in 2015, the CalEITC provides a credit to workers and their families who have annual earnings of about $32,000 or less. The amount of money the credit provides varies based on how much workers earn and how many children they support. The credit has benefited around 3.5 million tax filers annually in recent years, up significantly from fewer than 400,000 tax filers in tax year 2015.

*lina l., Riverside County

"I qualified for the young child tax credit. It came at the right time we needed to start shopping around for my 1 year olds car seat upgrade. He's getting so tall, so quick, and so this will be a perfect way to use some of the refund. As a first time parent and full time college student, it feels great to have resources like these, such as VITA tax services and information about tax credits such as CalEITC. It helped out my friends and peers so much too since I let them know about it."

In addition, more than 200,000 tax filers who file their taxes with Individual Taxpayer Identification Numbers (ITINs) have benefited from the CalEITC each year since tax year 2020, when California ended the exclusion of these filers.1ITINs are issued by the Internal Revenue Service (IRS) to individuals who do not have Social Security Numbers to use to file their personal income taxes. Nearly 6 million people benefit from the CalEITC when factoring in not just the tax filer who qualifies for the credit but also their spouse/partner, children, and other dependents.

The Young Child Tax Credit (YCTC)

Established in 2019, the YCTC provides a credit to families who have at least one child between the ages of 0 and 5 and have annual earnings of about $32,000 or less, including those with no earnings. Most eligible families receive the maximum credit – $1,154 per family in tax year 2024. The credit has benefited around 400,000 families each year since it was first established. More than 35,000 families who file taxes with ITINs have benefited from the credit each year since California ended the exclusion of ITIN filers from the credit in tax year 2020.

The Foster Youth Tax Credit (FYTC)

Established in 2021, the FYTC provides a credit to workers ages 18 to 25 who were in foster care on or after their thirteenth birthday and are eligible for the CalEITC. The credit is provided per eligible individual, and most individuals receive the maximum credit – $1,154 in tax year 2024. The credit benefited nearly 5,700 tax filers in tax year 2023, up from nearly 4,900 in its first year.2The Franchise Tax Board does not report the number of tax filers using ITINs who benefit from this credit.

California’s Refundable Tax Credits Help People in Poverty Meet Basic Needs

California’s refundable income tax credits provide a much-needed source of cash to families and individuals living in poverty that can help cover the cost of basic expenses. While these credits are available to tax filers who earn about $32,000 or less, many who benefit from these credits have much lower incomes. For example, about 60% of tax filers who receive the CalEITC and YCTC and three-quarters of those who receive the FYTC earn $20,000 or less. The FYTC particularly benefits eligible filers with extremely low incomes. About 40% of tax filers who receive this credit earn $10,000 or less.

The YCTC is California’s only refundable tax credit that is available to families without any earnings from work at all. However, only about 1% of all recipients who claimed the credit in tax year 2023 – around 3,500 families – had no earned income.

*Michael C., San bernardino county

"I am incredibly grateful for the CalEITC program, which has provided me with much-needed financial relief as a college student. The additional funds from the tax credit have allowed me to cover essential educational expenses, including textbooks, supplies, and even some tuition costs. This support has eased the financial burden of pursuing higher education and has empowered me to focus on my studies without constantly worrying about the financial constraints."

California’s Refundable Tax Credits Promote Racial Equity

California’s refundable income tax credits help to promote racial equity by boosting the incomes of low-paid workers who, because of systemic racism past and present, are disproportionately people of color. An estimated 79% of Californians who are likely eligible for the CalEITC and 84% of Californians who are likely eligible for the YCTC are people of color, compared to 64% of Californians as a whole.

Specifically, among individuals eligible for the CalEITC, 58% are Latinx, 11% are Asian/Pacific Islander, and 6% are Black.3Due to data limitations, further disaggregation by race and ethnicity is not available. In addition, estimates for Californians eligible for the FYTC are not available. Among Californians who are likely eligible for the YCTC, 64% are Latinx, 8% are Asian/Pacific Islander, and 7% are Black. This stands in stark contrast with other state and federal tax benefits that are largely available to people with high incomes and wealth and are disproportionately white.

California’s Refundable Tax Credits Lay a Solid Foundation for Young Adults’ Economic Security

Workers under age 25 are disproportionately likely to struggle to afford basic needs, and yet, the overwhelming majority of them are excluded from the federal EITC.4Workers ages 18 to 24 as well as those age 65 or older who are not supporting children in their homes have historically been excluded from the federal EITC (with one exception for certain young adult students in 2021). This makes California’s refundable income tax credits an especially important source of support for young adults just beginning their careers. About 1 in 4 workers who receive the CalEITC — roughly 827,000 tax filers in total — and the vast majority of workers who benefit from the FYTC (84%) are under age 25. Additionally, roughly half of workers who benefit from the CalEITC (about 1.8 million people) and nearly two-thirds of those who benefit from the YCTC (268,000) are under age 35.

*brenda E., LA county

"When I heard what my refund would be, I started crying. I'm going to be able to use that $4,783 to pay rent, utilities, and dentist bills. Best of all, I can buy my little girl new clothes and shoes for her first day of kindergarten. Bringing this much money home to my daughter makes me feel good. For at least a few months, I can relax and I feel a weight lifted off of me. VITA is a lifesaver."

More is Needed: Refundable Tax Credits Prove California Leaders Have Tools to Combat Poverty

Over the past decade, state leaders have made significant progress in expanding cash support for Californians with low incomes through refundable state income tax credits. Providing about $1.4 billion in cash refunds to families and individuals in poverty is a milestone worth celebrating. But state leaders must not stop here. They must continue building on the past decade of progress until every Californian can meet their basic needs. In the coming years, state policymakers should continue to strengthen and expand California’s refundable income tax credits, increase the amount of cash support they provide, extend them to additional families and individuals with low incomes, and take advantage of all opportunities to connect Californians to free tax filing services so they reap the full benefits of the credits they are owed.

*The following narratives were compiled by Golden State Opportunity as part of the CalEITC+ education and outreach program, with participant names modified to preserve confidentiality and protect their privacy.

  • 1
    ITINs are issued by the Internal Revenue Service (IRS) to individuals who do not have Social Security Numbers to use to file their personal income taxes.
  • 2
    The Franchise Tax Board does not report the number of tax filers using ITINs who benefit from this credit.
  • 3
    Due to data limitations, further disaggregation by race and ethnicity is not available. In addition, estimates for Californians eligible for the FYTC are not available.
  • 4
    Workers ages 18 to 24 as well as those age 65 or older who are not supporting children in their homes have historically been excluded from the federal EITC (with one exception for certain young adult students in 2021)

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