On Friday, September 18th, Governor Newsom signed AB1876, which puts money back into the pockets of California workers and their families. United Ways of California was a strong supporter and advocate of this effort.
The bill further expands access to the California Earned Income Tax Credit (CalEITC) to ensure all California tax filers, specifically people who are undocumented but otherwise eligible, may qualify for the CalEITC. The bill also created the Young Child Tax Credit (YCTC) to further help all families with children under age six.
This year $1 billion went back into the pockets of more than 3.6 million Californians and their families through the expanded CalEITC. The recent CalEITC expansion provides a critical boost to our undocumented neighbors and their families, stimulates the economy and makes California stronger in the face of economic uncertainty.
The COVID-19 recession has not only dealt a swift and broad-based blow to California’s economy – it has taken a disproportionate toll on low-income Californians of color, worsening income disparities that predate the pandemic. In the first two months of the COVID-19 recession, the majority of jobs lost were in low-paying industries. An estimated 289,059 undocumented Californians lost their jobs due to the pandemic. Among those most severely impacted, immigrant women have lost their jobs at a disproportionate rate.
We applaud California United Way for standing with us in this vital effort to make work pay for all California working families. We saw the need and we pushed for change beside our vulnerable and undocumented neighbors. In total, CalEITC and YCTC will help raise incomes of 46 million households, nearly 114 million people, including 11 million children.
For over a decade, United Way of Greater Los Angeles (UWGLA) has been a leader in raising awareness around Volunteer Income Tax Assistance Program (VITA) services and tax credits for low-income working families in Los Angeles County. Along with key partners we created Free Tax Prep LA to connect filers with valuable VITA services in their communities.
Once the expansion of CalEITC is in full effect in January, UWGLA will work with our VITA partners to help our neighbors navigate these new benefits.