CalFresh Fruit and Vegetable Supplemental Benefits Program.

Assembly Member Lee's proposal to establish a permanent CalFresh Fruit and Vegetable Supplemental Benefits Program would transform California's existing pilot project into an ongoing initiative within the state's electronic benefits transfer (EBT) system. The program enables CalFresh recipients to earn additional benefits when purchasing fresh fruits and vegetables, which can be redeemed at authorized retailers including grocery stores, farmers' markets, and farm stands.

The legislation creates a dedicated grant fund, supported by state, federal, and other sources, to implement the supplemental benefits mechanism across retail settings. Under the program's funding structure, the Department of Social Services must first cover administrative costs and maintain existing benefit levels before allocating remaining funds between smaller retailers (those with 50 or fewer locations or annual CalFresh redemptions under $50 million) and larger retail operations. Smaller retailers may receive up to $1 million annually to support required technological upgrades, while larger retailers must fund their own system modifications.

The Department must evaluate the 2023-2025 pilot phase and develop recommendations for transitioning to direct state management without intermediary grantees. The bill requires quarterly public reporting of program metrics, including household participation rates and benefit utilization across retailer categories. While supplemental benefits have no expiration date, they are not considered entitlement benefits and remain contingent on annual budget appropriations.