GRACE Celebrates Groundbreaking $115 Million Investment in HOPE Accounts for Children Orphaned by COVID-19 and Foster Youth!
Governor Gavin Newsom approved the state’s 2022-2023 budget with vital investments secured for over 32,000 children orphaned by COVID and children who are in long-term foster care.
GRACE & End Child Poverty California (ECPCA), John Burton Advocates for Youth (JBAY), End Poverty in California (EPIC), and Liberation in a Generation worked diligently alongside partners and California leaders for the inclusion of HOPE Trust Fund Accounts in the final budget. The Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Act – championed by Senator Nancy Skinner (D-Berkeley) – will lay the foundation for future expansion of child trust accounts, or baby bonds, as a tool to support wealth building and economic opportunity for California children living in poverty. Approximately 1 in 5 children live in poverty in our state.
HOPE Accounts will support children from low-income families who lost a primary caregiver to COVID-19, as well as children who are in long-term foster care. HOPE funds will be available when a child turns 18. They will allow children to invest in their education, start a business, or support purchasing transportation or housing. Access to wealth-building tools is critical to shrink the state’s persistent racial wealth gap. The budget agreement provides $100 million in one-time funding and $15 million in ongoing funding for the HOPE Account program.
Cody Van Felden, a foster youth advocate at John Burton Advocates for Youth said, “The guarantee of baby bonds means so much to me. I have done so much advocating for this because, as a first step, baby bonds will begin to eradicate generational poverty. I did not get a running start in getting out of poverty; therefore, I must work twice as hard to ensure my daughter does not stay stuck in poverty. Baby bonds will give others like me that running start to take control of their life.”
California has the highest child poverty rate in the country, with stark economic disparities that track along racial lines. Baby bonds work to close the racial wealth gap and end cycles of intergenerational poverty by providing guaranteed capital that recipients can use to build wealth and establish financial security. Providing access to this seed fund of capital directly combats the effects of racist and classist policy choices that created the racial wealth gap in the first place. Baby bonds are an increasingly prominent policy tool for combating the lasting effects of that history and charting a better path forward. In 2021, the state of Connecticut, and Washington, D.C. each enacted similar programs. Additionally, federal proposals have been introduced by Senator Cory Booker and Representative Ayanna Pressley.
Introduction to Baby Bonds & CA’s Hope Accounts
May 19, 2022
One of End Child Poverty California’s key legislative requests during 2022–and a topic that the GRACE team is championing–is the HOPE for Children Act. This request regards the establishment of Hope Accounts for California youth that are experiencing economic insecurity due to the pandemic and also those that have been involved with the child welfare system.
What will Hope Accounts Do? This proposal will create California’s first “baby bond program,” or trust fund accounts for foster youth in long term care and children orphaned by COVID-19.
Unlike their peers, these children–and other low-income California youth–do not have the cushion of parent or family wealth to rely on when they become adults. This makes it even harder for our young adults to finance an education, buy a house, start a business, and make other moves that would allow them to move out of poverty and into long-term financial stability for themselves AND their families.
A Quick Vocabulary Lesson. Wealth is what a person owns: a person’s net worth, or total assets minus liabilities. This includes items like cash, homes and real estate, cars, jewelry, etc. Income is what a person earns over a certain period, like a salary, sales profits, etc. These two are not the same. Income can generate wealth, but takes time to do so. Having a high paying job doesn’t automatically mean someone is wealthy.
Why Are HOPE Accounts Important? HOPE Accounts are a pathway toward ensuring low-income children in California will have the opportunity to realize their dreams. We are urging the Legislature to create these accounts ASAP for 32,500 children orphaned by COVID and foster youth.
A video primer featuring GRACE President & CEO Shimica Gaskins and End Poverty in California founder Michael Tubbs is available here for everyone to watch and share.
Providing $8 billion for the Better for Families Rebates to give $200 per taxpayer and dependent to address increasing costs of basic needs like food and gas;
Providing an additional rebate for CalWORKs families and those enrolled in the Supplemental Security Income/State Supplementary Payment program
Child Care
Increasing the child care reimbursement rate to the 85th percentile of the regional market rate, and including a cost of living increase to the county regional market rate;
Investing $200 million in additional childcare facilities as proposed by the Governor’s May Revision;
Approving the waiving of family fees for childcare as proposed by the Governor’s May Revision
CalWORKs
Increasing CalWORKs grant levels starting July 1, 2023 and providing $789 million to increase CalWORKs grants to end deep child poverty
Child Support
Implementing a full-pass through of child support payments to families formerly receiving public assistanceas proposed by the Governor’s January budget;
Implementing a full-pass through of child support payments to families currently on public assistance in 2024-2025 and on-going
Transformative Investments
Creating the HOPE Account Program to provide trust fund accounts for low-income children who have lost parents or caregivers to COVID-19 and for children who experienced long-term foster care;
Approving $12 million as proposed by the Governor’s May Revision as assistance for Promise Neighborhoods to ensure low-income children and families receive place-based, wraparound services from cradle to career
Statement by Shimica Gaskins, President & CEO of GRACE/End Child Poverty CA:
“We are celebrating today’s announcement that the legislature’s latest budget deal includes a $100 million on-going commitment for HOPE accounts. Creating HOPE accounts for the tens of thousands of California children who lost a parent to COVID and long-term foster youth provides targeted support to our state’s most vulnerable children. The creation of HOPE accounts sets California onto a path for a brighter future, as we can proudly say that we are establishing baby bonds while also building a framework the state can build upon to shrink the racial wealth gap in our state and change the trajectory for millions of California children.
“We are grateful to Senator Nancy Skinner for championing the HOPE for Children Act and to our partners, Liberation in a Generation and End Poverty in California (EPIC), for working alongside GRACE & End Child Poverty CA to fight for this critical program to remain in the final budget.
“A budget is a statement of a state’s values, and this commitment to HOPE accounts makes it clear that California values our children. We urge the Governor to move quickly to sign this budget into law to ensure we can make an immediate down payment on our promise to give every child in California a chance to succeed.”
The alignment of the Senate’s budget priorities and End Child Poverty’s $10 Billion to Fight Poverty package signals an exciting opportunity this legislative cycle for joint advocacy and collaboration between legislative leaders and anti-poverty advocates
The California Senate outlined equity & prosperity as their key values today. They put forth an innovative plan to make California’s wealth work for a more equitable economy. The Senate’s budget is in response to Gov. Newsom’s proposed state budget.
We applaud the Senate for prioritizing children and families. The 178 End Child Poverty CA Coalition members worked together on a groundbreaking anti-poverty plan this year. Our $10 Billion to Fight Poverty plan is within reach. The Senate’s new budget shows us the way. The Senate plan includes targeted and equitable investments to serve people most impacted by the economic repercussions of the pandemic and rising inflation costs.
“The Senate’s proposed budget puts California’s wealth to work today, tomorrow, and into the future. Our leaders are embracing innovative approaches such as baby bonds. They’re keeping their promises to ensure no child lives in deep poverty. They’re providing targeted tax relief so we equitably build back better in our state,” said Shimica Gaskins, President & CEO of Grace and End Child Poverty CA.
We are especially thrilled to see the Senate include HOPE Accounts in the budget. HOPE Accounts are investment accounts to be created for children in poverty who had a primary caregiver die due to COVID-19, eligible foster youth, and more. With this inclusion, our leaders are planting the seeds to ensure California’s children have equitable opportunities in the future, taking the much needed first steps to combat the racial wealth gap and the opportunity gap that all poor children face. Similarly, we applaud and stand with the Senate’s plan to prevent the interception of tax credits intended to help Californians in poverty.
The alignment of the Senate’s budget priorities and End Child Poverty’s $10 Billion to Fight Poverty package signals an exciting opportunity this legislative cycle for joint advocacy and collaboration between legislative leaders and anti-poverty advocates to create long-term, transformative change for low-income families and communities of color. We are eager to work together to ensure that the deployment of the state’s surplus addresses the needs of families and children first and foremost.
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The End Child Poverty in California campaign is a growing coalition of 178 anti-poverty organizations, allies, and advocates fighting for the resources and strategies to ensure ALL children can be healthy, housed and fed. Our coalition efforts have led to over $13 billion investments to support children and have successfully fought to double the size of the California Earned Income Tax Credit and the Young Child Tax Credit, expand health care, create new subsidized child care slots, and more.
Continue reading below for the End Child Poverty Coalition’s summary of the Senate’s Budget package and how it reflects our $10 Billion Package to Fight Poverty. The summary is also available here.
Founding President & CEO of GRACE and End Child Poverty CA Conway Collis announced today that Shimica Gaskins will serve as the organization’s next President and CEO. Gaskins currently serves as Executive Director of the Children’s Defense Fund-California, She will assume her new role with GRACE on August 9th.
“It has been an honor and a blessing to help found and lead GRACE and work with the Daughters of Charity for almost 20 years,” said Collis. “Hundreds of thousands of California children have been lifted from poverty because of the courage and dedication of the Daughters, the work of committed elected officials, and the advocates and providers who are part of the 173 End Child Poverty CA Coalition partner organizations. We have achieved much together, and it is now the right time for me to continue this work in a new way. Therefore, it is with great pride that I welcome Shimica Gaskins as the next President and CEO of GRACE and End Child Poverty CA. Having worked with her through our End Child Poverty CA coalition and the State Lifting Children and Families from Poverty Task Force, I know firsthand just how impactful, committed and strategic Shimica is. Shimica is a blessing to GRACE, the End Child Poverty CA campaign and California’s families and children.”
“Child poverty is a human and fiscal crisis that requires moral, political and intellectual leadership to solve. We’ve been blessed to have had that leadership from Conway Collis for nearly two decades, and are doubly blessed to have found those same characteristics in Shimica Gaskins,” said Sister Julie Kubasak, D.C., Board Chair of GRACE and Provincial of the Daughters of Charity Province of Elizabeth Ann Seton. “Shimica is the ideal leader for our advocacyon behalf of California’s children and families.”
“GRACE and End Child Poverty CA are all about impact, and so am I,” said Gaskins. “It’s not enough to develop the best policies – you have to organize, advocate and make change happen. That’s the ethos that Conway put into place at the End Child Poverty campaign, and it is my honor to take the reins from him. I am humbled by the faith put into me by the Daughters of Charity, who have been fighting for California’s poor since 1852. Carrying out the next chapter of their legacy will change the lives of hundreds of thousands of California families. That is our mission, and I cannot wait to get started.”
In 2017, GRACE/End Child Poverty CA sponsored AB 1520, the Lifting Children and Families Out of Poverty Act, which formed a state Task Force, co-chaired by Collis, to create the End Child Poverty Plan released in 2018. Since then, GRACE/End Child Poverty CA has helped enact and secure funding for 33 of the 47 proposals in the Plan, representing $4.8 billion in new funding in each of the last three years to double the California Earned Income Tax Credit and the Young Child Tax Credit, expand health care, expand home visiting programs, create new subsidized childcare slots, and more. As a result of these investments, more than 290,000 California children and families moved out of poverty, and an additional 115,000 California children and families moved out of deep poverty, in 2020 alone.
End Child Poverty CA is a coalition of 173 member organizations jointly sponsored by GRACE End Child Poverty Institute and GRACE (Gather, Respect, Advocate, Change, Engage). GRACEis an anti-poverty non-profit and is a ministry of the Daughters of Charity, who have been serving the poor in California since 1852.
“Conway Collis has been a tireless champion for the working families and children of California, and it is a testament to his leadership that GRACE and End Child Poverty CA have grown into strong forces for economic justice,” said Speaker Nancy Pelosi. “It has been a privilege to fight alongside Conway for decades — on Foster Youth, Head Start and most recently the Biden Child Tax Credit, which we celebrated together last week. While we will dearly miss Conway as he embarks on his next adventure, I am looking forward to carrying on the fight for our children alongside Shimica Gaskins, who is an inspiring leader and a powerful agent of change.”
‘With Conway Collis at the helm, GRACE and End Child Poverty CA have created the policy and advocacy playbook needed to make a significant contribution toward ending child poverty,” said Rep. Karen Bass, whose work with Collis dates back to her time as CA Assembly Speaker and who reached out to him to serve as Chair of the Board of Directors when she founded the National Foster Youth Institute (NFYI). “Shimica Gaskins has the policy expertise and determination needed to fulfill the mission of her new role: to end child poverty in California.”
“Shimica Gaskins is perfect for President of End Child Poverty CA with her vast experience at the Children’s Defense Fund. As a partner of the End Child Poverty CA Coalition, I have worked with Shimica Gaskins through our coalition, she is a wonderful choice and I cannot wait to see her in action as our leader,” said Dolores Huerta. “Conway is a true fighter for children everywhere. I know that his next mission will keep him arm in arm with us, continuing the fight against child poverty.”
“Shimica Gaskins is a bold champion for ending child poverty and eradicating the racial inequities underlying this crisis and harming our children and their families,” said Michael Tubbs. “She is the right leader to build on Conway and GRACE’s work as the new leader for GRACE and End Child Poverty CA at this critical moment. I am thrilled to partner with her in the fight for economic justice.”
Gaskins is a graduate of The Catholic University of America and Georgetown University Law Center. After working for Covington and Burling, she served as Acting Deputy Assistant Attorney General in the US Department of Justice Office of Legal Policy under the Administration of President Barack Obama. She has led the Children’s Defense Fund-CA since 2017. She is also a Commissioner on the Los Angeles County Commission for Children and Families. Gaskins is a board member for Impact Justice and California Budget and Policy Center.
Collis’s previous experience includes serving as Counsel to the U.S. Senate Committee on Labor and Public Welfare and as an elected member and Chair of the California State Board of Equalization. He is a graduate of Occidental College and Stanford Law School.
We make today’s announcement that Jackie Thu-Huong Wong, GRACE/End Child Poverty CA’s Vice President of Policy and Advocacy has accepted the position of Chief Deputy at the California Children and Families Commission (First 5 California), with pride, and congratulations to Jackie in her new position, and deep gratitude for her service.
Jackie has played a crucial and central leadership role in helping GRACE and the End Child Poverty CA (ECPCA) Coalition work with each of you, the Governor, and committed legislators in achieving the historic implementation of the recommendations made by the Lifting Children and Families Out of Poverty Task Force. 33 of the 47 Task Force recommendations have been adopted, with $4.8 billion in new comprehensive investments. This progress could not have been achieved without Jackie’s guidance, experience, commitment, and the respect in which she is held within state government.
Despite the loss of Jackie’s direct day to day involvement with GRACE/ECPCA, however, having served as a First 5 California Commissioner for eight years, I am grateful that she will now be in a central leadership role in implementing and building on the key 0–5-year-old investments that have been made. Her wisdom and leadership are needed in her new role now more than ever. We will continue to rely on her guidance and partnership. Jackie’s letter to the GRACE/ECPCA coalition partners can be found here.
We are fortunate to also be able to announce that Michelle Rubalcava, an experienced attorney, former legislative staff member, and former Senior Legislative Advocate for Los Angeles County will join GRACE/ECPCA as our retained Policy Advocate.
Michelle has over twenty years of extensive experience in and around state politics as a legislative staff member, health care attorney, and legislative advocate. She has worked for distinguished legislators such as Senator Denise Moreno Ducheny and Senator Bryon Sher. As Senior Legislative Advocate for the County of Los Angeles, she specialized in health, mental health, and public health issues. Her personal and professional experiences will assist and enhance GRACE/ECPCA’s ability to convene key legislative leaders, maximize the effectiveness of the ECPCA Coalition and add significant strength to our efforts to implement the End Child Poverty Plan. Michelle has shown a deep commitment to the GRACE/ECPCA mission of ending child and family poverty in our state and we look forward to working with her. She is Senior Counsel at the law firm of Nielsen Merksamer Parrinello Gross & Leoni, which has a long association with GRACE/ECPCA.
Conway
Conway Collis President and CEO of GRACE & End Child Poverty California
Civil Rights Hero and Congressmember John Lewis died Friday, July 17, 2020. His light, guidance and words remain very much with us.
Three years ago, Rep. Lewis led the rally that launched GRACE’s End Child Poverty in California campaign. He told us: “Never, ever give up on any child. Never.”
Here is a clip of Congressman Lewis leading the rally kicking off GRACE’s End Child Poverty California campaign in 2017. It is inspiring.
Here are additional photos from the event we are proud to share. Rest in power, John Lewis.
We want to share End Child Poverty California movement wins from the most recent California budget.
In spite of the fact that this continues to be an incredibly difficult year, we are moving forward together. We’re proud to work with such a phenomenal group of partners, parents and advocates. We believe ALL our children deserve to be healthy, housed and fed.
On June 29, 2020, California’s newest state budget was finalized. For the first time ever, undocumented families are included in the poverty-fighting CalEITC cash-back tax credit.
This means money going directly to working families who have been left out of economic relief and necessary income supports during the COVID-19 pandemic. We know this money will be used in local communities. We know it will support some of our most vulnerable undocumented families who urgently need money for food, bills, and health care.
The CalEITC tax credit change applies to undocumented families who have children under six, and who file taxes using an Individual Tax Identification Number. These families don’t have Social Security Numbers, but they pay taxes. The change also includes the $1,000 Young Child Tax Credit for any family with children under six earning $1 or more. These changes go into effect next year. For the first time, ALL California families with young children who file taxes and make less than about $30,000 per year will be eligible for these life-saving credits.
We will continue working hard alongside our partners and the CalEITC Coalition and the Safety Net For All Coalition (a network of over 125 organizations) so that more California families can be included in immediate and ongoing relief.
And there is more good news: Both of our End Child Poverty California Senate bills passed out of the State Senate with bipartisan support!
Senate Bill 1103: Workforce Support Services for Californians (Authored by Sen. Melissa Hurtado)
Many promising youth and community members haven’t been able to complete career training programs that lead to higher wage jobs and a path out of poverty, due to the daily challenges of living in poverty. These include lack of child care, commutes of two- to three-hours each way, and the need to work multiple low-wage jobs to support their families while going to training.
SB 1103 by Senator Melissa Hurtado (D – Fresno, Kern, Kings and Tulare Counties) creates the High Roads Workforce Training Program that addresses the issues that stop people from graduating. This is an important commitment to families and brighter futures. SB 1103 is particularly important to California’s economic recovery from COVID-19.
Read Alicia’s and Lesly’s stories about why SB 1103 is so important.
Senate Bill 1409: CalEITC Tax Credit Auto-filing Pilot for Families with Low Incomes (Authored by Senator Anna Caballero)
We know that many families earn so little that they are not required to file taxes, yet they are eligible for the CalEITC tax credit and Young Child Tax Credit that would help them with stability and basic necessities.
SB 1409 authored by Senator Caballero (D – Salinas Valley and parts of the Central Valley) seeks to develop efficiencies in tax filing, so that families can directly receive their CA EITC and other tax benefits. Research has shown that as much as $2 Billion State and Federal Tax Credits are left unclaimed. This bill would cut through bureaucracy and would create methods for direct payments to families.
This crisis has had an outsized impact on our families in poverty and together we can make sure we change the way we support and create opportunities for families. Looking forward to sharing more good news in support of children and families soon.
More California budget news and analysis from partners:
End Child Poverty movement co-chairs Dolores Huerta and Conway Collis, alongside dozens of End Child Poverty California movement partners, have begun speaking directly with members of Congress in California and now others across the country during the COVID-19 crisis. In the video advocacy calls, partners are sharing stories of what they are seeing on the ground as the crisis continues to unfold:
desperate need for cash-in-hand for families
food banks running out of food
transition-age foster youth with nowhere to go
parents in tears finding out they qualify for money in tax credits
community health clinics trying to get enough PPE as prices increase tenfold
“I have been fighting for the child tax credit since 2003. We have a child tax credit system in place. Today it leaves out ⅓ of children, and families, because they earn too little. I’ve been fighting since the first CARES package, to get expansion of child tax credit, and it’s now full blown in this HEROES act. It’s fully refundable, so it brings those who have been left out and brings them in. If it’s done it will lift nearly one half of children out of poverty. The child tax credit is all about ending child poverty. I support direct payments, but the direct payments will go away the way they did in 2009. The mechanism, the foundation, the structure of the child tax credit is there, we need to build on it, we only have it for this year.”
Rep. Rosa DeLauro, D-CT
“We have served double the amount of people we usually serve on a monthly basis. We don’t just want to continue to serve people in crises, as important as it is. We want to provide the pathway to independence. We know that while we as professionals, or people who are doing work each and every day, we have statistics and individual stories, but there’s no better advocate than the individual who is actually experiencing a particular circumstance and has been able to develop his or her voice, to be sure that the story gets told in an authentic way.”
What motivates me is how working class people deal with daily life everything from how they work, how they make money, how do they get health care, how do they pay for their rent, their mortgage, based on my own experience, growing up without health care, seeing my parents work multiple jobs, seeing how these programs really provide a lifeline and even a boost up to really change their lives. Since coronavirus hit, how do we make sure how these people don’t get left behind? The coronavirus isn’t creating a health crisis, the disparities were already there. We’re trying to make sure that when we come out of this, we don’t have a further divide between the haves and the have nots.
Rep. Jimmy Gomez, D-CA
We are seeing unbelievable needs. In the last 6 weeks we’ve already distributed 30,000 diapers, thousands of meals and other essentials like soap, and the demand is getting greater every day. We’ve provided 700 digital devices to preschool-age kids, because the digital divide affects them too, not just the K-12 students. We are the safety net — the wraparound services – and we’re keeping kids engaged. At one of our partner schools in Watts, out of 350 students, 150 are unaccounted for. We’re really looking at a lost generation of students at this point. The services for pre-k through community college are so crucial.
I’m grateful to all of you. I’m grateful for the work you do supporting children and families every day. We’ve taken note of every single effort you’ve raised. We will go to the speaker re-energized by this call, outlining the issues you’ve emphasized in particular, to see what we can get. We need substantial resources to the states… and [to] programs and nonprofits that are feeding children, housing children… we’re going to do our very best.
Rep. Zoe Lofgren, D-CA
80% of people coming into get food now are coming in to get it for the first time. The situation is dire. We’re dealing with three crises at once: the pandemic, the economic collapse, and massive hunger.
I want to say “thank you” to all the participants and the extraordinary work that you do day in and day out…We’re talking about people that are hungry, we’re talking about people who need nutrition, we’re talking about food banks that are running out of money. The case is clear that much more needs to be done. This is an important conversation that we’ve had today. I’ll do everything I can humanly do to address these things.
Rep. Anna Eshoo, D-CA
Because of the existing fragility of the system of care, a recent national analysis showed that we could lose up to 4.5 million child care slots as a result of this crisis, including losing an estimated 51% in California if child care providers don’t receive support in the next few weeks.
[W]e are seeing so much of society through the lens of this pandemic and it’s revealing so many of the changes we need to make. We need to ‘build back better.’ We need to take care of those most in need and also build the county back better than where we found it. [We can] emerge stronger as a result. In the meantime, we need to make sure families can get through this.
Rep. Adam Schiff, D-CA
[The increased child tax credit] is one way that these families will be able to put food on the table, pay the rent… this is one way that families can sustain themselves. We’re glad for your leadership and we know you’re going to be our champion.
Thank you for being on this call and fighting the good fight. [The latest relief packages] are a necessary first step but not enough, far to small and far too short.
Rep. Ted Lieu, D-CA
What we’re seeing is our communities falling deeper into poverty. We’ve been working on workers rights and protecting against exploitation. Over the last few weeks those calls have stopped and all the calls we’re getting are from people who are no longer employed at all. Oftentimes folks in our communities don’t have access…state agencies are overwhelmed… Looking at the expansion of the child tax credit–it’s a really critical piece to enhance income for low-income families and ultimately help families to get the cash assistance they need.
When you have a crisis like this, you don’t know how your communities are going to be impacted. It’s why the work you’re doing is critically important. We need to educate about poverty. Everything your campaign is doing is lifting everyone’s education. You’re setting an example that can be replicated across the country.
This is a pandemic. It doesn’t discriminate based on whether a person is documented or undocumented. We will not succeed in a fourth package unless we organize. We’re talking about bringing together the entire civil rights and social justice community. We need to be very prescriptive in what we need to get passed and then fight for it.
Rep. Karen Bass, D-CA, Chair of the Congressional Black Caucus
These Federal legislative visits have averaged 45 participants per call for a total of 276 participants across six calls to-date (5-20-20).