Anti-Poverty Advocates Grateful for Budget Investments in…
FOR IMMEDIATE RELEASE June 13, 2025
… Free Tax Preparation; Urge Governor to Strengthen Investments in Children and Families
SACRAMENTO, CA — Today, Prosper California, a broad coalition of anti-poverty and economic justice advocates, recognized Legislative leaders for passing a state budget that made strides in protecting vital investments in the safety net originally cut in the Governor’s May Revision, but still leaves communities––especially immigrant families––behind. Anti-poverty advocates also thanked state leaders for preserving $10 million annually in the Free Tax Preparation Assistance (FTPA) and California Earned Income Tax Credit (CalEITC) Outreach and Education (O&E) programs, expressing hope that the full $20 million in funding will be restored in future budget years. Prosper California urges the Legislature and Governor to examine every available option to address budget challenges, rather than defaulting to cuts that harm working families, and this means not ruling out revenue-raising measures.
“We’re grateful that state leaders preserved critical investments in CalEITC outreach and free tax preparation services that help Californians—especially low-income families, and communities of color—access the money they’re rightfully owed,” said Amy Everitt, President of Golden State Opportunity. “These programs are not only proven tools to fight poverty and support families but they are a matter of economic justice. As federal threats escalate and the cost of living continues to rise, California must lead with bold, equity-driven investments to ensure everyone has access to these life-changing resources.”
“We appreciate the commitment of the Legislature to assure access to life-changing refundable tax credits for working families by maintaining ongoing investments in free tax preparation and outreach services,” said Danielle Bautista, Director of Policy for United Ways of California. “However, as the fourth largest economy in the world, California has the capacity to do more for those who need it most by not only protecting, but expanding investments into programs we know work."
“We are encouraged to see the Legislatur prioritize funding for proven, community-based solutions like Free Tax Preparation Assistance (FTPA) and Outreach & Education (O&E), which help families access the resources they’ve earned and build long-term economic stability. At the same time, this budget still leaves too many Californians behind—particularly immigrant families who have been cut out of the affordable health care they were promised and denied adequate legal services to meet this moment," said Sam Wilkinson, Senior Policy Associate of End Child Poverty CA powered by GRACE. “In a state where families are being disappeared from workplaces, schools, and churches; where LA faces militarized raids just months after devastating wildfires; and where nonprofits providing critical support are systematically targeted—we must do more. We urge lawmakers to pursue bold, equitable revenue solutions that protect and expand investments in every child and every family—regardless of immigration status.”
Funding for Free Tax Preparation Assistance and CalEITC Outreach and Education programs helps expand local community-based organizations’ reach to Californians who use these services to get every dollar of their tax refund they are owed. For years, these community-based organizations have provided free in-person and online taxpayer assistance, helping tens of thousands of Californians access quality tax filing services and anti-poverty tax credits like the California Earned Income Tax Credit (CalEITC), Young Child Tax Credit (YCTC), and Foster Youth Tax Credit (FYTC). In 2024 alone, these tax credits combined helped Californians get $1.4 billion in their tax refunds, and over 3.5 million households benefited from CalEITC.
Prosper California continues to urge state leaders to restore $20 million annually for Free Tax Preparation Assistance and Outreach and Education programs in future budgets to help even more Californians file their state and federal tax returns and claim the tax credits they are entitled to. Tax credits not only help Californians afford the soaring costs of living, they provide a significant boost to local economies – for every dollar invested in tax credits, up to two dollars is spent locally, helping to support small businesses and local jobs. Strengthening investments in these complementary programs is even more crucial as the Trump Administration and Congress propose eliminating the Direct File program and as the federal administration intends to close local IRS taxpayer assistance centers.
The CalEITC provides eligible tax filers up to $3,644 and the YCTC provides up to $1,154 annually. In addition to connecting tax filers with anti-poverty tax credits, FTPA offered at Volunteer Income Tax Assistance (VITA) sites can also help facilitate access to other crucial safety net programs like WIC, SNAP, and health care.
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