CalMoneySmart 2026-2028 Grant Program

Purpose

CalMoneySmart aims to advance financial empowerment for unbanked and underbanked Californians by investing in nonprofit organizations that deliver free, high-quality financial education and related services. The program equips nonprofits with grants of up to $200,000 per year to help reduce socioeconomic disparities, improve access to safe and affordable financial products, and ultimately promote greater financial security statewide.

Description

Grant funds may only be used for the following financial education and empowerment services for the targeted at-risk unbanked and underbanked populations: 1) Designing, developing, or offering, free of charge to consumers, classroom or web-based financial education and empowerment content intended to help unbanked and underbanked consumers achieve, identify, and access lower cost financial products and services, establish or improve their credit, increase their savings, or lower their debt. 2) Providing individualized, free financial coaching to unbanked and underbanked consumers. 3) Designing, developing, or offering, free of charge to consumers, a financial product or service intended to help unbanked and underbanked consumers identify and access responsible financial products and financial services, establish or improve their credit, increase their savings, or lower their debt. Every project funded with a grant from the Financial Empowerment Fund shall meet the following criteria: 1) Promote and enhance the economic security of consumers. 2) Adhere to the five principles of effective financial education described in the June 2017 report issued by the federal Consumer Financial Protection Bureau titled “Effective financial education: Five principles and how to use them.” Grant awards will be announced for a two-year period covering two consecutive fiscal years (2026-27 and 2027-28). Funds for each fiscal year are disbursed separately, and any unexpended funds must be returned to the DFPI. Disbursement of funding for the second fiscal year is contingent on submission of a satisfactory annual report. Grantees may use no more than 15 percent of the grant to cover administrative (indirect) costs. Failure to comply shall render the Applicant ineligible for a grant during the subsequent fiscal year and until the noncompliance is corrected. A grantee may subcontract services that it has agreed to provide under the grant agreement, so long as those services are conducted on behalf of the grantee. Subcontract arrangements must be clearly described in the scope of work and budget. Accepting grant funds with the intent of distributing those funds to other nonprofit organizations (i.e. sub-grants or fiscal sponsorship) is not allowed. Grant funding may not be used for financial incentives for individuals. Prohibited incentives include, but are not limited to, match funding for savings accounts, participant stipends, or gift cards with a cash value. Grantees are required to submit quarterly and final annual reports, in a form and by a date specified by the Commissioner of Financial Protection and Innovation, documenting: 1) The specific uses to which grant funds were allocated, 2) The specified required data elements, 3) Quantitative results regarding the impact of grant funding, and 4) Any other information requested by the Commissioner. Failure to submit satisfactory reports shall render the Applicant ineligible for any DFPI grant during the subsequent fiscal year and until the required report is submitted.