diff --git a/changelog.d/ca-medi-cal-asset-limit-2027.fixed.md b/changelog.d/ca-medi-cal-asset-limit-2027.fixed.md
new file mode 100644
index 00000000000..8ef1392b9b2
--- /dev/null
+++ b/changelog.d/ca-medi-cal-asset-limit-2027.fixed.md
@@ -0,0 +1 @@
+California's non-MAGI Medi-Cal asset limit falls to $21,000 for one person and $31,000 for two on July 1, 2027 (SB 164) in the aged, blind and disabled, medically needy, Medicare Savings Program and 250% Working Disabled Program limits; the Working Disabled Program also adds $1,550 for each person beyond two.
diff --git a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/couple.yaml b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/couple.yaml
index dc218d5281d..bbbf0333027 100644
--- a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/couple.yaml
+++ b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/couple.yaml
@@ -24,6 +24,8 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/22-25.pdf#page=1
     - title: "California DHCS All County Welfare Directors Letter 25-14, Reinstatement of Asset Limits for Non-MAGI Medi-Cal Programs #page 1,8-9"
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-14.pdf#page=1
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
     - title: Illinois Department of Human Services Policy Manual PM 07-02-01 - Asset Limits
       href: https://www.dhs.state.il.us/page.aspx?Item=14876
     - title: New York DOH GIS 22 MA/01, Attachment I, 2022 SSI-Related Medicaid Income and Resource Levels
@@ -52,6 +54,8 @@ CA:
   2022-07-01: 195_000
   2024-01-01: .inf
   2026-01-01: 195_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 31_000
 CO:
   2018-01-01: -.inf
 CT:
diff --git a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/individual.yaml b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/individual.yaml
index 671d6701178..90db6b04853 100644
--- a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/individual.yaml
+++ b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/medically_needy/limit/assets/individual.yaml
@@ -24,6 +24,8 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/22-25.pdf#page=1
     - title: "California DHCS All County Welfare Directors Letter 25-14, Reinstatement of Asset Limits for Non-MAGI Medi-Cal Programs #page 1,8-9"
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-14.pdf#page=1
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
     - title: Illinois Department of Human Services Policy Manual PM 07-02-01 - Asset Limits
       href: https://www.dhs.state.il.us/page.aspx?Item=14876
     - title: New York DOH GIS 22 MA/01, Attachment I, 2022 SSI-Related Medicaid Income and Resource Levels
@@ -52,6 +54,8 @@ CA:
   2022-07-01: 130_000
   2024-01-01: .inf
   2026-01-01: 130_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 21_000
 CO:
   2018-01-01: -.inf
 CT:
diff --git a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/couple.yaml b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/couple.yaml
index afea68f27d3..c958037b41f 100644
--- a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/couple.yaml
+++ b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/couple.yaml
@@ -12,6 +12,8 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/21-31.pdf#page=2
     - title: "Asset Limit Changes for Non-MAGI Medi-Cal | California DHCS (asset limit reinstated at $130,000 plus $65,000 per additional household member effective January 1, 2026)"
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/Pages/Asset-Limit-Changes-for-Non-MAGI-Medi-Cal.aspx
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
     - title: "California DHCS All County Welfare Directors Letter 25-14 (reinstatement of the non-MAGI Medi-Cal asset limit)"
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-14.pdf
     - title: Missouri DSS MO HealthNet for the Aged, Blind and Disabled Appendix J - Eligibility Standards for Non-MAGI Programs (10/2026 edition; spend down resource maximum effective July 1, 2026)
@@ -54,6 +56,8 @@ CA:
   2022-07-01: 195_000
   2024-01-01: .inf
   2026-01-01: 195_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 31_000
 CO:
   2015-01-01: 3_000
 CT:
diff --git a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/individual.yaml b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/individual.yaml
index 5f2cd8074a8..f61179a3cc0 100644
--- a/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/individual.yaml
+++ b/policyengine_us/parameters/gov/hhs/medicaid/eligibility/categories/senior_or_disabled/assets/limit/individual.yaml
@@ -12,6 +12,8 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/21-31.pdf#page=2
     - title: "Asset Limit Changes for Non-MAGI Medi-Cal | California DHCS (asset limit reinstated at $130,000 for an individual effective January 1, 2026)"
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/Pages/Asset-Limit-Changes-for-Non-MAGI-Medi-Cal.aspx
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
     - title: "California DHCS All County Welfare Directors Letter 25-14 (reinstatement of the non-MAGI Medi-Cal asset limit)"
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-14.pdf
     - title: Missouri DSS MO HealthNet for the Aged, Blind and Disabled Appendix J - Eligibility Standards for Non-MAGI Programs (10/2026 edition; spend down resource maximum effective July 1, 2026)
@@ -54,6 +56,8 @@ CA:
   2022-07-01: 130_000
   2024-01-01: .inf
   2026-01-01: 130_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 21_000
 CO:
   2015-01-01: 2_000
 CT:
diff --git a/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/couple.yaml b/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/couple.yaml
index 287c32e9b49..64b6ec4cec9 100644
--- a/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/couple.yaml
+++ b/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/couple.yaml
@@ -14,6 +14,10 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-27.pdf#page=1
     - title: California Welfare and Institutions Code 14005.62(a), (c), (d)
       href: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=WIC&sectionNum=14005.62
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Sections 69 and 71 - Welfare and Institutions Code 14005.62(a) and 14005.11(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
+    - title: California Assembly Bill 173 (Statutes of 2026, Chapter 252), Section 16 - Welfare and Institutions Code 14005.11(h), inoperative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB173
     - title: Minnesota Statutes 256B.057, subdivision 3(a)(3) - Qualified Medicare beneficiaries
       href: https://www.revisor.mn.gov/statutes/cite/256B.057#stat.256B.057.3
     - title: Laws of Minnesota 2000, chapter 488, article 9, section 15
@@ -22,6 +26,7 @@ metadata:
 CA:
   0000-01-01: 0
   2022-07-01: 195_000
+  2027-07-01: 31_000
 MN:
   0000-01-01: 0
   2000-10-01: 18_000
diff --git a/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/individual.yaml b/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/individual.yaml
index 64d882e884b..78841f5e249 100644
--- a/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/individual.yaml
+++ b/policyengine_us/parameters/gov/hhs/medicare/savings_programs/eligibility/asset/state_limit/individual.yaml
@@ -14,6 +14,10 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-27.pdf#page=1
     - title: California Welfare and Institutions Code 14005.62(a), (c), (d)
       href: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=WIC&sectionNum=14005.62
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Sections 69 and 71 - Welfare and Institutions Code 14005.62(a) and 14005.11(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
+    - title: California Assembly Bill 173 (Statutes of 2026, Chapter 252), Section 16 - Welfare and Institutions Code 14005.11(h), inoperative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB173
     - title: Minnesota Statutes 256B.057, subdivision 3(a)(3) - Qualified Medicare beneficiaries
       href: https://www.revisor.mn.gov/statutes/cite/256B.057#stat.256B.057.3
     - title: Laws of Minnesota 2000, chapter 488, article 9, section 15
@@ -22,6 +26,7 @@ metadata:
 CA:
   0000-01-01: 0
   2022-07-01: 130_000
+  2027-07-01: 21_000
 MN:
   0000-01-01: 0
   2000-10-01: 10_000
diff --git a/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/additional_person.yaml b/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/additional_person.yaml
index da5c8f9244b..95796e49d44 100644
--- a/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/additional_person.yaml
+++ b/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/additional_person.yaml
@@ -1,11 +1,21 @@
-description: California increases the asset limit by this amount for each additional person under the Medi-Cal 250 Percent Working Disabled Program.
+description: California increases the asset limit by this amount for each person beyond two under the Medi-Cal 250 Percent Working Disabled Program.
 values:
   2022-07-01: 65_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 1_550
 
 metadata:
   unit: currency-USD
   period: year
-  label: California 250 Percent Working Disabled Program additional-person asset limit
+  label: California 250 Percent Working Disabled Program asset limit for each person beyond two
   reference:
     - title: Working Disabled Program | Department of Health Care Services
       href: https://www.dhcs.ca.gov/services/working-disabled-program/
+    - title: "California DHCS All County Welfare Directors Letter 21-31, Increases to the Asset Limits for Non-Modified Adjusted Gross Income Medi-Cal Programs #page 2,4"
+      href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/21-31.pdf#page=2
+    - title: "California DHCS All County Welfare Directors Letter 25-14, Reinstatement of Asset Limits for Non-MAGI Medi-Cal Programs #page 1,9"
+      href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-14.pdf#page=1
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
+    - title: California Welfare and Institutions Code 14007.9(a)(1)(C)
+      href: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14007.9.&lawCode=WIC
diff --git a/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/base.yaml b/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/base.yaml
index 78b43af2edb..a9bc8c44119 100644
--- a/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/base.yaml
+++ b/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/base.yaml
@@ -3,6 +3,8 @@ values:
   2022-07-01: 130_000
   2024-01-01: .inf
   2026-01-01: 130_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 21_000
 
 metadata:
   unit: currency-USD
@@ -15,3 +17,7 @@ metadata:
       href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/Documents/Eligibility-and-Enrollment-Plan-Asset-Test-Changes-for-Non-MAGI-MC.pdf
     - title: Medi-Cal Program Changes 2026-2028 | Department of Health Care Services
       href: https://www.dhcs.ca.gov/medi-cal/help/medi-cal-changes/
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
+    - title: California Welfare and Institutions Code 14007.9(a)(1)(C)
+      href: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14007.9.&lawCode=WIC
diff --git a/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/two_people.yaml b/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/two_people.yaml
new file mode 100644
index 00000000000..68d98ea4d55
--- /dev/null
+++ b/policyengine_us/parameters/gov/states/ca/chhs/wdp/eligibility/asset/two_people.yaml
@@ -0,0 +1,25 @@
+description: California limits assets to this amount for two people under the Medi-Cal 250 Percent Working Disabled Program.
+values:
+  2022-07-01: 195_000
+  2024-01-01: .inf
+  2026-01-01: 195_000
+  # Annual calculations read parameters on January 1, so the July 1, 2027 value first applies in 2028.
+  2027-07-01: 31_000
+
+metadata:
+  unit: currency-USD
+  period: year
+  label: California 250 Percent Working Disabled Program two-person asset limit
+  reference:
+    - title: Working Disabled Program | Department of Health Care Services
+      href: https://www.dhcs.ca.gov/services/working-disabled-program/
+    - title: "California DHCS All County Welfare Directors Letter 21-31, Increases to the Asset Limits for Non-Modified Adjusted Gross Income Medi-Cal Programs #page 2-4"
+      href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/21-31.pdf#page=2
+    - title: "California DHCS All County Welfare Directors Letter 22-25, Elimination of Asset Limits for Non-MAGI Medi-Cal Programs #page 2,5"
+      href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/22-25.pdf#page=2
+    - title: "California DHCS All County Welfare Directors Letter 25-14, Reinstatement of Asset Limits for Non-MAGI Medi-Cal Programs #page 2,8-9"
+      href: https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/25-14.pdf#page=2
+    - title: California Senate Bill 164 (Statutes of 2026, Chapter 27), Section 69 - Welfare and Institutions Code 14005.62(a), operative July 1, 2027
+      href: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164
+    - title: California Welfare and Institutions Code 14007.9(a)(1)(C)
+      href: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14007.9.&lawCode=WIC
diff --git a/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/is_optional_senior_or_disabled_asset_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/is_optional_senior_or_disabled_asset_eligible.yaml
index 9e2242f8c26..b972b8694d6 100644
--- a/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/is_optional_senior_or_disabled_asset_eligible.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/is_optional_senior_or_disabled_asset_eligible.yaml
@@ -760,3 +760,102 @@
     # 15,000 minus 12,000 leaves 3,000, not under 3,000. An 8,000
     # exclusion per spouse would leave 2,000 + 0 = 2,000.
     is_optional_senior_or_disabled_asset_eligible: [false, false]
+
+# California's limit falls to 21,000 for one person and 31,000 for two on
+# July 1, 2027. This annual variable reads the January 1 value, so the lower
+# limits first apply in 2028.
+- name: assets above the July 2027 CA limit in 2028, ineligible
+  period: 2028
+  input:
+    ssi_countable_resources: 21_001
+    state_code: CA
+  output:
+    is_optional_senior_or_disabled_asset_eligible: false
+
+# Each spouse is under the 21,000 individual limit; combined resources of
+# 31,001 are over the 31,000 couple limit.
+- name: joint filers above the July 2027 CA couple limit in 2028, ineligible
+  period: 2028
+  input:
+    people:
+      person1:
+        ssi_countable_resources: 15_500
+      person2:
+        ssi_countable_resources: 15_501
+    marital_units:
+      marital_unit1:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        tax_unit_is_joint: true
+  output:
+    is_optional_senior_or_disabled_asset_eligible: [false, false]
+
+- name: assets at the July 2027 CA limit in 2028, eligible
+  period: 2028
+  input:
+    ssi_countable_resources: 21_000
+    state_code: CA
+  output:
+    # Resources may not exceed 21,000 (WIC 14005.40(c)(5)).
+    is_optional_senior_or_disabled_asset_eligible: true
+
+- name: joint filers at the July 2027 CA couple limit in 2028, eligible
+  period: 2028
+  input:
+    people:
+      person1:
+        ssi_countable_resources: 15_500
+      person2:
+        ssi_countable_resources: 15_500
+    marital_units:
+      marital_unit1:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        tax_unit_is_joint: true
+  output:
+    # 15,500 + 15,500 = 31,000 does not exceed the couple limit.
+    is_optional_senior_or_disabled_asset_eligible: [true, true]
+
+- name: assets above the July 2027 CA limit in 2027, still eligible
+  period: 2027
+  input:
+    ssi_countable_resources: 21_001
+    state_code: CA
+  output:
+    # January 1, 2027 still reads the 130,000 limit; 21,000 first applies in 2028.
+    is_optional_senior_or_disabled_asset_eligible: true
+
+- name: joint filers above the July 2027 CA couple limit in 2027, still eligible
+  period: 2027
+  input:
+    people:
+      person1:
+        ssi_countable_resources: 15_500
+      person2:
+        ssi_countable_resources: 15_501
+    marital_units:
+      marital_unit1:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        tax_unit_is_joint: true
+  output:
+    # January 1, 2027 still reads the 195,000 couple limit; 31,000 first applies in 2028.
+    is_optional_senior_or_disabled_asset_eligible: [true, true]
diff --git a/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/medically_needy/is_medically_needy_for_medicaid.yaml b/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/medically_needy/is_medically_needy_for_medicaid.yaml
index 7703179e97a..a3934f084f7 100644
--- a/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/medically_needy/is_medically_needy_for_medicaid.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/eligibility/categories/medically_needy/is_medically_needy_for_medicaid.yaml
@@ -776,3 +776,167 @@
   output:
     # WAG 25-03-02(2): 1,803 x 12 = 21,636 (21,640 / 12 = 1,803.33, cents dropped).
     is_medically_needy_for_medicaid: [false, false]
+
+- name: Case 31, California senior with assets above the July 2027 limit is ineligible in 2028.
+  period: 2028
+  input:
+    age: 70
+    is_adult_for_medicaid: false
+    is_optional_senior_or_disabled_for_medicaid: false
+    is_ssi_recipient_for_medicaid: false
+    ssi_countable_income: 9_000
+    medicaid_medically_needy_medical_expenses: 2_000
+    ssi_countable_resources: 21_001
+    state_code: CA
+  output:
+    # Limit 600 x 12 = 7,200. 9,000 - 2,000 = 7,000 is under it, but assets
+    # of 21,001 are over the 21,000 limit that applies from July 2027.
+    is_in_medicaid_medically_needy_category: true
+    is_medically_needy_for_medicaid: false
+
+- name: Case 32, California senior couple with assets above the July 2027 couple limit is ineligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 72
+        is_adult_for_medicaid: false
+        is_optional_senior_or_disabled_for_medicaid: false
+        is_ssi_recipient_for_medicaid: false
+        ssi_countable_income: 9_000
+        medicaid_medically_needy_medical_expenses: 4_000
+        ssi_countable_resources: 15_500
+      person2:
+        age: 70
+        is_adult_for_medicaid: false
+        is_optional_senior_or_disabled_for_medicaid: false
+        is_ssi_recipient_for_medicaid: false
+        ssi_countable_income: 9_000
+        medicaid_medically_needy_medical_expenses: 4_000
+        ssi_countable_resources: 15_501
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        tax_unit_is_joint: true
+    marital_units:
+      marital_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # Limit 934 x 12 = 11,208. (9,000 - 4,000) x 2 = 10,000 is under it, but
+    # combined assets of 31,001 are over the 31,000 couple limit.
+    is_in_medicaid_medically_needy_category: [true, true]
+    is_medically_needy_for_medicaid: [false, false]
+
+- name: Case 33, California senior with assets at the July 2027 limit is eligible in 2028.
+  period: 2028
+  input:
+    age: 70
+    is_adult_for_medicaid: false
+    is_optional_senior_or_disabled_for_medicaid: false
+    is_ssi_recipient_for_medicaid: false
+    ssi_countable_income: 9_000
+    medicaid_medically_needy_medical_expenses: 2_000
+    ssi_countable_resources: 21_000
+    state_code: CA
+  output:
+    # Limit 600 x 12 = 7,200. 9,000 - 2,000 = 7,000 is under it, and assets
+    # of 21,000 are at the 21,000 limit that applies from July 2027; resources
+    # may not exceed it.
+    is_in_medicaid_medically_needy_category: true
+    is_medically_needy_for_medicaid: true
+
+- name: Case 34, California senior couple with assets at the July 2027 couple limit is eligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 72
+        is_adult_for_medicaid: false
+        is_optional_senior_or_disabled_for_medicaid: false
+        is_ssi_recipient_for_medicaid: false
+        ssi_countable_income: 9_000
+        medicaid_medically_needy_medical_expenses: 4_000
+        ssi_countable_resources: 15_500
+      person2:
+        age: 70
+        is_adult_for_medicaid: false
+        is_optional_senior_or_disabled_for_medicaid: false
+        is_ssi_recipient_for_medicaid: false
+        ssi_countable_income: 9_000
+        medicaid_medically_needy_medical_expenses: 4_000
+        ssi_countable_resources: 15_500
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        tax_unit_is_joint: true
+    marital_units:
+      marital_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # Limit 934 x 12 = 11,208. (9,000 - 4,000) x 2 = 10,000 is under it, and
+    # combined assets of 15,500 + 15,500 = 31,000 are at the 31,000 couple
+    # limit; resources may not exceed it.
+    is_in_medicaid_medically_needy_category: [true, true]
+    is_medically_needy_for_medicaid: [true, true]
+
+- name: Case 35, California senior with assets above the July 2027 limit is still eligible in 2027.
+  period: 2027
+  input:
+    age: 70
+    is_adult_for_medicaid: false
+    is_optional_senior_or_disabled_for_medicaid: false
+    is_ssi_recipient_for_medicaid: false
+    ssi_countable_income: 9_000
+    medicaid_medically_needy_medical_expenses: 2_000
+    ssi_countable_resources: 21_001
+    state_code: CA
+  output:
+    # Limit 600 x 12 = 7,200. 9,000 - 2,000 = 7,000 is under it. January 1,
+    # 2027 still reads the 130,000 asset limit; 21,000 first applies in 2028.
+    is_in_medicaid_medically_needy_category: true
+    is_medically_needy_for_medicaid: true
+
+- name: Case 36, California senior couple with assets above the July 2027 couple limit is still eligible in 2027.
+  period: 2027
+  input:
+    people:
+      person1:
+        age: 72
+        is_adult_for_medicaid: false
+        is_optional_senior_or_disabled_for_medicaid: false
+        is_ssi_recipient_for_medicaid: false
+        ssi_countable_income: 9_000
+        medicaid_medically_needy_medical_expenses: 4_000
+        ssi_countable_resources: 15_500
+      person2:
+        age: 70
+        is_adult_for_medicaid: false
+        is_optional_senior_or_disabled_for_medicaid: false
+        is_ssi_recipient_for_medicaid: false
+        ssi_countable_income: 9_000
+        medicaid_medically_needy_medical_expenses: 4_000
+        ssi_countable_resources: 15_501
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        tax_unit_is_joint: true
+    marital_units:
+      marital_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # Limit 934 x 12 = 11,208. (9,000 - 4,000) x 2 = 10,000 is under it. January 1,
+    # 2027 still reads the 195,000 couple limit; 31,000 first applies in 2028.
+    is_in_medicaid_medically_needy_category: [true, true]
+    is_medically_needy_for_medicaid: [true, true]
diff --git a/policyengine_us/tests/policy/baseline/gov/hhs/medicare/savings_programs/eligibility/msp_asset_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/hhs/medicare/savings_programs/eligibility/msp_asset_eligible.yaml
index 8d1555c36b1..feaba98d662 100644
--- a/policyengine_us/tests/policy/baseline/gov/hhs/medicare/savings_programs/eligibility/msp_asset_eligible.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/hhs/medicare/savings_programs/eligibility/msp_asset_eligible.yaml
@@ -349,3 +349,91 @@
     msp_asset_eligible:
       2022-06: [false, false]
       2022-07: [true, true]
+
+- name: Case 22, California's MSP individual asset limit falls to 21,000 in July 2027.
+  period: 2027
+  input:
+    age: 67
+    bank_account_assets: 21_001
+    spm_unit_is_married: false
+    state_code: CA
+  output:
+    # 21,001 is under 130,000 in June and over 21,000 from July; the federal
+    # limit is lower than both.
+    msp_asset_eligible:
+      2027-06: true
+      2027-07: false
+
+- name: Case 23, California's MSP couple asset limit falls to 31,000 in July 2027.
+  period: 2027
+  input:
+    people:
+      person1:
+        age: 70
+        bank_account_assets: 15_500
+      person2:
+        age: 68
+        bank_account_assets: 15_501
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    marital_units:
+      marital_unit:
+        members: [person1, person2]
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        spm_unit_is_married: true
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # Combined 31,001 is under 195,000 in June and over 31,000 from July; the
+    # federal couple limit is lower than both.
+    msp_asset_eligible:
+      2027-06: [true, true]
+      2027-07: [false, false]
+
+- name: Case 24, California's MSP individual asset limit admits assets at 21,000 in July 2027.
+  period: 2027
+  input:
+    age: 67
+    bank_account_assets: 21_000
+    spm_unit_is_married: false
+    state_code: CA
+  output:
+    # 21,000 is at the 21,000 limit that applies from July 2027; resources may
+    # not exceed it.
+    msp_asset_eligible:
+      2027-07: true
+
+- name: Case 25, California's MSP couple asset limit admits combined assets at 31,000 in July 2027.
+  period: 2027
+  input:
+    people:
+      person1:
+        age: 70
+        bank_account_assets: 15_500
+      person2:
+        age: 68
+        bank_account_assets: 15_500
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    marital_units:
+      marital_unit:
+        members: [person1, person2]
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        spm_unit_is_married: true
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # 15,500 + 15,500 = 31,000 is at the 31,000 couple limit that applies from
+    # July 2027; resources may not exceed it.
+    msp_asset_eligible:
+      2027-07: [true, true]
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.yaml
new file mode 100644
index 00000000000..17efb758a5e
--- /dev/null
+++ b/policyengine_us/tests/policy/baseline/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.yaml
@@ -0,0 +1,338 @@
+- name: Case 1, two-person tax unit at the 2026 two-person limit is eligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 100_000
+      person2:
+        age: 43
+        ssi_countable_resources: 95_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # 100,000 + 95,000 = 195,000 is at the 195,000 two-person limit; resources
+    # may not exceed it.
+    ca_wdp_asset_eligible: [true, true]
+
+- name: Case 2, one person at the July 2027 one-person limit is eligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 21_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: CA
+  output:
+    # 21,000 is at the 21,000 limit; resources may not exceed it.
+    ca_wdp_asset_eligible: true
+
+- name: Case 3, one person above the July 2027 one-person limit is ineligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 21_001
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: CA
+  output:
+    # 21,001 is over the 21,000 limit.
+    ca_wdp_asset_eligible: false
+
+- name: Case 4, two-person tax unit at the July 2027 two-person limit is eligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 15_500
+      person2:
+        age: 43
+        ssi_countable_resources: 15_500
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # 15,500 + 15,500 = 31,000 is at the 31,000 two-person limit; resources
+    # may not exceed it.
+    ca_wdp_asset_eligible: [true, true]
+
+- name: Case 5, two-person tax unit above the July 2027 two-person limit is ineligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 15_500
+      person2:
+        age: 43
+        ssi_countable_resources: 15_501
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # 15,500 + 15,501 = 31,001 is over the 31,000 two-person limit.
+    ca_wdp_asset_eligible: [false, false]
+
+- name: Case 6, three-person tax unit at the July 2027 three-person limit is eligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 16_000
+      person2:
+        age: 43
+        ssi_countable_resources: 16_550
+      person3:
+        age: 10
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: CA
+  output:
+    # Limit 31,000 + 1 x 1,550 = 32,550. 16,000 + 16,550 + 0 = 32,550 is at
+    # it; resources may not exceed it.
+    ca_wdp_asset_eligible: [true, true, true]
+
+- name: Case 7, three-person tax unit above the July 2027 three-person limit is ineligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 16_000
+      person2:
+        age: 43
+        ssi_countable_resources: 16_551
+      person3:
+        age: 10
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: CA
+  output:
+    # Limit 31,000 + 1 x 1,550 = 32,550. 16,000 + 16,551 + 0 = 32,551 is over
+    # it.
+    ca_wdp_asset_eligible: [false, false, false]
+
+- name: Case 8, one person above the July 2027 one-person limit is still eligible in 2027.
+  period: 2027
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 21_001
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_code: CA
+  output:
+    # January 1, 2027 still reads the 130,000 limit; 21,000 first applies in 2028.
+    ca_wdp_asset_eligible: true
+
+- name: Case 9, three-person tax unit at the 2026 three-person limit is eligible.
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 130_000
+      person2:
+        age: 43
+        ssi_countable_resources: 130_000
+      person3:
+        age: 10
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: CA
+  output:
+    # Limit 195,000 + 1 x 65,000 = 260,000. 130,000 + 130,000 + 0 = 260,000 is
+    # at it; resources may not exceed it.
+    ca_wdp_asset_eligible: [true, true, true]
+
+- name: Case 10, eleven-person tax unit at the ten-person cap limit is eligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 21_700
+      person2:
+        age: 43
+        ssi_countable_resources: 21_700
+      person3:
+        age: 17
+      person4:
+        age: 16
+      person5:
+        age: 15
+      person6:
+        age: 14
+      person7:
+        age: 12
+      person8:
+        age: 10
+      person9:
+        age: 8
+      person10:
+        age: 6
+      person11:
+        age: 3
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3, person4, person5, person6, person7, person8, person9, person10, person11]
+    households:
+      household:
+        members: [person1, person2, person3, person4, person5, person6, person7, person8, person9, person10, person11]
+        state_code: CA
+  output:
+    # Size is capped at 10: 31,000 + 8 x 1,550 = 43,400. 21,700 + 21,700 =
+    # 43,400 is at it; resources may not exceed it.
+    ca_wdp_asset_eligible: [true, true, true, true, true, true, true, true, true, true, true]
+
+- name: Case 11, eleven-person tax unit above the ten-person cap limit is ineligible in 2028.
+  period: 2028
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 21_700
+      person2:
+        age: 43
+        ssi_countable_resources: 21_701
+      person3:
+        age: 17
+      person4:
+        age: 16
+      person5:
+        age: 15
+      person6:
+        age: 14
+      person7:
+        age: 12
+      person8:
+        age: 10
+      person9:
+        age: 8
+      person10:
+        age: 6
+      person11:
+        age: 3
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3, person4, person5, person6, person7, person8, person9, person10, person11]
+    households:
+      household:
+        members: [person1, person2, person3, person4, person5, person6, person7, person8, person9, person10, person11]
+        state_code: CA
+  output:
+    # Size is capped at 10: 31,000 + 8 x 1,550 = 43,400. 21,700 + 21,701 =
+    # 43,401 is over it.
+    ca_wdp_asset_eligible: [false, false, false, false, false, false, false, false, false, false, false]
+
+- name: Case 12, two-person tax unit above the July 2027 two-person limit is still eligible in 2027.
+  period: 2027
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 15_500
+      person2:
+        age: 43
+        ssi_countable_resources: 15_501
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # January 1, 2027 still reads the 195,000 two-person limit; 31,000 first
+    # applies in 2028.
+    ca_wdp_asset_eligible: [true, true]
+
+- name: Case 13, three-person tax unit at the 2027 three-person limit is eligible.
+  period: 2027
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 130_000
+      person2:
+        age: 43
+        ssi_countable_resources: 130_000
+      person3:
+        age: 10
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: CA
+  output:
+    # January 1, 2027 reads 195,000 + 1 x 65,000 = 260,000. 130,000 + 130,000
+    # + 0 = 260,000 is at it; resources may not exceed it.
+    ca_wdp_asset_eligible: [true, true, true]
+
+- name: Case 14, two-person tax unit with large assets is eligible in 2025, when no asset limit applied.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 45
+        ssi_countable_resources: 500_000
+      person2:
+        age: 43
+        ssi_countable_resources: 500_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: CA
+  output:
+    # ACWDL 22-25 eliminated the limit from January 1, 2024; ACWDL 25-14
+    # reinstated it from January 1, 2026.
+    ca_wdp_asset_eligible: [true, true]
diff --git a/policyengine_us/variables/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.py b/policyengine_us/variables/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.py
index 9ad8d1ec58f..6c1033ef7f6 100644
--- a/policyengine_us/variables/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.py
+++ b/policyengine_us/variables/gov/states/ca/chhs/wdp/eligibility/ca_wdp_asset_eligible.py
@@ -6,7 +6,11 @@ class ca_wdp_asset_eligible(Variable):
     entity = Person
     label = "California 250 Percent Working Disabled Program asset eligible"
     definition_period = YEAR
-    reference = "https://www.dhcs.ca.gov/services/working-disabled-program/"
+    reference = (
+        "https://www.dhcs.ca.gov/services/working-disabled-program/",
+        "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=14007.9.&lawCode=WIC",
+        "https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB164",
+    )
     defined_for = StateCode.CA
 
     def formula(person, period, parameters):
@@ -16,5 +20,9 @@ def formula(person, period, parameters):
         )
         tax_unit_size = person.tax_unit("tax_unit_size", period)
         capped_size = min_(tax_unit_size, p.max_people)
-        asset_limit = p.base + max_(capped_size - 1, 0) * p.additional_person
+        asset_limit = where(
+            capped_size >= 2,
+            p.two_people + (capped_size - 2) * p.additional_person,
+            p.base,
+        )
         return countable_resources <= asset_limit