diff --git a/changelog.d/hub-ca-care-excludes-snap-1010.fixed.md b/changelog.d/hub-ca-care-excludes-snap-1010.fixed.md
new file mode 100644
index 00000000000..084d1437bde
--- /dev/null
+++ b/changelog.d/hub-ca-care-excludes-snap-1010.fixed.md
@@ -0,0 +1 @@
+Exclude SNAP benefits from California CARE and FERA countable income in all modeled years.
diff --git a/policyengine_us/parameters/gov/states/ca/cpuc/income_sources.yaml b/policyengine_us/parameters/gov/states/ca/cpuc/income_sources.yaml
index 066d595d891..3a8a29b4b35 100644
--- a/policyengine_us/parameters/gov/states/ca/cpuc/income_sources.yaml
+++ b/policyengine_us/parameters/gov/states/ca/cpuc/income_sources.yaml
@@ -11,7 +11,13 @@ description: >-
 # employment-related, non-cash income. The same footnote appears on the
 # CPUC-filed tariff sheet referenced below.
 #
-# Housing subsidies are the one exception. D.14-08-030, issued August 14,
+# SNAP benefits are excluded in both dated lists: 7 U.S.C. 2017(b) prohibits
+# treating their value as income or resources under any federal, state or
+# local law, including California's CARE and FERA programs.
+# The same exclusion appears in the 2010 statute, before the housing
+# decision; this corrects all modeled years rather than adding a new date.
+#
+# Separately, D.14-08-030, issued August 14,
 # 2014, holds in Section 6.2 that the income definition remains unchanged
 # except that housing subsidies will not be considered income, and Ordering
 # Paragraph 40(3) adopts "Housing subsidies are not counted as income". The
@@ -67,7 +73,6 @@ values:
   # Public assistance payments
   - tanf
   - ssi
-  - snap
   - wic
   # Social Security
   - social_security
@@ -110,7 +115,6 @@ values:
   # Public assistance payments
   - tanf
   - ssi
-  - snap
   - wic
   # Social Security
   - social_security
@@ -137,6 +141,10 @@ metadata:
   period: year
   label: CA CPUC CARE/FERA income sources
   reference:
+    - title: 7 U.S.C. 2017(b), exclusion of SNAP benefits from income and resources
+      href: https://www.govinfo.gov/content/pkg/USCODE-2024-title7/html/USCODE-2024-title7-chap51-sec2017.htm
+    - title: 7 U.S.C. 2017(b), 2010 edition
+      href: https://www.govinfo.gov/content/pkg/USCODE-2010-title7/pdf/USCODE-2010-title7-chap51-sec2017.pdf#page=1
     - title: PG&E Form 01-9077, CARE/FERA Program Application (Rev. 6.26)
       href: https://www.pge.com/assets/pge/localized/en/docs/account/billing-and-assistance/care-fera-application.pdf
     - title: >-
diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/cpuc/ca_cpuc_countable_income.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/cpuc/ca_cpuc_countable_income.yaml
index b95a58c4a11..f5786bf4c18 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/ca/cpuc/ca_cpuc_countable_income.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/ca/cpuc/ca_cpuc_countable_income.yaml
@@ -112,3 +112,35 @@
     spm_unit_capped_housing_subsidy: 25
   output:
     ca_cpuc_countable_income: 1_000
+
+- name: SNAP is excluded before the housing assistance exclusion.
+  period: 2013
+  input:
+    age: 40
+    state_code: CA
+    employment_income: 1_000
+    housing_assistance: 500
+    snap: 1_200
+    tanf: 0
+    ssi: 0
+    wic: 0
+  output:
+    # $1,000 wages + $500 housing; SNAP is excluded under 7 U.S.C. 2017(b).
+    # https://www.govinfo.gov/content/pkg/USCODE-2024-title7/html/USCODE-2024-title7-chap51-sec2017.htm
+    ca_cpuc_countable_income: 1_500
+
+- name: SNAP cannot push income at the CARE limit above income eligibility.
+  period: 2026
+  input:
+    age: 40
+    state_code: CA
+    employment_income: 43_280
+    snap: 1_200
+    ca_care_categorically_eligible: false
+  output:
+    # CARE uses the two-person poverty line for a one-person household:
+    # 200% * ($15,960 + $5,680) = $43,280. SNAP adds $0 to countable income
+    # under 7 U.S.C. 2017(b), so income remains exactly at the limit.
+    # https://www.govinfo.gov/content/pkg/USCODE-2024-title7/html/USCODE-2024-title7-chap51-sec2017.htm
+    ca_cpuc_countable_income: 43_280
+    ca_care_income_eligible: true