$725 per month, scheduled for release in July

Some California residents will soon start receiving guaranteed monthly income. The Guaranteed Income Program is specifically for Sacramento County residents. The Sacramento County Guaranteed Income Program provides eligible residents with $725 per month for one year.

Sacramento County Guaranteed Income Program: What is it?

Last month, the Sacramento County Board of Supervisors unanimously approved a guaranteed income program called the Family First Sacramento pilot program. The program aims to help low-income Black and Native American families.

The Sacramento County Guaranteed Income Program, which begins in July, will provide $725 per month to eligible African American and Native American families with children up to age 5.

Approximately 200 low-income households in the county are expected to benefit from the program. Winners will be selected through a drawing.

This program selects beneficiaries who reside in zip codes 95838 (Del Paso Heights), 95828 (Florin), 95815 (North Sacramento), 95823 (Valley High), 95821 (Arden Arcade), and the Wilton Rancheria Tribe.

Sacramento County officials plan to analyze data from the guaranteed income program, including recipients’ financial status and how they spend their money, to find ways to improve the program.

The median household income in Sacramento County was $84,010, with more than 12% of the population living in poverty, according to 2023 census data. Funding for this program comes from state funds and a partnership with United Way California Capital Region.

Increasing popularity of guaranteed income programs

Guaranteed income programs have become popular since the COVID-19 pandemic. Several cities and regions have developed similar programs to support families living in poverty. In the past two years, approximately 150 to 200 guaranteed income pilot programs have been launched in the United States.

For example, Atlanta, Georgia is launching one of the largest guaranteed income pilot programs in 2022 called ‘In Her Hands’. The program provided $850 per month (or $4,300 up front) for two years to 650 black women in three communities in Georgia.

Likewise, California launched its first state-funded guaranteed income pilot program last November. The pilot program paid $1,000 per month to 150 Ventura County residents and $1,200 to 150 San Francisco residents.

Although some guaranteed income programs have spending limits, researchers and advocates believe that no-strings-attached cash not only improves beneficiaries’ financial health but also provides peace of mind.

The Stanford Guaranteed Income Lab, which tracks 31 pilot programs across the country, found that beneficiaries typically spend the most on food and groceries, accounting for 35% of their funds, followed by spending on retail sales and services. It appears to be the next priority (31%). .

Beneficiaries also spend about 10% on transportation costs and about 8% on housing and utilities. Other ways to spend include education, medical, or medical expenses. Some recipients choose to spend the money on things that could earn them more, such as starting a new business or saving for a down payment.