$725 per month comes in July

Some California residents will soon receive a guaranteed monthly income. The guaranteed income program is specifically for Sacramento County residents. Sacramento County’s Guaranteed Income Program gives eligible residents $725 a month for a year.

Sacramento County Guaranteed Income Program: What is it?

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

Sacramento County’s Guaranteed Income Program, launching in July, will provide $725 per month to eligible African American and Native American families with children up to 5 years old.

About 200 low-income families in the province are expected to benefit from the program. Recipients are selected through a lottery system.

The program selects recipients who live in the following zip codes: 95838 (Del Paso Heights), 95828 (Florin), 95815 (North Sacramento), 95823 (Valley High) and 95821 (Arden Arcade), as well as the Wilton Rancheria Tribe.

Sacramento County officials plan to analyze data from the guaranteed income program, such as recipients’ financial health, how they spend the money and more, to find ways to improve the program.

Sacramento County’s median household income was $84,010, while more than 12% of the population lives in poverty, according to 2023 Census data. Funding for the program comes from state money, as well as from a partnership with the United Way California Capital Region.

Growing popularity of guaranteed income programs

Guaranteed income programs have become popular following the COVID-19 pandemic. Several cities and towns have developed similar programs to help families living in poverty. About 150 to 200 guaranteed income pilot programs have been launched in the U.S. in the past two years.

For example, Atlanta, Georgia launched one of the largest guaranteed income pilot programs in 2022 called “In Her Hands.” The program provided $850 per month (or an upfront payment of $4,300) for two years to 650 Black women in three communities in Georgia.

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

Some guaranteed income programs have spending limits, but researchers and advocates believe that no-strings-attached cash not only improves recipients’ financial health but also gives them peace of mind.

The Stanford Guaranteed Income Lab, which tracks 31 pilot programs across the country, found that recipients typically spend the most on food and groceries, accounting for 35% of money spent, while spending on retail and services is the next priority (31%). .

Furthermore, recipients spend approximately 10% on transportation and approximately 8% on housing and utilities. Other spending options include education costs and healthcare or medical costs. Some recipients also spend the money on things that will help them earn more, such as starting a new business, saving for a down payment and more.