Stimulus payments are one way both state and federal governments can provide financial support to individuals and families in need. While stimulus payments are more common at a state level through a variety of social upliftment programs, the federal government does utilize them during widespread periods of economic turmoil. The last time the federal government drew on stimulus payments was during the COVID-19 pandemic. However, this state is offering a $700 payment to eligible individuals starting next month.
State initiatives help to uplift the most vulnerable
Local and state social upliftment programs are cornerstone ways governments can help the most vulnerable in their communities. The Supplemental Nutrition Assistance Program (SNAP) is one of the most well-known joint federal and state initiatives to help families in need. SNAP provides payments to low-income families to help them cover food-associated expenses, helping to ensure that families do not go hungry.
At a federal level, another social upliftment initiative is Medicaid, which provides health care coverage to low-income individuals and families. Over 80 million individuals are currently covered by Medicaid. However, despite millions of individuals relying on this program, Medicaid is facing budget cuts of 20% amidst the Department of Government Efficiency’s recommendations on how to reduce unnecessary government spending.
New $700 payment in this state
At a local level, many states are implementing their own strategies to uplift low-income individuals, drawing upon their own funding and not relying on federal spending. New York State offers the Excelsior Scholarship, a program that provides funding towards eligible New York students’ tertiary education tuition fees for public colleges and universities in the state. Another state-led initiative is Colorado’s Universal Preschool Program, which offers 15 hours of free preschool for all children in the state.
California has some of the largest state-led initiatives in the country. Boasting the largest population of approximately 40 million people, the state has some of the highest rates of poverty and homelessness in the country. Because of this, California’s government has worked particularly hard to achieve social equity for its residents. One of their most recent programs is the Sacramento Family First program, which offers a guaranteed income program for eligible families.
In April of this year, the program randomly selected 200 applicants who have an annual household income of less than 200% of the federal poverty line to take part in the pilot program, which, starting next month, is paying beneficiaries $725 per month for 12 months. This pilot program is designed to investigate the effects of a guaranteed income program, with the potential for expansion.
“FFESP will assess how the provision of guaranteed income to the eligible population affects families over time. Families will also have access to supportive services, such as connection to community-based organizations in their communities, access to one-on-one financial coaching, and monthly financial webinars and peer support groups,” states the website.
Eligibility for the program
Applicants for the pilot program had until the end of April to take part in the program. To have been eligible, you had to meet the following criteria:
- Applicants needed to reside within one of the following zip codes: 95815, 95821, 95823, 95825, 95828, and 95838.
- Applicants must be the legal guardian of a child 0-5 years of age
- Applicants must have an annual household income of less than 200% of the federal poverty line (FPL)
- Applicants could not already be receiving a guaranteed income from another pilot or program
By providing people with financial stability, a guaranteed income program lowers stress and poverty, especially for families with new children who are financially vulnerable. It gives recipients the freedom to pursue entrepreneurship, caregiving, or education without worrying about running out of essentials. With a focus on underprivileged or marginalized groups, the economic stability potential through programs like the Sacramento Family First program can establish equitable possibilities.
