Who Receives the $725 Stimulus Payment on November 15, 2023, in California?

Starting November 15, 200 families in Sacramento County began receiving $725 monthly payments under a new guaranteed income pilot project — a first-of-its-kind local initiative aimed at supporting parents and guardians raising African American and American Indian/Alaska Native children under the age of five.

The payments, which will continue for 12 consecutive months, are not part of a traditional state “stimulus” or tax rebate program, but rather a research-based social policy experiment. The initiative seeks to measure how consistent financial support impacts family well-being, economic security, and child development outcomes in historically marginalized communities.

What is the Sacramento Family Support Program with Guaranteed Income?

The project — officially known as the Family Support Program with Guaranteed Income (FFESP) — is part of a statewide movement exploring guaranteed income (GI) as a tool to reduce poverty and prevent child welfare involvement.

Funded primarily through a State Block Grant from the California Department of Social Services (CDSS) and administered locally by the Sacramento County Department of Child, Family and Adult Services (DCFAS), the pilot offers direct cash assistance to a small, targeted population.

“This program is not a handout; it’s a hand up,” said Michelle Callejas, Director of Sacramento DCFAS, during the program’s announcement. “We want to give families the breathing room they need to care for their children without constant financial fear.”

The payments are unrestricted — meaning participants can spend the money however they choose, from groceries to rent or childcare. Researchers will track how recipients use the funds and how that affects their emotional, social, and financial stability over time.

Who Qualifies for the $725 Monthly Payments?

Eligibility for the Sacramento guaranteed income program is highly specific.

To qualify, applicants must:

Be a parent or legal guardian of at least one African American or American Indian/Alaska Native child under age five. Have a household income below 200% of the federal poverty level (around $60,000 annually for a family of four). Reside in one of several designated ZIP codes in Sacramento County identified as having high rates of poverty and family system involvement. Be able to participate in periodic surveys and program evaluations.

A total of 200 participants were randomly selected from a larger pool of eligible applicants after an open registration process in late 2023.

These recipients began receiving $725 per month via direct deposit or prepaid debit card starting November 15, with payments scheduled to continue through October 2024.

What Makes This Program Unique?

While California has seen more than two dozen guaranteed income pilots in recent years — including programs in Stockton, Los Angeles, and San Francisco — Sacramento’s initiative is the first in the state directly tied to child welfare prevention.

The goal, county officials say, is to evaluate how direct, unconditional cash can stabilize at-risk families and reduce the need for costly foster care interventions.

“We know that economic hardship is a leading driver of child neglect reports,” said Dr. Tiffani Johnson, a child welfare researcher at UC Davis. “Programs like this test whether financial stability can act as a form of prevention — keeping children safe by keeping families whole.”

How the Program is Funded?

The pilot program draws from a State Block Grant distributed by the California Department of Social Services (CDSS), which invited counties to develop new Comprehensive Prevention Plans (CPPs) under the federal Family First Prevention Services Act.

Sacramento County’s CPP — approved by the state in April 2023 — included the guaranteed income pilot as one of several “upstream” strategies to reduce entries into foster care and address racial disparities in the system.

The Sacramento County Board of Supervisors gave the official green light for the pilot on March 12, 2024, allocating a portion of the block grant along with private philanthropic resources.

According to CDSS, the state’s funding priorities include:

Reducing confirmed cases of child abuse and neglect. Decreasing foster care entries. Expanding economic and community resources for low-income families. Addressing systemic disparities disproportionately affecting African American and Indigenous households. Why Focus on African American and Indigenous Families?

The decision to focus on these two groups stems from longstanding racial disparities in both poverty rates and child welfare involvement.

According to CDSS data, African American children in California are nearly three times more likely to enter foster care than white children. Indigenous children face similarly elevated risks, often linked to economic instability, historical trauma, and lack of culturally responsive services.

“It’s not that these parents love their children any less,” said Dr. Alana Simmons, a social policy analyst with the California Policy Lab. “It’s that they face higher structural barriers — housing costs, employment discrimination, and systemic bias in reporting. A guaranteed income recognizes that financial stress is a child welfare issue.”

By providing a predictable monthly stipend, Sacramento County hopes to reduce the financial pressure points — such as missed rent payments or inability to afford childcare — that can push struggling families into crisis.

What Participants Receive Beyond the Cash?

The program is about more than money. Alongside the monthly $725 payments, participants gain access to:

Community resource navigation and referrals to social service agencies. Individualized financial counseling to help families build savings or pay down debt. Monthly educational webinars on parenting, budgeting, and mental health. Peer support groups to foster community and shared learning among participants.

A local nonprofit organization, working in partnership with DCFAS, manages day-to-day program delivery and coordinates data collection for evaluation.

Guaranteed Income as a “Social Study”

The Sacramento program is designed as a research pilot — part of a growing national conversation about whether guaranteed income could serve as a 21st-century safety net.

Under the FFESP initiative, the county will track participant outcomes in several key areas, including:

CategoryMetrics EvaluatedEconomic StabilityEmployment status, debt reduction, housing security, and ability to meet basic needs.Child WelfareNumber of hotline calls, investigations, or foster care removals.Health & Well-beingReported stress levels, mental health outcomes, and parental confidence.Community ImpactChanges in neighborhood-level poverty or engagement with social services.

The data will be analyzed by an independent research team and shared with CDSS and other California counties considering similar pilots.

“The purpose is to learn — not just to give money away,” said Callejas of DCFAS. “We’re studying how financial breathing room can shift family dynamics and reduce reliance on crisis systems.”

A Broader Statewide Trend

Sacramento joins a growing list of California communities experimenting with universal basic income (UBI) or guaranteed income models.

Notable examples include:

Stockton’s SEED project (2019): $500 per month for 125 residents, credited with improving employment and mental health. Los Angeles County’s Breathe program (2022): $1,000 per month to 1,000 residents for three years. San Francisco’s Abundant Birth Project: Monthly stipends for Black and Pacific Islander mothers during pregnancy and postpartum.

The Sacramento pilot differs in that it explicitly ties guaranteed income to child welfare prevention goals rather than general poverty alleviation.

The Bigger Picture: Prevention Over Punishment

The CDSS has reframed much of its policy approach in recent years toward prevention — helping families before they enter the child welfare system.

Research shows that many child neglect cases stem not from abuse but from poverty-related circumstances, such as inadequate housing, food insecurity, or lack of childcare.

“This program is about replacing punishment with prevention,” said Dr. Simmons. “It’s a recognition that the best child welfare policy is often a strong social policy.”

What Happens Next?

Sacramento County’s guaranteed income pilot will continue through late 2024, after which researchers will evaluate the program’s outcomes and publish findings in 2025. If successful, officials hope to secure additional funding to expand the program to more families.

For now, the 200 selected participants are receiving their $725 payments each month, many calling the support “life-changing.”

“It’s the difference between choosing which bill to pay and being able to take my daughter to the doctor,” said one recipient, who asked to remain anonymous. “It’s dignity. It’s hope.”

In Summary: Who Receives the $725 Payment CriteriaDetailsAmount$725 per monthDuration12 monthsRecipients200 randomly selected parents/guardiansEligibilityCaring for African American or American Indian/Alaska Native child (age 0–5)Income LimitBelow 200% of federal poverty levelAdministered bySacramento County DCFAS and partner nonprofitFunding SourceCalifornia Department of Social Services State Block Grant