Starting this summer, some California residents in Fresno County will begin receiving $500 monthly payments as part of the Advancing Fresno County Guaranteed Income program. This initiative provides $500 each month for a year to 150 households in Fresno County, specifically targeting those with young children living in southwest Fresno or Huron. The application window closed on May 15, with recipients expected to receive their first check this month. To qualify, applicants had to live in specific designated ZIP codes and earn 80 percent or less of the area median income for their area.
In counties like southwest Fresno and Huron where more than 30 percent of residents live below the poverty line, financial expert Michael Ryan believes that even modest cash infusions can have a transformative impact on people’s lives. This additional income can lead to economic mobility, educational attainment, and overall community well-being. Participants in the program were selected through a lottery system, and the guaranteed income they receive will not affect their eligibility for benefits like CalFresh. Once selected, recipients were notified via email, phone, and text message by the Fresno EOC Navigator.
Fresno County has no restrictions on how participants can spend the money they receive through the program. However, program leaders anticipate that the guaranteed income will help lower poverty rates and improve health outcomes, especially as residents face challenges like inflation and economic uncertainty. Financial literacy instructor Alex Beene notes that this program, like others offering guaranteed income, is specifically targeted at families living in extreme poverty and involves a rigorous application process. There are misconceptions about these programs, such as the idea that money is simply being handed out to everyone, which Beene dispels.
Kevin Thompson, founder/CEO of 9i Capital Group, acknowledges that “free money” programs have faced criticism but are now being reevaluated due to their success in other countries. Studies have shown that these programs help individuals pay down debt and save money, thereby improving financial stability and control over their lives. Thompson predicts that more cities and states will consider implementing similar programs in the future. While the long-term impact of guaranteed income programs is still uncertain, the positive outcomes they are generating suggest potential benefits for the future, encouraging more areas to explore similar initiatives.
