Some Americans Will Get $500 Monthly Payments: Here’s Who Qualifies

Some California residents will start earning $500 monthly payments this summer as the state begins its Advancing Fresno County Guaranteed Income program.

The program offers $500 each month for a year to 150 households in Fresno County. To qualify, you must have young children in the household and be living in southwest Fresno or Huron. The application window closed on May 15, but the county said recipients can expect the first check to go out this month.

When submitting an application, Fresno’s recipients had to live in specific designated ZIP codes and also earn 80 percent or less of the area median income for their ZIP code. The eligible ZIP codes included 93706 (southwest Fresno) or 93234 (Huron).

If you live in southwest Fresno, the income limit was set at $30,615, while those living in Huron needed to make $35,103 or less to qualify.

In these counties, more than 30 percent of residents live below the poverty line, said Michael Ryan, a finance expert and the founder of michaelryanmoney.com.

“Even modest cash infusions can transform lives,” Ryan told Newsweek. “Helping people with financial resources can have a ripple effect, often contributing to economic mobility, educational attainment and overall community well-being. It’s like throwing a pebble into a pond, but instead of ripples, you get positive change.”

All selected participants were chosen via a lottery program, and their new income will not affect any eligibility for benefits like CalFresh, otherwise known as California’s food stamps. Everyone chosen for the payments learned via email and phone. They also got a text from the Fresno EOC Navigator.

Once you get the money, Fresno County has no rules about how you can spend it, but county program leaders say it will likely lead to lower poverty rates and better health outcomes as residents face elevated inflation and economic uncertainty.

“Fresno’s program is similar to other cities offering guaranteed income in that it’s highly targeted to those families living in extreme poverty and that there’s an application process to qualify,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.

Beene said there are myriad myths that surround a program like Fresno’s, namely that everyone is getting a check or that money is just being handed out. Both are incorrect assumptions, Beene said.

“Not only was there a process to apply for this program, but it’s limited to just 150 families in a major city,” Beene said. “While it could turn into something greater, this is a small, targeted initiative to help lift some families out of poverty.”

Kevin Thompson, founder/CEO of 9i Capital Group, said “free money” programs have been severely criticized in the past, but they’re starting to be reevaluated because of their success abroad.

“Studies have shown that such programs help individuals pay down debt and save money, thereby improving their financial stability and control over their lives,” Thompson told Newsweek.

He anticipates that more cities and states will come around and start offering similar programs.

“Although these initiatives have been relatively under the radar, the positive results they are generating are encouraging more cities and states to consider them,” Thompson said. “While the long-term impact is still uncertain, the initial outcomes suggest that these programs could be beneficial for the future.”