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FINANCE

New $500 relief check in California: Who qualifies and when do the payments start?

A new program called Pathway to Income Equity kicked off in Sonoma County in February which provides families with $500 payments each month. Here’s a look…

Update:
New monthly $500 relief check in California

The last of the California Middle Class Tax Refunds were issued in February, the same month another pilot program launched in the Golden State. The new program called Pathway to Income Equity was implemented in Sonoma County which provides families with $500 payments each month.

The guaranteed basic income initiative will initially help 305 pregnant and parenting families to alleviate financial stress. The program is headed by First 5 Sonoma County and operated in partnership with community organizations around the county. Funding for Pathway to Income Equity comes from the County of Sonoma, City of Healdsburg, City of Petaluma, and City of Santa Rosa American Rescue Plan Act dollars and private investments from Corazón Healdsburg.

Who qualifies for new $500 relief check in California?

Pathway to Income Equity mirrors other similar programs in California and round the nation targeting low- and moderate-income households. The pilot program will run for two years, providing $500 per month to help ensure that children in Sonoma County “are learning and growing in stable environments.”

Research from other programs has shown that the financial assistance increases household economic stability and full-time employment. Additionally, anxiety and depression are lowered for those who benefit from the guaranteed basic income payments.

Because the funds come unrestricted covid disaster relief, $5.4 million has been earmarked, the cash assistance is not taxable income. The application period has closed, running from 1 September to 31 October 2022. 305 families were chosen in a lottery from the nearly 6,500 online applications that were received.

Recipients must be residents of Sonoma County and have a household income of less than 185 percent of the federal poverty level based on family size. According to First 5 Sonoma County that would be around $51,338 or less for a family of four. Additionally, in order to qualify for the monthly payments, beneficiaries must be pregnant and/or have a child under 6 years of age. Finally, they had to show that they experienced adverse economic impacts due to the pandemic such as loss of income or housing instability.