In a significant move to combat financial insecurity among families with young children, Sacramento County is introducing a guaranteed income initiative called the Family First Economic Stability Pilot (FFESP). Scheduled to begin in June 2025, the program will deliver $725 monthly payments to 200 randomly selected families for a period of 12 months. Managed by United Way California Capital Region, FFESP aims to explore the long-term impact of direct, unconditional financial support on household stability, health, and overall well-being.

This initiative comes at a time when inflation, childcare costs, and housing expenses are placing immense pressure on low-income families. However, questions remain regarding how this extra income could potentially affect existing benefits such as CalFresh, CalWORKs, Medi-Cal, and federal aid programs.

Below, we examine the program’s structure, eligibility, potential risks, and what families should consider before accepting this financial support.

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Summary Table

What Is the FFESP Program?

The Family First Economic Stability Pilot (FFESP) is a guaranteed income program—not a welfare or needs-based assistance plan—designed to support low-income families with children aged 0–5 years. Participants are not required to meet employment conditions or report how the money is used. The initiative seeks to empower families by allowing them to make independent financial decisions that directly benefit their households.

FFESP falls in line with a growing number of similar pilot programs across the U.S., intended to gather data on whether unconditional cash transfers can reduce poverty and improve outcomes for families.

Program Details and Payment Timeline

Key Features of FFESP:

• Program Name: Family First Economic Stability Pilot (FFESP)

• Monthly Amount: $725

• Duration: 12 months (June 2025 – May 2026)

• Target Population: Parents/guardians of children aged 0–5

• Eligibility: Income under 200% of the Federal Poverty Level (FPL)

• Geographic Scope: Select ZIP codes in Sacramento County

• Selection Method: Random lottery among eligible applicants

• Administrator: United Way California Capital Region

• Support Services: Financial coaching, peer networking, community engagement

Tentative Payment Schedule:

Payments will be made via direct deposit or prepaid debit cards, depending on participant preference.

Will FFESP Affect Existing State Benefits?

A major concern among potential participants is whether receiving FFESP money will interfere with benefits such as food assistance or housing support. Fortunately, according to the California Department of Social Services (CDSS), FFESP payments will not count as income for many state-administered programs. These include:

• CalFresh (SNAP)

• CalWORKs (cash assistance)

• WIC (Women, Infants, and Children Nutrition Program)

• Childcare subsidies

• Tribal TANF

• SHRA Housing Support

This means families currently receiving these services can continue to do so without worrying that FFESP will reduce or eliminate their aid.

Could FFESP Affect Federal Benefits?

Unlike state programs, federal assistance programs may evaluate guaranteed income differently. This means FFESP could potentially impact:

• Medi-Cal (if linked to Supplemental Security Income)

• Supplemental Security Income (SSI)

• Section 8 Federal Housing Vouchers

Due to these complexities, FFESP participants are strongly encouraged to consult their caseworkers or program staff before accepting payments. While the FFESP team will provide individual orientation and guidance, they cannot provide official eligibility decisions or legal advice for federal programs.

What Should Families Do Before Accepting FFESP Payments?

Before participating in FFESP, families should take these essential steps:

1. Review All Existing Benefits

   • Create a list of all government programs currently being used.

   • Identify income thresholds and rules for each.

2. Speak to Program Caseworkers

   • Ask about how an additional $725/month could impact eligibility.

   • Get documentation or written guidelines when possible.

3. Attend FFESP Orientation Sessions

   • Program administrators will offer informational briefings.

   • These include financial planning support and peer-led group discussions.

4. Evaluate Your Financial Situation

   • Consider long-term benefits versus potential short-term losses (especially if you’re receiving SSI or Section 8).

Contact Information

Q1: Do I need to apply for FFESP?

A: No. Eligible families will be randomly selected from targeted Sacramento ZIP codes.

Q2: Will FFESP payments count as taxable income?

A: The FFESP team has not confirmed tax treatment. Consult a tax professional for guidance.

Q3: What happens if I move out of Sacramento County?

A: You may become ineligible. Notify the FFESP team immediately if your address changes.

Q4: Can I still receive housing support or food assistance while in FFESP?

A: Yes. Most state benefits will not be affected. Check with your housing or SNAP caseworker for confirmation.

Q5: Who do I contact with questions about the program?

A: Email uwgi@uwccr.org or call 916-368-3013 for assistance.

Conclusion

The Family First Economic Stability Pilot (FFESP) represents a transformative step toward addressing child poverty and promoting financial independence for low-income families in Sacramento. With $725 monthly payments and supportive services built into the program, it offers more than just monetary aid—it offers empowerment, flexibility, and dignity.

However, families must weigh the advantages carefully, especially if they receive federal assistance. Taking time to review one’s benefit portfolio and consult with caseworkers is essential before making a decision that could impact long-term eligibility for other aid.

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