California Lawmakers Approve Sending Up to $1,000 Monthly Checks to Residents in Country's 1st Guaranteed Income Plan

Lawmakers in California approved on Thursday, July 15, a $35 million budget for monthly cash payments to qualified residents.

California's Legislature unanimously approved the first state-funded guaranteed income plan in the U.S. The California state government's program would distribute monthly checks to qualifying pregnant people and young adults who recently left foster care without restrictions on how they spend it.

According to Associated Press, the Senate unanimously passed the guaranteed income program with 36-0 votes and 64-0 in the Assembly. Both chambers showed bipartisan support for an idea that is gaining momentum across the U.S.

In recent years, dozens of local programs have sprung up, including some programs that have been privately funded. These programs make it easier for the state's elected officials to sell the public on the idea.

The guaranteed-income program in California is taxpayer-funded, and it could encourage other states to follow its lead.

Senate Republican Leader Scott Wilk said they looked at the stats of the foster youth, and they were "devastating." Wilk noted that lawmakers should be doing all that they could to lift these young people up.

The California Department of Social Services will decide who gets the funding for rural and urban applicants, who will run their respective programs.

The lawmakers in California gave local governments and organizations the duty to determine the size of the monthly payments that individuals can receive. The financial assistance generally ranges from $500 to $1,000 based on the existing programs around the country.

California's Guaranteed Income Program

The program was passed on the same day that millions of parents started receiving their first monthly payments under a temporary expansion of the federal child tax credit. Many view the federal child tax credit as a form of guaranteed income.

An advisor to California Governor Gavin Newsom, Michael Tubbs, said there is now "momentum" after the program's passing so "things are moving quickly." Tubbs noted that the next stop is the federal government.

Tubbs was considered a trailblazer when he instituted a guaranteed income program as mayor of Stockton. The bill is now heading to Newsom's desk for approval.

Government Assistance Programs' Rules

Most government assistance programs have strict rules regarding how recipients can spend the money. These rules usually limit the benefits to pay for things like food or housing, which are essential, Los Angeles Times reported.

However, this latest guaranteed income program in California would allow the recipients to spend their money with no limits. The guaranteed income program aims to reduce stress and provide the financial security needed to find good jobs and avoid debt for people living in poverty.

State Sen. Dave Cortese, a Democrat from San Jose, told Associated Press that the program's lack of strict spending rules changes the philosophy from "big brother government knows what's best for you."

Meanwhile, critics like Republican Assemblyman Vince Fong of Bakersfield said that guaranteed income programs could undermine incentives to work and increase dependence on the government. Fong added that lawmakers should be pushing policies that encourage the value of work.

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Written by: Jess Smith

WATCH: California Approves First State-Funded Guaranteed Income Plan - From CBS Los Angeles