Sacramento income program may guarantee $1K monthly to foster youth
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- Sacramento will launch city-led guaranteed income for foster youth July 2026.
- Measure L allocates cannabis tax revenue; about $8 million available for program.
- City to release Notice of Funding Opportunity in Dec 2025; applicants propose models.
Sacramento remains on track to launch a first ever city-led guaranteed income program for foster youth.
The program is expected to provide monthly cash payments of at least $750 starting next July. The funding stems from Measure L, a 2022 ballot initiative that allocates some revenue from taxes on cannabis operations to child and youth services.
Following the initiative’s passing, the city created a Sacramento Children’s Fund Planning and Oversight Commission to help develop a strategic funding plan. The approved plan, which has faced scrutiny, designated that a majority of the money be given to community-based nonprofits and public agencies.
About $8 million is available for the guaranteed income program. There were 587 foster youth living in Sacramento County from July 2024 to June 2025, according to a presentation Thursday at the Sacramento Children’s Fund Planning and Oversight Commission.
“This is a program that I think we could all agree is probably one of the most, if not the most important, within this fund,” said Mónica Ruelas Mares, chair of commission on Thursday.
Many of the specifics of the program are yet to be decided, though initial requirements are for youth to be 18 to 24 and income to not exceed 200% of the federal poverty level — about $31,000 per year. Participants also must have residency ties to the Sacramento County region and cannot be receiving guaranteed income from another program.
Under the proposed timeline, the city will release a Notice of Funding Opportunity — an announcement of the funding availability — in December. At that time, organizations can apply for grants to create a program that will distribute the cash payments.
An initial three-year contract of $4.8 million will likely begin July 1, 2026, said Julie Garen, a program specialist for the Youth, Parks, and Community Enrichment Department. The intention is to extend that contract for two more years.
Applicants are expected to propose their own program model based on research and fund availability, though minimum requirements include serving at least 100 youth, direct cash payments of at least $750 a month for two years and offering wraparound services. Preference points will be awarded to applicants who are deemed “local providers.”
“What we’re really looking for is, do you have established relationships with partners that are going to be essential to this work,” Garen said.
Garen said the city expected applicants to offer variations of the monthly payments and total number served. In a recent staff report, suggested payments spanned from $750 to $1,000.
Sacramento’s city program would be the latest guaranteed income program in the region.
United Way California Capital Region, a nonprofit based in Rancho Cordova, launched the first ever such program in the area in 2021. And last year, Sacramento County launched an initiative to give $725 in basic income per month to 200 families.
“This is something that is very critical, especially right now in the climate that we’re in,” said Mercedes Parker with California Youth Connection, foster youth advocacy organization, on Thursday.
This story was originally published November 6, 2025 at 2:58 PM.