The Stockton Economic Empowerment Demonstration started in February 2019 as the first mayor-led $500/M guaranteed income program in the US. It gave selected residents $500 per month with no conditions or spending rules, whose primary goal was to show that poverty comes from a lack of money, and help vulnerable citizens.
The program selected 125 residents from lower-income neighborhoods. They received $500 each month for 24 months through prepaid debit cards. Through this blog post, we will discuss regarding $500/M Guaranteed Income Program, including its overview, Eligibility Criteria, Financial Security and Employment Growth, and more.
$500/M Guaranteed Income Program
Traditional welfare programs usually have strict rules that make help hard to access, but Guaranteed income works differently. It trusts people to manage their own money because they know their needs best.
This Guaranteed Income program holds families beyond daily survival and focuses on long term stability and growth. SEED tested this idea and showed that trust-based support can improve lives without reducing responsibility or motivation.
$500 Monthly Guaranteed Income Program 2026 Overview
| Department | City of Stockton (Mayor’s Office) |
| Name of Program | Stockton Economic Empowerment Demonstration |
| Program Type | Guaranteed Income / Cash Assistance |
| Country | USA |
| Year Started | 2019 |
| Amount | $500 |
| Payment Duration | 24 months |
| Mode | Prepaid debit card |
| Beneficiaries | 125 residents (randomly selected) |
| Eligibility | Low-income residents |
| Category | US Finance |
| Official Website | https://www.stocktondemonstration.org/ |
Eligibility for $500 Guaranteed Income Program
Residents need to fulfill below-mentioned criteria in order to avail $500 per month guaranteed payment.
- Residents were chosen from neighborhoods where household income was at or below Stockton’s city median (about $46,000 per year).
- Selection was done randomly to ensure fairness and avoid bias.
- No requirements related to employment, education, or family status were needed.
- There were no work conditions, job search rules, or proof of hardship required.
- No restrictions based on citizenship or immigration status were applied.
Responsible Spending of Guaranteed Income
Many people worry about how cash support will be used, but SEED proved those fears wrong. Participants spent the money responsibly.
About 37% was used for food, and most of the rest went to basic needs like utilities, transport, clothing, and car repairs. Less than 1% of benefits was spent on alcohol or tobacco.
How $500 Payments Helped People
Before SEED, only 25% of participants felt they could handle an emergency expense like a medical bill or car repair. After receiving $500 per month, this increased to 52%, while the control group showed almost no change. This showed that guaranteed income has drastically reduced the financial burden from vulnerable people.
At the same time, it did not reduce the motivation to work. Full-time employment increased from 28% to 40% among participants in the first year, compared to a small increase in the control group. The extra income helped people look for better jobs, build skills, and plan for a more stable future.
Cook County’s Permanent $500 Guaranteed Income Program
Cook County (Illinois) expanded on SEED’s idea by starting the Promise Guaranteed Income Pilot in 2022. It gave $500 per month to 3,250 households.
The program showed positive results, with many people feeling more financially secure. In 2025, Cook County made guaranteed income permanent, becoming the first government body in the US to do this.
Other Guaranteed Income Programs
Several cities and counties followed SEED’s blueprint:
- St. Louis, Missouri: Provided $500 per month to 540 families. Results showed lower food insecurity and increased savings.
- Ulster County, New York: Supported 100 households and improved financial well-being in a rural area.
- Sonoma County, California: Focused on families with young children and long-term household stability.
- Saint Paul, Durham, and San Diego County: Each ran pilots showing improved security and no reduction in work effort.
FAQs
Who was eligible to receive the $500 monthly payment under SEED?
Low income residents earning below Stockton’s median income were randomly selected, with no work or citizenship requirements.
Did participants misuse the guaranteed income money?
No, most of the money was spent on essentials like food, utilities, and transportation, with less than 1% used on alcohol or tobacco.
Which area became the first in the US to make guaranteed income permanent?
Cook County, Illinois became the first government body to make a guaranteed income program permanent.
