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U.S. News
12 August 2025

States Launch New Stimulus Checks To Aid Families

Programs in California, New York, and Alaska offer targeted payments and innovative relief to support families facing rising living costs.

As families across the United States continue to grapple with rising living costs, several states are stepping up with targeted financial relief programs aimed at easing the burden—especially for households with young children. In a climate where federal stimulus checks have become a thing of the past, these state-level initiatives are not only offering immediate support but also sparking debates about the future of social safety nets in America.

In California, Sacramento County is making headlines with the continuation of its Family First Economic Support Pilot Program (FFESP), a bold initiative that began in June 2025. According to Marca, the program is designed to provide no-strings-attached monthly payments of $725 to parents and legal guardians of children between the ages of 0 and 5. The goal? To help families cover essentials like housing, groceries, and childcare, while also addressing systemic inequities that have long plagued the county.

The FFESP is not a blanket program; it’s laser-focused on those most in need. Only 200 households—randomly selected from applicants living below 200% of the federal poverty level in specific Sacramento zip codes (5815, 95821, 95823, 95825, 95828, and 95838)—will receive the payments for 12 consecutive months. The income thresholds are carefully calibrated: for a household of two, the limit is $40,880; for a family of four, it’s $62,400; and for eight, $105,440, with $10,760 added for each additional person above eight.

Payments are distributed through direct deposit, SAFE bank accounts, or, for families without bank accounts, a Usio debit card. The next payment is scheduled for August 15, 2025, and the program will continue monthly until July 15, 2026—totaling $8,700 per household over the year. Importantly, these payments are non-taxable and non-repayable, offering families a rare sense of financial security without bureaucratic strings attached.

There’s another layer to the FFESP that deserves attention: its prioritization of Alaska Native, African American, and Native American households. By recognizing the disproportionate impact of poverty and historical inequities on these communities, Sacramento County is taking a step toward targeted justice, not just blanket charity. Alongside the financial aid, the program also connects families with community resources and financial counseling, helping to build long-term stability beyond the monthly checks.

But Sacramento isn’t the only place where families are seeing relief. On the other side of the country, New York State is rolling out its own innovative approach: the ‘Birth Allowance for Beginning Year’—or BABY checks. Announced by Governor Kathy Hochul, this once-off stimulus payment is aimed squarely at families already enrolled in public assistance who have welcomed a newborn during the 2025–2026 fiscal year. The payment is designed to help cover the daunting upfront costs of newborn care, from diapers and formula to medical bills and safe sleeping arrangements.

Eligibility for the BABY check is straightforward: you must live in New York State, be enrolled in public assistance programs, and have had a child during the designated fiscal year. Payment dates vary depending on when beneficiaries claim their benefit, but the intent is clear—provide immediate, practical help when families need it most. Governor Hochul put it succinctly in a statement on her official website: “We are prioritizing maternal and infant health, because every family deserves a stress-free start. We have a moral obligation to do everything in our power to support kids, parents and families — making New York the best place on Earth to raise a family.”

This focus on maternal and infant health comes at a time when New York’s cost of living is among the highest in the nation, making it increasingly difficult for low-income families to get by, let alone thrive. By targeting assistance to those already on public support, the BABY check aims to close the gap for families who are often one unexpected expense away from crisis.

Meanwhile, Alaska is continuing its long-standing tradition of sharing the state’s resource wealth with its residents through the Permanent Fund Dividend (PFD). In 2025, approximately 600,000 Alaskans are set to receive payments of $1,702 each, with distributions beginning in June and running through August. Unlike the targeted programs in California and New York, the Alaska PFD is notable for its broad eligibility and low barriers to entry. As Marca reports, the program is funded by the state’s mineral and oil resource profits, ensuring that every resident shares in Alaska’s natural bounty—an approach that has inspired policymakers elsewhere to consider more universal forms of social assistance.

The PFD stands as a powerful example of how resource-rich states can use their wealth to support residents directly. While critics sometimes argue that such payments don’t address deeper issues of poverty or inequality, supporters counter that the annual dividend builds trust between citizens and government, providing a tangible benefit that helps families weather economic ups and downs.

These state-level efforts come in the wake of the federal government’s COVID-19 Economic Impact Payments (EIPs), which provided three rounds of stimulus checks to Americans during the pandemic. The final round, amounting to $1,400 for eligible citizens, was a lifeline for many during a period of record unemployment and uncertainty. However, since then, no new federal stimulus programs have been confirmed, despite persistent rumors and political chatter about potential payments ranging from $2,000 to $5,000. As a result, states have increasingly taken matters into their own hands, experimenting with both once-off bonuses and ongoing guaranteed income pilots.

What do these programs mean for the broader debate over social safety nets in America? For supporters, they represent a pragmatic response to the ever-rising cost of living, particularly for families with young children. By putting cash directly into the hands of those who need it most—and trusting them to spend it wisely—these initiatives challenge old assumptions about welfare and dependency. Critics, on the other hand, warn about the sustainability of such programs and question whether they address the root causes of poverty or simply provide temporary relief.

Still, for the families receiving a $725 check in Sacramento, a BABY check in New York, or a $1,702 PFD payment in Alaska, the impact is anything but theoretical. These payments can be the difference between stability and crisis, between a child’s healthy start and a family’s financial spiral. As states continue to innovate, the rest of the country will be watching closely to see what works—and what lessons might be scaled up for a nation still searching for answers.

With each new payment, states like California, New York, and Alaska are not just providing relief—they’re rewriting the playbook on how to support families in an era of economic uncertainty.