Focus on California

In the second of a series of posts detailing comparative numbers of cardholders by state and region, we’re looking at California. Focusing on demographics allows us to identify the geographical differences and similarities of interest to those reviewing Direct Express® from a geographic perspective and can provide useful insights into program reach and distribution.

According to  US Census reports, California is the most populous state, with an estimated population of just under 39 million. Approximately 24 percent of the population is under 19 years of age, while another 22 percent of Californians are 60 years or older. California has a large number of elderly residents — 6 million — representing 15-16 percent of the state’s population.

California has the most active cardholders with approximately 357,000 receiving federal benefits in this way (Direct Express® Internal Information). It is part of the West Region for Direct Express®, which also comprises 12 other western states, plus Alaska and Hawaii. This region is home to 19 percent of Direct Express® cardholders and has a typical mix of Social Security (SSA) and Supplemental Security Income (SSI) recipients, representative payees and DX℠ Mobile App users (see graphic below).

Direct Express (WEST)

According to the latest information provided by the FDIC [1], California’s rates of unbanked are at 4.3 percent.[2] This is below the national norm of 5 percent unbanked. 68 percent of Direct Express® cardholders nationwide are unbanked (Annual Cardholder Survey).

Direct Express® is available for beneficiaries of eight federal government agencies and 25 programs (See A Growing Program), though a majority (more than 60 percent) of Direct Express® cardholders receive SSI via their cards. In fact, the SSA is reporting that, as of 2024, 1,114,179 individuals in California receive SSI with a monthly total disbursement of $944,507,000 (SSI Recipients by State and County).

We will continue to focus on individual states and regions in the Direct Express® Demographics series. Look out for the next one, Focus on NEW YORK.

[1] These are the latest available figures from the FDIC measuring 2023 levels. There is no reason to expect significant change since these were measured.
[2] The Library of Congress defines an “unbanked” person is someone that does not have a checking or savings account with an insured (FDIC) institution.

SOURCE: Direct Express®