$500 Monthly Payments
Starting this spring, residents in several cities and states will receive $500 monthly payments through guaranteed basic income and universal basic income programs. In Rochester, New York, the guaranteed basic income program was approved in 2021, and according to Rochesterfirst.com, around 175 people will be chosen to receive the monthly payments for a year, with another group receiving payments in the second year. The program aims to provide marginalized communities with critical resources, close the wealth gap, and boost residents’ ability to become homeowners.
How to Qualify?
Households must be at or below 200 percent of the federal poverty level to be eligible for the program. The program will cost an estimated $2.2 million, which will be funded through the city’s $202 million American Rescue Act funds.
Similar Programs Around The Country
Similar programs have been implemented in other states and cities. Low-income residents in Iowa can apply for help through the UpLift program, receiving monthly payments of $500 for two years. In Massachusetts, the Chelsea Eats program will help 600 to 700 people with payments ranging from $200 to $400 per month, depending on household size.
These programs aim to help individuals cover their basic needs, they also have the potential to reduce poverty over the country. According to a report by the Economic Security Project, guaranteed basic income can help to reduce poverty by 20 percent and cut the child poverty rate in half. Additionally, it can improve mental and physical health, increase educational opportunities, and reduce the financial stress that leads to debt and bankruptcy.
The COVID-19 pandemic has highlighted the need for such programs, as many families and individuals have struggled to make ends meet. The guaranteed basic income programs provide much-needed relief, and may even help to spur economic growth by boosting consumer spending. It remains to be seen how effective these programs will be in the long term, but for now, they offer a glimmer of hope for those in need.
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