HomePersonal FinanceNew Type of Stimulus Check: More US Cities Are Offering Free Cash

New Type of Stimulus Check: More US Cities Are Offering Free Cash

The notion that the federal government will immediately send Uncle Sam to your home with another stimulus payment is a prevalent one. While there is no assurance that the federal government will come to your house promptly with a fourth stimulus check, state and local governments are experimenting with innovative methods for delivering free cash to people who need it.

These payments, like those provided under stimulus checks, come with no strings attached. The recurring cash is generally easy to claim since it has no conditions or restrictions, and you can spend it on anything you want.

Dozens of localities have launched their own pilot projects, and a new state has recently joined the bandwagon.

Here’s how these initiatives function, as well as how to get additional money if your region isn’t participating.

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More money headed to those in need

Although guaranteed income and universal basic income concepts are not new, the COVID-19 epidemic has highlighted on a national scale how helpful little amounts of free money can be in difficult situations.

Universal basic income (UBI) payments, like the name implies, are uniform. Residents of a region or citizens of a country generally get the same amount.

Universal basic income (UBI) payments, like the name implies, are uniform. Residents of a region or citizens of a country generally get the same amount.

In contrast, certain people only receive assured income (GI) payments. To be eligible, you must have a low income or belong to a certain club, and such limitations are aiding the establishment of many GI systems.

For example, in September 100 desperate dads in Columbia, South Carolina, received $500 debit cards and will receive the same amount every month for the next year. Then there’s the People’s Prosperity Pilot in St. Paul, Minnesota., which aims to assist young families with newborns.

The city of Pittsburgh used some of the COVID-19 relief cash it received from the federal government to give $500 a month for two years to 200 low-income families, with preference going to Black women’s households.

Mayors lead the way

Many of these initiatives, including those in Columbia and St. Paul, are being carried out by a new national organization called Mayors for a Guaranteed Income (MGI).

The group wants to make use of the findings from these studies to push for a federal guaranteed income, not to take the place of existing social safety nets but rather to level the playing field among people of various races, genders, and socioeconomic statuses.

Since its inception a year ago, the Mayors’ Emergency Network has grown rapidly, with 57 new mayors joining the network. Twitter creator Jack Dorsey gave $18 million to help construct the tests.

The Michael Tubbs Institute for Urban Innovation was formed by Stockton, California’s former mayor who oversaw a two-year pilot that provided $500 per month to 125 random individuals in low- to middle-income neighborhoods.

In March, the results of the first year of the project, SEED, were published. Recipients reported being less stressed and more resilient in difficult situations, and they were able to find full-time employment at a rate greater than two times that of others.

“The last year has shown us that far too many individuals were stuck on the financial edge by COVID-19,” said Tubbs in a statement. “SEED restored people’s sense of dignity and capability to reach their full potential while the virus ravaged society.”

California goes big

It’s not only mayors in various locations who are giving it a go. California is the most recent government to join the queue of implementing regular payments.

In July, California allocated $35 million for a variety of guaranteed income initiatives, with an emphasis on pregnant and young people who age out of the foster-care system. People may receive monthly payments of up to $1,000.

“Direct cash assistance empowers people in a way that our traditional overly restricted social safety net programs do not,” according to Sen. Dave Cortese, a co-sponsor of the plan.

“It communicates to people that they are capable and trusted to make the financial decisions that are most essential to their well-being and success.”

The state is already teeming with seven active experiments. Three are located near Los Angeles. The San Francisco Bay Area currently has two, with two more planned in Los Angeles and San Diego. In addition, two more will be carried out in Los Angeles and San Diego.

Source- Yahoo

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5 COMMENTS

  1. Why Alabama not doing not I only get 795 an month I can’t even live on my own with that I have to live with my son I love to get help

  2. Texas should be helping all states instead of spending our hard working money on the border wall while families are struggling we have homeless people living in empty houses in Lufkin Texas

  3. I’m a 65yr old on disability, and get very little a month. But because I have someone claiming me as a dependent, ( because they help me out with house whole items) I couldn’t even get any of the free money the government gave out. When will the disabled elders get help. I’m from N.C

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