THE last remaining payment in a life-saving initiative is headed out to select Americans this month.
Thousands of participants will be affected as the guaranteed income program comes to an end after two years.
A guaranteed income program will end this month for select families (stock image)[/caption]
Launched in October 2022, the Cook County Promise Guaranteed Income Pilot in Illinois sought to provide 3,250 families with financial assistance.
Run by the Cook County American Rescue Plan, distributions of $500 were given to those with low-to-moderate income, among other criteria, over 24 months.
Each was selected through a lottery process after open applications closed.
The money first went out in December 2022, meaning the final distribution should’ve already arrived to selected Illinois families or will arrive soon.
Each participant in Cook County will have received $6,000 in assistance through the designated period.
In total, the program sent out about $19.5 million to the 3,250 families across the county.
SUPPORT CONTINUES
That’s thanks to partners like GiveDirectly, AidKit, Working Credit, the University of Chicago’s Inclusive Economy Lab, and Crown School of Social Work, Policy, and Practice.
The Cook County Promise Guaranteed Income Pilot was launched after officials saw the results of over 300 studies about cash transfers significantly benefiting low-income communities.
Data from another guaranteed income pilot in Stockton, California, about 48 miles south of Sacramento, showed that the cash distributions helped “improve mental health and increase full-time employment,” per the Cook County American Rescue Plan website.
Additionally, the National Bureau of Economic Research found a correlation between money from guaranteed income programs provided to families after the birth of a first child and improvements in that child’s education and earning potential.
Moreover, the Alaska Permanent Fund also found in its years of offering a cash transfer initiative that the money would “stimulate the local economy” of a given area.
Toni Preckwinkle, board president for Cook County, also emphasized the findings and noted that their officials do not discriminate by income level.
“Decades of research show that people spend cash benefits wisely, leading to more financial stability as well as improved physical, emotional, and social outcomes,” Preckwinkle said in a statement.
“Yet, historically, both public and private institutions have been unwilling to directly invest in low-and-moderate-income people without significant restrictions in place.”
How does Guaranteed Income work?
Guaranteed Income and Universal Basic Income programs have taken off in popularity recently.
After the Biden administration’s American Rescue Plan of 2021 sent stimulus money to local governments, dozens began testing guaranteed income (GI) systems.
The specifics vary, but GI typically involves payouts to people with low incomes. Unlike traditional welfare, there are no job requirements, drug tests, or other strings attached.
Some have pushed for a Universal Basic Income (UBI), which would go to everyone regardless of how much money they make at work. Alaska has used a similar system since the 1970s.
Proponents say this alleviates poverty while incentivizing work, unlike classic welfare, which cuts benefits from people who begin earning “too much” money to qualify.
Opponents argue such a system is too expensive to function on a large scale and suggest Americans should avoid becoming reliant on government money.
With some cities heralding the success of GI programs, some Republican-led states have moved to ban them. States like Texas and Iowa, for example, have undermined major spending plans by pushing against GI.
“This red tape is in place not because any evidence shows that it is necessary, but rather because our society does not trust that people with lower incomes have the character or ability to make good decisions for themselves,” she added.
“We believe otherwise.”
HELP CONCLUDED
Another guaranteed income program helping families in Mountain View, California, about 14 miles northwest of San Jose, also sent out its last payment earlier this month.
It came as part of Elevate MV, operated through the Community Services Agency, YMCA, Community Financial Resources, and the University of Pennsylvania Center for Guaranteed Income Research.
Elevate MV, similar to Cook County’s program, offered $500 monthly unrestricted cash distributions for “extremely low-income” families.
Only 166 candidates were selected, and the last of the funds were sent out on December 15.
It’s unclear if or when the program will run again.
Some Americans can also get $1,000 monthly through a new “boost” initiative.
There’s also a little-known “artist” program in another state with $500 checks given to select applicants for five years.
