Hundreds of dollars monthly and no commitment: San Francisco Bay City introduces guaranteed income

South San Francisco this month sent out the first checks for $ 500 a month to about 150 low-income families, which they can spend as they see fit. This happened as part of the guaranteed income program in California, writes Mercury News.

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South San Francisco launched a guaranteed income pilot program. Its members receive monthly cash payments with no strings attached, with $1 million in American Rescue Plan funds and a $100 grant from San Mateo County.

“We as a society have been struggling with poverty for years and we don't have enough accomplishments to show for it,” said Dave Pine, San Mateo County Supervisor. “It's time to try something new.”

The program, which kicked off last week, comes a few months after Governor Gavin Newsom signed into law a bill offering $ 35 million in funding to support current or future income-guaranteed pilot projects like those already in existence in Santa Clara County. Oakland, Marin County and San Francisco. These programs offer a range of $ 500 to $ 1000 per month for different populations, including foster children and pregnant women.

On the subject: California will be the first in the United States to pay residents a guaranteed income: who is entitled to it

The South San Francisco pilot project prioritizes foster youth, families with young children, and low-income families in a city of predominantly Asian and Hispanic Americans. According to the United Ways of California, 24% of the population does not earn enough to afford basic necessities. Illegals and previously imprisoned persons are also eligible to participate in the program.

The YMCA Community Resource Center of South San Francisco will administer the program with support from Community Financial Resources, an Oakland nonprofit that helps set up bank accounts and debit cards for payments to residents. Participants receive financial training.

Every three months, the YMCA will publish reports on trends in member spending. The goal is to determine the effectiveness of the guaranteed income, and the results can form the basis for larger programs in the future.

The idea of ​​a guaranteed income is a departure from old methods of providing assistance.

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Rules about how money should be spent on programs such as food stamps or requirements that unemployed people seek work "don't really match the realities that they face," said Chris Hoehn, executive director of the California Budget Center. and politics.

Hohen points to the results of the Stockton pilot project with a guaranteed income of $ 500 a month. According to the Stockton Economic Empowerment Demonstration report, people who participated in this program were better able to find full-time jobs, pay emergency bills, and stay healthy.

“All the evidence points to people who don't have a lot of income actually using extra cash wisely and looking for ways to improve,” Hoen concluded.

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