There may not be any more government stimulus checks, but people in a few cities may still be able to get direct payments every month.
Some cities have passed guaranteed income programs to help some of their most vulnerable residents. These programs are not meant to be federal aid money for Americans who are having a hard time financially during the pandemic.
Payments vary by program, but many people who meet certain requirements are getting $500 checks every month to help them deal with the high costs of living caused by inflation. When cities have extra money in their budgets, they can often agree to these monthly payments.
“Every year, more cities are adding to the list of those piloting or fully implementing guaranteed income programs for their most economically at-risk residents,” Alex Beene, a professor of financial literacy at the University of Tennessee at Martin, told Newsweek.
“The reason is that data shows these programs work.” “They’ve pulled the vast majority of recipients out of poverty and allowed them to finally start to acquire some wealth to hopefully pull them out of economic distress for good.”
There are several monthly payment plans offered in California, which has some of the highest costs of living in the country. The Pledge program in Long Beach helps 200 low-income families by giving them $500.
The checks have been going out since the spring of this year and will keep going for a year.
This year, the Long Beach Pledge got an extra $1.2 million to fund its program and began accepting applications in January.
At the same time, the Elevate MV program in Mountain View is also giving Californians some money to help. Also, from December 2022 to December 2024, the scheme will send $500 checks to 166 low-income families every month.
To be eligible, you had to live in the area, have an income below 30% of the area norm, be pregnant, or care for at least one child under 18 years old.
Flint, Michigan, also agreed to a scheme that would guarantee people a certain amount of money, but with some changes.
Through the Rx Kids program, expecting moms got $1,500 up front, followed by $500 payments every month for five years. The money is supposed to help the moms get their kids food, medical care, and things they need, like clothes.
Unlike many of the other programs, there were no income limits, and it was thought that about 1,000 women would use the program.
In Washington, people who live in Tacoma can get money from the Growing Resilience in Tacoma program. It helps low-income families by giving them $500 every month until June of next year.
It was said that 175 randomly chosen families would get the money if they met the program’s budget requirements.
Michael Ryan, founder of michaelryanmoney.com and an expert on money matters, said that since the government stimulus checks are no longer being given out, more cities and states are looking at these kinds of programs as a way to solve long-term problems.
Ryan told Newsweek, “It’s a mix of meeting short-term needs and thinking about the long term.” “These programs aim to provide that crucial buffer.”
Then he said, “Cities are also seeing the big picture.” The program that Mountain View has for low-income parents is a good idea. People who help parents are indirectly investing in the next generation.
Helping low-income families or even women who are pregnant or about to become pregnant can have long-lasting effects on these places over the next few years, such as making it easier for recipients to get full-time jobs.
“Traditional approaches to poverty aren’t cutting it,” he said. “Over the years, despite many efforts, we’ve all seen the wealth gap grow.” With these guaranteed income schemes, there is a new attempt to give people more direct control over their money.