Guaranteed Basic Income: New Parents in California City to Receive $500 a Month

By Madz Dizon

Jul 08, 2024 04:59 AM EDT

Guaranteed Basic Income: New Parents in California City to Receive $500 a Month
American one hundred dollar banknote in pocket of blue jeans.
(Photo : engin akyurt/ Unsplash)

Officials in Pomona, California, a city in LA county, are considering a program that would provide guaranteed basic income to new parents.

Guaranteed Basic Income Program for New Parents Set to Launch in August 

Starting in August, a total of 250 families who have children under the age of 4 will be granted a monthly payment of $500 for a duration of 18 months.

The Pomona Household Universal Grants Pilot Program, a guaranteed basic income pilot, is being conducted by the city in collaboration with FORWARD, an organization dedicated to assisting governments in distributing resources to their communities.

According to Business Insider, the majority of funding is expected to be sourced from President Joe Biden's American Rescue Plan Act.

Pomona's program is similar to more than 100 basic income pilots happening across America. As part of poverty reduction efforts, local governments have implemented programs providing financial assistance to low-income residents.

These programs offer a monthly stipend ranging from $100 to $2,000 for a specific duration. Participants have complete freedom to use the money however they please, without any restrictions or obligations.

Similar to Pomona, an increasing number of cities are opting to allocate the funds towards families who are facing financial hardships.

READ NEXT: Florida Enacts Stricter SNAP Benefits Rules; DeSantis Signs Bill to Reform Public Assistance 

California Guaranteed Basic Income: Who's Eligible?

To qualify, families must meet certain criteria. These include experiencing a financial setback due to the pandemic, residing in an area with high rent burdens, being enrolled in federal assistance programs like SNAP or Section 8 housing, or having an income that falls at or below the median area income of $81,150 for a family of three. Individuals who meet the income requirements and are currently expecting may also qualify.

A total of 250 families will be chosen at random from a pool of 600 eligible applicants. The remaining 350 applicants will be assigned to a control group, allowing researchers to analyze the program's impact.

Over the course of 18 months, both groups will be providing researchers at the University of California, Los Angeles with updates on their experiences.

READ MORE: Social Security Payment Worth Up to $4,873: Who's Eligible to Receive on July 10?

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