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California lawmakers on Thursday approved a state-funded guaranteed income plan to distribute $ 35 million in monthly cash payments to pregnant people and eligible young adults who recently left foster care.
Why is this important: California is the first state to approve such a program. It could serve as a model for other state governments as guaranteed income gains traction in the United States
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Driving the news: California Governor Gavin Newsom (R) announced in mid-May that he would include a waiver in the state budget to help pay local governments to start their own guaranteed income pilot projects to help families low income.
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The plan, included in a budget bill, was unanimously approved in both houses of the legislature, clearly showing bipartisan support. He is now going to Newsom’s office.
How it works: The scheme will be funded by taxpayers.
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Local governments and organizations that run programs to help pregnant people and young people coming out of foster homes will be able to apply for funding, and the California Department of Human Services will decide who gets the money, according to AP.
The big picture: Guaranteed income programs have mushroomed in cities across the country, including New Orleans, Denver and Los Angeles.
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Michael Tubbs, former mayor of Stockton, Calif., Launched a guaranteed income program in 2017 that has proven to be “monumental,” he told Vox. He noted that the California investment marks “the largest recurring cash commitment in a state budget – and the first time a state has ever supported pilot guaranteed income funding,” according to Vox.
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A March 2021 report on the first year of the Stockton program found that the guaranteed income helped beneficiaries pay for necessities such as rent and child care, but also reduced depression and anxiety and helped beneficiaries to find or change jobs.
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“We found our people were spending money on food and utilities, rent and things like that, not frivolous spending,” Tubbs told Axios in December. “We have also found that people are healthier” because they are less stressed.
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“There is a lot of dignity in having these dollars at your disposal, so that you can decide what is best for you and your family,” Providence Mayor Jorge Elorza told Axios last winter.
To note : Unlike other government assistance programs, which usually come with strict guidelines on how recipients can spend the money, guaranteed income programs do not come with any rules on how the funds are used. by AP.
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“It changes the philosophy of ‘the big brother government knows what’s best for you’,” Sen. Dave Cortese (D) told AP of the program’s lack of strict spending rules.
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Guaranteed Income is also different from Universal Basic Income, another program that has grown in popularity in recent years. With UBI, all adults receive a set amount per month, says CNBC.
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