State and local governments are experimenting with new ways to get free money into the hands of those who need it as a fourth stimulus check remains hanging in the balance.
These payouts, like stimulus checks, have no strings attached. The recurring payment usually requires little work to claim, and you can spend it on whatever you wish. Several cities and counties already operate their own pilot programs.
Many of these initiatives, including those in Columbia and St. Paul, are being coordinated by Mayors for a Guaranteed Income (MGI), a new national organization .
The group wants to use the results of these experiments to advocate for a federal guaranteed income, not to replace existing social safety nets, but to improve equity among individuals of various races, genders, and economic backgrounds.
Since its inception a year ago, the network has attracted 57 mayors from throughout the country, with Twitter founder Jack Dorsey donating $18 million to help fund the experiments.
While guaranteed income and universal basic income schemes are not new concepts, the COVID-19 pandemic has demonstrated how effective small amounts of free money can help in difficult circumstances on a national scale.
Meanwhile, universal basic income (UBI) payments are, as the name implies, universal. Typically, each resident or citizen receives the same amount.
The Alaska Permanent Fund, which has paid a portion of state oil profits to most inhabitants since 1982, is a long-standing example. Approximately 643,000 Alaskans received their annual payout of $1,114 earlier this month.
It's not just mayors in different cities experimenting with guaranteed income. California is the most recent state to join the regular-payment bandwagon.
The Golden State set aside $35 million in July for a variety of guaranteed income projects, with a focus on pregnant women and young adults who have aged out of the foster care system. People can get payments of up to $1,000 each month.
While more people are receiving these stimulus checks, don't anticipate your number to be called anytime soon. Individual grantees are often picked by lottery, even if you qualify as a member of the correct group in the right place.
Furthermore, the concept of a permanent, national UBI scheme has yet to gain widespread acceptance. Critics are still concerned about how recipients would spend their free money and whether they will be less likely to seek well-paying jobs.
Still, that doesn't rule out the possibility of earning extra money; it just means you'll have to go out of your way to find it.
