California Approves the First State-Funded Guaranteed Income Program of $35 Million

In a recent development, California has decided to flow out a monthly cash payment plan in order to help pregnant women along with other qualified young adults who recently have stepped out of their respective foster care period. It is the first guaranteed income plan without any restrictions on how to spend it or conditions to be a beneficiary. This plan consists of an initial $ 35 million dollars to guarantee a guaranteed income to low-income people. It will be funded by the same taxpayers and is intended to influence other states to provide the same type of aid.

The difference between this plan and other government aid plans is that this time there will be no restrictions on how to spend that money. It will not be mandatory to spend the money on rent or food; that is, there will be no rules that require justifying the expenses.  People who receive this help will not have that stress and will be able to use their cash freely. The idea is to reduce this concern to the poorest, which in turn causes health problems that make it complex for these people to find work and at the same time keep it.

The approval of this plan came with bipartisan support with votes 36-0 in the Senate and 64-0 in the Assembly. It will be the state department of Social Services who will decide that who will be benefited from the plan; likewise, it will be local officials who will determine the amount of those monthly payments, which could range between $ 500 and $ 1,000 per month.

This type of guaranteed income plan has been criticized by some Republicans, who argue that it “undermines incentives to work and increases dependence on the government.”  It is considered that by not providing job training, they do not encourage upward labor mobility.

California is not the only state to implement these plans, which already have a history in previous US administrations in the 1960s and 1970s. Currently, guaranteed income plans have been implemented in New Orleans, Oakland, California, Washington, and Florida, among others.

Foster care programs for young adults are those that are not under the custody of their parents, either due to emotional, social, health problems, etc., and are under the custody of a relative. This type of program has many conditions, including the age of the beneficiaries. Meanwhile, a report on the results of these guaranteed income programs in Stockton, California, showed that there was a decrease in the recipient’s levels of depression, and there was an incentive to search for work.

ByMahendra D

Jul 21, 2021 ,