Cities Preparing to Give Free Cash Between Issuance of Stimulus Check

WASHINGTON, DC - APRIL 29: U.S. President Donald Trump's name appears on the coronavirus economic assistance checks that were sent to citizens across the country April 29, 2020 in Washington, DC. The initial 88 million payments totaling nearly $158 billion were sent by the Treasury Department last week as most of the country remains under stay-at-home orders due to the COVID-19 pandemic. (Photo by Chip Somodevilla/Getty Images)

Fourth stimulus checks can be issued at any time by President Joe Biden, but in the meantime, many state and local governments are testing new ways to provide free money to those in need. Accumulating money is usually effortless and can be used in any way you want. Dozens of cities and districts already have their own pilot programs.

The COVID-19 pandemic has demonstrated across the country just how powerful an affordable amount of free money can be in difficult times. Universal Basic Income (UBI) payments, as the name suggests, are universal. As a rule, every resident of the area or citizen receives the same amount. An old example is the Permanent Fund of Alaska, where since 1982 most residents have been able to reduce the state’s oil revenues. Earlier this month, about 643,000 Alaskans received $ 1,114 a year.

On the other hand, guaranteed income (GI) payments are made only to certain people. Typically, you must be low income or in a specific group, and these restrictions will help you get started with many GI programs. For example, 100 poor dads in Columbia, South Carolina received a $ 500 debit card in September and the same amount every month the following year. Then there is St. Paul, Minnesota Human Rights Pilot Project for Young Families with Newborns. Pittsburgh used some of the federal government’s COVID-19 aid to give 200 low-income families $ 500 a month for two years, favoring households run by black women.

The project of Columbia and St. Petersburg, are managed by a new national group called the Guaranteed Income Market (MGI). The coalition hopes to use the data from such experiments to advertise guaranteed federal income. – Promotes equality between people of different races, genders and economic backgrounds, rather than replacing traditional social safety nets.

Despite the promising data from Stockton, critics still worry about how recipients will essentially spend their free money and whether they’ll be fairly less likely to look for well-paying jobs in a subtle way. About 54% of Americans literally are opposed to the idea of the federal government providing $1,000 each month to all adult citizens, according to a Pew Research Center survey last year.