California lawmakers approve first-ever federal guaranteed income program, report says

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California lawmakers unanimously approved the creation of the first federally funded guaranteed income plan in the United States The Associated Pressbut only a limited number of people are eligible to receive monthly payments.

Important facts

The state assembly voted 64-0 and the state senate 36-0 Thursday to allocate $35 million to the guaranteed income plan, the AP reported.

Local governments and community groups apply to participate in the program and are responsible for ensuring that the funds reach local residents.

The money will benefit pregnant women and young adults recently released from foster care.

Unlike many other government-sponsored welfare programs, there are no restrictions on how the money can be spent.

What we don’t know

It’s not clear what the monthly payments will be, but similar programs run by locations in the US typically pay between $500 and $1,000 per month.

key background

The program was proposed by Gov. Gavin Newsom (D) in May to use part of the state’s budget surplus of more than $75 billion. Calls for a federally provided basic income have been growing louder recently, particularly among progressives who see a guaranteed income as a tool to close the growing wealth gap in the United States. big cities such as Los Angeles, Denver and Atlanta are among the many places that have either implemented a guaranteed income program or have one in the works. The idea was particularly popularized by Andrew Yang during his failed 2020 Democratic presidential bid, with Yang making his trademark a “Freedom Dividend” of $1,000 a month for all Americans. Many, especially Republicans, reject the idea of ​​a universal basic income, saying it would wear down Americans’ work ethic and create new tax burdens could hurt the economy.

tangent

The legal approval comes on the same day that the families of nearly 60 million children in the US received a combined one $15 billion in government payments as part of the extended child allowance. Individuals earning up to $75,000 a year, joint filers earning up to $150,000 a year, and heads of households earning up to $112,500 were eligible for the full credits, which totaled to $3,600 USD per year for each child under the age of 6 and USD 3,000 per month for children aged 6 to 17.

Further reading

California approves the first federally funded guaranteed income plan (The Associated Press)

IRS announces that $15 billion in child tax credits have been paid out to families – here’s what you should know about the new relief (Forbes)

Los Angeles and Atlanta are among cities joining a coalition to test universal basic income (Forbes)

One paycheck for everyone, whether you work or not? (Forbes)

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