CHECKS worth thousands of dollars are being sent out to families with additional regular payments scheduled for a whole year.
In one county in California, 100 families will have already received a $3,000 check.
100 families in one county in California are receiving checks worth thousands of dollars over the next 12 months (stock)[/caption]
As well as receiving checks for the next year, the recipients will also be offered financial coaching (stock)[/caption]
These recipients will then be getting an additional $1,000 every month for the next 12 months with the amounts reducing for the final six months.
It is part of a new program from the United Way Bay Area which has been launched in Alameda County.
UWBA works to fight poverty in the Bay Area and announced the first guaranteed basic income pilot program last month.
From November 15, the initial $3,000 checks were sent out to those who are financially struggling.
The 100 families chosen for the money were randomly selected from client lists at three Alameda County SparkPoint centers.
SparkPoint helps families get their basic needs and manage their finances and employment.
UWBA CEO Keisha Browder stated in a press release that the program was launched after research “led up to direct cash payments, an innovation proven to break the cycle of poverty.”
“The Bay Area is a place where many people thrive, while others struggle to survive,” she said.
“By targeting support to these first 100 families, we want to understand how unconditional cash assistance offered alongside optional finance coaching services impact wellbeing and behavior.”
Those who do not live in Alameda County or who do and have not received this round of support do not need to lose hope.
“Our goal is to learn from this pilot program and replicate a successful effort across the Bay Area and beyond,” the CEO said.
It is hoped that the immediate cash payment will help alleviate imminent financial stress while the optional financial coaching and planning support will help instil good economic skills.
DESPERATE NEED
In Alameda County alone, 116,630 people are struggling against food insecurity, according to UWBA.
Over 129,900 households in the area are finding it hard to meet their basic needs such as buying food and groceries, paying for housing and utility bills, and keeping up with transport costs.
But, other regions in the Bay Area are struggling too.
In Contra Costa County, over 27,700 renter-households on low incomes do not have access to affordable homes and eviction rates are set to match or surpass annual pre-pandemic levels.
The average family of four in San Francisco County needs $127,332 just to meet their basic needs while the average income for residents in the area is $119,136.
Over 27,000 children in Santa Clara County have food insecurity and 33,374 people in San Mateo County have had to get support from UWBA.
Meanwhile, residents in Indiana could be eligible for a $300 payment to help with their heating bills.
Those who fit the criteria could receive this $300 credit every year to help save money.