Stockton Launches Basic Income Program Gifting Residents With $500 A Month
Stockton, California has launched its basic income plan gifting dozens of residents with $500 a month, the Huffington Post reports.
Last year, Stockton Mayor Michael Tubbs responded to criticism over the program which was designed to help close the poverty gap as residents struggle to stay afloat amid California's skyrocketing rent prices and increase in homelessness.
The basic income plan -- the first of its kind to be launched by a U.S. city -- was announced by Tubbs and the Stockton Economic Empowerment Demonstration (SEED) in 2017. Under the program, 130 residents will receive a monthly stipend via prepaid debit cards for the next 18 months.
Stockton's median household income is just under $50,000 a year. Residents are chosen through an “algorithm” to make sure that the selection is representative of the community’s diversity.
The money is funded by a grant from the Economic Security Project, in addition to other funds raised, Tubbs said.
“There’s no restriction on how people can use the money,” he pointed out. “If people use it for drugs and alcohol that’s there prerogative. [But] if I didn’t believe in the capacity of the folks who elected me to make good decisions, I probably shouldn’t be mayor.”