Sustaining Guaranteed Income Programs Beyond Federal Aid: Cities Seek Innovative Funding Solutions
Seeking Sustainable Funding Solutions for Guaranteed Income Programs
In 2023, Alameda, California saw a record $212.86 million in revenues a 10% increase from before the pandemic in 2019 partly due to federal money from the American Rescue Plan Act (ARPA). With $4.6 million of ARPA funds the city launched a guaranteed income program providing $1,000 monthly to 150 people. However, ARPA funding is ending in 2024 prompting cities to seek ways to sustain such programs.
Guaranteed income programs which provide money without conditions to lower income individuals have gained traction nationwide supported by ARPA funds. As federal aid diminishes municipalities like Denver are exploring alternatives for funding. Some propose government funded solutions like a carbon tax or a VAT while others suggest private or nonprofit partnerships.
Guaranteed Income Programs Turn to Tax Increases and New Revenue Sources for Funding (PHOTO: The Macdonald-Laurier)
Research Guides Municipalities on Sustainability and Efficacy of Guaranteed Income Programs
Research, including studies by the University of Pennsylvania Center for Guaranteed Income Research aims to guide municipalities on the sustainability and efficacy of such programs. While debates continue about their impact cities like Los Angeles suggest that guaranteed income initiatives could lead to savings by reducing reliance on other social programs.
