Cities Seek Sustainable Funding for Guaranteed Income Program as Federal Aid Ends
Municipalities Seek Sustainable Funding Solutions for Guaranteed Income Programs Beyond Federal Aid
In 2023, Alameda, California saw a record-breaking $212.86 million in revenues a 10% jump from before the pandemic in 2019. This surge was partly due to federal aid from the American Rescue Plan Act (ARPA). Using $4.6 million from ARPA funds the city initiated a guaranteed income program, offering $1,000 monthly to 150 individuals. With ARPA funding ending by December 31, 2024 municipalities across the country are grappling with how to sustain such programs.
With the federal pandemic funding dwindling, cities like Denver are exploring alternative funding sources to continue their basic income initiatives. Options include government funding through various taxation methods like a carbon tax, wealth tax or VAT tax as suggested by programs like the Compton Pledge. However, the effectiveness and sustainability of these programs are under scrutiny with ongoing research aiming to provide guidance to municipalities.
Guaranteed Income Program Seek New Funding Opportunities to Expand Support for Communities (PHOTO: Sampan Newspaper)
Guaranteed Income Program Show Promise in Long-Term Social Support Strategy, Encouraging Cities to Seek Sustainable Solutions
Despite challenges, cities such as Los Angeles remain optimistic suggesting that guaranteed income programs could result in long term savings by reducing the need for other social support services. As studies from institutions like the Center for Guaranteed Income Research at the University of Pennsylvania continue municipalities are eager to find viable solutions to ensure the continuation of basic income programs beyond the end of federal funding.
READ ALSO: Social Security Updates Overpayment Policies To Enhance Financial Management
