Over the past year, several cities and states across the United States of America tested a variety of Universal Basic Income (UBI) programs.
Now, like these stimulus programs continue to expand across the country, Phoenix Arizona could be the next city to have a UBI plan.
At the very end of November, the Phoenix City Council approved a plan to provide monthly payments to approximately 1,000 low-income families.
Who is eligible for $1,000 monthly checks in Phoenix?
Since this is a trial of universal basic income, it will only be around 1,000 families at this early stage who will benefit from this money.
Families will be selected through a lottery system and there are certain eligibility criteria to even be entered into the UBI Phoenix Lottery.
Those eligible to participate in the lottery are low-income families who have at least one child and earn 80% or less of the region’s median income.
In the city, 80% of the region’s median income for a family of four currently stands at $63,200 per year.
The city council also explained that families who have already applied for housing assistance, as well as residents of city-owned social housing, will also be eligible.
How does the Phoenix Universal Basic Income program work?
As far as funding for the Phoenix Universal Basic Income program goes, it will be funded by money from the American Rescue Plan Act.
Then, families who win the lottery will be awarded a guaranteed income of $1,000 every month for a year, to study the impact.
“We’re basically going to choose 1,000 families to receive $1,000 a month for 12 months,” said a member of the Phoenix City Council. Carlos Garcia told the Phoenix New Times.
“People know what their needs are, and I think it’s better for them to decide how to use the financial aid than for us to predetermine it.”