Imagine getting $1,000 every month, for free! That’s what happened to some people in Austin, Texas. The city started a program called a guaranteed income program, where they gave 135 families $1,000 a month for a year, with no strings attached. They could use the money for anything they wanted, like rent, groceries, or even saving up for a car.
This was the first time a city in Texas had tried something like this. Some people thought it was a crazy idea, while others were excited to see how it would work. The city hoped that the extra money would help people get out of poverty and have a better life.
So, did it work?
A new report from a research group called the Urban Institute says that the program did help people pay for housing and food. On average, people spent more than half of the money they received on rent or mortgage payments. This means that the program helped people keep a roof over their heads.
One woman who got the money, Taniquewa Brewster, said it helped her pay for medical bills after she was in the hospital. She said it was a big relief to not have to worry about money while she was recovering.
What are guaranteed income programs?
Guaranteed income programs are becoming more popular around the United States. They’re basically like giving people free money, with no strings attached. The goal is to help people who are struggling financially and to give them more control over their lives.
Some people worry that if people get free money, they won’t work anymore. But research shows that this isn’t usually the case. In fact, some studies have shown that guaranteed income can actually help people get better jobs.
What’s next for Austin?
The Austin program ended in August 2023, but the city is still studying the results. They’re hoping to learn more about how guaranteed income can help people and whether they should start the program again.
Other cities in the United States are also starting to experiment with guaranteed income programs. It’s an idea that’s still being tested, but it has the potential to make a big difference in people’s lives.
Here are some other cities that have tried guaranteed income programs:
- Stockton, California
- Chicago, Illinois
- Jackson, Mississippi
- Newark, New Jersey
- Los Angeles, California
It will be interesting to see how these programs work out and whether they become more common in the future. Maybe one day, everyone will get a little bit of free money every month!
