The city of Cambridge will soon be giving $500 monthly payments to 120 single-caretaker households during an 18-month trial period, officials announced on Thursday.
Cambridge is the first city in New England to launch such a guaranteed income pilot. The city joins a growing number of direct-cash pilot projects across the country, including in Baltimore, Oakland and several other cities.
The households that will start receiving the no-strings-attached monthly payments in August will be chosen through a lottery. Participants will receive $500 monthly payments through a debit card for the 18-month period.
The Cambridge RISE (Recurring Income for Success and Empowerment) project has been spearheaded by Mayor Sumbul Siddiqui, Vice Mayor Alanna Mallon, Councilor Marc McGovern and nonprofits.
“We know single-caretaker families in Cambridge are struggling, are well below the Cambridge poverty line, and the impact to single mothers and women of color are even higher; we need a financial vaccine for Cambridge’s most vulnerable residents,” Siddiqui said.
“These families are struggling to make ends meet and are often unable to pay for emergency related costs,” she added. “As we’ve seen in pilot projects across the country, we anticipate this investment in our pilot group will have significant positive impacts in the overall health and well-being and employment outcomes of these residents.”
In Cambridge, one out of every 10 families with children under the age of 18 live below the poverty line, while one in three female-headed households with minor children live below the poverty line.
According to a new research report by the Cambridge Community Foundation, 20% of the city’s population earns an average of $13,000 per year.
In Stockton, Calif., a guaranteed income has helped families stabilize and plan for the future, according to the city’s former mayor.
“What we found is that people did not stop working, in fact, people were able to find full-time jobs,” said former Stockton Mayor Michael Tubbs, adding, “We saw significant declines in stress and anxiety and depression … for those who received the $500.”
To be eligible for the Cambridge program, households must be headed by a single caretaker with children under the age of 18 and fall below 80% of the area median income.
The 120 participants will be randomly selected from a pool of applicants who meet the eligibility requirements.
Cambridge RISE is fully funded by philanthropic partners, with major financial support from the Cambridge Community Foundation. The program has also received support from Harvard University, MIT, The Boston Foundation, as well as from local nonprofits, state reps and donors.
