Newark becomes latest city to launch universal basic income program
NEWARK — City officials on Monday launched a two-year pilot program that will eventually provide cash payments to some 400 low-income residents, making New Jersey’s largest city the latest place to embrace guaranteed income as a way to bridge the wealth gap.
“[We want] to show the world that we give our residents freedom of choice and recognize and affirm that inherent dignity, they will make decisions that will help us build a stronger and more resilient city,” Mayor Ras Baraka said during an afternoon press conference on the steps of City Hall.
Background: Guaranteed income, or universal basic income, is an idea that’s gained momentum in recent years. About two dozen pilot programs are being tested in cities across the nation, according to Newark officials.
The idea has long been discussed in academic circles and was championed by Martin Luther King Jr. in the 1960s.
But the concept punctured the national discourse when then Stockton, Calif., Mayor Michael Tubbs proposed giving cash payments to residents of his city, and former Democratic presidential candidate Andrew Yang made it the centerpiece of his campaign in 2016. Yang is now the frontrunner in the race to become New York City’s next mayor.
Newark’s plan: Baraka pledged to test out a universal basic income back in 2019, and the city has since been exploring how to best implement it. In its truest form, universal basic income gives residents a certain amount of cash each month, regardless of income level.
But Newark, like many other cities, is targeting lower-income residents who are housing insecure to see if giving them cash will help curb the racial wealth gap. New Jersey has one of the widest gaps between white and non-white families.
Under Baraka’s plan, participants will receive $6,000 per year for two years, with half the participants receiving payments on a bi-weekly or monthly basis and the other half receiving the payments twice yearly.
Those chosen for the program must be Newark residents who are at least 18 years old and earn at or below 200 percent of the federal poverty threshold.
What’s next: The city is starting with an initial cohort of 30 residents before increasing that number to 400 residents by the fall. About $2.2 million has been raised from private donors, Baraka said, and the city will continue to fundraise.
The goal, the mayor said, is to add to the existing body of research on how to best structure an unconditional cash policy on the state and federal level, not create a city-funded program.