In a growing move to give poverty-stricken families a helping hand, the City of Oakland has launched a universal basic income program.
City officials announced on Tuesday they had raised $6.75 million in private funds to pay hundreds of randomly selected, low-income families $500 a month.
The checks come with no strings attached and could arrive as soon as this spring.
The pilot is open to all Black and Indigenous families, plus those with other residents of color, but with special attention paid to East Oakland. Those making 50% of the area’s median income or $59,000 for a family of three can apply, but half of the checks are reserved for those making less than $30,000 per year.
Oakland Mayor Libby Schaaf wants "Oakland Resilient Families" to give people a little so they can help themselves a lot.
"COVID has demonstrated that when we put unconditional cash directly into the hands of those who need it most, we are most effectively addressing immediate poverty and actually supporting our entire economy," she said.
The idea of guaranteed universal income was pioneered three years ago in Stockton by former Mayor Michael Tubbs, who said critics worried that recipients would spend the money on alcohol and drugs rather than find a job.
"People were actually able to work more because they had a little bit of money, a little bit of breathing room to go in (and) pay for child support, fix the transmission, to buy interview clothes and take a day off," he explained.
Some critics argue cash payments may help stabilize families in the short term but doesn't help lift people out of poverty in the future. Stockton's groundbreaking pilot provided $500 a month to 125 people starting in 2019.
Oakland's program has been billed as "one of the nation’s largest."
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