California Governor Gavin Newsom has approved a statewide guaranteed rent pilot program in seven cities with a budget of over $25 million. Some 1,975 beneficiaries will receive a monthly, individual payment of between US$500-1000 for a period of between one year and 18 months, which they will be able to spend without any limitations or conditions from the authorities.
The program will be implemented on a trial basis across seven projects in different locations, including Los Angeles, San Francisco, and Ventura County. In a statement, the California Department of Social Services (CDSS) announced the launch of the initiative in order "to disrupt poverty, advance equity, and support the basic needs of recipients." The performances will be supervised by the Urban Institute and the University of California, Berkeley. California's residents who are pregnant or youth aging out of extended foster care will be prioritized as beneficiaries.
Prioritizing "key life transitions."
CDSS Director Kim Johnson was elated at the presentation, "We are excited to launch these groundbreaking pilot projects throughout California, and I want to thank the Governor and Legislature for yet another historic investment in the fight against poverty in California. These pilots will serve as an important opportunity to assess the impact of an economic intervention
during key life transitions, such as the birth of a child or entry into independence after extended foster care."
In the same vein, the Special Advisor for Economic Mobility and Opportunity and founder of Mayors for a Guaranteed Income, Michael Tubbs, expressed his thoughts. "I am proud to see my home state of California ushering in the promise of a guaranteed income to build financial resilience among our residents. Just as we saw with the pilot program I led as mayor of Stockton, I'm confident these funds will provide crucial support for families and strengthen our communities."
"It undermines incentives to work."
Although the program was approved without a single dissenting vote in both the Senate and the State Assembly, not everyone shares the optimism and joy. This is the case of Republican Assemblyman Vince Fong, who abstained during the vote and criticized it, he told Just The News that such socialist-style measures "undermine incentives to work and increase dependence on government. Guaranteed income doesn’t provide the job training and skills needed for upward mobility."
Angela Rachidi was also very critical of the initiative. "It likely will substantially reduce or replace employment, although only being a temporary program might lessen any expected employment effects. Decreased employment results in negative long-term outcomes, such as reduced upward mobility. Youth aging out of foster care should be helped into the labor market, not incentivized to stay out."
Although it will be the first guaranteed income for the state of California, there are already similar initiatives such as the one mentioned above in Stockholm or, more recently, a project in San Francisco that will provide $1,200 per month to 55 trans people. There is also something similar in Oakland and Marin and Santa Maria counties.
