- The Universal Basic Income program will be tested in impoverished Stockton, California with some heavy backing from nearby wealthy Silicon Valley
- A $500-a-month stipend will be given to 100 residents for 18-months
- The money comes with no strings attached with the program aiming to see how raising the income floor will change people’s financial situation
- The money can be used for anything with the idea that with some financial empowerment people will be able to start new ventures, afford food, pay bills
- The idea of the test is to see if the financial help will up school attendance and health and possibly contribute to female empowerment
- The Stockton test will be funded in part by Facebook’s co-founder Chris Hughes whose organization, the Economic Security Project, contributed $1million
Stockton, California will become the first city in the country to participate in a test of Universal Basic Income, in which 100 residents will be given $500-dollars-a-month, with no strings attached.
The program aims to create a level of income that no one will fall beneath.
By providing impoverished residents a regular sum of money that they can use on anything they wish, be it food, clothes, gas, or starting a new venture, those behind the program believe it could go a long way to give people enough support to try out new ideas.
The program in Stockton, which was once known as America’s foreclosure capital, will see the program launched by 2019, and the payments will continue to the individuals chosen for the program for a full 18-months.
The Stockton UBI program has heavy backing from one of the wealthiest areas of the country- Silicon Valley, according to CNN Money.
The concept of Universal Basic Income has gained traction and support from some Silicon Valley leaders, including Elon Musk, Richard Branson and Mark Zuckerberg. It is seen as a way to possibly reduce poverty and safeguard against the job disruption that comes from automation.