Residents of Chicago are seeing $500 payments hit their bank accounts as part of the Guaranteed Income Program.
$500 Monthly For Chicago Residents As Part Of The Guaranteed Income Program (PHOTO: CBS News)
The Guaranteed Income Program
Funds are coming from Chicago’s $31.5 million Resilient Communities project which has allocation from the American Rescue Plan. This was passed into law in 2021. The qualification for the program is acquiring 250% of the federal poverty level. That’s $36,450 a year for individuals and $75,000 for a family of four. However, the initiative targets the city’s neediest, such as veterans, caregivers, and those experiencing homelessness.
Similar programs already exist in different cities throughout the U.S., and the hope is that this program will allow low-income Chicago residents to better manage their expenses and maintain a reasonable standard of living.
The Chicago Program
In the case of Chicago’s program, an extra $500 a month could support some households out of poverty and ensure they’re able to cover expenses like rent, utilities, and food without having to skimp or resort to debt. And it could also provide residents with a lot more freedom than existing government programs.
Some lower-income households, for instance, may be eligible for food benefits through SNAP but lack access to housing assistance. Obtaining a $500 monthly that can be consumed anywhere could significantly alleviate that burden.
Moreover, those $500 monthly payments could qualify those who have never had an opportunity to produce savings to finally set up an emergency fund. Consumers are commonly advised to save sufficiently to cover at least three months of bills. For descending earners, that target often isn’t feasible. Now, they have more of a chance to create a financial safety net.
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